India is expected to become the eighth largest advertising market in 2021.
The advertising spends of the country is expected rise 15 per cent to Rs 72,169 crore in 2019 driven by the general elections, cricket world cup and Indian Premier League, according to Zenith Global Advertising Expenditure Forecasts.
The country’s advertising expenditure is expected to close at Rs 62,699 crore for this year.
It noted that given a significant part of the population is below 30 years of age, there is likely to be continued consumption-led growth with less reliance on export-led momentum, which should boost businesses across the board, ad investments and government initiatives.
However, the depreciation of the rupee and oil price volatility this year impacted disposable incomes, though the consumer confidence continues to remain relatively high.
“2019 is the year of the Indian general elections. These and the state elections will boost marketing spends. Additionally, the cricket world cup and the Indian Premier League will drive growth,” Zenith Group chief executive officer Tanmay Mohanty said.
He added that many parts of the country are experiencing digital transformation, led by mobile, which will accelerate categories such as banking, financial services, healthcare, entertainment and sports, travel and lifestyle.
India is expected to become the eighth largest advertising market in 2021, it said.
It noted that the Indian advertising market is expected to grow at 13.5 per cent a year from USD 9.7 billion in 2018 to USD 14.2 billion in 2021, entering the top ten for the first time.
Zenith that is owned by French advertising group Publicis said that India is the stand-out growth market and has huge potential for further growth, with advertising taking up just 0.3 per cent of GDP, less than half the Asia Pacific average of 0.7 per cent.