Advertising spend will grow 10.5% to ₹62,400 crore in 2018: Dentsu
New Delhi: Advertising expenditure in India is expected to rise 10.5% to touch ₹62,400 crore in 2018, according to an estimate by Dentsu Aegis Network (DAN).
This is lower than DAN’s January estimate of 12.5%.
Ad spending, which grew at 8.9% last year, is expected to grow at 11.1% in 2019, said the report.
Despite a slow start in the first quarter of 2018, the report stated that the market has been picking up from March, fuelled by a stable recovery, post reforms such as demonetization, the goods and services tax (GST) and the Real Estate (Regulation and Development) Act (Rera). Growth has also benefited from the assembly elections in Meghalaya, Tripura, Nagaland and Karnataka.
“Digital continues its rapid growth at 31.9%, with online video gaining in share. This has been driven largely by the availability of high-speed connectivity across the country and it is only set to grow faster,” said Kartik Iyer, president, media brands and media investment arm Amplifi, at Dentsu Aegis Network India.
While digital is the fastest-growing medium, television with a projected market share of 39.1% continues to lead the media share of the Indian advertising spend pie, with print occupying 29.3% share.
The report said that the India-South Africa cricket match held in January and the budget announcement in February led to the continued expansion and growth of regional newspapers and television. It also predicted that both social and online video will see growth for the next five years as India continues to evolve their internet, mobile, cloud audience.
“It wouldn’t be a surprise to see some forward thinking brands trying to use video instead of TV in a few test and learn cases,” added Iyer.
The global ad spend growth will rise from 4% in 2017 to 4.5% in 2018 - higher than the 4.2% forecast in January 2018 - and taking total investment to $215.95 billion. This growth will be aided by regional events such as the 2018 FIFA World Cup, 2018 Winter Olympics in South Korea, Asian Games in Indonesia and Australian federal election.
Mobile phone has emerged as the most engaging medium and this growth in usage is largely driven by the widespread availability of high-quality digital video. The report stated that nine out of 10 social media users opt for mobile browsing, with mobile apps accounting for 70% of time spent on social media. Therefore, mobile is forecast to represent a quarter of global ad spend 25.2% this year exceeding the previous prediction of 24.8%.
Globally, digital media spend is expected to increase by 12.6% in 2018 to reach $230.6 billion. Paid Search continues to account for the largest share of digital (39%) followed by online video (24.6%) and social media (21.6%).
- Ad spending in India to grow 12.5% in 2018: report
- TV reality shows turn to mobile screens to boost audience engagement
- Cannes Lions 2018, day 3: India brings home 5 metals
- Not every film can become a ‘Mahanati’: Actor Keerthy Suresh
- Market value of sports media rights in Asia Pacific to touch $5 billion in 2018: report