India advertising in 2018 forecast to grow +12.5%: IPG Mediabrands' MAGNA Report
Stronger growth in 2019 due to the combination of an accelerating economy, broader access to digital media, general elections and Cricket World Cup

2017 was a roller-coaster ride because of two radical economic initiatives - currency exchange and the rollout of the Goods and Services Tax. Both were aimed at modernizing the economy and the tax system but created short-term disruption. However there is now consensus building on the recovery from these temporary disruptions and IMF forecasting the growth to rebound in 2018 to 7.4% and 7.8% in 2019 (6.7% in 2017) is a positive sign for the market. India remains the fastest-growing market among large developing countries in Asia. Meanwhile consumer price inflation will accelerate, from +3.6% in 2017 to +5% in 2018 and 2019.
Consumers will also benefit from the lower tax incidence post GST. This rationalizes FMCG, Retail and Automobile categories investments in these markets. Government push for finance banks in small towns and infrastructure spending will aid durable category to increase penetration. Digital infrastructure is helping e-commerce expansion to smaller markets and making it easy for brands to reach out to this consumer set. In this context, Magna escalates its autumn projection slightly from +12.1% to +12.5% in 2018. The ad market re-accelerates, after slowing down to single-digit growth (+9.8%) in 2017.
S Venkatesh, EVP, Director Intelligence at MAGNA, said, "India advertising sales reached INR 600 billion in 2017 ($9.3bn) and will grow to INR 680 billion this year ($10.4bn). Anticipate even stronger growth in 2019 due to the combination of an accelerating economy, broader access to digital media, general elections and Cricket World Cup."
Digital provides impetus to overall growth by contributing close to 40% of the incremental advertising rupee. Digital represents 19% of total advertising budgets currently and will touch a quarter share of media growing at CAGR of +22.6% by 2022. Retail, BFSI, FMCG, Telecom and Auto are major contributors to the growth. In 2018, the medium will grow +27%. As massive increase in Smartphone users and data consumption is witnessed, the market unanimously looks forward to digital ratings (EKAM) from the TV ratings body (BARC).
Television remains insulated from temporary economic policy implementation hiccups thanks to continued support from FMCG advertisers. TV still represents a significant 40% share of total budget growing at +12.2% in 2018. Furthermore, while digital takes the headline in every forecast, Television through 2022 will expand at CAGR of +11.9% and holding onto its share.
Print media struggled the maximum in 2017 with both newspapers and magazines advertising sales declining significantly (+2.4% in 2017 Vs 6.2% in the previous year) because of the structural reforms. However in 2018, the medium will see significant growth expansion as the market recovers. Elections in large states, as national polls loom political parties are setting the stage for the aggressive campaigning and Government spending on publicity will push the print growth to +6.1%. The war between Print and Digital intensifies and by 2022 both will draw equal share of advertising budgets.
Radio will be the third fastest growing media with a 5-year CAGR of 11% through 2022. Broadcasters have started launching stations won during Phase III auction and this will expand the listenership base and revenues will go up both organic and in-organic terms.
While OOH will see high single digit growth of +8.7%, medium continues to be data scarce and shall remain a 3-4% share media. Government’s thrust towards infrastructure growth in T2 and T3 cities will widen the OOH landscape.
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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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