Indian adspend to rise 4.7% in 2009

29 April 2009

MUMBAI: Advertising spend in India will increase by 4.7% this year to 23,755 crore rupees ($4.9bn; €3.8bn; £3.3bn), marking a slowdown in growth from the annual improvement of 14.3% recorded last year, Group M reports.

The company's This Year, Next Year study says the Indian ad sector is comparatively well-placed, but warns "market sentiment continues to be negative," partly because many multinational companies will be "impacted by parent performance" elsewhere.

(A full copy of this report can be downloaded by WARC subscribers via by clicking here.)

Advertising expenditure on TV will rise by 7% to 8,988 crore rupees, building on an upswing of 18% last year, with the medium increasing its share of overall marketing spend to 38%.

Digital growth will slow to 25% from around three times that level in 2008, with total revenues reaching 850 crore rupees this year.

While still relatively small, this figure is over ten times greater than the comparative total from 2004, with social media, branded content, search and mobile all expected to see upswings in ad sales.

Radio is also predicted to improve by 15% to 1,012 crore rupees, with outdoor up 4% to 1,506 crore rupees, cinema growing 5% to 84 crore rupees, and retail media improving by 2% to 318 crore rupees.

By contrast, newspaper revenues are set to fall 2% this year to 9,832 crore rupees, with the channel's market share dropping off by 3% to 41%.

Magazine spending is also due to slide by 4% this year to 814 crore rupees, after enjoying a double-digit improvement in 2008.

FMCG outlay is set to increase by 15% to 5,970 crore rupees this year, with telecoms up by a similar amount to 1,726 crore rupees, and education rising 7% to 2,728 crore rupees.

Data sourced from GroupM; additional content by WARC staff