India ad revenues to grow 11.3% in 2014: Magna Global. 2013 Growth: 7.8%

09 Dec,2013

By A Correspondent

 

Indian media companies will see ad revenues growing by +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 adspends will be 10.4%, while that for newspapers will be 8.8%. Magazine adspend growth will 2.3% while OOH will be 12.1% and Radio at 11%. Cinema, given its lower base, will grow at 20%.

 

Last year, Magna Global had predicted an 8.7% growth for Indian adspends. This was revised mid-year to 7.8%. The growth for 2012-13, although based on its estimates, is 7.8 percent.

 

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 a communiqué. In its October 2013 update, the IMF forecast world output (real GDP) to accelerate to +3.6% in 2014. This is marginally below its April forecast (+4.0%) but still stronger than the 2013and 2012 growth (+2.9% and +3.2% respectively). The latest IMF update also confirmed that the Euro markets are finally emerging from recession as of the end of 2013 (+1.0% GDP growth expected in 2014, +1.4% in Germany). The US will accelerate from +1.6% to +2.6%. Meanwhile,the emerging “BRIC”economies will also re-accelerate after experiencing a “soft landing” in 2012-2013: India +5.1% (following +3.8% in 2013), Russia +3.0% (following +1.5% in 2013); Brazil and China’s are expected to grow by +2.5% and +7.3% respectively (on par with 2013).

 

Venkatesh S

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 says Venkatesh S, EVP, Director Intelligence, Magna Global, India.

 

 

Look out for our detailed report on the Magna Global numbers on Tuesday, December 10

 

Caption: India advertising revenue by media category 2012-2014

 

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