GroupM India TYNY report estimates AdEx to increase by 15.5% in 2016
GroupM India's biannual advertising expenditure futures report, This Year Next Year (TYNY), forecasts India's ad investment to reach an estimated Rs 57,486 crore in 2016.
GroupM, today, released its biannual advertising expenditure futures report, This Year Next Year (TYNY), forecasting India’s advertising investment to reach an estimated Rs. 57,486 crores in 2016. This represents a growth of 15.5 per cent for the calendar year 2016 over the corresponding period in 2015. The last calendar year closed on a promising note, with the advertising expenditure in India closing at Rs. 49,758 crores, growth of over 14.2 per cent over 2014.
Speaking at the release of the report, CVL Srinivas, CEO, GroupM South Asia said, "India is the fastest growing ad market among all the major markets of the world. 2015 was the best year for ad spend growth we’ve had in the last five years. While global headwinds are building up in the new year, there are a number of positive factors that will help the Indian ad sector grow at higher levels in 2016. The GroupM TYNY report released today highlights these factors. While FMCG, auto and e-commerce which have been the top sectors contributing to ad growth in 2015 will continue to invest, telecom, BFSI and the government sector will see a ramp up. Events like the T20 World Cup, IPL and many state assembly elections will give a further impetus to ad spends. While digital will remain the fastest growing platform, India is one of the few large markets where all traditional media platforms will show positive growth.”
FMCG remains the most dominant sector with a 28 per cent share of the AdEx. Despite facing volume pressure, the sector is expected to continue ad investment aided by the softening of commodity prices.
In 2016 e-commerce ad spends are expected to be high on the back of increasing competition, market expansion and newer players entering the space. Many leading traditional retailers will be expanding their e-commerce presence in 2016 even as consolidation continues in the sector. Another exciting development is the opening up of e-commerce as a platform for advertising, which will see further traction in 2016.
With the advent of 4G services in India, telecom service providers are expected to roll out extensive marketing campaigns across media. This roll out will also see global and domestic handset manufacturers launching new models of 4G/ LTE handsets. Another big contributor to the Indian AdEx this year will be the auto sector, on the back of multiple launches across both 4-wheelers and 2-wheelers.
Lakshmi Narashimhan, Chief Growth Officer, GroupM South Asia said, “With significant number of users accessing internet primarily from a mobile device, ad-spend on mobile will become as large as the digital AdEx from two years ago. With digital media achieving audience reach numbers that are next only to television, multiscreen planning is the order of the day. We have seen focused targeting of digital and native advertising with programmatic buying over the last 2 years and this momentum will continue in 2016, as automation increases".
GroupM estimates the digital AdEx to grow by 47.5 per cent in 2016 to Rs. 7,300 crores from the earlier Rs. 4,950 crores. A significant part of this growth is on the back of higher investments in cross-screen campaigns. The digital AdEx is estimated to take a 12.7 per cent share of the total AdEx in 2016.
2016 will see Video on Demand (VOD) services gaining popularity in India. The Asia Pacific region is expected to overtake Western Europe as the second largest market for VOD services by 2020, fueled by rapid growth of smart phones in China and India. With the recent Netflix service launch in India, several domestic and international players will actively market their VOD services and acquire customers in the next 12 to 24 months.
2016 is estimated to be a better year for newspapers than 2015. The increase in ad spends expected from print heavy sectors like auto, BFSI and the government sector augurs well for newspapers. Regional advertising of telco and FMCG brands will benefit language dailies. While print as a medium is facing a lot of pressure from digital there is still headroom for growth in certain pockets and amongst certain audience clusters.
While radio is expected to grow at a little over 10 per cent, there is scope for the medium to pick up towards end 2016 when most of the new stations (set up after Phase III licenses, round 1 were issued) are fully operational. Digital audio platforms are gaining in popularity, opening up a new format for radio.
There has been an upswing in cinema advertising in the last few years, which will continue in 2016 with an estimated 25 per cent growth in ad spends. Recent acquisitions by larger multiplex chains will help create a far richer viewing experience for consumers, giving brands another avenue to capture their target audience. The medium can expect more brands to come on board with longer term deals if they invest in measurement and build more accountability. At present cinema advertising is less than 1 per cent of the total ad spend.
This Year, Next Year, is part of GroupM's media and marketing forecasting series drawn from data supplied by holding company WPP's worldwide resources in advertising, public relations, market research, and specialist communications.
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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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ShareSwapan 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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