GDP growth cause for “cautious optimism” for Indian advertisers, say industry experts
The positive performance of India’s GDP growth rate in the previous quarter is a cause for cautious optimism for the Indian advertising industry, opined analysts and media experts we spoke with

News that India’s GDP, the barometer of the size of the economy, grew by 7.4 per cent during the period between July to September 2015, has revitalized interest of the Indian market. What is remarkable is that this not only exceeds the growth rate of 7 per cent as was reported earlier this year, but it is also significantly higher than that of China, which has been struggling and grew at 6.9 per cent for the same period.
Also, manufacturing grew at a robust 9.3 per cent, which would come as a relief to proponents of ‘Make in India’. But what does this mean for the media and advertising industry in the country? Since the BJP-led government came to power in May 2014, business leaders have been waiting for the promised economic revival and, though, this has happened to some extent, many have also been of the opinion that the impact has not been as much as the country was led to believe in.
The ground reality, says Shekhar Banerjee, COO of Madison Media Infinity, is that there has been a surge in ad spends post Q1’15. “We had to revise estimates and H2’15 was also very strong. Investments to create consumer demand have already started,” he said.
For advertising, a sector that works completely on sentiment, the euphoria of the early days has somewhat dimmed as the months have passed. Speaking to exchange4media, Ashish Bhasin, Chairman & CEO South Asia Dentsu Aegis Network, opined that the reported growth rate of GDP is a cause for “cautious optimism” for the media industry. “The role of thumb is that ad expenditure is twice the GDP growth rate. Advertising is sentiment-driven. Information like this helps improve the overall attitude in the industry. Suddenly, you have companies more ready to invest money in communications, more pitches, etc. So this definitely good news,” he explained.
Smita Jha, Executive Director & Leader (Entertainment & Media Practice) at PWC points out that advertising gets affected by GDP but in the medium to long-term (typically ad spends grow/fall 3-4 per cent faster than the GDP, she informed us), so there would not be any visible impact in the short-term.
“These indicators are obviously positive but then these are quarter numbers so they can fluctuate. However, there has definitely been a surge in advertising even before manufacturing growth rate was released,” opined Banerjee.
Similarly, Bhasin also cautioned that one should not get carried away by the numbers. “These are quarter numbers, so we have yet to see figures for the entire year. A lot also depends on how rural markets perform and we are just now seeing stability in some of these markets after patchy monsoons in many regions of the country,” he said.
Speaking about the expectations of the media and advertising industries, he agreed that the change in government had created a very positive environment with high anticipation and now people wantd to see actual results of all the talk. “In general, 2015 has been a good year. We are expecting above 11 per cent growth and 2016 also looks good with low double digit growth. So, I would say that we need to be optimistic with a hint of caution and without exuberance,” he told us.
“The thing peculiar to India is that advertising constitutes just 0.4 per cent of total GDP in absolute numbers, which is much lower than the global average of 0.9 per cent. So there is a lot of opportunity for growth but there needs to be a transformational change in the way ad spends are looked at by marketers,” said Jha, when asked for her views on the relation between GDP and advertising in India.
To do this, she opines needs work from both parties. The ad industry needs to prove to the advertiser that there is some benefit if they spend more and brand owners need to start allocating more budgets. “We are still stuck at 4-5 per cent of the topline (for ad budgets) irrespective of how the company is doing, which needs to increase,” she opined.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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Swapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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