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Magna Global says Indian ad market should grow 11.9% in 2014

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MUMBAI: Folks in advertising, there’s reason to cheer. The Indian advertising market is going to grow at a healthy 7.8 per cent in 2012-2013, outpacing its GDP growth, is the prediction of Intepublic group’s strategic global media unit Magna Global. Television and print are expected to contribute two thirds to this growth with television advertising growing at 6.6 per cent, Digital media at 31 per cent (faster than any other category with mobile and video outgrowing traditional display), newspapers (expanding in language and regional pockets) should grow at six per cent, while magazine advertising growth is expected to be flat. Radio and out-of-home advertising will grow +8.0%.

India Advertising Market (Media Owner Revenues)

Magna says this is relatively good highlights that this will happen at a time when India suffered it worst near decade slowdown in 2012, with real GDP growing by +4.0% compared to +7.7% in the previous year (source IMF). It adds that India’s economic outlook was downgraded by ratings agencies, which dampened investment sentiment. The impact of the corrective measures that the government took like reducing subsidies, opening up FDI in retail, and a plan to introduce targeted subsidies through direct transfers to reduce expenditure, remains uncertain in the short to medium term, says Magna And it cautions that in its April report, the IMF has forecast 5.7 per cent of real GDP growth this year and 6.2 per cent in 2014.

India advertising revenue by media category 2012-2013

Magna believes the Indian advertising market is going to show further buoyancy in 2014 by growing 11.9 per cent. The reason: the investment climate is expected to warm up and demand from external economies backed by solid domestic consumption will boost the Indian economy.

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