Advertising rates set to rise in BRIC markets

09 February 2010

MUMBAI: Brazil, Russia, India and China will all see media prices increase this year, as advertisers continue to heighten their interest in these markets.

According to Warc's most recent Consensus Forecast, adspend levels are set to rise in each of these four countries – collectively known as the BRICs – in 2010.

Figures from Lodestar Universal India, part of Interpublic Group, have now further suggested that ad rates for this group will climb by an average of 11.3% over the same period.

This includes an uptick of 20% in China, where TV will witness an expansion of 31%, with the web also improving by 25%.

Radio will register more modest growth, of 16%, with magazines and cinema up by 10%, and newspapers and outdoor by 8%.

In India, overall media inflation is due to reach 9%, with the web and television again driving this process, up by 12% and 10% respectively.

The outlook is also more positive for newspapers, as rates climb by 10%, a figure that stands at 5% for magazines, 3% for outdoor and 2% for cinema, with radio largely flat year-on-year.

In Brazil, where totals should rise by 9%, conditions are similarly auspicious for print, with newspaper and magazines up by 15% and 10% in turn.

Television will also see inflation, of 10%, as will radio and cinema, by 6%, and the web, by 4%, while outdoor is expected to be static.

Russia has faced a rather more challenging climate than the other BRIC economies during the economic downturn, but media prices should still grow by 7% in 2010 on an annual basis.

The cost for advertisers using radio and TV are likely to rise by 5%, with newspapers and magazines ads also 8% more expensive than was the case in 2009.

However, the web will deliver the highest overall gains, of 15%, with outdoor on 10%, although cinema will see prices remain the same as last year.

Data sourced from Campaign India; additional content by Warc staff