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Indian ad market projected to grow at 13.9 % by 2017: Carat

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MUMBAI: Dentsu Aegis Network’s global media agency, Carat, has forecast global advertising market will touch USD 548.2 billion in 2016, accounting for a 4.4+ per cent year-on-year growth, propelled by digital space, while India is expected to grow at over 13 per cent y 2017.

In Asia Pacific, the buoyant Indian advertising market continues to lead growth prospects of 12+ per cent in 2016 and 13.9+ per cent in 2017, the Carat ad spend report 2016 said.

India continues to be the fastest growing economy where all traditional media platforms still show “positive growth”. Holding the highest share of ad spend of 38.5 per cent in 2016 and 38 per cent in 2017, TV is forecast to grow by 12.3+ per cent in 2016 and 12.5+ per cent in 2017, driven by investment from FMCG brands and e-commerce companies, the report stated.

"We also anticipate that given the tailwinds through the macro-economic factors, GST and other reforms, 2017 will have an even better growth of 13.9 per cent (for India),” Dentsu Aegis Network Chairman and CEO, South Asia, Ashish Bhasin said, commenting on the report.

Dwelling further on the report Bhasin elaborated that Carat expected the digital growth to be about 31.5 per cent in 2016 and to accelerate to nearly 40 per cent in 2017, while mobile will drive digital growth.

“India will transform from a `Mobile First’ to a `Mobile Only’ market very rapidly, aided by better broadband penetration and drop in data costs. What is also unique about India is that all types of media, including print, still continue to grow, albeit at different rates," he opined.

Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat reports a positive outlook for most regions with particularly robust growth in North America (5.0+ per cent) and strong recovery in Russia (6.2 + per cent), countering lower expectations in some markets.

The Carat report projects moderate growth for China where advertising spend is expected to increase by 5.7+ per cent in 2016 and 5.5+ per cent in 2017 as the market adjusts to a ‘new normal’ economic landscape, the report read.

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