Publicis Groupe owned media agency Zenith has forecasted Advertising expenditure in India to grow at 11.2% to reach Rs 54,344 crore in 2017.
The forecasted Advertising expenditure is about two per cent lower than the 13% predicted for 2016 when ad spending is estimated to touch Rs48,797 crore. The media agency on Tuesday released Advertising Expenditure Forecast report stating events such as state elections in Uttar Pradesh and Punjab, the upcoming Champions Trophy as well as growth of regional newspapers and television will drive steady growth of ad spends in 2017.
India is one of the few larger fast-track growth markets in Asia where all traditional media platforms will grow, the report said. Television advertising is expected to grow 11%, print 7.6% and other media (outdoor, radio and cinema) between 7% and 12%. Although digital, growing at 30%, is the fastest-growing medium in the country, its share of spending still remains relatively low compared to traditional media like print and television.
The report predicts that global ad expenditure will grow at 4.4% to hit $566 billion by the end of 2017. The forecast is down by 0.1 percentage points from the forecasts published in September after small downgrades in Asia Pacific, which nevertheless remains one of the fastest growing regions for ad expenditure. It also predicts a steady growth in global ad spend of 4.4% growth in 2018 and 4.1% in 2019.
Tanmay Mohanty, group CEO, Zenith India said, “Ad spending in India is on a steady growth curve and is likely to stay that way in 2017. In November, the central government introduced reform in the form of demonetisation (of high value currency notes) which is leading to some contraction in ad spends. We expect the demand for goods and services to pick up and this shortfall to be temporary. In fact, we expect 2017 to see increased ad spending by categories such as mobile wallets, telecom 4G, banking, financial services and insurance (BFSI), mobile handsets, fast moving consumer goods (FMCG) and consumer durables.”
According to the report, India is among the top ten contributors to ad spend growth, along with other markets such as US, China, Indonesia, UK, the Philippines, Japan and Germany. It also figures in the ‘Fast track Asia economies’ along with China, Indonesia, Malaysia, Pakistan, the Philippines, Taiwan, Thailand and Vietnam which are growing rapidly, adopting western technologies and practices, while benefiting from the rapid inflow of funds from investors.