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    Advertising Industry

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    Rajeshsharmapurang
    The Indian advertising industry has grown significantly and is projected to become the second fastest growing market in Asia. Print currently contributes the largest portion at 41% while digital advertising is growing rapidly and expected to reach $1.5 billion by 2018. The government is supporting industry growth through initiatives like increasing digital advertising spending and signing co-production deals with other countries. The future of the industry looks promising as sectors like retail, automobiles and telecom are expected to increase their advertising expenditures.

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    Advertising Industry

    Uploaded by

    Rajeshsharmapurang
    25 views3 pages
    The Indian advertising industry has grown significantly and is projected to become the second fastest growing market in Asia. Print currently contributes the largest portion at 41% while digital advertising is growing rapidly and expected to reach $1.5 billion by 2018. The government is supporting industry growth through initiatives like increasing digital advertising spending and signing co-production deals with other countries. The future of the industry looks promising as sectors like retail, automobiles and telecom are expected to increase their advertising expenditures.

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    The Indian advertising industry has grown significantly and is projected to become the second fastest growing market in Asia. Print currently contributes the largest portion at 41% while digital advertising is growing rapidly and expected to reach $1.5 billion by 2018. The government is supporting industry growth through initiatives like increasing digital advertising spending and signing co-production deals with other countries. The future of the industry looks promising as sectors like retail, automobiles and telecom are expected to increase their advertising expenditures.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views3 pages

    Advertising Industry

    Uploaded by

    Rajeshsharmapurang
    The Indian advertising industry has grown significantly and is projected to become the second fastest growing market in Asia. Print currently contributes the largest portion at 41% while digital advertising is growing rapidly and expected to reach $1.5 billion by 2018. The government is supporting industry growth through initiatives like increasing digital advertising spending and signing co-production deals with other countries. The future of the industry looks promising as sectors like retail, automobiles and telecom are expected to increase their advertising expenditures.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Advertising Industry

    Introduction
    The Indian advertising industry has evolved from being a small-scaled business to a full-fledged
    industry. The advertising industry is projected to be the second fastest growing advertising
    market in Asia after China. It is estimated that by 2018, the share of ad spend in India’s Gross
    Domestic Product (GDP) will be around 0.45 per cent.
    The Indian government has given tremendous support to the advertising and marketing industry.
    Advertising expenditure is likely to increase in the financial sector, driven by Reserve Bank of
    India (RBI) policies which could result in a more favourable business environment. Also,
    proposed licences for new banks and better market sentiments render the advertising and
    marketing industry in India a fertile space.
    Market size
    Print contributes a significant portion to the total advertising revenue, accounting for almost 41.2
    per cent, whereas TV contributes 38.2 per cent, and digital contributes 11 per cent of the total
    revenue. Outdoor, Radio and Cinema make up the balance 10 per cent.
    India’s digital advertisement market is expected to touch Rs 25,500 crore (US$ 3.8 billion) mark
    by 2020.*
    The Internet's share in total advertising revenue is anticipated to grow twofold from eight per
    cent in 2013 to 16 per cent in 2018. Online advertising, which was estimated at Rs 2,900 crore
    (US$ 435 million) in 2013, could jump threefold to Rs 10,000 crore (US$ 1.5 billion) in five
    years.
    Recent Developments:

     GroupM, the US-based advertising media company, has acquired a majority stake in
    MediaCom India, a joint venture between GroupM India and Madison Media group's
    principal shareholder Sam Balsara, for an undisclosed amount.
     Cognizant Technology Solutions has announced the acquisition of Mirabeau BV, a
    Netherland-based digital marketing and customer experience agency, which is expected
    to expand Cognizant’s capabilities in digital business domain in Netherlands and Europe.
     The Indian Railways is working on a new advertising policy aimed at installing 100,000
    big digital screens at 2,175 railway stations across the country, which is expected
    generate Rs 11,770 crore (US$ 1.76 billion) revenue annually.
     Times Internet Limited plans to invest US$ 100 million in development of smart
    marketing technology platform Colombia, which will serve its marketers to engage with
    around 200 million digital users per month.
     Indian Railways has appointed Ernst & Young (EY) as a consultant to discover its
    advertising potential, which is in line with the Railway Budget proposal of increasing
    non-fare earnings to over Rs 5,000 crore (US$ 750 million) in five years.
     DDB Mudra Group has planned to launch ‘Track DDB’, a brand that addresses the data-
    led world of marketing communications, which will provide services like creative, data
    and digital analytics, database marketing, CRM, digital and mobile marketing in India.
     All India Radio (AIR) has appointed ‘releaseMyAd’ as a virtual agency to let advertisers
    book ads for all of AIR’s station online. 
     Google is all set to help India implement Prime Minister Mr Narendra Modi's "Digital
    India" initiative, and the government has a well laid out plan to realise it, said Google's
    Chief Internet Evangelist Mr Vinton G. Cerf. Digital India is Rs 1.13 trillion (US$ 16.95
    billion) government initiative that seeks to transform the country into a connected
    economy, attract investment in electronics manufacturing, and create millions of jobs and
    support trade.

    Government Initiatives
    The Governments of India and Canada have signed an audio-visual co-production deal which
    facilitates producers from both countries to harness their collective artistic, technical, financial
    and marketing resources, and encourage exchange of culture and art between the two countries.
    The agreement is also likely to lead to better promotion of Indian locales for shooting films. "The
    agreement will also lead to the transparent funding of film production and boost export of Indian
    films into the Canadian market," as per the agreement.
    Mr Rajyavardhan Singh Rathore, Minister of State for Information & Broadcasting, has
    announced that Indian government has planned to increase advertising spend on the digital
    platform which will help increases the government’s presence in digital media.
    Road Ahead
    The advertising and marketing sector in India is expected to enjoy a good run. Growth is
    expected in retail advertisement, on the back of factors such as several players entering the food
    and beverages segment, e-commerce gaining more popularity in the country, and domestic
    companies testing out the waters. The rural region is a potentially profitable target. For instance,
    in the automobiles sector, the focus of two-wheelers on rural areas could mean more launches
    and more advertising spends. The telecom sector could see growth as well, driven by better
    smartphone penetration and service providers cutting down on prices.

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