MUMBAI: Advertising expenditure in India is predicted to grow in 2015 at almost twice the previously projected rate, thanks to increased consumer confidence and high-profile sporting events like the Cricket World Cup.
The Pitch Madison Media Advertising Outlook report for 2015 forecast a 9.6% increase in spending during the year ahead, compared to an earlier figure of 5.6%. In terms of actual spending the market is expected to grow by over Rs 3,500 crore to reach Rs 40,658 crore.
Unveiling the report, Sam Balsara, chairman and managing director of the Madison World comms agency, highlighted the industry's "spectacular growth" of 27.5% over two years.
Last year's 16.4% advance was due in large part to political spending – in addition to the national elections there were five state elections – and heavy investment by ecommerce players.
While there will be no comparable boost from election spending this year – there are only assembly elections in three states – ecommerce firms show no signs of reducing their spending, while the Cricket World Cup is expected to earn revenue of almost Rs 1,000 crore, or almost one third of the expected growth.
Print remains the largest advertising sector, accounting for 41.2% of the total market in 2014.
With a 2014 share of 38.2%, television is the second largest advertising medium and growth here is set to slow from 14% in 2014 to 9.5% in 2015, although market share will remain steady.
Digital is the third largest sector and, growing fast, its share is projected to increase from 10.7% in 2014 to 12.6% in 2015. Growth is being driven less by search (+26%) than by display (+33%) where video, social and mobile formats are gaining traction.
The remaining media all saw spending increase sufficiently to maintain their smaller market shares – outdoor spending at around 6%, radio on 3.5% and cinema on 0.5%.
Balsara had some advice for advertisers, including the need to focus on effectiveness as well as efficiency and at the same time to experiment.
Data sourced from Pitch; additional content by Warc staff