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News

Newspapers will have major share of ad pie for three years

MUMBAI: Even as print media is witnessing a slowdown in the developed economies and digital and television have surpassed print in many markets, when it comes to India, newspapers command the lion’s share of the advertising pie. As per the latest report from Zenith, the ROI agency of the Publicis Group, newspapers will continue to be the most dominant media segment for the next three years.

According to the December 2017 edition of Zenith’s Advertising Expenditure Forecasts report, 2017 will close at a total advertising expenditure (AdEx) of Rs 53,918 crore, registering a slightly slower pace of growth on account of demonetisation introduced in November 2016.

However, total AdEx for India is expected to climb up to Rs 58,422 crore in 2018, and ultimately Rs 73,711 crore in 2020. As per the forecast, by 2020, newspapers will have Rs 28,670 crore, or 38.9% share of the total AdEx even as digital will continue to grow at a faster clip. Digital or internet adspend will capture 11.6% of the market in 2017, the report highlights. 

It forecasts 20.4% growth in internet advertising in India in 2018, compared to 8.4% growth for the market as a whole. By 2020, internet will account for 15.4% of total adspend in India, at Rs 11,339 crore. Television will have a 36.5% share in total AdEx at Rs 26,927 crore. Tanmay Mohanty, Group CEO, Zenith India said, “Growing internet penetration accelerated by operators such as Jio will significantly enhance digital adspends in India and give access to previously untapped markets.” 

According to Mohanty, India has seen some fluidity in the overall AdEx but remains one of the fastest growing advertising markets globally. “With the dust settling down on demonetisation and GST, we expect a measured recovery on adspends. Consumer confidence is on the rise. In 2018, mobile handsets, FMCG, automobiles, BFSI, travel & tourism and political ads will drive up the pace of adspends,” he said. Overall, the report has forecast a growth rate of 9% for television, 5% for newspapers, 10% for radio, and 5% for cinema and out-of-home each.

The global report also points out that India is one of the top markets contributing to global adspend. It will be No. 4 in top 10 contributors to global adspend growth from 2017-2020, after US, China and Indonesia in that order. Between 2017 and 2020 Zenith forecasts global advertising expenditure to increase by $72 billion in total. As per the report, US will contribute 27% to this rise, while China will contribute 20%, followed by Indonesia, India, the UK and Japan, that will contribute 4% eaсh. 

Five of the 10 largest contributors will be rising markets — China, Indonesia, India, Brazil and Russia — and between them they will contribute 33% over the next three years. Overall, the report forecasts rising markets to contribute 54% of additional AdEx between 2017 and 2020, and increase their share of the global market from 37% to 39%. 

Source: The Economist Times.