Adspends in India may grow 12% in 2016: Carat

Leading media services agency network Carat has predicted a 12% growth in adspends in India in 2016. Unlike growth in the other BRIC markets -- Brazil, Russia and China -- advertising expenditure in India continues to accelerate, said the report.

Following a buoyant year in 2015 with a growth of 11%, 2016 has begun on a positive note, the report says. This has been supported by T20 Cricket World Cup and the state elections.

Meanwhile, Carat's first forecasts for 2017 predict continuing strong growth for the advertising market in India with an estimated increase of 13.9% and expected favourable economic conditions in which advertisers vie for consumers' attention.

According to the report, television advertising revenues are forecast to grow by 12.3% in 2016, supported by strong spending from e-commerce companies and FMCG brands. While TV is expected to remain dominant for many years to come, advertisers are increasingly utilising online video as an invaluable complement, the study said, adding that the share of total digital advertising spend in India is still relatively low at 8.9% (2016).

On the print sector, the report said unlike in other markets, positive newspaper advertising spend growth is expected to continue at 10.5% in 2016, primarily due to investment from e-commerce, automotive and a small contribution from government spending. Retail advertisers also continue to spend on the print media.

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