Ad spend on print media could rise 35% to Rs 16,100 crore in 2021: report
This is the second report predicting a sharp increase in ad spend in 2021. On Tuesday, GroupM predicted a 23% expansion in print media and total ad spend to ₹12,731 crore and ₹80,123 crore, respectively.
The FMCG industry continued to be the biggest spender and its share in the global adex rose to 38% in 2020 from 33% the year before, according to the Pitch Madison report. E-commerce and education increased their advertising budgets by 30% and 9%, respectively, in 2020.
While Hindustan Unilever became the biggest advertiser, Reckitt Benckiser was next in line. Amazon, Reliance, Maruti Suzuki and Byju’s were the only non-FMCG advertisers on the top 10 list.
Indian advertising spending fell by 20% to ₹54,151 crore, in 2020, as companies cut spending amid the pandemic and shutdowns. This is the largest drop ever recorded in a year, according to the report.
However, in the fourth quarter of 2020, the adex increased by 61% compared to the third quarter and by 16% compared to the previous year. This “gives us a lot of confidence and hope” that the market and the adex will rebound strongly in 2021, the report adds.
While TV adex is expected to grow by 17% to ₹26,350 crore, that of digital is expected to grow by 25% to ₹21,200 crore. In outdoor media, spending is expected to increase by 90% to ₹2,450 crore. Cinema advertising is expected to increase by 161% to hit ₹475 crore, about half the number in 2019 – cinemas were closed or were operating with limited capacity for most of 2020. Radio is expected to reach a rate growth of 38% in 2021, touching ₹1,750 crore. “This year, traditional media is expected to grow at a slightly higher rate than digital given the decline in 2020,” said Sam Balsara, president of Madison World.
The negative impact of Covid on the Indian adex has been more severe than that of many other countries, including the United States and China, according to the report.