Elections To Raise Advertising Growth This Year. Digital Occupying 7.9% Of Rs 43,065 Crore Expected Ad Market

GroupM, has said overall advertising growth will stand at 11.6 percent and digital will occupy 35%. With elections this year ad investments are going to rise.



The country is going to witness Lok Sabha elections this year. With the political equilibrium in the country taking a turn, marketing and promotional activities would also be spiking up, leading to a raise in the growth of the ad & media sector this year. In a recently released annual estimated advertising expenditure report - ‘This Year, Next Year’ (TYNY) 2014, GroupM, the country’s largest media agency, has said overall advertising growth will stand at 11.6 percent this year, against 10 percent last year.

Reported by Business Standard, expectations are that the sector, currently pegged at Rs. 38,597 crore, will stand at Rs. 43,065 crore by the year-end.

Addressing at a media briefing, C V L Srinivas, CEO of GroupM South Asia informed that if one excludes the advertising by political parties then the overall growth would stand at nine percent. While distributing the market shares by medium, the CEO added that in value terms TV advertising will remain the largest contributor to the total ad pie at Rs. 18,883 crore, against Rs. 16,860 crore last year.

Standing at Rs. 14,248 crore print advertising, the second largest contributor to advertising  in India will see 8.5 percent growth compared to 4.6 percent growth last year. The growth would be driven by regional advertising in newspapers as companies would be targeting tier two and three markets.

Digital which is growing rapidly over the years is pegged to be 35 percent(YOY) this year while it was 30 percent last year. Social media would also be driving the digital space.

Talking about the trends, Group M also predicted that while FMCG will be doing the maximum spends followed by retail, targeted advertising on television would be a major trend this year.

While it has been termed as an okay year for the media industry, political parties have already started showing their weight of investments on the advertisements for the coming elections. If numbers are to believed then this election is about to see at least Rs. 2,000 crores being spent on ad campaigns compared to Rs. 500 crore which was spent in 2009 elections.

The Congress joined the party recently when it was revealed that it has hired JWT India, Dentsu India and Taproot for the image makeover of the party. The party has allocated Rs. 400 crore for its mass media ads, which include television, print, radio, outdoor and digital and around Rs. 100 crore for on-ground activities. A massive television, radio and digital campaign highlighting the government’s initiatives and achievements has already been kicked off.

BJP, Congress’s biggest opponent is yet to decide its advertising agency and the emerging common man’s party Aam Aadmi Party (AAP) is resorting to social media campaigns and on-ground campaigns through its in-house teams and volunteers.

As Piyush Pandey, executive chairman and national creative director at Ogilvy India, says, “Social media is today’s media. I think all parties will focus on this medium to woo voters across the country.” The spends on all mediums will increase specially with the elections this year and the media houses will not mind it.

Image credit: Microsoft

Correction: The article earlier reported that digital occupies 35% instead of 7.9% of the expected ad budget in 2014. The error is regretted.