Ad expenditure in India seen growing to ₹69,347 crore this year
NEWDELHI: With a marginal increase of 0.2%, the advertising expenditure in India is expected to grow at 13.2% to touch ₹69,347 crore in 2018, according to a mid-year forecast by Wpp-owned media agency Groupm in its June report This Year Next Year (TYNY).
Recently, IPG Mediabrands-owned media agency Magna predicted that Indian ad expenditure will grow at 12.5% to touch ₹68,000 crore in 2018.
According to the Groupm report, sports and elections will drive television advertising in India. Although print will grow at a slower rate (around 4%) election spending will provide relief. Radio is expected to do well, driven by local-focused categories such as retail, services and e-commerce. Cinema and outdoor, which is growing at 20% and 15% respectively, will see good growth as technology adoption increases and makes them more ad-friendly. Digital, the fastest growing medium of the media pie, will continue to grow at 30% to reach ₹12,337 crore.
The report stated that the initial estimates show that ad expenditure will pick up in 2019 growing at 14.2% to touch ₹79, 165 crore . The majority of spends will come from television (45.6%) followed by newspapers (23.7%) and internet (20.3%) .
“The Indian adex seems to have rebounded from the sluggishness we saw in 2017. We expect 2019 to be even better than the current year,” said CVL Srinivas, country manager, WPP India and CEO, Groupm South Asia.
Automobile advertising growth is expected to be high next year as car, scooter, luxury bikes and commercial vehicle segments will see good sales growth in 2019, driven by urban demand and infrastructure investment. Telecom ad growth will be driven by mobile handsets.
Fast moving consumer goods (FMCG) spends will be modest given the prospect of higher raw material costs affecting margins.
Consumer durables ad spends will witness average to high growth because of low penetration in consumer appliances, shorter replacement cycles and extreme weather conditions.
FOX AGREES TO A $71 BN OFFER FROM DISNEY IN BLOW TO COMCAST
Walt Disney Co. raised its offer for 21st Century Fox Inc.’s entertainment assets to $71.3 billion, outbidding Comcast in a battle for one of the media industry’s biggest prizes.
The $38-a-share price is about $10 a share higher than what Disney proposed in December — and $3 above Comcast’s bid from last week. Fox has accepted the offer, saying it provides more flexibility and other enhancements than the $65 billion Comcast deal. Still, the opportunity remains for the cable giant to return with sweetened terms.
At stake is a trove of media properties, ranging from “The Simpsons” to “X-men,” that may help fend off the threat from Netflix Inc. and other streaming upstarts.
Both Disney and Comcast are looking to use the Fox assets to bolster their content and expand overseas.
THERE WILL BE NO LET-UP IN INDIA INVESTMENTS: UBER
Uber Technologies Inc. will continue to invest heavily in India, the ride-hailing company’s most important market outside the US, for an indefinite period rather than focus on cutting the company’s massive losses in the world’s fastest-growing major economy.
“The market opportunity is so significant that we’re not focused right now on how can we get this business to profitability,” chief operating officer (COO) Barney Harford said in an interview at the company’s headquarters in San Francisco. “We have an indefinite investment horizon in India.”
PATANJALI GETS U.P. GOVT NOD TO SUBLEASE LAND FOR FOOD PARK
The Uttar Pradesh Cabinet on Tuesday gave its nod to Patanjali Ayurved Ltd to transfer its land to its subsidiary company in Greater Noida for setting up a ~6,000 crore mega food park.
The subleasing is to be done by Patanjali’s special purpose vehicle (SPV) Patanjali Food and Herbal Park Noida Pvt. Ltd.
Addressing the media, UP ministers Sidharth Nath Singh and Satish Mahana said, “The cabinet has decided to add the name of Patanjali Food and Herbal Park Noida Pvt. Ltd to the 455 acre land allotted to Patanjali.”
SWIGGY ENTERS THE UNICORN CLUB WITH $210 MILLION FUNDING
Swiggy raised $210 million from a group of investors, catapulting India’s largest food delivery service provider into a select club of startup unicorns with a valuation of $1 billion or more.
The latest funding, led by Naspers and billionaire Yuri Milner’s DST Global, values Swiggy at roughly $1.3 billion, surpassing rival Zomato’s $1.1 billion valuation based on a February fundraising round.