India will be the sixth largest contributor to incremental ad spends in 2021 globally
Even as 2020 brought in a roadblock due to the Covid-19 pandemic, the advertising spends in India is expected to grow by 23.2% for the calendar year 2021 to reach an estimated investment of Rs 80,123 crore, as per the GroupM report ‘This Year, Next Year’ (TYNY) 2021. As per the report, India is the second fastest growing market in the top 10 countries and will be the sixth largest contributor to incremental ad spends in 2021 globally. While India was ranked ninth in the global ad spend rank in 2019, it dropped to 10 in 2020 and is likely to regain its ninth rank this year. Meanwhile, the global ad spend is expected to register a growth of 10%.
According to the report, of the Rs. 15,000 crore of incremental ad spend in India during 2021, the share of digital would be at 40%. The non- (TV and digital) share of overall India ad spend in 2021 is to be at 20% while the digital share of overall India ad spend in 2021 is to be at 35%. With FMCG and e-commerce laying the foundation, auto, telecom, retail, durables to be growth drivers of India ad spend in 2021, the report added. Digital was the only medium to witness a gain of USD 27 billion globally in 2020 and will continue to skyrocket due to the increase in digital dependency and changing consumer patterns.
We have witnessed a month-on-month upturn in the industry starting Q3 last year and we are quite optimistic about the revival that 2021 will see, Prasanth Kumar, chief executive officer – GroupM South Asia said. “With the gradual easement of the lockdown backed by seasonal spends and big-ticket events like IPL, we expect 2021 to continue to build on that momentum. While the global ad spends are estimated to see a rise of 10% in 2021, digital is expected to take 67% of ad spends. With the help of technology, marketers have adapted to pandemic-proof ways by constantly innovating, staying relevant and offering digitally charged solutions to brands,” he added further.
As per Tushar Vyas, president – growth and transformation, GroupM South Asia, 2021 will see 90% incremental ad spends on digital globally. “Brands have been forced to think big and different to transform their businesses, match the newer expectations and overcome the challenges faced. The post-pandemic era will continue to see this upsurge in digital demands. The crisis has brought about a sea change in mindset, adoption, and role of technology in doing business. Brands are seen renewing their business models and are constantly ideating to find better ways to connect with the consumer on a digital tangent,” he stated.
“Along with digital, television saw a spike in consumption during the lockdown. With acceptance on the subscription bandwagon increasing, OTT will continue to witness a constructive growth and is likely to develop with more players attracting users by investing in content. Print and Radio expected to be backed by local advertisers and certain categories with marketeers leveraging the brand solutions that these media offer. We expect OOH and cinema to see double-digit growth after a difficult year. Given the uncertainty and cautiously spending consumer, brands are realising the importance of being present wherever consumers are. Hence along with continued relevance of television and other mass media, we will witness advertisers leveraging relevant platforms to reach out to its audience,” Sidharth Parashar, president – Investments and Pricing of GroupM India said.