Ad spends to grow 12.1% in 2018: report

NEW DELHI: Advertising expenditure in India will grow 12.1% to reach ₹68,334 crore in 2018, IPG Mediabrands-owned media agency Magna said in an advertising forecast report released on Monday.

The forecast for 2018 is higher than the 11.5% forecast for 2017 that the agency put out in June, which has now been cut marginally to 11.1% due to the prolonged effect of demonetisation and the temporary disruption caused by the goods and services tax (GST).

Ad spending this year is expected to reach ₹60,972 crore by December end, Magna said.

In contrast with Magna’s optimistic prediction, Publicis Groupe owned media agency Zenith India said in it’s Advertising Forecast report released last week that advertising in 2018 will grow 8.4% to reach ₹58,422 crore.

The growth in ad spends is being aided by an upswing in the economy after bold structural reforms like demonetisation and GST introduced in July, the IPG Media report stated.

“We are convinced that 2017 adex (advertising expenditure) growth was held back because of demonetisation and GST. The government’s intent to relook at the incidence of taxation is evident and there are traces of revival in economic activity. Hence, we expect 2018 to do better than 2017,” said S Venkatesh, executive vice-president, Magna India in an emailed response.