MUMBAI: Advertising expenditure in India is set to grow two and a half times faster than the global average next year, according to a new forecast which also predicts spending on internet ads will overtake TV by 2018.
Latest figures from ZenithOptimedia suggest that global adpsend will grow 4.6% in 2016 but that spending in India will increase 13%, the Economic Times reported.
That is also substantially higher than the 8.4% average the media agency forecast for "fast-track" Asian economies.
Anupriya Acharya, group chief executive officer at ZenithOptimedia India, explained that the consumer and business sentiment industry had been very positive at the start of this year following the election of the Modi government in 2014.
"This irrational exuberance has tempered down to a more rational optimism and all the current economic and sentiment indicators suggest that the forward view remains positive," she said.
All sectors of the advertising industry are set to benefit, but the stand-out performer is expected to be digital, with growth of "upwards of 20%".
Television, which currently accounts for 38% of ad spending, is also projected to grow in double digits, at 15%, while print will increase 10% and all other media at between 5% and 10%.
Within two years, however, it is predicted that the rapid advance of paid search globally will help push internet spending past television. Much of this will come via mobile – the GSMA recently noted that India was on track to pass 500m mobile subscribers by the end of the year.
Slicing the cake a different way, the report also said that audiovisual advertising – television plus online video – is taking a larger share of display advertising, rising from 44.1% in 2010 to 48.4% in 2015 and 48.9% in 2018.
Acharya highlighted e-commerce, telecom, mobile phones as the fastest-growing sectors and the Business Standard noted that these had also driven growth this year.
It reported that some 2,000 new advertisers entered the market in 2015, thanks to the e-commerce and start-up boom, while telcos have been aggressively promoting 3G and 4G plans and handset firms pushing new product launches.
Data sourced from Economic Times, Exchange4Media, Business Standard; additional content by Warc staff