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India 2016 |Market Intelligence| Media Spending

Media spending rise highest in five years
India is the fastest-growing major ad market
Total media spending increased 14.2 percent in 2015 and is forecast to rise another 15.5 percent this year, according to GroupM’s This Year Next Year 2016 India Report. The level of 2015 ad spending in India was the highest in five years, according to GroupM, which ranked India the world’s fastest-growing major ad market.
Digital continued to drive overall media spending growth, with a 45.5 percent increase in spending in 2015, and an increase of 47.5 percent expected in 2016. India is one of the few major ad markets where traditional media continues to experience healthy growth, according to GroupM. Cinema and TV performed well, with spending up 20.0 percent and 18.6 percent, respectively. Except for magazines, spending across all other media increased, including radio, newspapers, and out-of-home.

FMCG again led categories in media spending, with a 28 percent share, followed by auto with 21.5 percent, and e-commerce and retail, with 8.2 percent and 8.1 percent, respectively. GroupM predicts that increased competition and brand choice will drive strong growth in e-commerce ad spending, and telecom providers will invest more as they expand 4G services.
Other drivers of ad spending include more “moment marketing” as brands attempt to reach omni-channel shoppers at the right time with the right message. The preeminence of mobile, as mobile phone ownership passes 1 billion in India, is also expected to drive ad spending. A related development will be the establishment of common metrics and standards for mobile advertising.