Elections, World Cup to add cheer to India's ad expenditure this yr: Report

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Elections and sporting events are expected to add cheer to India’s advertising expenditure (AdEx) in 2019, according to GroupM’s This Year Next Year Report 2019.


The report by the global media agency pegs India’s AdEx growth at 14 per cent in 2019. FMCG, auto, retail, e-commerce, tech/telecom are expected to contribute to 2/3rd of AdEx.


The global AdEx grew by 4.3 per cent in 2018, and is expected to grow 3.6 per cent in 2019.


Indian AdEx is expected to grow at 14 per cent in 2019. It grew 15 per cent in 2018, beating GroupM’s estimate of 13 per cent growth, thanks to an exceptional first half.


In 2019, 11 per cent of the growth in AdEx is expected to be organic, while an additional three per cent is expected to come from special events — elections and sporting events.


The elections and sporting events will have an equal contribution to the AdEx. Compared to 2014, the agency expects 5-10 per cent increase in election ad spends this year.


Digital once again being the fastest-growing advertising platform grew at 30 per cent, followed by cinema at 25 per cent and television at 15 per cent.


India is the 10th largest market in terms of ad spends and the fastest-growing one. USA is the number one country on the list, followed by China and Japan.


In terms of contribution to incremental AdEx in 2019, India is at the third place, behind USA and China, but at par with Japan and the UK. (Incremental AdEx refers to the additional expenditure in 2019 over 2018 at the global level and India's contribution to it.)