Indrani Sen: End of the Dark Days: 2021 Midyear Adspends Forecast by GroupM

22 Jun,2021

Indrani SenBy Indrani Sen

 

A week back, GroupM released their Midyear Report on This Year Next Year (TYNY) for 2021, predicting that in 2021 Indian Advertising Industry will not only overcome the degrowth of last year, but also will record almost 2% additional growth.  The Midyear TYNY predicts that India Inc’s investment on advertising will grow by 23.2% during 2021 calendar year and will touch 89,123 crores at the end of the year. The growth in advertising expenditure will come from FMCG, e-Commerce, Auto, Retail, Telecom and Durables categories.

 

India’s rank in the Top 10 fastest growing advertising markets globally had gone down one notch in 2020 to number 10 from number 9 in 2019. It is expected that as the 2nd fastest growing market among the top 10 countries, India will regain the 9th rank in 2021. GroupM predicts 82% of the global advertising spends will come from top 10 markets in 2021 and India will be the 6th largest contributor to incremental ad spends among the top ten markets as shown in the chart below:

 

Source: GroupM TYNY 2021 Midyear Report

 

In 2021, Indian advertising expenditure is estimated to grow at a rate (23.2%) which is more than double of the expected growth rate (10%) of global advertising expenditure. India will be in the same bracket with UK, China and Brazil where advertising expenditures are also expected to grow by 20% plus. The Midyear forecast for global advertising expenditure is 19% higher than their forecast made by GroupM for 2021 in December, 2020. As per the Midyear Report globally, digital advertising expenditure is expected to grow by 26% as against 15% and TV is expected to grow by 9.3% as against 7.8% predicted in TYNY last December. GroupM has cited the following factors as the catalysts of the higher growth rates: (1) faster than expected expansions of app ecosystems; (2) rapid small business formation activities and (3) the growing role of cross-border media marketplaces.

 

Focussing back to India, of the estimated total advertising expenditure of 15,000 crores of incremental spends in 2021, 40% will be contributed by digital and the share of digital in the total advertising expenditure will be 35%. TV will account for around 45% share and the non- TV and Digital media will have a share of 20%.

 

The website www.businessworld.in has shared an article on June 21, 2021 which says “With states easing lockdown curbs due to declining number of COVID-19 cases, there are immediate indications of improvement in economic activity as companies are hopeful of better performance in the next 6 to 12 months, according to a survey.” The TYNY Midyear report for 2021 is highly encouraging with an assurance of better days for the Indian Advertising Industry. It seems though the pandemic may not disappear from our lives in 2021, the dark shadow of the pandemic will be lifted from our advertising Industry.

 

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