GroupM Report: As election draws near, India adex estimated to grow by 14% in 2019
India is expected to be the third largest growth contributor after China and the US to the global ad market driven by 7% real consumer spending growth.
GroupM predicts that India will contribute $1.35 billion (Rs 9,516 cr approx.) of growth to the advertising industry in 2019. Growing at 14 per cent, India is expected to be the third largest contributor after China and the US to the global ad market driven by 7% real consumer spending growth. These findings are part of This Year, Next Year, GroupM’s twice-yearly look at worldwide media investment trends authored by Futures Director, Adam Smith.
In February GroupM predicted a growth of 13% for the calendar year 2018 over the corresponding period in 2017. It forecast India’s advertising investment to reach an estimated Rs. 69,346 crores this year. A 14 per cent growth over this will take India's adex to about Rs 80,000 cr in 2019.
The report said that sporting events and State and National elections will drive television advertising. Print advertising will grow at a slower rate in 2019, losing share to digital but election spending will provide some relief to the industry. Digital will see high double-digit growth the report said. This growth will be backed by video (with OTT players/A-VOD gaining traction) and other premium inventory.
Radio is expected to do well from auto, mobile handsets and a revival in FMCG, real estate and government spends. Cinema and outdoor advertising will continue to grow, as technology adoption improves ad visibility and from the growth of organized retail.
India’s 2019 prospective growth this year is the same order as Australia’s, Russia’s and Brazil’s combined growth, even though India’s total ad economy is a mere quarter of the others’ combined heft.
At the global level, GroupM slightly downgraded 2018 growth expectations from 4.5% to 4.3%. 2019 growth projections are also whittled from 3.9% to 3.6%, with total new investment anticipated to reach $19 billion instead of the $23 billion earlier predicted.
GroupM forecasts that ten countries will provide 83% of all 2019 growth. In the order of contribution, the ten countries are China, US, India, Japan, UK, Philippines, Canada, Australia, Brazil, and Russia.
Concerning the new forecast, GroupM’s CEO, Kelly Clark said, “Worldwide advertising investment grows slowly but marketing has never moved faster. Automation proliferates; cycles accelerate; talent grows more mobile. The gap between the cost of failure and the value of success grows wider. For advertisers, this underscores the importance of a worldview and trusted partners who can help their brands perform where the growth can be found.”
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