India’s projected ad spend growth revised upwards to 11.4% for 2019

MUMBAI: Dentsu Aegis Network’s Advertising Spend June 2019 Forecast report has predicted that India’s advertising spend will witness a double-digit growth of 11.4% to reach Rs 696.9 billion up from the 10.6% forecast in January and 10.8% growth in 2018.

The report stated that the ICC Cricket World Cup has put the growth on the front foot. Lok Sabha Elections have also led to an increase in ad spends in 2019.

India’s digital media spend is forecast to grow by 32.7% in 2019 to account for Rs 144.1 billion, making up 21% share of total spend. Infrastructure has propelled the growth in digital consumption.

TV continues to be the leading media in 2019 and will contribute 39% share of total spend. Despite digital growth, TV continues to be dominant as it enjoys an unmatched share of audiences. With 40% allocation of advertising spends, TV is forecast to expand in 2019 by 9.5% to reach Rs 271.4 billion.

The company’s latest advertising spend forecasts, based on data from 59 markets, predicts that the global growth will reach +3.6% in 2019, following growth of 4.3% in 2018, taking the total investment to US$609.9 billion. In the Asia Pacific, there is a predicted +4.0% growth in 2019, following +5.3% in 2018, taking the total investment to US$216 billion.

Geographically, Asia Pacific is the leading contributor to the global increase of US$20.9billion in 2019 compared to the previous year, contributing 39% of the global increase, closely followed by North America 34%. Comparatively, Western Europe is forecast to contribute 14% to new ad dollars with Latin America at 11% and Central and Eastern Europe at 3%.

The global forecast reflects softening growth across 9 of the top 13 advertising markets worldwide, with India and Brazil bucking the trend with accelerating growth in 2019. Some markets saw downward revisions from January 2019 forecasts including Italy and Russia with both markets seeing GDP slow alongside ad spend.

Dentsu Aegis Network Asia Pacific Executive Chairman Takaki Hibino said, “Asia Pacific has long been the melting pot of digital and technology developments. Though we have been facing a tougher economic environment, our ad spend forecast has shown that digital connectivity in APAC remains at its peak and consumer adoption rates have leapfrogged. Our business is built for the digital economy and we’re at the forefront of this growth, working alongside our clients to provide integrated solutions and build long-term sustainable growth for their brands.”

According to the report’s global media trend, digital continues to power ad spend growth and is forecast to grow 11.5% in 2019 to reach US$249.7 billion and 41.8% of the global share. Growth is steady into 2020 putting digital’s share of ad spend at nearly 45% by the end of the year. Mobile is the fastest growing platform within digital and is forecast to grow by 21.4% in 2019. Powering this growth is the increasing consumption of video on mobile – from Instagram Stories, TikTok and Snapchat to YouTube and VOD – with online video in general set to grow 20.5% in 2019.

The report revealed that TV ad-spend is expected to shrink slightly in 2019 (-0.1%) with a return to modest growth in 2020 of 0.6%. Into 2020 growth will be driven by more dynamic TV opportunities and innovation as the penetration of smart TVs continues. The decline of traditional print has accelerated from our January 2019 forecasts (Newspapers -7.7% and Magazines -7.4%) as digital continues to dominate. Out of Home sees continued growth and an upwards revision from January to 4.3% in 2019 to reach 6.3% share. Growth is driven by innovations in DOOH.

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