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GroupM estimates 11.6% increase in AdEx in India in 2014

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MUMBAI: GroupM, the leading media investment planning conglomerate in India, today released their annual estimated advertising expenditure report called the This Year, Next Year (TYNY) 2014. Along with the Advertising Expenditure (AdEx) numbers, GroupM India also released the mTrends, the list of the biggest media and communication trends in the country.

As per GroupM’s in-depth research of the Indian media industry, the projected AdEx growth estimate is 11.6%. Digital media shows the maximum growth with 35%. This is followed by 12% in TV, a drop from 13.6% in 2013. Cinema remains constant at 12% for this year as well. The print medium shows a significant increase by 8.5% as against the 2013 estimate of 4.6%, owing to growth in vernacular print publications across the country.

CVL Srinivas, CEO, GroupM South Asia said, “We are cautiously optimistic about the media industry in 2014. Sectors like FMCG, Auto and Retail will continue a stable increase in ad spends. We will see an increase in rural spending by FMCG and Telecom.” He added, “The first half of the year will continue to be uncertaingiven the general economic &political environment, and ambiguity surrounding the measurement system. However advertising by political parties is expected to give a boost to the AdEx by upto +2.5%. We envisagea stronger second half with an upsurge in ad spends.”

The TYNY report is the most comprehensive understanding of the estimated media spends by advertisers in the current year. It also highlights some of the industry sectors that will have a major effect on advertising spends across media.This year GroupM also launched mTrends, a quick reference book of the hottest media and communications opportunities in 2014. This list of 20 trends is a derivative of the TYNY 2014 report and has been put together by the team at GroupM India, including the agencies and specialist units.

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About GroupM

GroupM is the leading global media investment management operation. It serves as the parent company to WPP media agencies including Mindshare, Maxus, MEC, MediaCom, and Motivator in India.  Our primary purpose is to maximize the performance of WPP’s media communications agencies on behalf of our clients, our stakeholders and our people by operating as a parent and collaborator in performance-enhancing activities such as trading, content creation, sports, digital, finance, proprietary tool development and other business-critical capabilities. The agencies that comprise GroupM are all global operations in their own right with leading market positions. The focus of GroupM is the intelligent application of physical and intellectual scale to benefit trading, innovation, and new communication services, to bring competitive advantage to our clients and our companies. www.groupm.com

For further information, please contact:

Ishita Mookherjee

GroupM India

Email: ishita.mookherjee@groupm.com

Phone: +919819838566

Business category overview for key advertising sectors

Elections

  • With general elections and 5 state elections on the anvil, Government spending and political party election spending adding significantly to the ADEX of all media

FMCG

  • Volume growth back for FMCG companies on the back of good monsoon and hence good rural income
  • Raw material prices benign and hence more flexibility with advertisers
  • Ad spends of most FMCG companies on the rise to ride on the back of higher disposable income due to election spending

Retail

  • Category growth story continues

 - More players getting into the food & beverage segment

 - E-commerce making inroads into small town India

 - Regional players expanding getting into national arena

Auto

  • Despite slowdown in the 4wheeler segment, bullish on entry level cars, sports utility vehicles and multi utility vehicles.
  • 2wheelers to continue the focus on small town and rural India. Competiitve intensity on the back of recent market developments leading to more launches by existing players and subsequently higher ad spends

Telecom

  • Smartphones penetration rising. Stiff competition in the segment to continue
    • Phablets & connected devices gaining popularity
    • Cellular phone service providers witnessing growth in revenue and ARPU. With service providers slashing prices for 3G schemes competitive activity expected to pick up in this segment

Banking, Financial Services & Insurance

  • Revival expected in the segment on the back of likely rate reduction.
  • IPO market to pick up pre-election owing to better market sentiments
  • Recent RBI policies leading to a more favourable business environment

New bank licenses likely to push ADEX of the category

Click here for the full report

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