IPG Mediabrands' strategic global media unit Magna Global has released the annual advertising revenue forecast for the year 2014.
On the back of new launches, auto as a category has grown in 2013. Personal Care has also grown as government social scheme and awareness programme spends have shown an increase. BFSI and telecom service providers, though recovered from 2012, are still under pressure.
Meanwhile, the emerging BRIC economies will also re-accelerate after experiencing a "soft landing" in 2012-2013: India 5.1 per cent (following 3.8 per cent in 2013), Russia 3.0 per cent (following 1.5 per cent in 2013); Brazil and China's are expected to grow by 2.5 per cent and 7.3 per cent, respectively (at par with 2013).
"That level of economic activity is not particularly impressive by historical standards but confidence indices keep improving and we believe advertising spending will reflect and amplify that economic trend," says Venkatesh S, EVP, director intelligence, Magna Global, India.
According to Magna, it has to be noticed that the growth indicators mentioned are for real GDP, whereas in their experience, advertising expenditure is better correlated with nominal GDP. Over the 72 markets monitored by Magna Global, nominal GDP growth was 4.9 per cent in 2013 and will be 6.1 per cent in 2014. "Our advertising growth forecast is therefore marginally above nominal GDP growth, which can be expected in an even year with cyclical boosters and coming after several years of savings and postponed investment," the report said.
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