Advertising investment in India is set to reach an estimated Rs. 80,678 crores ($11bn) this year, which represents an estimated growth of 14%, or two times the country’s gross domestic product growth, for 2019.
This is according to GroupM’s advertising expenditure (adex) 2019 forecast, which also found that India will be the third highest contributor to the incremental ad spends, only behind China and USA and the 10th fastest growing country for ad spends across the globe.
The upcoming Cricket World Cup and general elections will see an increased 37% of incremental ad spends, which will go towards digital advertising including mobile. Industries like FMCG, automotive, retail, e-commerce, tech and telecom are expected to contribute up to two-thirds of adex.
Television will continue to grow at a steady pace at 15% and print by 2.2%. The share of print to all media is expected to be at 23%, with both vernacular, English and regional languages thriving.
Radio is expected to grow higher than in previous years at 15% and cinema will grow at 25% because of more audience-friendly shows. Cinema is also expected to shift from title-based advertising to continued advertising throughout the year.
“With the surge of technology, better insights and relevant engagement across different platforms, we are expecting marketers to build superior consumer connections for brands,” said Tushar Vyas, the president of growth and transformation at GroupM South Asia.
“2019 will witness a faster growth in digital and we are expecting digital to be at 20% media mix. As we are witnessing one in every three Indians digitally connected, we can expect the convergence of data, digital and content to deliver seamless and powerful solutions to brands as well as constantly adding inventive practices into the market.”
GroupM previously downgraded its global ad spend forecast for 2019 due to the effects of a recent appreciation of the dollar, a flagging auto industry and flat-lining markets for both consumer packaged goods and traditional media.