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20 Charts on Advertising in India – Estimates for 2015

Advertising spends in India are expected to grow 12.6% year on year to Rs 48,977 crores, of which Digital Advertising spends will account for Rs 4,661 crore, according to estimates by GroupM. The growth in 2014, to Rs 13,490 crores, is being attributed to an increase in spending due to elections (both General and State elections), as well as advertising from categories like e-commerce and Telecom. “The FMCG sector, which contributes to nearly a third of the AdEx, had a steady year, growing broadly in line with the industry average,” GroupM said in a statement.

CVL Srinivas, CEO, GroupM South Asia said in a statement that advertisers are cautious but optimistic: “With a new Government coming to power the negative sentiment has lifted but there is still some bit of caution amongst advertisers.We continue to operate in the same zone as last year at an overall level.” In addition, GroupM is “seeing a lot more confidence amongst local businesses to invest in brand building than before. This is a positive sign for the industry. Penetration of smartphones coupled with the popularity of online video is making FMCG spend more on digital. Another trend is the emergence of categories like e-Commerce and the increased competition in Telecom both of which are aiding the growth of traditional media channels including Print and TV apart from Digital.”

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Expectations

– e-Commerce is expected to lead the charge in 2015 in terms of ad spend growth although from a relatively smaller base than more established categories. There is increased competition in this sector and no dearth of funding.
– FMCG, Auto and Telecom are expected to do better than the previous year. (Editors note: high cost spectrum auctions may impact telecom advertising spends)
– More multinational entrants under single brand retail are likely to add to retail spending.
– Recent rate cuts by the Reserve Bank of India will stimulate the banking sector.
– Higher spends from the Central Government as they showcase their new initiatives.
– “Programmatic buying will see an impetus, as all media in the future will see automation, backed by smart data and analytics”, says Prasanth Kumar, Managing Partner, Central Trading Group, GroupM South Asia and CEO Designate Mindshare South Asia.

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Segmentwise charts

1. Digital

– Digital media continues to show the maximum growth with 37% in 2015.
– GroupM expects Video, Mobile and Social to be the biggest growth drivers.

 

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2. Television

– Television shows a higher growth percentage in 2015 compared to last year with 16%.
– TV channels will especially be bullish with cross media integration via their own digital platforms.
– The big ticket event this year is the ICC Cricket World Cup in February and March, with scope for programming and advertising innovation during the tournament.

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3. Print

– Even with pressures on advertising revenues, the print medium shows an increase by 5.2% as against the 2014 estimate of 7.6%
– Print magazines continue to be on the decline, as several are looking at digital delivery mechanisms.

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Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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