Why Indian media ad spends will grow at 7% in 2013?
New advertisers, expansion in new geographies & acceleration in rural consumption will lead to the estimated growth in ad spends

The current state of the Indian economy is cautious. The Government has to meet its annual fiscal deficit target of 5.3 per cent of the GDP. Apart from this, high WPI and food inflation coupled with fall of rupee has also made the investment ecosystem weak. Some key policy decisions such as FDI approval in retail, aviation, postponing GAAR, and removal of subsidy cap, have been initiated and these measures are likely to surge the investment ecosystem steadily. Recent rate cuts by the RBI after a gap of nine months has boosted the investor sentiment but the capex loan applications in the banks by the corporate have gone down to below 10 per cent in the year 2012.
According to The Pitch Madison Media Advertising Outlook 2013 report, the media and entertainment industry is poised to grow at 7.2 per cent in 2013 and cross the Rs 30,000 crore benchmark. We try to analyse the growth chart here…
Why the ad spend will not be less than seven per cent?
With situation in Europe steadily improving, there has been a slight increase in global and domestic demand. Sectors such as FMCG, BFSI, and auto are launching new variants and are also expanding their geographies. Therefore, in spite of advertisers curtailing their budgets, brand building will not be compromised with. Hence, the sectors are likely to spend more.
Apart from this, the rural and tier II city consumption of FMCG brands has been rising very substantially. Therefore, ‘white goods’ category players would like to reach their consumers in these places. The rural demand for auto and ‘white goods’ is growing at twice the rate of the urban demand.
There will be an increase in the spend as compared to the last year, owing to consistent demand for FMCG, retail, and auto to an extent, taking the curve close to seven per cent, but beyond this point, slowdown in other sectors may curtail the growth.
Recently, at the Seventh Indian Magazine Congress, Dr Klein of Gruner+Jahr International mentioned a proportional relationship between GDP growth and advertising growth. Accordingly from estimates, India is likely to grow by at least 5.5 per cent in 2013. Therefore, by calculation, from the current size of Rs 28,694 crore, the industry should cross the benchmark of Rs 30,400 crore at least.
Why not more than seven per cent?
According to PMMAO 2013, high ad spends in the third quarter of the year had failed to drive up the volumes of goods and services. Therefore, marketers and advertisers from the slowdown sectors would like to slash the budget and divert the same money in discount sales and promotion.
Also, recent surveys have indicated that the consumers have cut their spending on restaurants, eating out, snacks and personal care products. Therefore, the advertisers in these sectors might look for other methodologies to engage audience sans the advertising. The investor sentiment in many sectors is quite weak viz: real estate and telecom. While telecom sector is fighting tax and spectrum issues with the Government, real estate sector (heavy print advertiser) is struggling with clearances and disorganised structure; therefore, there could be less spend from these sectors and growth beyond seven per cent (close to Rs 30,800 crore) may face stiff resistance from the slowdown sectors.
All the above mentioned figures have been sourced from PMMAO 2013.
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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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