GroupM announced its advertising expenditure (adex) forecasts for 2018. GroupM futures report “This year, next year” 2018 is forecasting India’s advertising investment to reach an estimated Rs 69,346 crore this year.
This represents a growth of 13% for the calendar year 2018 over the corresponding period in 2017. The report also estimated ad spending in 2017 as Rs 61,263 crore, growing at 10%, as predicted by GroupM in February last year.
Various industry estimates peg economic growth at 7.3% to 7.8% for 2018 as the benefits of GST – higher productivity and lower cost of goods sold – become apparent. This combined with key reforms already implemented, such as bank recapitalisation, budget provisioning of non-performing assets and the bankruptcy bill approved by law, are likely to felicitate a recovery in consumer demand and private investment.
Speaking on the TYNY 2018 report, CVL Srinivas, Country Manager, WPP India and CEO GroupM South Asia, said, “As consumer sentiment stablises and spending increases, we estimate 2018 to be a relatively better year from an ad spend perspective. Growth in digital media will continue to outstrip other media but unlike most markets, India continues to see traditional media formats grow.
After a couple of sluggish years, rural volumes are expected to pick up this year leading to increased marketing budgets. The structural changes witnessed in the last couple of years could pave the way for a more stable outlook in the coming years. Read more from bestmediainfo.com…
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