Forecasts continue to be extremely bright in India, the highest spending and fastest growing advertising market globally. Advertising spend is expected to accelerate by 12 per cent in 2016, a buoyant year with multiple media events taking place in the market, including the T20 Cricket World Cup, the Indian Premier League (IPL) as well as the state elections, according to Global Ad Spend Report from Carat for the year 2016-17.
Retaining its position as one of the fastest growing world economies with real GDP growth of 7.5 per cent in 2016, the positive advertising outlook for the Indian market is expected to continue in 2017, growing further by 13.9 per cent.
Ashish Bhasin, Chairman and CEO South Asia Dentsu Aegis Network, Chairman Posterscope and MKTG Asia Pacific said, “Carat, the leading media agency from Dentsu Aegis Network, had anticipated that the advertising spends in India will grow by 12 per cent in 2016, and in our latest forecast, we continue to maintain that. This makes India one of the fastest growing markets in APAC and the world.”
India is one of the few large markets where all traditional media platforms still show positive growth. Holding the highest share of spend of 38.5 per cent in 2016 and 38 per cent in 2017, TV is forecast to grow by 12.3 per cent in 2016 and 12.5 per cent in 2017 driven by investment from FMCG brands and e-commerce companies.
Newspapers still represent the second largest media type with 35.7 per cent share of total spend in 2016, and this is expected to continue to grow by 10.5 per cent this year and 10.8 per cent in 2017.
As in other markets, Digital is the fastest growing media type in India (31.5 per cent in 2016 and 39.6 per cent in 2017), but its share of spend (8.9 per cent expected in 2016 and 10.9 per cent in 2017), still remains relatively low compared to the resilient traditional media.
India is gradually transitioning from a “mobile first” to a “mobile only” country. Mobile spend is forecast to grow by 27.2 per cent in 2016 and 35.1 per cent in 2017.
“Digital will continue to be the fastest growing medium, accelerating both its growth rate and its relative market share in 2017. We expect the digital growth to be about 31.5 per cent in 2016 and to accelerate to nearly 40 per cent in 2017. Mobile will drive the digital growth immensely and India will transform from a “Mobile First” to a “Mobile Only” market very rapidly, aided by better broadband penetration and drop in data rates. What is also unique about India is that all types of media, including print, still continue to grow, albeit at different rates,” Bhasin added.