India’s 2018 Adex to grow by 13%: GroupM
GroupM estimates the Digital Adex to continue to grow by 30% in 2018 to Rs. 12,337 crore
GroupM, the media investment group of WPP, today announced its advertising expenditure (Adex) forecasts for 2018. As per the GroupM futures report ‘This Year, Next Year’ (TYNY) 2018 is forecasting India’s advertising investment to reach an estimated Rs. 69,346 crores this year. This represents a growth of 13% for the calendar year 2018 over the corresponding period in 2017. The report also estimated ad spending in 2017 as Rs. 61,263 crores, growing at 10%, as predicted by GroupM in February of last year.
Various industry estimates peg economic growth at 7.3% to 7.8% for 2018 as the benefits of GST- higher productivity and lower cost of goods sold- become apparent. This combined with key reforms already implemented, such as bank recapitalization, budget provisioning of non-performing assets and the Bankruptcy Bill approved by law, are likely to facilitate a recovery in consumer demand and private investment.
Speaking on the TYNY 2018 report, CVL Srinivas, Country Manager, WPP India and CEO, GroupM South Asia, said, “As consumer sentiment stabilizes and spending increases, we estimate 2018 to be a relatively better year from an ad spend perspective. Growth in digital media will continue to outstrip other media but unlike most markets, India continues to see traditional media formats grow. After a couple of sluggish years, rural volumes are expected to pick up this year leading to increased marketing budgets. The structural changes witnessed in the last couple of years could pave the way for a more stable outlook in the coming years. We haven’t yet realized our full potential as an ad market but are headed in the right direction.”
Continuing urbanization and rising wages are supporting consumer growth in finance, durables, services and retail. E-commerce is becoming a key channel for FMCG, and ad investment is anticipated to increase in shopper and performance marketing. India is witnessing an increase in spending from rural markets, as sales growth at 1.5-2.5x of urban sales growth for major FMCG and consumer durable companies.
Looking at the advertising industry worldwide, GroupM estimates the global advertising expenditure to grow by 4.3%, and APAC is anticipated to grow at 5.4%, adding to the positive sentiment of the Indian advertising economy.
Lakshmi Narasimhan, Chief Growth Officer, GroupM South Asia, said, “India remains one of the fastest growing ad markets globally, and is among the top five countries that are expected to drive incremental investment in 2018. Our growth percentage is three times that of the global adex and more than double of the APAC growth percentage.”
GroupM estimates the Digital Adex to continue to grow by 30% in 2018 to Rs. 12,337 crores. Video advertising on digital is estimated to grow at 54%, as bandwidth improves and data and mobility device become more economical for the consumer.
As digital becomes 18% of the overall advertising spends in India, measurement and transparency become paramount. Last year, GroupM globally led the conversation on measurement and transparency in digital media, and released viewability standards that are higher than those stipulated by the Media Rating Council in the USA. In India too, GroupM is working with industry bodies, brands and publishers to adhere to a standard viewability index that would become integral to the digital ecosystem. Along with viewability, GroupM also held knowledge and training workshops for client teams, on mitigating ad fraud and assuring brand safety.
On the traditional media front, parliamentary elections in H1 2019 will stimulate advertising from the back half of 2018. Print will see a slight uptick in 2018 from the elections, with key markets in demand. The growth rate for newspapers is estimated at 4.2% with English papers growing slightly slower than Hindi and regional languages.
Television continues to be the largest medium, with its contribution remaining at close to 45% share. This year, the growth rate for TV is 13%, as there is growth in both volume with free-to-air channels as well as value with HD channels. In 2018, the last leg of cable digitization will improve quality of delivery to rural India, also driving viewership.
This year Radio is expected to grow at 15% which is higher than the last couple of years. This growth is predominantly due to the launch of new radio stations across the country. Other media such as OOH will witness good traction of 15% growth from premium transit sites. Cinema will continue to grow at 20% in 2018, as the infrastructure investment made last year will attract a larger audience to theatres for a blockbuster experience.
GroupM also presented some of the biggest media trends that will emerge in India in 2018. As cross platform marketing is the norm in today’s connected environment, these trends are around data, content creation and distribution and sports programming. The common thread across the 2018 media trends is the digital platform, which is core to the growth of media in India.
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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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