Zenith adex report pegs OOH growth at 5% in 2018
By M4G Bureau - December 04, 2017
Internet advertising to grow at 20.4%; growth rate for television is pegged at 9% while newspapers will grow at 5%. Radio will grow at 10%, while cinema like OOH will grow at 5%
The December 2017 edition of Zenith’s Advertising Expenditure Forecasts has placed the growth forecast for OOH advertising in India at 5% in 2018. The report predicted 20.4% growth in internet advertising in India in 2018, compared to 8.4% growth for the market as a whole. By 2020, internet will account for 15.4% of total adspend in India. Growth rate for television is pegged at 9% while newspapers will grow at 5%. Radio will grow at 10%, while cinema like OOH will grow at 5%.
The report states that year 2017 will close at Rs 53, 918 crore, registering a slightly slower pace of growth on account of demonetisation introduced in November 2016. Total adex for India will climb up to Rs 58,422 crore, growing at 8.4% in 2018, led by television.
Zenith expects internet advertising’s share of global adspend to continue to rise, reaching 40% in 2018 and 44% in 2020. Its value will rise from US$203bn in 2017 to US$225bn in 2020.
India is placed number 4 in the Top ten contributors to global adspend growth 2017-2020 where it follows USA, China and Indonesia in that order.
Between 2017 and 2020, Zenith forecasts global advertising expenditure to increase by US$72 billion in total. The US will contribute 27% of this extra ad expenditure and China will contribute 20%, followed by Indonesia, India, the UK and Japan, which will contribute 4% each.
Rising Markets China, Indonesia, India, Brazil and Russia will contribute 33% of new adspend over the next three years. Overall, the report forecasts Rising Markets to contribute 54% of additional ad expenditure between 2017 and 2020, and to increase their share of the global market from 37% to 39%.
“We are seeing a battle played out in business, marketing and media between big players and small players,” said Vittorio Bonori, Zenith’s Global Brand President. “Growth is coming from big countries and big cities, and being captured by big platforms. Brands should focus on upstream strategy, data-informed UX planning and downstream automation”.
Tanmay Mohanty, Group CEO, Zenith India says, “Growing Internet penetration accelerated by operators such as Jio will significantly enhance digital adspends in India and give access to previously untapped markets. India has seen some fluidity in overall ad-expenditure but remains one of the fastest growing advertising markets globally. With the dust settling down on demonetisation and GST, we expect a measured recovery on ad spends. Consumer confidence is definitely on the rise. In 2018, Mobile Handsets, FMCG, Automobiles, BFSI, Travel & Tourism and Political Ads will drive up the pace on adspends.”