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India's ad growth rate to be the fastest in 2016: Report

India's ad growth rate to be the fastest in 2016: Report
19 April 2016 Current Affairs: According to agency Carat, India's 2016 advertising growth rate will be the fastest at 12%, which is ahead of global average of 4.5%. The agency Carat is the part of the Dentsu Aegis Network. It urge the marketers of India to promote their goods and services, that is expected to propel the country’s advertising growth rate by a significant margin in 2016.It has also better India’s performance last year, when the advertising growth rate was 11%. The report release by the agency says that India's ad growth rate will also be ahead of most other markets including the US (4.7 per cent), the UK (6.2 per cent), Russia (0.2 per cent), China (5.8 per cent), Japan (1.8 per cent), and Brazil (6.8 per cent).

The report also mentioned that the the size of advertising market in India is very small. It is around 50,000 crore only, which is very lower in terms of global. So, while a higher rate of growth is in part due to a small base, the agency stated that advisers in India are spending more on brand promotions as they seek to induce top recall in a competitive market. And apart from that India is also growing in terms of advertisers because of start up ecosystem.

Report also stated that Indian companies across key categories such as fast-moving consumer goods (FMCG) have benefited from lower commodity prices, the gains of which have been ploughed into brand-building and advertising. Other key categories such as auto, handsets, retail and real estate continue to see a flurry of launches, prompting high brand spends, while telecom would also see higher ad spends led by 4G. This is also pushing up growth rates.

The agency also expects that India’s ad growth rate to gain steam next year with touching 13.9 %. If this is achieved, it will effectively make it the third straight year of double-digit growth rate for India from an advertising point of view. This will imply that advertisers will remain optimistic of business growth and will likely spend more on ads.


December 2016 Current affairs
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November 2016 Current affairs
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October 2016 Current affairs
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September 2016 Current affairs
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