Pepper Awards: Our AdEx grew from Rs 12,000 cr to Rs 60,000 cr in 10 years: Sam Balsara

Advertising stalwart and Madison World Chairman, Sam Balsara was the Chief Guest at the Pepper Awards held on May 17 in Kochi

by Neethu Mohan
Published - May 20, 2019 9:40 AM Updated: May 20, 2019 9:40 AM
Sam Balsara Pepper Awards

Addressing the audience at the Pepper Awards 2019 held in Kochi on May 17, Balsara spoke about the importance of awards and how it promotes creativity. He spoke about the growth of digital media, how local and regional brands are evolving and their contributions towards the world of advertisement.

Speaking on the role of awards in the field of advertising Balsara said, “I must confess that I was one of those people in the early days who did not think positively about the contribution that awards can make to an advertising professional on the whole. Although I used to organize many awards, I used to think that it is like a party for the advertising team. Many large globally renowned clients such as  Procter & Gamble thought likewise. Until one fine day in 2003, when I was in the jury of Cannes and was surprised to find that Procter & Gamble has descended their bay on Cannes with a delegation of 25 people from around the world because they realized that they don’t produce the best advertisements despite the fact that they were the world’s largest advertisers. Therefore, they want to expose their people to high standards of creativity.”

Balsara stated that awards are important because they promote creativity and push young people to the boundaries of creativity to come up with new ideas. According to Balsara, these are one of the reasons why our advertisements always remain fresh and move hearts and wallets of almost 1 billion Indians.

Speaking on the growth of digital Balsara said, “The most major change that has enveloped the advertising world some years ago and is now enveloping India, is the arrival of digital. Digital advertising which was 4% of the advertising market 10 years ago now stands at 19%. That makes digital the third largest medium in the country.”

He continued, “Print has lost 9% points in terms of market share and Television much less at 3% points of this humungous advertising industry. The advertising market is also growing at a fierce pace and individual media is not facing the impact of this drop in market share.”

“Our AdEx has grown in 10 years by 5 times from 12,000 crores to 60,000 crores, registering a compound annual growth of 12%,” Balsara added.

Speaking about the future of growth of Indian advertising he said, “The future of advertising in India is extremely bright. I say it not because I am an optimist. Advertising today as the percentage of our GDP is only 0.35 %, the global average is close to 1%. All countries in the world including India are fast globalizing. Even if our GDP was to remain constant, our advertisement market would triple in size that will become 1,80,000 crore.”

He continued, “As you all know our GDP is not remaining constant, our GDP is growing at the rate of 7-8 % which makes us the fastest growing economy in the world. Our AdEx is also registering the highest growth amongst all major countries in the world.” Balsara said that over the last 10 years the Television industry has added 3000 new advertisers and pint has added 80,000 advertisers. “I don’t have an estimate on the digital front, I suspect that the digital has added even higher advertisers than print has. There is also the democratization of brands and brand owners that are taking place in the market,” he added.

Elaborating further on the growth of regional and local brand growth Balsara said, “10 years ago the Top 50 advertisers accounted for 43% of AdEx. Today Top 50 accounts for only 35% of AdEx. My advice to bigger advertisers is not to ignore the local and regional advertisers who are indeed very strong in the local areas, commanding high loyalty and who with a new generation of promoters are taking control of the legacy businesses and are slowly expanding the geographical coverage of such brands.”

“According to a report by Nielsen, the big 50 brands which accounts for 60% of the total market actually grew by 10.6%, but the small brands which accounts of 21% of the market grew by 18.5%. So you could say smaller, local, and regional brands are growing at almost twice the pace of the larger brands,” concluded Balsara.

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