TV+digital expected to corner 72% of total ad spends in 2020: GroupM TYNY

MUMBAI: Television and digital together are expected to corner 72% of the projected Rs 91,641 crore ad spends in 2020, according to GroupM ‘This Year, Next Year’ (TYNY) report. In 2019, the two categories together had a 70% share of the total ad spends. A year before that, the TV+digital share of the ad market was 67%.

Television’s share of the ad spend is expected to be 42%, a 1% fall from 43% in 2019 while digital’s share might jump to 30% from 27% in the previous year. Print’s share is expected to decline to 20% from 22% a year ago even as radio and outdoor + cinema’s share is expected to remain stagnant.

As per the report, TV AdEx will grow by 7% in 2020 to reach Rs. 38,081 crore. In 2019, it grew at 6% to touch Rs 35,458 crore. Ad spend growth on digital is expected to be 26% which is lower than the 28% growth in 2019. The total ad spends on digital is projected to touch Rs 27,803 crore from Rs 22,057 crore in the previous year.

After degrowing in 2019, print media is expected to witness flat growth with an overall ad spend of Rs 18,140 crore. Radio and outdoor + cinema are forecasted to grow at 4% and 7% to reach Rs 2,986 crore and Rs 4,632 crore respectively.

The overall ad spend is expected to grow at 11% to reach Rs 91,641 crore from Rs 82,795 crore in 2019. This is an improvement from the 9% AdEx growth in 2019 but lower than the 16% growth in 2018.

India will continue to be the third-highest contributor to the incremental ad spends, only behind UK and USA while China drops to the fourth spot and the eight fastest-growing country with respect to ad spends across the globe.

Commenting on the TYNY 2020 report, GroupM South Asia CEO Prasanth Kumar said, “We expect the global adex to grow by 5.1%. The Indian media landscape is constantly evolving, will continue to witness the fastest growth of 10.7% to reach Rs 91,641 crores. While we expect sustained and stable investment across media in India, Digital to garner 65% of incremental ad spends in 2020. In 2020, India faces challenges and uncertainties across sectors just like other markets. However, this also brings opportunities for brands to innovate because of which we see an evolving media stack. This will be propelled by greater use of technology and better content across media.”

Digital secures number two position as the most used media vehicle and is estimated to reach 30% of ad spend in 2020 with growth coming from 3Vs (video, voice, vernacular-Indic) and advertising on e-commerce. The growth of digital is set to soar high because of changing consumer habits.

GroupM South Asia President Growth and Transformation Tushar Vyas said, “There are multiple advancements happening in technology which is transforming digital advertising and other mediums. India being a diverse country, digital will keep growing, especially with the rise of content platforms and its availability in multiple languages powered by the growth of 3Vs. From a predominantly ‘at home’, ‘urban’, ‘English print’ & ‘TV’ consuming market, the Indian media consumer evolved to include ‘on the move’, ‘rural’ & ‘regional’ counterparts, experimented with digital media in the early 2010s’, adopted social media in middle of the decade and started consuming digital videos voraciously after 2016.”

Even with an overall slowdown in the global economy Indian media spends are expected to be between low to moderate in H1, with robust growth anticipated in H2 2020.

GroupM India President – Investments and Pricing Sidharth Parashar said, “The format of print storytelling is changing but the content is still the strongest. With print media organizations undergoing transformation across India. Publication houses have invested heavily in promoting digital subscriptions and have started limiting access to digital versions of epapers. We believe that this would pave the way for newer business models. Print will continue to remain relevant to advertisers wanting to build credible brands. Television will continue to grow at a steady pace. This year, the growth rate for TV is estimated to be 7% and Radio is expected to grow at 6%. While cinema and OOH will grow at 15% and 6% respectively in 2020.”

OTT has seen a faster evolution in India, which is now complementing television. OTT hybrid models looking at both advertising and subscription will continue to be an effective model.

GroupM India President – Partnerships and Trading Ashwin Padmanabhan, “While there are challenges and uncertainties in the market, it is a world of abundant opportunities in the content eco-system. This gives us vibrant options to reach and engage with consumers. It necessitates us to be agile, invest in new-age talent and technology while keeping an eye on the future. The key is to be always prepared while we are shaping the media landscape.”

GroupM also shared some of the top watch-outs that will shape the Indian consumer & therefore industry in the coming decade. The trends presented were around emerging technology, behavioural changes, data, etc, that put the consumer at the centre and emphasize digital driving the change across all formats of media.

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