Many media buyers predicted a great increase in advertising spends in 2014, with an estimate of over 12.5% projected by most of them. However, with the year ending, the increase in advertising spends has just about reached the 10% mark. The only boonappear in the form of the money spent by the BJP and Congress during the elections, and the increased advertisements by e-commerce companies like Snapdeal, Flipkart, Quikr, Jabong, etc.
With the arrival of the festive season in October, many e-commerce companies started advertising on both television and social media extensively. Companies like Snapdeal chose to launch unique advertising campaigns that targeted wider consumer bases. Many media buyers in fact, believe that the aggressiveness portrayed by these companies in the advertising arena would grow further in 2015. Economic growth in 2015-16 is further estimated to increase advertising spends next year.
Lows encountered in 2014
While the BJP campaigned extensively before the elections, the party backtracked on its television and print advertising spends after winning the election. Print media in fact, saw a decrease in revenue between the months of April and November this year due to low expenditures by the Government. Most attribute this to the government’s decision to move to digital means for its advertising needs. Apart from real estate and education that still focus on print ads, other areas are increasingly opting for television and digital advertisements.
Move to Digital Media
Several media groups believe that digital media is more preferred by companies today that consider it a more flexible medium easy enough to engage content in various ways without any time or space restrictions. This in turn would enable brans to enjoy a better brand experience.
Even fast moving consumer good (FMCG) brands are increasingly adopting digital media for their advertising needs. Since FMCG contributes a major chunk to advertising expenditure, even a slight move from traditional to digital media will affect latter significantly.
With digital media overtaking its traditional counterpart, one can expect the former to grow by about 35%, with television experiencing a double-digit growth. However, print media will grow to an extent as well, thanks to the contribution by regional dailies around the country. When seeing the whole picture, one can easily expect a steady growth in both traditional and digital media advertising spends next year.
2014 saw advertising spends grow, albeit at a lower level, which is estimated to continue in 2015. Although digital media like television and social medial will enjoy a higher growth than traditional prints.