Rise in spends will endure

| Updated on January 16, 2018 Published on December 29, 2016

Tanmay Mohanty, Group CEO, Zenith India

Ad expenditure growth for India in 2017 stands at ₹54,344 crore, up by 11.2 per cent over 2016. India is among the top ten contributors to ad spend growth, along with others such as the US, China, Indonesia, the UK, the Philippines, Japan and Germany.

A press release quoting Tanmay Mohanty (in picture), Group CEO, Zenith India, says, “Ad spending in India is on a steady growth curve and likely to stay that way in 2017, buoyed by the State elections in Uttar Pradesh and Punjab, the upcoming Champions Trophy and continued expansion and growth of regional newspapers and television. In fact, we expect 2017 to see increased ad spending by categories such as mobile wallets, telecom 4G, BFSI, mobile handsets, fast moving consumer goods and consumer durables.”

According to him, demonetisation will bode well for the economy in the long term.

Digital remains one of the fastest growing mediums in India registering a 30 per cent growth rate. Television will register an 11 per cent growth rate in 2017, print (newspapers) will grow at 7.6 per cent and all other media between 7 per cent and 12 per cent.

Fast-track Asia economies (China, India, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand and Vietnam) are growing extremely rapidly as they adopt Western technology and practices, and investors pump in funds.

Global ad expenditure will grow 4.4 per cent in both 2016 and 2017 reaching $566 billion by the end of 2017, says Zenith.

The year 2017 also faces a tough comparison with 2016, when spend was buoyed by the US elections, the Summer Olympics, and the European football championships, as it is every four years. The internet is expected to overtake television to become the largest medium in 2017.

Published on December 29, 2016
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