MUMBAI: Advertising expenditure in India is predicted to grow more slowly than previously thought, at 8.5% in 2013 compared to an earlier expectation of 9.9%, revised figures from media buying agency GroupM show.
The company cited slowing economic growth and a weakening rupee as the main reasons for the new forecast, reported in Livemint, which sees a sharp downward revision for the second half of the year, from 7.4%, year on year, to 4.7%.
Estimates for digital media (+30% growth) and outdoor (+3.8%) remain unchanged, but some other sectors are expected to be hit hard.
Print is the worst affected, with growth plunging from 4.8% to 0.7%. The forecast for advertising in newspapers and magazines has been reduced from Rs.18,113 crore to Rs.17,727 crore.
In other sectors, television has been revised down from 7.6% growth to 5.9%, radio from 5.7% to 2.5% and cinema from 7.3% to 4.7%.
In total, ad expenditure for the year is now anticipated to be Rs.44,755 crore, down from the earlier estimate of Rs.45,334 crore.
Anecdotal evidence from IndianTelevision.com indicated mixed views on how the country's economic performance would affect the advertising world.
At leading conglomerate Godrej & Boyce, Kamal Nandi, vice president sales & marketing, said that "if the topline is dropping, then proportionately, the advertising will also drop".
But Arti Machama, ad sales head at Information TV, owner of News X and India News, said he had not had any negative sentiments from clients. And he noted that the industry would be boosted by forthcoming state elections and festivities.
In addition, the auto industry is expected to promote new launches over the next few months while the media sector itself will be promoting new channels and programmes.
But some areas, such as telecoms, are likely to cut adspend as, thanks to the depreciation of the rupee, the cost of importing phones increases. Financial services may also cut back owing to underperforming financial markets and high interest rates.
Data sourced from Livemint, IndiaTelevision.com; additional content by Warc staff