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As Narendra Modi takes charge, GroupM revises upwards ad spend growth in India
MUMBAI: India will post a stronger advertising expenditure growth in 2014 as the overall sentiment has turned positive after the Narendra Modi-led BJP government has come to power with a thumping majority, according to a leading global media agency.
GroupM, WPP’s media agency conglomerate, has revised upwards its forecast for ad spend growth in India in 2014 to 12.5 per cent, from its prediction of 11.6 per cent growth earlier in the year. “After a cautious start to the year, the overall sentiment in the country is positive following the general elections and a new stable government,” said GroupM South Asia CEO CVL Srinivas.
GroupM said the retail sector will particularly splurge more. “One of the sectors that’s adding to the growth story in India is retail. With FDI in multi-brand retail taking a backseat, the market will see a surge of local players in this sector, specifically e-commerce players that are investing heavily in above-the-line advertising along with digital media,” Srinivas said.
FMCG, auto, telecom and BFSI (banking, financial services and insurance) sectors too are expected to increase ad spends, Srinivas added.
Television will be a big beneficiary. GroupM estimates ad spend on television to grow 14.8 per cent in the second half of the year, against the earlier forecast of 12 per cent.
In print, GroupM predicts dailies to witness more demand on premium positions. It projects regional publications and local advertisers to lead the growth for dailies. Government departments and retail players will continue to increase spending in print. Digital media, according to GroupM, will post maximum growth with 35 per cent.
The advertising expenditure revision is part of a global report called ‘This Year, Next Year (TYNY) 2014’.