Business – Indian ad industry to grow at 10.5%: ZenithOptimedia
MUMBAI: The recession plague may finally be sketching its way out of the Indian economy map, making way for the ad industry to once again fill up its hollow pockets.
According to the latest annual forecast released by Zenith Optimedia, the Indian advertising industry is poised to grow by 10.5 per cent (at current prices), declaring a step up over the 4.5 per cent growth that the industry registered this year over 2008.
The agency further predicts that advertising on TV, newspapers and magazines will grow at 11.6 per cent, 10 per cent and 11 per cent respectively.
Meanwhile, for radio, advertising is expected to grow at 14.1 per cent and internet at 16 per cent. However, cinema industry will see a at mere five per cent growth while outdoor is expected to grow marginally (two per cent).
Additionally, the report suggests that the Indian ad industry is expected to grow at a rate of 11.4 per cent and 11.8 per cent for the years 2011 and 2012 respectively.
Globally too, the advertising industry seems to be on an upswing, implying an end to a period of a worldwide economic downturn.
The Publicis-owned media agency network Zenith Optimedia foretells a 0.9 per cent growth in global ad spends in 2010 at $447.7 billion, up from the projected $443.7 billion spent this year.
“We expect the recovery to strengthen steadily as corporate and consumer confidence continue to improve, with 3.9 per cent growth in 2011 and 4.8 per cent growth in 2012,” the company said in a release.
The global boost is expected to be driven by Latin America (8.1 per cent growth), Central and Eastern Europe (2.3 per cent) and Asia Pacific, excluding Japan (3.8 per cent).
“Plenty of markets in the developing world – particularly in Asia Pacific and Latin America – have continued to grow this year, and are already picking up speed after a slowdown in the first half of 2009,” the agency said.
Meanwhile, ad expenditure is expected to shrink 2.4 per cent in North America, 0.5 per cent in Western Europe and 3.2 per cent in Japan, before mild growth returns in 2011, the report reveals.
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