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Ad spend to grow by 12% in exit quarter of 2016: Ashish Bhasin
MUMBAI: Owing to the festive season starting with Dussehra in October until Christmas in December, the final quarter of every calendar year is crucial for media company owners, advertisers and agencies.
Dentsu Aegis Network South Asia chairman & CEO Ashish Bhasin expects the overall ad pie to grow by 12% in the October–December 2016 quarter.
“There is cautious optimism in the market. There isn’t euphoria. There has been the Pay Commission hike and a good monsoon. However, these factors have not yet translated on the ground. Therefore, this quarter is very important. The expectation is that things will pick up. But clients are cautiously optimistic. They don’t want to commit too much and find that things haven’t picked up as anticipated. If things don’t pick up then it is bad for our business,” Bhasin said.
He expects TV to have had a good month in October. “We will see how it fares in November and in December. TV will take 40% of the ad spend. Digital and outdoor will fare very well in the last quarter. Digital is growing at the rate of 35% and will take 10% of the ad spend. Print will be steady and will take 35% of the ad spend but at a lesser rate of growth.”
The market mood for him is slightly more positive than last year. The GDP growth rate is 7–8% and ad spend rises a little faster than that by a factor of around 1.5. FMCG, auto and telecom are the big ad categories.
“FMCG is weighted more towards TV. E-commerce continues to be important, though the number of players advertising has reduced. Now only the big ones advertise compared to last year. The e-commerce category will see a marginal growth in ad spend due to the reduction in the number of players who will advertise,” Bhasin explained.