Digital media is expected to witness maximum growth (35 per cent), followed by TV and cinema (12 per cent each). Print medium is expected to grow by 8.5 per cent. Interestingly, advertising by political parties is expected to give a boost to the AdEx by upto +2.5 per cent...
In an event held in Mumbai today, GroupM released its annual projection of the advertising spends for 2014. CVL Srinivas, CEO, GroupM South Asia, says, "We are cautiously optimistic about the media industry in 2014. Sectors like FMCG, auto and retail will continue to see a stable increase in ad spends. We will see an increase in rural spending by FMCG and telecom. The first half of the year will continue to be uncertain, given the general economic and political environment, and ambiguity surrounding the measurement system. However, advertising by political parties is expected to give a boost to AdEx by up to +2.5 per cent. We envisage a stronger second half with an upsurge in ad spends."
Within digital, according to Tushar Vyas, managing partner, South Asia, GroupM, mobile will contribute 12-15 per cent to the overall 35 per cent growth. Videos, stream and mobile will drive advertising on digital. "What we are seeing is a transition now in terms of allocation of spends on digital. Earlier, if the clients were left with money after spending on major media, they used to look at digital. But what is happening now is that digital is coming to the centre of the media mix," Vyas adds.
The report is an understanding of the estimated media spends by advertisers in the current year. It also highlights some of the industry sectors that will have a major effect on advertising spends across media.
This year, GroupM also launched mTrends, a quick reference book of the hottest media and communications opportunities in 2014. This list of 20 trends is a derivative of the 2014 report and has been put together by the team at GroupM India, including the agencies and specialist units.
For the record, according to RECMA, GroupM has around 40 per cent share in the media industry.
See the entire report below: