By: M4G Bureau
Last updated : December 05, 2017 6:53 pm
The report states that OOH’s share of ad pie has increased from 6.1% in 2016 to 6.2% in 2017 and 6.3% in 2018 – the highest since 1993; the Indian market is positively impacted by urbanisation and rising wages resulting in strong consumer growth in financial, durables, services and retail sectors
As per the report, as consumer attention continues fragmenting across platforms, many see virtue in one of the oldest advertising media, Out-of-Home, which is also becoming more data-informed, digital and versatile. The combination of location data with purchase, social media and viewing behavior presents an increasingly compelling proposition.
Wherein other formats such as TV investment will grow 0.4% in 2017 and 2.2% in 2018, but TV will lose one share point this year and another next globally. Digital investment growth is expected at 11.5% in 2017 and 11.3% next year; its share will increase from 34.1% this year to 36.4% in 2018
GroupM points to global GDP growth with rising consumer demand, fixed investment, industrial production and exports as contributors to its more positive outlook for 2018. However, identified risks are weak investment and productivity, as well as the spectre of excessive debt, which may deter policymakers from raising interest rates. Wherein, India is looking past recent reform disruptions (demonetisation and GST implementation). Continuing urbanisation and rising wages are supporting strong consumer growth in finance, durables, services and retail. E-commerce is becoming a key channel for FMCG, and ad investment is anticipated to shift significantly from other media to shopper/performance marketing. Amazon is now India’s second-biggest advertiser as it contests the e-commerce market with domestic rival, Flipkart.
“2017 is a challenging year. Brands are operating in hyper-competitive and low growth markets, challenged to deliver in the near-term. Legacy media continue to be challenged by audience fragmentation and competition from the dominant digital players, and those giants have grappled with their own far-reaching success as consumers misuse their user-generated platforms,” said Kelly Clark, Global CEO, GroupM. “Sitting between strained clients and stressed media partners, agencies understandably also saw challenges in 2017, but it would have been much worse for our clients had they not had us to help navigate marketplace dynamics. We believe marketers have an enduring need for objective partners who can operate across the whole media landscape to develop the most integrated campaigns, as well as to help shape standards, measurement and integrity.”