India remains fastest growing ad market in the world with AdEx growth estimate of 14% in 2019: GroupM

As per the latest ad forecast report, total ad spends in India is estimated to grow at a rate of 14.3%, when globally, the growth is expected to be about 3.6%.

MUMBAI: Digital will continue to lead the growth in the advertising expenditure in the country, which is expected to touch Rs 80,678 crore as per the latest forecast by GroupM.

As per the latest ad forecast report, ‘This Year, Next Year’ (TYNY), released by WPP’s media investment firm - GroupM on Tuesday, total ad spends in India is estimated to grow at a rate of 14.3%, when globally, the growth is expected to be about 3.6%.

While the organic growth in India is expected to be just over 11%, special events like the general elections and ICC Cricket World Cup, will contribute 3% to the overall advertising expenditure (AdEx).

Sectors such as FMCG, Auto, retail, e-commerce, technology and telecom are expected to contribute to two-third of the Adex, the report said.

Furthermore, India will be third highest contributor to incremental ad spend globally with 7% incremental share. India also tops the list as the fastest growing major ad market in the world, while remaining in the top 10 largest markets in terms of ad spends.

“We expect sustained and stable media investment growth across categories in India,” Sam Singh, CEO, GroupM South Asia said.

This year 37% of incremental ad spends will go towards digital advertising including mobile. The scale at which the country is witnessing this digital transformation, GroupM estimates the Digital Adex to continue to grow by 30% in 2019 to Rs 16,038 crore.

“Indian ad spends CAGR between 2014-2018 is at 13% 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,” said Prasanth Kumar, COO, GroupM South Asia.

Television will continue to grow at a steady pace of 15% to Rs 38,612 crore, while Print will continue to be the second largest medium with ad spends worth Rs 18,368 crore.

The share of print to all media is expected to be at 23%. While it is expected for both English and regional languages to grow, regional will see slightly higher growth, the report predicts.

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.”





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