Kolkata: Advertisement expenditure in India can grow 12% to Rs 40,307 crore in 2015 if the current positive consumer and business sentiment holds, according to ZenithOptimedia global ad spend forecast.
This growth will be fuelled by print at 12%, TV at 10% and online and mobile at 25%. Other media are expected to grow between 5% and 10%.
At the beginning of 2014, the agency had forecast that the Indian advertisement market would grow 10.7%. It is now expected to end the year with at least 10% growth.
The report categorises India as one of the fast-track Asian markets along with China, Indonesia, Malaysia, Pakistan, the Philippines, Taiwan, Thailand and Vietnam. According to it, these economies are growing rapidly as they adopt western technology and practices, while benefiting from the rapid inflow of funds from investors hoping to tap into this growth.
The Asian advertising market appeared less affected by the 2009 downturn -ad expenditure grew by 7.4% that year -and since then has grown strongly. It is expected to end 2014 with 10.1% growth, and the report predicts that this market will grow by 10-11% a year for the period 2015 to 2017.
“It has been just over six months of the newly elected government led by PM Narendra Modi. The government seems to have captured the collective consciousness of the country,” said Anupriya Acharya, Group CEO, ZenithOptimedia Group.
“Thus we enter 2015 with a strongly positive consumer and business sentiment, albeit recognising that consistent onground delivery and reforms will be needed to keep this sentiment up. Hence, cautious optimism, though with way more optimism than same time last year, is still the right expression”, she added.
The agency expects consumption to continue to pick up, with passenger car and utility vehicle sales turning positive, credit card spending on the rise, loans for durables growing. From an advertisement expenditure point of view, fast-moving consumer goods will continue their dominance, but given the weak monsoons, some categories might stay flat or have slow growth, Acharya said.
High growth is expected from telecom, e-commerce, mobile phones, cars and two-wheelers, retail, realty and the BFSI (banking, financial services and institutions) sector.