By: M4G Bureau
Last updated : December 11, 2017 11:22 am
IPG Mediabrands MAGNA Adex Prediction 2018 report forecasts that 2017 estimated Adex growth rate of +11.5% earlier in June has been revised marginally downwards to +11.1%. In 2018; the ad spends are expected to grow +12.1%
GDP in real terms is expected to grow +6.7% a speck slower than earlier projected +7.17%. In 2018 IMF report predicts growth of +7.4%.
Advertising revenue will grow at CAGR of +12.1% in the next five years to touch INR 1.07 tn. Growth will be led by digital with +21.6%. Television will still rule the top as the largest media in 2022 with a market share of 41%. Digital and print will have equal share of 25%. Mobile will displace desktop as the 3rd largest category by 2020.
United States and China contribute close to 50% of the incremental ad dollars between 2018 and 2022 while India ranks third with a 6% contribution. The traditional categories like print are so strong and growing YOY in India that over 60% of this incremental dollars is coming from traditional categories.
2017 estimated Adex growth rate of +11.5% earlier in June has been revised marginally downwards to +11.1%. In 2018; the ad spends are expected to grow +12.1%. Categories driving up spends next year will be:
Table 1 – Net Advertising Revenues by category (INR Cr Net)
Media Category |
2017 (Jun Estimate) |
2017 (Dec Estimate) |
2017 % YOY |
2018 (Dec Estimate) |
2018 % YOY |
Television |
24516 |
24607 |
10.7 |
27617 |
12.2 |
|
20644 |
20613 |
5.6 |
21842 |
6.0 |
Digital |
10227 |
10227 |
28.0 |
12808 |
25.2 |
OOH |
3552 |
3411 |
8.0 |
3743 |
9.7 |
Radio |
2227 |
2114 |
7.2 |
2325 |
10.0 |
Total |
61166 |
60972 |
11.1 |
68334 |
12.1 |
Table 2 – Net Advertising Revenues: 2018-2022 (INR bn Net)
Table 3 – Net Advertising Revenues: Top 10 markets ($ Bn)