Dentsu Aegis Network recently released its Global Ad Spend Forecast Report 2018. According to the report, the ad spends in India will grow at 12.5 percent in the year 2018. The report also shows that digital media channels will continue to power ad spend growth, growing globally by 12.6 per cent in 2018, versus 15 per cent in 2017, to reach US $220.3 billion.
Commenting on the latest forecasts, Jerry Buhlmann, CEO, Dentsu Aegis Network, says in a press release, "The latest ad spends forecasts show a market in transformation, but not recession. The challenge for brands is to navigate an uneven economic outlook alongside a rapidly evolving tech & innovation landscape. In many markets, disruptive innovation - from mobile, voice activation and new ad tech players - is still providing new sources of growth and we forecast this trend will continue into 2018."
He adds, "Succeeding in this environment requires global consistency through appropriate platforms and systems, while also the flexibility and agility to work with a wider ecosystem of tech-enabled solutions. It demands a relentless focus on understanding the consumer, using data to reach real people, driving relevance, addressability and business growth.
Nick Waters, CEO, Dentsu Aegis Network Asia Pacific, says in a press release, "Asia Pacific continues to lead the growth in digital ad spend. With the region's fast adoption of technology and innovation, there will be a substantial shift towards mobile and smart devices. As a result, mobile online video ads will be the main drivers of growth within digital ad spend across the region."
He adds, "Data continues to be central to our business in Asia Pacific and with better understanding of new technologies, structures and models for business growth, agencies must help brands move from being disrupted to disruptor."
Speaking on the Indian context, Kartik Iyer, president Media Brands and Amplifi - Dentsu Aegis Network India, says in a press release, "India is forecast to grow by 12.5 per cent in 2018, up from 9.6 per cent in 2017, reflecting its solid economic growth trajectory. Digital media spend is forecast to increase by 30 per cent in 2018 with 43.6 per cent growth in mobile spend, which will account for 47 per cent of total digital spend in 2018. The advertising market in India is forecast to grow by a further 12.5 per cent in 2019. 2018 is expected to be a growth year considering the stabilisation post GST. Another driver of growth would be the fiscal policies of the government which are expected to be pro spending and supporting the middle income groups. In India, the significant improvement in availability of high-speed networks at a lower cost is making a huge impact in the efficiency metrics of digital media. This will continue and therefore will support the faster growth of digital advertising."
He adds, "As marketers, we need to be prepared to harness this change and maximise engagement with our customer and thereby deliver higher returns for our brands. As an agency group, DAN has overinvested in this area and today has the largest, most experienced group of companies which are harnessing this rapidly changing area."
Table: Forecast ad spend growth rates by region and country