After registering a 13% growth in 2010, the advertising industry is expected to grow further this year. To woo consumers, major sectors such as telecom, automobiles and FMCG will be increasing their advertising budgets this year, predict ad agency chief honchos in India. ?After a dismal performance in 2009, with just a few percent growth, media spends surged in 2010 by about 13%. I expect this to continue next year too. All sectors are looking at raising spends and I would expect telecom, automotive, financial services, IPOs and real estate to hike media spends this year,? said MG Parameswaran, CEO of Draft FCB Ulka.
The total ad spend was projected to touch Rs 23,631.9 crore in 2010, according to estimates by Zenith Optimedia. In 2009, the ad spends stood at Rs 21,602.5 crore.
Sharing similar sentiments, Arvind Sharma, chairman &CEO of Leo Burnett India said the Indian ad industry will grow over 15 % in 2011.? The telecom sector will see an increased ad spends with number portability and 3G. Plus, modern retail will be a big spender in 2011,? he added.
Srinivasan K Swamy, CMD of RK Swamy BBDO predicts that the ad industry is poised for a healthy growth, 15 to 17%, as the general market sentiment is good this year. ?The consumer confidence is pretty high. The growth will come from increased ad spends in automobiles, telecom and real estate sectors,? he said.
With cricket properties such as ICC World Cup 2011 and IPL -4 slated to be held in 2011, advertising spends on cricket are expected to go up by 50 % this year, according to industry analysts. ?In fact, these cricket events will account for nearly a fifth of overall television adverting in 2011-up from the current 13%,? said an industry analyst based in Mumbai.
According to Sharma, cricket events ICC Cricket World Cup 2011 and IPL -4 will attract many advertisers in the next six months. Agreeing with Sharma, Swamy said: ?These sports event will certainly add volumes to the ad industry’s growth in 2011.? Other ad agency chiefs seems to share the optimism for 2011.George Joseph, CEO of Lowe Lintas said the industry will clock in a double digit growth-around 15% in 2011.?The world cup and IPL will attract more advertisers than last year. Creative talents in agencies will get increasingly aware and probably involved in the financial health of their agencies,? he said.
?This year, the industry will grow with the help of powerful ideas and executions. The industry’s growth will primarily come through collaboration projects, said Ajai Jhala, CEO, BBDO India.
Dhunji S Wadia, president of Everest Brand Solutions said the business environment in 2011 is better than the past 2 years. ?The outlook is optimistic and the year will start with a bang with 2 big events ? ICC World Cup and iPL,? said Wadia.