Sporting events such as IPL 2021, Asia Cup, ICC T20 World Cup and the Tokyo Olympics are expected to drive television ad spends
In 2020, the industry declined by 20% and earned only `54,151 crore
Marketing network Madison Group estimates that advertising spends in 2021 could barely cross 2019 levels at `68,325 crore, growing 26% over 2020. Of this, digital will account for `21,200 crore while traditional media channels will cumulatively attract investment worth `47,125 crore.
In 2020, the industry declined by 20% and earned only `54,151 crore. Advertisers turned cautious and held back ad spends. As per the report, FMCG conglomerate Hindustan Unilever, which spends about `3,500-4,000 crore annually on advertising, continued to be the top advertiser of the year. Reckitt-Benckiser, owner of brands such as Dettol and Lysol, almost doubled its ad spend from `500-600 crore in 2019 to `900-1,000 crore in 2020 in the wake of the pandemic.
Auto companies such as Maruti Suzuki India, Hyundai Motor India, and Honda Motorcycle and Scooter dialled down ad spends in 2020. Maruti Suzuki India reduced spends by about `200 crore and spent `500-600 crore. Hyundai Motor India which spent about `300-400 crore in 2019, invested only half of that in 2020. Honda Motorcycle and Scooter reduced spends from `400-500 crore in 2019 to `150-200 crore in 2020.
The media spend report finds that digital advertising was the only one that grew in 2020, attracting 10% more advertising than in 2019. Of the `14,000 crore that will be added in 2021, around `4,000 crore each will be added by digital, TV and print mediums almost equally.
Sporting events such as IPL 2021, Asia Cup, ICC T20 World Cup and the Tokyo Olympics are expected to drive television ad spends. State elections in West Bengal and Tamil Nadu are also expected to spur government and political ad spending during the first half of the year.