With an increase in consumer confidence and high-profile sporting events like the Cricket World Cup, the advertising expenditure in India is predicted to grow this year at almost twice the previously projected rate.
The Pitch Madison Media Advertising Outlook report for 2015 forecast a 9.6% increase in spending during the year ahead, compared to an earlier figure of 5.6%. In terms of actual spending, the market is expected to grow by over Rs 3,500 crore to reach Rs 40,658 crore.
Unveiling the report, Sam Balsara, Chairman and MD of the Madison World explained, “The Indian advertising industry in 2014 grew by 16.4%, almost at par with our growth projection of 16.8%.” He continued, “In terms of absolute numbers, the advertising industry increased by Rs 5,200 crore and touched Rs 37,100 crore in 2014.”
The two main categories that fuelled the overall growth in 2014 were the elections, both the Lok Sabha General Elections and the five state elections, and e-commerce players. While the elections contributed as much as Rs 2,300 crore, e-commerce players added Rs 1,150 crore to the overall growth. Out of the registered 16.4% growth rate, nearly 7.2% was on account of elections, followed by 3.6% of e-commerce, and 5.6% by existing categories.