Is India the new sizzling market in Asia for increased ad expenditure?

According to Advertising Expenditure Forecast by Zenith Media, the slowdown in GDP or implementation of GST is not affecting the growth of ad spends in India as it is the fourth largest contributor to global ad spends

e4m by Ronald Menezes
Published: Sep 13, 2017 8:08 AM  | 4 min read


India’s GDP has seen a sharp decline and saw a three-year low of 5.7 per cent for the period between April and June. However, if the Advertising Expenditure Forecast by Zenith Media is taken into consideration, the slowdown in GDP or implementation of GST is not affecting the growth of ad spends in India as it is the fourth largest contributor to global ad spends. 

 

India is the seventh largest economy in the world and one of the fastest emerging too, leaving no doubt as to why this country is a temptation very few can avoid. 

 

According to the Advertising Expenditure Forecast report, US will be the leading contributor of new ad dollars to the global market over the next three years, making up in scale what it lacks in speed. China will come second, combining large scale and rapid growth (though its growth is slowing as its scale increases). 

 

Between 2016 and 2019, Zenith forecasts global advertising expenditure to increase by US$69 billion in total. 

 

The US will contribute 29% of this extra ad expenditure and China will contribute 22%, followed by Indonesia, which will contribute 5%, and India, the Philippines and Japan, which will each contribute 4%. 

 

It is predicted that five of the 10 largest contributors will be Rising Markets* (China, Indonesia, India, the Philippines and Russia), and between them they will contribute 37% of new ad spend over the next three years. 

 

Overall it is forecasted that Rising Markets could contribute 55% of additional ad expenditure between 2016 and 2019, and increase their share of the global market from 37% to 39%.

 

We asked a few industry experts if India is the sizzling market in Asia for advertising today and are brands looking positively at advertising expenditure in India. 

 

Almitra Karnik, Head of Marketing, Clevertap, said, “Definitely. While ad spends in the Asia-Pacific region have increased by 4-5% in the past financial year; India has witnessed a rise by almost 10% over the same period. A lot of that has to with rising standards of living, increasing disposable incomes, creation of better physical and digital infrastructure and the pressing need for brands to build consumer credibility and loyalty in a heavily cluttered market. Since 68% of India’s population still dwells in rural regions, ad spend across TV, radio, print and digital channels would increase year-on-year unlike other developed economies in the Asia-Pacific region.”

 

Karnik also stressed on the fact that as long as the economy continues to grow at a healthy rate, India will be viewed as an immense market of opportunities in turn fuelling higher ad expenditures especially in the Asia-Pacific region.

 

Abraham Thomas, CEO, Radio City, highlighted the fact that Asia-Pacific region has recorded the highest growth in advertising when compared to the rest of the world and India plays a vital role in this region. 

 

He further said, “India's economy is powering its way to become a genuine contender at the global stage. With growth slowing down in China, global brands including some top Chinese consumer giants now have a larger vision for India as it develops into one of their biggest consumer markets. Varied factors such as increased ease of doing business and favourable policies are further expected to drive this positive growth trajectory.”

 

 Abraham also focused on the reputation of India in the world and said the country is the future destination when it comes to new age advertising and is poised to fuel increased ad spends in the APJ market. He said, “The ad spends at a regional level in India are also on the rise and presents significant opportunities that can be explored. With both new and established players entering the F&B, e-commerce, automobile and telecom sectors among others, India should soon turn into a hotspot for advertising spends in the region.”

 

Pooja Jauhari, CEO, Glitch, says, “I think we need to look at this from a broader lens, India as a market is in an interesting phase where the push is for advertising content that either entertains, provides utility, pushes sales or builds more earned media. And that's where the validity of expenditure has become a key question and is hence dictating the advertising expenditure of brands.”

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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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