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