Warc cuts 2015 ad spend growth forecast to 2.3%

Expectations downgraded by 2.5 pp amid slowdown in the US and China. India (16.1%) and China (9.0%) are predicted to record the strongest annual increases in ad spend in 2015, however both are susceptible to high levels of inflation

e4m by exchange4media Staff
Published: Jul 23, 2015 9:01 AM  | 3 min read
Warc cuts 2015 ad spend growth forecast to 2.3%

Warc (www.warc.com), the marketing intelligence service, expects global advertising spend (based on 12 major markets) to increase by 2.3% at current prices in 2015, according to its latest International Ad Forecast. This represents a downgrade of 2.5pp from the 4.8% growth forecast in our previous report in December. We anticipate further growth of 4.5% next year. If inflation is taken into account, global adspend in real terms is expected to rise by 1.2% this year and a further 2.4% in 2016. The 12 markets studied comprise 75% of all advertising expenditure tracked by Warc. The 2015 outlook has been downgraded for half of our 12 major markets including the two largest, the US (-3.0pp) and China (-1.5pp). The biggest single cut was for Russia (-15.1pp), which is suffering from low oil prices and decreasing consumer spend.

  Current prices Constant 2005 prices* Percentage point change vs December (current prices)
Australia 2.6 0.7 +0.2
Brazil 4.8 3.1 +1.1
Canada 0.8 -0.4 -2.9
China 9.0 7.0 -1.5
France -0.2 -0.4 -0.5
Germany 2.1 1.6 +0.7
India 16.1 9.8 +1.0
Italy 0.2 0.1 -0.7
Japan 1.9 1.0 +0.3
Russia -13.1 -24.4 -15.1
UK 6.6 6.3 -0.3
US 1.4 0.9 -3.0
Global 2.3 1.2 -2.5

India (16.1%) and China (9.0%) are predicted to record the strongest annual increases in adspend in 2015, however both are susceptible to high levels of inflation. The UK then follows, with estimated growth of 6.6% this year. Russia (-13.1%) and France (-0.2%) are the only markets in which we expect spend to decline. The US, the world's largest ad market, is expected to see adspend rise 1.4% this year after a downgrade of 3.0pp since our last report. American television is the largest single medium for advertising in the world, and spend hit a record US$65.7bn in 2014. However, without the stimulus of major sporting and political events, and a weak ‘upfronts’ period earlier this year, we forecast an annual fall in US TV adspend of 3.3% in 2015. Looking to 2016, we expect all markets – with the exception of Russia – to show growth in adspend at current prices. India will continue to increase advertising spend at the fastest rate (+12.4%), followed by Brazil (+7.7%), which should benefit from hosting the Olympics.

 By the end of the forecast period, advertising spend across our 12 major markets should total US$413.7bn at current prices. In real terms, after accounting for inflation, the total is US$325.3bn – US$8.5bn below the peak preceding the global economic crisis. Internet forecast to become largest medium for advertising in 2016 Across all key markets, internet adspend will continue to register rapid growth, rising 16.1% and 12.9% this year and next. Conversely, advertising expenditure for TV is expected to fall by 1.9% this year, although these losses will be negated be a forecast 2.5% rise in 2016. On the current trajectory, internet will become the largest medium for advertising in 2016. Internet is already the biggest ad platform in 6 of our 12 major markets. Rises in ad expenditure for cinema (+3.2%) and outdoor (+0.3%) are also forecast this year, however spend on magazines (-10.4%), newspapers (-9.2%) and radio (-1.2%) is expected to fall.

James McDonald, Data Analyst at Warc, commented: "After a strong rise in global advertising spend last year, the outlook for 2015 is more sobering. With three of the world’s largest economies now in recession, and slowdowns seen in the US and China, we expect a degree of caution when it comes to committing ad budgets this year. “That said, advertisers have increased spend every year since the 2009 crash, with the influx of money for internet ads underlining the growing range of options for marketers.”

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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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