Ad Spends May Rise 13.5% in ’17 on Dig­i­tal Push

The Economic Times - - Brands: Creating Desire - Shamb­havi.Anand @times­group.com

New Delhi: In­dia’s ad­ver­tis­ing in­dus­try will likely grow 13.5% in 2017 as the im­pact of de­mon­eti­sa­tion wears off, ac­cord­ing to the Pitch Madi­son Ad­ver­tis­ing re­port.

Ad­ver­tis­ing ex­pen­di­ture rose 12.5% to ₹ 49,480 crore in 2016 af­ter a drop of ₹ 1,650 crore in Novem­ber-De­cem­ber on ac­count of de­mon­eti­sa­tion. Spend­ing had in­creased 17.6% in 2015. The size of the mar­ket may swell to ₹ 56,152 crore this year, led by a 25% in­crease in spend­ing on ad­ver­tis­ing in the dig­i­tal me­dia, ac­cord­ing to the re­port.

“We ex­pect the mar­ket to grow by 8% for the pe­riod Jan­uary to April 2017, 14% from May to Oc­to­ber 2017 and 24% in Novem­ber and De­cem­ber 2017,” said Sam Bal­sara, chair­man of ad­ver­tis­ing and PR agency Madi­son World.

GroupM, In­dia’s big­gest me­dia-buy­ing agency, said ad­ver­tis­ing ex­pen­di­ture will likely ex­pand at 10% in 2017, the slow­est pace in three years, with the mar­ket pick­ing up from March-April, fu­elled by the re­cov­ery fol­low­ing de­mon­eti­sa­tion. GroupM es­ti­mated the mar­ket will ex­pand to about ₹ 61,204 crore from ₹ 55,671 crore in 2016.

Ac­cord­ing to the Pitch Madi- son Ad­ver­tis­ing re­port, the dom­i­nant ad­ver­tis­ers dur­ing 2016 were FMCG com­pa­nies, which con­trib­uted 32%, fol­lowed by auto at 10% and telecom at 8%. Ecom­merce con­trib­uted 4%. Last year’s growth came on the back of dig­i­tal me­dia ad­ver­tis­ing, which ex­panded 43% to ₹ 7,315 crore, equiv­a­lent to about 15% of the mar­ket. TV con­tin­ued to dom­i­nate the pie and grew by 9%, while print, a close sec­ond, in­creased 7% and ra­dio ad­ver­tis­ing rose 13%.

Hin­dus­tan Unilever, Ama­zon and Proc­ter & Gam­ble con­tin­ued to be the top three ad­ver­tis­ers in 2016 with HUL the largest, spend­ing more than ₹ 2,500 crore, ac­cord­ing to the re­port. Patan­jali, Oppo Mobiles and Re­liance Jio In­fo­comm were among the10 new­com­ers to the top 50.

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