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Madison forecasts Indian adex growth at 13.5% in 2017

Madison Advertising Report 2017 claims that demonetization knocked off Rs 1,650 crore from adex. TV lost Rs 850 crore and Print Rs 580 crore in November & December 2016

BestMediaInfo Bureau | Delhi | February 16, 2017

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The Madison Advertising Report 2017 released yesterday has predicted the Indian adex growth in 2017 at 13.5 per cent. Last year in February, Madison had originally predicted the growth at 16.8 per cent which it brought down to 13.2 per cent in August.

Sam Balsara

Sam Balsara

Sam Balsara, Chairman, Madison World, said, “Our expectation is that the market will grow 13.5 per cent in 2017, but growth rates will vary widely from month to month. We expect the market to grow by just 8 per cent for the period January to April 2017, 14 per cent from May to October 2017 and 24 per cent in November and December 2017, given that market had de-grown by 8 per cent in November and December 2016. Our optimism for good growth in ADEX starting May comes on the back of several govt initiatives- from   high government investment in infrastructure, lower corporate and personal taxes for small and medium companies and the masses, good government support for the poor and consequently the wide scale expectation of yet another year of high GDP growth.”

Figures at a glance:

Indian Advertising Market over 3 years
2015 2016 Growth % 2017 Growth %
Medium In Rs Crore % Share In Rs Crore % Share 2016/15 In Rs Crore % Share 2017/16
TV 17261 39% 18831 38% 9.10% 21296 38% 13.10%
Print 16935 38% 18151 37% 7.20% 19869 35% 9.50%
Radio 1545 4% 1749 4% 13.20% 2008 4% 14.80%
Cinema 465 1% 523 1% 12.50% 601 1% 15.00%
Outdoor 2665 6% 2910 6% 9.20% 3234 6% 11.10%
Digital 5120 12% 7315 15% 42.90% 9144 16% 25.00%
Total 43991 49480 12.50% 56152 13.50%

Key findings of the report:

  • Growth in the Indian Advertising Market slowed down to 12.5 per cent in 2016, thanks to the Tsunami that hit in the form of demonetisation that took everyone by surprise. Demonetization knocked off Rs 1,650 crore from ADEX in November and December 2016. Growth in 2015 over 2014 was as high as 17.6 per cent
  • The ADEX growth in the first half of the year was slow at 13 per cent, but accelerated to 16 per cent by October 2016, before de-growing in November and December 2016 by 8 per cent.
  • Growth came mainly on the back of Digital, which grew by 40 per cent + and now stands at Rs 7,315 crore, 15 per cent of the market.
  • Growth in traditional media (all media other than Digital), slowed down to 8.5 per cent.
  • The dominant category continues to be FMCG contributing 32 per cent, followed by Auto at 10 per cent and Telecom 8 per cent. E-Commerce that had taken ADEX (only TV + Print + Radio) by storm in 2015, contributed only 4 per cent in 2016.
  • TV grew by 9 per cent and Print only by 7 per cent in 2016.
  • Radio stood out with a growth rate of 13.2 per cent although on a small base.
  • Nearly 50 per cent of Print’s growth of Rs 1,216 crore is accounted by only 4 categories FMCG, Auto, Education and BFSI. Nearly 44 per cent of TV growth of Rs 1,570 crore is accounted by FMCG.
  • Advertising continues to be a Big Boys’ game with the largest spender HUL spending approximately Rs. 2,500 crores and top 10 spenders accounting for 16% of the total market and contributing 45% of the top 50 list.
  • Unilever, Amazon and Procter & Gamble continue to be the top 3 Advertisers.
  • Many new entrants entered the Elite top 50 list like Patanjali, OPPO Mobiles, Nissan Motors, Reliance JIO, Vivo Phone, SBI and

 

In the current environment, Madison advises:

  • Take Advantage of weaker January-April months and intensify campaigns to get good Impact during this period.

  • Use Digital, but less for top of Funnel Awareness and more for Mid/Bottom Funnel Consideration, Leads and Advocacy.

  • Don’t become a slave to Media Ratings / Readership Data. Ride it and use it as a Guide, Not as a Crutch.

Info@BestMediaInfo.com

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