Traditional media ad spend such as TV and print will remain top dog in India this year according to eMarketer’s Ad Spend Forecast for India.
TV will still reign supreme as advertisers direct a majority of their spending to TV, accounting for 39.5% of all ad spending at $3.31b. TV’s Print media comes closely behind at 35.5% of ad spend in India, with the majority spent on newspapers, which remain popular and profitable.
Digital media ad spend however will only account for 15.3% of all spend, increasing by 30%, still lagging behind traditional media in India. The mobile subset of digital ad spend is expected to be the key driving force, with forecasts of a surge of 85% this year to hit $460.1m. This is in contrast with Southeast Asia's digital ad spend hitting 23.8% of all ad spend budgets.
Overall media ad spend is expected to grow 12% in 2017 to hit $7.94b according to eMarketer estimates.
India’s sudden demonetisation exercise in November 2016 has seen advertisers pull back on ad spending. The exercise, which was an effort to crack down on corruption and tax evasion, made two high-denomination notes no longer legal tender. Any slowdown from this move is expected to be short-lived according to eMarketer.
“Traditional media outlets, especially print and TV, remain the mainstay of media advertising due to its outsized influence on the lives of many in India,” said Shelleen Shum, senior forecasting analyst, eMarketer.
“Local content coverage in various languages and the widespread accessibility to print and TV signals explain their ability to hold on to large audiences. This is a stark contrast to many other countries where both industries are facing declines in advertising revenue as audiences migrate to digital,” she added.