Catalyst

Diminished by demonetisation

| Updated on January 13, 2018 Published on February 23, 2017

23_Adex estimates

Two reports forecast slower growth for the ad industry in 2017

The ad industry will grow at 13.5 per cent in 2017 to reach ₹56,152 crore, says the Pitch Madison Advertising Report 2017. Demonetisation shaved ₹1,650 crore off ad spending in 2016 in India, slowing growth down to 12.5 per cent. The total ad spend stood at ₹49,480 crore in 2016.

Digital ad spending, which grew by over 40 per cent, contributed the bulk of the growth. It stands at ₹7,315 crore and accounts for 15 per cent of the market. In all other media, growth slowed down to 8.5 per cent.

The fast moving consumer goods category was the biggest advertiser (32 per cent), followed by auto (10 per cent) and telecom (8 per cent). Unlike the splash it made in 2015, e-commerce accounted only for 4 per cent of the ad spend.

The report recommends intensifying campaigns in the weaker January-April months for good impact.

It sees the market growing just 8 per cent in this period. From May on, growth will be spurred by several government initiatives including investments in infrastructure, lower corporate and personal taxes for SMEs and such.

The graphic here shows findings about ad spending from Group M’s TYNY 2017.

Group M predicts the industry in India, the fastest growing advertising market, will grow by 10 per cent in 2017, and that there will be sufficient room for both digital and traditional media to grow. It says mobile will account for 70 per cent of digital ad spend.

Published on February 23, 2017
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