Television will continue to be the most preferred medium with 39% share of total ad spend in 2019. The platform has however, witnessed a drop in its ad share over the years moving from 39.6% earlier to projected 37.9% in 2020.
According to a report ‘Advertising Spend June 2019 Forecast’, released by Dentsu Aegis Network (DAN) on Thursday, digital ad spend will continue to grow and may overtake newsprint by 2020.
However, despite digital growth, TV will continue to be dominant as it enjoys unmatched share of audiences. With 38.9% allocation of advertising spends, TV is expected to expand in 2019 by 9.5% to reach Rs 27,140 crore.
“India is at the cusp of a major change. We are as of today seeing significant churn in the media consumption habits which is therefore driving change in ad spends. With the expansion of online video via mobile devices, the role of TV is changing and entertainment at one’s own pace is becoming the norm. This is driving media owners to relook at their product and distribution strategies,” Kartik Iyer, president, Amplifi India said.
The report forecasts double-digit growth of 11.4% for the sector in 2019 at Rs 69,690 crore (up from 10.6% forecast in January and 10.8% growth in 2018) with the Cricket World Cup putting growth on the front foot.
Lok Sabha Elections were another driver to have increased spends in 2019. The Digital media spend is forecast to grow by 32.7% at Rs 14,410 crore in 2019, making up 21% share of total spend. Infrastructure has propelled the growth in digital consumption.
Based on data from 59 markets, the report predicts Asia Pacific ad spends will grow by 4% in 2019 amidst the lower global growth which will reach 3.6% in 2019. Digital continues to power ad spend growth globally and is forecast to increase by 11.9% in 2019. While forecasts in the region have seen a marginal downwards revision since January, APAC is the leading contributor to the global increase in advertising spend in 2019, accounting for 39% of the increase.
Some of the report’s other key findings include:
- Digital continues to power global ad spend growth and is forecast to grow 11.5% in 2019 to reach $249.7 billion and 41.8% of global share.
- Mobile is the fastest growing digital platform with the increasing consumption of video on mobile – from Instagram Stories, TikTok, and Snapchat to Youtube and VOD, powering this growth.
- Majority of growth in Australia will come from digital and video channels. Digital is expected to increase by 6.8% in 2019 representing roughly half of total media spend.
- E-commerce is growing consistently and strongly in China, taking the biggest share within digital. Digital is still the biggest driver of growth in total ad spend in China with the biggest share (63.6%) and growth rate.
- India is forecast to see double digit growth (11.4%) in 2019 with the Cricket World Cup putting growth on the front foot. Despite digital growth, TV continues to be the leading media accounting for 39% of total ad spend.