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GroupM estimates India will contribute $1.35bn of ad growth in 2019

India ranks third on the list of 10 countries that are expected to provide 83% of 2019’s ad growth. GroupM also downgraded its growth expectation for 2018 and prediction for 2019

India is expected to contribute $1.35 billion to ad growth in 2019, according to GroupM’s 2019 Ad Forecast.

The growth is roughly similar to the combined growth of Australia, Russia and Brazil even though India’s total ad economy is a mere quarter of these countries’ combined heft. India’s 14% ad-investment growth is rooted in 7% real consumer spending growth.

India ranks third on the list of 10 countries that are forecasted by GroupM to provide 83% of 2019’s ad growth. China remains the largest contributor followed by US at the second position. Japan bagged the fourth spot whereas UK stayed at the fifth rank in spite of the fears of Brexit fallout and consumer fatigue.

On the forecast, Kelly Clark, CEO, GroupM, said, “Worldwide advertising investment grows slowly but marketing has never moved faster. Automation proliferates; cycles accelerate; talent grows more mobile. The gap between the cost of failure and the value of success grows wider. For advertisers, this underscores the importance of a worldview and trusted partners who can help their brands perform where the growth can be found.”

GroupM downgraded its ad investment growth expectation for 2018 and prediction for 2019. The total ad investments in 2019 are anticipated to reach $19 billion from the previously estimated $23 billion. The 2018 growth expectations have been downgraded from 4.5% to 4.3% whereas 2019 will have a growth of 3.6% from the previously predicted 3.9%.

The recent appreciation of the US dollar versus other currencies has resulted in the suppression of growth. Stress on the auto category stood out in feedback from GroupM’s worldwide network, as did the absence of any rebound in CPG investment with traditional media.

Adam Smith, Futures Director, GroupM, who authored 'This Year, Next Year' said, “GroupM’s still strong but slightly fraying 2018 view ties to macro questions: tighter money, China’s slowing growth, and the potential for pricey trade wars. Real interest rates are edging up globally, but serious potential problems remain limited to a fragile five — Argentina, South Africa, Brazil, Turkey, and Venezuela.”

Tags: GroupM
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