Amid elections, cricket world cup ad market to grow 16.4 pct to Rs 70,888 cr: Report
With the upcoming general elections and the Cricket World Cup 2019, the advertising market is expected to grow by 16.4 per cent to reach Rs 70,888 crore this year, says a report. However, citing the same growth drivers, the largest media agency GroupM Tuesday had forecast a growth of 14 per cent, with the advertising spends expecting to be Rs 80,678 crore.
"We are bullish about 2019 and expect growth of 16.4 per cent taking the total advertising expenditure (adex) to Rs 70,888 crore. The reasons for our high forecast are upcoming Parliamentary elections, increase in government spending to showcase its achievements, the upcoming ICC Cricket World Cup, the growth of OTT, increased spending in rural and India moving to a consumption society," the Pitch Madison Advertising Report 2019 said. Digital advertising is likely to grow at 33 per cent, followed by cinema at 30 per cent, albeit on a very small base, television at 18 per cent, radio at 12 per cent, outdoor at 11 per cent and print at five per cent.
"After two dull years, 2018 has seen significant growth in television and digital and we expect the momentum to continue in 2019. With this growth, India has regained its pole position of being the fastest growing advertising market in the world and is expected to retain this position even in 2019," Madison World chairman Sam Balsara said. The report noted that the industry grew at 14.6 percent in 2018, surpassing its forecast of 12.8 percent on the back of strong digital growth.
In absolute terms, it noted that the advertising spends has grown from Rs 53,138 crore to Rs 60,908 crore, an addition of Rs 7,769 crore, the highest addition in one year in the last decade. The digital advertising market had a growth of 26 percent in 2018. It has been growing at a compounded annual growth of over 30 percent forthe last 10 years and 24 percent forthe last 5 years, it noted.
The continued growth of digital is fueled by mobile, online video and social media, which are increasingly attracting more advertising investment, it said. "One of the key reasons for this growth has been the proliferation of OTT platforms. The OTT playing field has seen a 3.5x increase in a number of players from just 9 players in 2016 to 30 players now," it said.
Google and Facebook continue to dominate digital spends cornering 80 per cent of the total digital pie, it noted. Television still continues to be the largest contributor to ad spends with 38 percent share, followed by print at 32 per cent, digital at 19 percent.
In terms of absolute numbers, TV advertising grew by Rs 3,782 crore in 2018, fuelled by FMCG (Rs 1,660 crore) and auto (Rs 360 crore). E-commerce category too grew by 29 percent to reach Rs 1,100 crore from Rs 850 crore in 2017, it said. FMCG continues to rule the roost contributing as much as 50 per cent to the total television ad spends, followed by telecom at 12 percent and auto at 8 percent.
For print, it noted that India probably is the only major market where print ad expenditure is actually growing year on year. Print, which continues to be the second highest contributor after television with a share of 32 per cent, grew by 4.4 per cent during the year, marginally lower than its projection of 5 per cent.
(With inputs from agencies.)
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