India’s Ad-Ex to grow 11.2% in 2017 to reach Rs 54,344 cr: Zenith

Publicis Media Company Zenith has just released its newAdvertising Expenditure Forecasts in which it predicts that global ad expenditure will grow 4.4 per cent in both 2016 and 2017, reaching $566 billion by the end of 2017. The 2017 forecast is down by 0.1 percentage point from the forecasts published in September after small downgrades in Asia Pacific, which nevertheless remains one of the fastest growing regions for ad expenditure.

Fast-track Asia economies (China, India, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand and Vietnam) are growing extremely rapidly as they adopt Western technology and practices, while benefiting from the rapid inflow of funds from investors hoping to tap into this growth. Fast-track Asia barely noticed the 2009 downturn (ad expenditure grew by 7.9 per cent that year) and since then has grown very strongly, ending 2015 up an estimated 9.6 per cent.

Zenith predicts that ad expenditure growth for India in 2017 stands at Rs 54,344 crore, up by 11.2 per cent over 2016. India is among the top ten contributors to ad spend growth, along with others such as USA, China, Indonesia, UK, Philippines, Japan, Germany.

Tanmay Mohanty, Group CEO, Zenith India, observed, “India remains one of the few bright spot economies in the world. Ad spending in India is on a steady growth curve and likely to stay that way in 2017, buoyed by the State Elections in Uttar Pradesh and Punjab, the upcoming Champions Trophy and continued expansion and growth of regional newspapers and television. In November, the Central Government introduced reform in the form of demonetisation, which is leading to some contraction in ad spends. We expect the demand for goods and services to pick up and this shortfall to be temporary. Demonetisation is expected to augur well for the economy long-term. In fact, we expect 2017 to see increased ad spending by categories such as Mobile Wallets, Telecom 4G, BFSI, Mobile Handsets, Fast Moving Consumer Goods and Consumer Durables.”

Digital remains one of the fastest growing mediums in India registering a 30 per cent growth rate. Television will register an 11 per cent growth rate in 2017, print (newspapers) will grow at 7.6 per cent and all other media between 7 per cent and 12 per cent.

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