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eMarketer: India mobile ad spending will grow by 85 per cent

Traditional media ad spending — especially on television and print — will remain the most popular advertising medium in India this year, but digital media ad spend will increase by 30 per cent, according to eMarketer’s latest ad spending forecast for the country.

eMarketer India ()

Advertisers are expected to direct the largest portion of their outlays to TV, which will account for 39.5 per cent of all ad spending and equal US$3.31 billion. Print will not be far behind, with 35.5 per cent of ad spending dedicated to the medium. The vast majority of print ad expenditures will be on newspapers, which still remain popular and profitable in India.

Overall paid media ad spending in the country will grow 12 per cent in 2017 to reach US$7.94 billion, eMarketer estimates.

Meanwhile, digital media ad spending will make up 15.3 per cent of all ad outlays, but will increase by 30.0 per cent, far behind traditional media in India. Within digital, mobile is the key driving force and is expected to grow by 85 per cent this year to reach US$460.1 million.

Many advertisers pulled back on ad spending following the government’s surprise demonetisation move in November 2016, during which two high-denomination cash notes were no longer recognised as legal tender in an effort to crack down on corruption and tax avoidance. However, eMarketer expects any slowdown resulting from the move to be short-lived.

“Traditional media outlets, especially print and TV, remain the mainstay of media advertising due to its outsized influence on the lives of many in India,” said Shelleen Shum, senior forecasting analyst at eMarketer. “Local content coverage in various languages and the widespread accessibility to print and TV signals explain their ability to hold on to large audiences. This is a stark contrast to many other countries where both industries are facing declines in advertising revenue as audiences migrate to digital.”

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