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GroupM forecasts 14% ad growth in India in 2019

India is predicted to be the 10th fastest growing country on ad spends across the globe and the third highest contributor to incremental ad spends at 7%. Television to grow by 15% and radio by 15%, which is higher than the last couple of years. In 2019, 37% of incremental ad spends will go towards digital advertising, including mobile

WPP media investment group GroupM has predicted 14% ad growth in India and Rs 80,678 crore as India’s advertising investment in 2019. According to the GroupM futures report ‘This Year, Next Year’ (TYNY) 2019, India tops the list as the fastest growing major ad market in the world with approximately two times the GDP growth.

Globally, the ad spends are predicted to grow by 3.6%. India will be the third highest contributor to the incremental ad spends with 7%, only behind China and USA. India is also predicted to be the 10th fastest growing country with respect to ad spends across the globe. India is forecasted to contribute 14% YoY ad spends in 2019.

Sam Singh

Speaking on the TYNY 2019 report, Sam Singh, CEO, GroupM South Asia, said, “While we are estimating the global advertising expenditure to grow at 3.6%, India would be witnessing the fastest growth at 14% and reach estimated Rs 80,578 crore. This would be approximately 2x of the estimated GDP growth in India. This also makes India the third largest adex growth to worldwide ad spends. We expect sustained and stable media investment growth across categories in India.”

Television is said to grow at a steady pace of 15%, mainly on the back of two main events —the cricket World Cup and elections in 2019, which are expected to boost ad spends. The ad spends on television is expected to be around Rs 38,612 crore, as opposed to Rs 33,577 crore in 2018. FMCG, auto, retail, e-commerce, tech/telecom are expected to contribute to 2/3rd of adex. The share of ad spends is said to stay steady at 48% in 2019.

Prasanth Kumar

Prasanth Kumar, Chief Operating Officer, GroupM South Asia, said, “Indian ad spends between 2014 and 2018 is at 13% CAGR and 2019 expected to witness a higher growth. India is unique among key markets and will witness growth in all media segments and not just digital. Offline media is poised to continue to grow and will contribute to being around 80% of ad spends in 2019.”

GroupM estimates digital adex will continue its growth by 30% in 2019 to Rs 16,038 crore. This year, 37% of incremental ad spends will go towards digital advertising, including mobile. On the other hand, radio is expected to grow at 15%, which is higher than the last couple of years.

As 2018 saw more titles winning the audience at the box office, cinema will grow at 25% in 2019. GroupM expects cinema to shift from title-based advertising to continued advertising throughout the year. Lower tax on cinema tickets is expected to drive more footfalls to theatres.

Print is estimated to grow by 2.2% and the share of print to all media is expected to be at 23%. While both English and regional languages are expected to grow, regional will see a slightly higher growth. Vernacular will continue to thrive on both TV and print.

Tushar Vyas

Tushar Vyas, President Growth and Transformation, GroupM South Asia, said, “With the surge of technology, better insights and relevant engagement across different platforms, we are expecting marketers to build superior consumer connections for brands. 2019 will witness a faster growth in digital and we are expecting digital to be at 20% media mix. As we are witnessing one in every three Indians digitally connected, we can expect the convergence of data, digital and content to deliver seamless and powerful solutions to brands as well as constantly adding inventive practices into the market.”

GroupM also presented some of the current trends that will shape the media industry in India in 2019. The trends presented around emerging technology, data, content creation and distribution put the consumer at the centre and underline the theme of digital driving the change across all formats of media. The trends touched upon the TRAI tariff order implementation as well as its potential impact of increasing original programming and investments on content across broadcaster networks.

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