NEW DELHI: The Covid2019 pandemic set off a tectonic shift in media investments in 2020; from user behaviour to how businesses did their marketing, everything faced a massive upturn. People got more health-conscious, business became digital savvy, and this new order occasioned a reshuffle in the media pies of all categories. All this has set the stage for a very dynamic 2021, as the advertising and marketing industry tries to rise above the minor blip of losses that defined the last year. GroupM, in its recently released annual TYNY report, has indicated that India is set to witness a major ad recovery in the coming months.
Launched Tuesday via a virtual conference, the report estimates growth of 23.2 per cent in India’s advertising investment to reach Rs 80,123 crores for the calendar year, compared to 10 per cent of the global forecast. India is the second fastest growing market in the top 10 countries and will be the sixth largest contributor to incremental ad spends in 2021 globally.
Category-wise, with FMCG and e-commerce laying the foundation, auto, telecom, retail, durables will be growth drivers of India ad spend in 2021.
The report also highlights that print media witnessed the biggest impact in value followed by TV, outdoor, and cinema, whereas digital remained the least impacted in 2020. However, all of the mediums are showing a positive growth trajectory for CY2021.
Like the last year, digital advertising is going to play a key role in this growth. The report details that of the Rs 15,000 crores of incremental ad spend in 2021, the share of digital will be at 40 per cent. However, television will continue to keep its hold in the biggest share of the pie, expected to amount to 45 per cent of the overall spends. However, it is a dip of two per cent from 47 per cent it amounted to in 2020. On the other hand, non-TV and non-digital assets will define 20 per cent of the overall ad spends in India in 2021.
GroupM South Asia CEO Prasanth Kumar says, “2020 was an unprecedented year. However, we have witnessed a month-on-month upturn in the industry starting Q3 last year and we are quite optimistic about the revival that 2021 will see. With the gradual easing of the lockdown backed by seasonal spends and big-ticket events like the IPL, we expect 2021 to continue to build on that momentum.”
GroupM South Asia president - growth & transformation Tushar Vyas states that 2021 will see 90 per cent incremental ad spends on digital globally. “Brands have been forced to think big and different to transform their businesses, match the newer expectations and overcome the challenges faced. The post-pandemic era will continue to see this upsurge in digital demands. The crisis has brought about a sea change in mindset, adoption, and role of technology in doing business. Brands are seen renewing their business models and are constantly ideating to find better ways to connect with the consumer on a digital tangent.”
GroupM India president - partnerships and trading Ashwin Padmanabhan notes that after the double whammy of the pandemic and economic slowdown, manufacturing is now stabilising and moving toward a positive outlook enabled by automation, technology and supply chain optimisation. He goes on to add that the accelerated adoption of agile, cost-effective business models will help brands and marketers offer better products, services and experiences to consumers.
GroupM India president - investments & pricing Sidharth Parashar remarks, “Along with digital, television saw a spike in consumption during the lockdown. With acceptance on the subscription bandwagon increasing, OTT will continue to witness a constructive growth and is likely to develop with more players attracting users by investing in content.”
Print & radio are expected to be backed by local advertisers and certain categories with marketeers leveraging the brand solutions that these media offer, shares Parashar, adding that OOH and cinema will likely see double-digit growth after a difficult year.
“Given the uncertainty and cautiously spending consumer, brands are realising the importance of being present wherever consumers are. Hence, along with continued relevance of television and other mass media, we will witness advertisers leveraging relevant platforms to reach out to its audience,” he concludes.
