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  1. Adex Report: Digital platforms corner expanding share of advertising spending

Adex Report: Digital platforms corner expanding share of advertising spending

Digital platforms, which managed to win an estimated 15.5% share of total ad spends in 2017, up from 13.1% in 2016, are tipped to grow their share to nearly 18% in 2018, according to GroupM’s annual advertising expenditure (AdEx) report, ‘This Year, Next Year’.

By: | Mumbai | Published: February 14, 2018 5:11 AM
Adex Report, Digital platforms, advertising spending, advertisements Advertising spends on digital platforms, which in 2017 stood at an estimated Rs 9,500 crore, are expected to come in at close to Rs 12,350 crore in 2018.

Digital platforms, which managed to win an estimated 15.5% share of total ad spends in 2017, up from 13.1% in 2016, are tipped to grow their share to nearly 18% in 2018, according to GroupM’s annual advertising expenditure (AdEx) report, ‘This Year, Next Year’. The report predicts India’s overall AdEx growth at 13% for 2018, with overall advertising investment to reach an estimated `69,346 crore. In 2017, the total advertising spends stood at Rs 61,263 crore.

Advertising spends on digital platforms, which in 2017 stood at an estimated Rs 9,500 crore, are expected to come in at close to Rs 12,350 crore in 2018. This will be the fastest growing segment for the next few years, Tushar Vyas, chief strategy officer, South Asia, GroupM, said on Tuesday. “With India seeing digital maturity and companies following the mobile-first philosophy, the medium cannot be ignored now,” Vyas added.

Within the digital space, video advertising is estimated to grow at 54% in 2018 as bandwidth improves and data and mobility devices become more affordable. Advertising agencies and advertisers are looking for more reliable measurement and transparency in digital media.

Unlike 2017, which saw the lowest growth in advertising expenses in the last five years, at 10%, this year could be better with the economy back on track. “Going by GDP growth as well as the increase in population of middle income groups, we are optimistic.

At the same time we are also cautious,” said CVL Srinivas, country manager, WPP India and CEO, GroupM South Asia.

The television space continues to to rule the roost with a share of 45.6% of share in 2017. The trend should hold in 2018 as well. With digitisation in the the last phase, the quality of delivery to rural India is expected to improve, driving up viewership.

The print medium too is expected to do better this year with given general elections are expected in early 2019. The growth rate for newspapers is estimated at 4.2% with English papers growing slightly slower than Hindi and regional languages.

As always, FMCG continues to be the largest contributor to Indian AdEx, with 27%.

It is followed by e-commerce and auto at 8% each, and retail at 7%. India is witnessing an increase in spending from rural markets, as sales growth at 1.5-2.5 times that of urban sales growth for major FMCG and consumer durables companies. And with India being the fastest growing ad market in APAC and among the fastest growing markets in the world, as per the report, there seems to be headroom for growth across mediums over the coming years.

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