Indian TV AD EX to grow at 12 .3 per cent in 2016: Carat report 2016

MUMBAI:  Based on data  received from 59 markets across the Americas, Asia Pacific and EMEA, Carat’s latest global forecast highlights that advertising spends will reach  US$538  billion in 2016,  accounting for a +4.5 per cent year-on-year increase. The report also forecasts India growing begun on a positive note with a forecast growth rate  of +12.0 per cent in 2016. Carat’s first forecast for worldwide advertising expenditure in 2017 also predicts India’s ad spends will leapfrog to a growth of 13.9 per cent by 2017.

Unlike growth in the other BRIC markets - Brazil, Russia and China - advertising expenditure in India would continue to accelerate in this year, supported  by the  India T20  Cricket World Cup and  the  state  elections. TV advertising revenues  are forecast  to grow by +12.3 per cent in 2016,  supported  by strong spending from e-commerce companies and FMCG brands.

While TV is expected  to  remain  dominant for many  years  to  come,  advertisers  are increasingly  utilising online  video as  an  invaluable  complement. In spite of the much talked about digital marketing drive in the country, the overall   share of total digital advertising spends in India is still relatively low at 8.9 per cent (2016).

Whereas the global ad spends on news paper  are declining  in markets like North America and Latin, India shows a  positive newspaper  advertising  spend    at +10.5 per cent in 2016,  primarily due  to investment  from e-commerce, automotive and a small contribution from government spending.  Retail advertisers also continue to spend on print.

Carat’s first forecasts for 2017 predict continuing strong growth for the advertising market in India with an estimated increase  of +13.9 per cent and expected  favourable  economic  conditions in which advertisers vie for the consumers’  attention.

The report makes it clear that while TV  will continue to dominate the lion share of advertising spends, digital is the real growth driver. Powered by the upsurge  of mobile (+37.9 per cent), online video (+34.7 per cent) and social media (+29.8 per cent) in 2016,  the strength  of digital is expected  to continue  to grow at double digit prediction levels of +15.0 per cent this year, and a further +13.6 per cent in 2017.  

Overall, Carat predicts the upsurge  of digital to account for 27.0 per cent of advertising spends in 2016  and extend significantly to 29.3 per cent in 2017,  reaching  US$161  billion globally.

Whilst digital is constantly closing the gap, TV continues to command the majority of market share with a steady 42 per cent. In 2015 ad spends is predicted to grow by +3.1 per cent this year as the Olympic Games and US elections are predicted to generate significant TV viewership across various markets.  In addition, Carat’s forecasts reconfirm the steady decline in Print* in 2016  and into 2017  with Newspapers declining by -5.4 per cent and Magazines  by -1.7 per cent in 2016  whilst highlighting positive year-on-year growth in 2016 for all other media, including Outdoor (+3.4 per cent),

Radio (+2.2 per cent) and Cinema (+2.8 per cent), with the latter expected to grow further at +5.0 per cent in 2017.

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