Indian media companies will see ad revenues growing 11.3% next year with the internet again leading the growth at 31.4%, according to Magna Global’s annual advertising forecast for the year 2014.
The growth in television ad spends will be 10.4% while that for newspapers will be 8.8%. Magazine ad spend growth will be 2.3% while OOH will be 12.1% and radio at 11%. Cinema, given its lower base, will grow at 20%.
Last December, Magna Global had predicted an 8.7% growth for Indian ad spends. This was revised in June this year to 7.8%. The growth for 2012-13, although based on its current estimates, is 7.8%.
Magna Global is the strategic media unit of global media agency conglomerate IPG Mediabrands.
IPG Mediabrands is headed by Shashi Sinha in India.
The economic environment remained weak throughout 2013, but is still expected to improve in 2014, especially in the developed world which has experienced four years of slow growth and stubborn unemployment, according to the IPG Mediabrands firm. As per the International Monetary Fund’s World Economic Outlook projections, India should re-accelerate at 5.1% following 3.8% in 2013.
“That level of economic activity is not particularly impressive by historical standards, but confidence indices keep improving and we believe advertising spending will reflect and amplify that economic trend,” said Venkatesh S, EVP, Director Intelligence, Magna Global, India.
Venkatesh added that the growth estimates of 7.8% for 2012-13 are end-2013 estimates and he does not foresee any extreme changes.
