Happy 2019 to the Indian Ad Land: The Numbers Look Good

The Indian advertising industry will grow at a healthy CAGR of 14-15% during 2019. Advertising revenues will be around Rs 70,000 - Rs80,000 cr this year.

e4m by Venkata Susmita Biswas
Published: Jan 2, 2019 8:59 AM  | 4 min read
2019

Hello Readers, Happy New Year! 

2019 is going to be a good one for the Indian Advertising fraternity. Don’t believe us? 

Take a look at the numbers

As per multiple estimates, the Indian advertising industry will grow at a healthy CAGR of 14-15% during 2019. It will be worth around Rs 70,000 - Rs80,000 cr. The industry has recovered from the massive blow that it suffered due to demonetisation, implementation of the GST regime and RERA and 2019 will see a strong growth.  

As per the latest KPMG media and entertainment report, of the various sectors, digital will grow at the fastest pace of around 30 per cent, followed by TV at 12.6 per cent, radio at 10.2 per cent, OOH at 9.2 per cent and print at 5.9 per cent over the next five years. 

Television advertising will grow on the back of growing TV penetration, strong advertising demand on the back of domestic consumption and major events - two cricket world cups and General Election. 

The growth of digital advertising will get stronger due to the continued deepening of digital adoption prompted by the Mukesh Ambani-led Jio revolution and dropping data costs. Usage from regional markets will provide advertisers the opportunity to offer customised advertising to wider demographics in 2019.

The OOH segment will benefit from the Indian government’s smart cities’ campaign, promotion of public welfare schemes and expansion of the airport network. 

The revival of the industry, upcoming major events, and bolstered consumer spending will lead to the Indian advertising industry becoming the third largest in the world after the US and China.  
 
Biggest Democracy will Spend Big

The upcoming general elections and sporting events such as two cricket world cups will drive ad revenues this year. General elections in particular will offer a boost to television, print and digital ad revenues. 

In FY 2017-2018 alone the ruling Modi government spent Rs 1,315.83 crore on promoting the government’s initiatives and achievements. This number is expected to be higher during 2019 ahead of the general elections. 

Political parties, which have already experimented with digital promotions in the 2014 elections, will be stepping up their digital and especially social media promotions in 2019. From Whatsapp to Facebook and Twitter to Instagram political parties are leveraging every digital medium to target voters.

Overarching Trends

As telecom operators see content as a differentiator, tech companies find growth from video content consumption, and media companies get access to a variety of distribution channels through this convergence, India’s media ecosystem has reached an inflection point. This ultimate convergence of telecom, media and technology is one of the major drivers of the industry and the convergence of this holy trinity will continue to shape the industry in 2019. 

The non-metro phenomenon will also play a big part in the media ecosystem of 2019. Television, print, and digital mediums are seeing significant growth and penetration in rural India and tier-II and tier-III cities. As per the KPMG report, non-urban demand is driving growth
in Hindi and other language newspapers. The introduction and strong performance of free-to-air (FTA) channels to tap rural and semi-urban markets is one of the main drivers of television advertising. Availability of data at affordable rates increased the reach of digital platforms into rural areas driving a significant growth in digital usage and changing the demographics of digital consumption from niche to mass. 

Audience measurement will unlock higher spends

As 2018 drew to a close the Telecom Regulatory Authority of India (TRAI) issued a consultation paper to solicit the views of stakeholders on regulatory initiatives/ measures to be taken to make TV rating services more accurate and widely acceptable. 

This review of television measurement comes at a time when industry stakeholders are yet to arrive at a consensus about a unified video measurement solution for the media landscape in India. 

Even measurement of radio and OOH sectors needs more rigour. Currently, TAM’s Radio Audience Measurement (RAM) which follows a manual diary method is limited to the four metro cities. OOH sector has the inherent drawback of being a tough-to-measure medium and this is amplified by the absence of an independence measurement body. 

Solutions to these measurement problems can help agencies and advertisers justify spends and media owners validate claims. 

Here’s to hoping that in 2019 the industry will get closer to solving these problems thereby unlocking higher ad spends.

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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

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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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'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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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 by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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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

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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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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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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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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