Ad spend in India is set to grow 12 per cent next year, even as global ad spend is expected to grow by 5 per cent in 2015, and by 6 per cent in 2016, according to ZenithOptimedia, a global media services network.
ZenithOptimedia expects the advertising expenditure (adex) to grow by 12 per cent to ₹40,307 crore, at an overall level in 2015, as against 10.7 per cent in 2014. The media agency has noted that advertising in print would hog the prime slot, with adex at 12 per cent, while TV would corner less adex at 10 per cent. Online and mobile together would corner adex at 25 per cent, the agency has noted in its global ad spend forecast.
The agency expects consumption to keep picking up, with passenger car and utility vehicle sales turning positive, credit card spend on the rise, and loans for durables growing. From an ad expenditure point of view, fast moving consumer goods are bound to continue their dominance, the agency has said.
However, given the weak monsoons, the agency said some categories might stay flat or have slow growth. While high growth is expected from the telecom sector, e-commerce, mobile phones, cars and two wheelers, retail, realty and the banking and financial services sector, would also see an uptrend in ad spends.
Moreover, with 2015 also the year of ICC Cricket World Cup, the agency has forecast that it would be a trigger for growth in advertising expenditure.
The report emphasises that the new government seems to have captured the collective consciousness of the country.
With the new TV measurement system scheduled to launch in 2015, the much awaited Phase III expansion of FM radio would also push adex, the agency has said, adding that regional media, across print, TV and all other media would continue to drive growth in media consumption.
However, on a global scale though, adex is not expected to pick up substantially. ZenithOptimedia’s advertising expenditure forecast has noted that global adspend will grow 4.9 per cent to reach $545 billion in 2015.