The Indian advertising industry is set to have a great 2019 thanks to cricket and elections.
Net advertising spends in the country are expected to grow nearly 12% this year, second only to the Philippines (15.2%) in the Asia Pacific region (APAC), according to a report by the research, advisory and consulting services firm Media Partners Asia (MPA).
Overall, advertising revenue across APAC is estimated to expand by 6.2% in 2019 to close at $195 billion (Rs13 lakh crore).
Asia Pacific Advertising Trends, published annually by MPA, tracks media spending across 14 markets, including China, India, Australia, Korea, the Philippines, Vietnam, Indonesia, and Thailand.
“Elections in India and Philippine will boost advertising prospects this year, while India will also benefit from marquee cricket. In India, TV remains an advertising mainstay, even as affordable high-speed broadband and a strong startup economy powers internet advertising in tandem, especially online video,” said MPA executive director Vivek Couto.
Lok Sabha elections in India are set to begin tomorrow (April 11) and will end on May 19, with the results to be declared on May 23.
In addition, India’s love for cricket will increase spends. The ongoing Indian Premier League is a major advertising opportunity. Brands spend an estimated Rs2,000 crore or more in advertising on IPL. The upcoming cricket World Cup, which begins on May 30, will be yet another revenue churner.
By 2023, India is poised to experience the second-fastest growth in advertising spends, overtaking Australia and Korea to become APAC’s third-largest advertising market, the MPA report said.
In particular, digital advertising in India has a massive scope. The report indicates that India remains one of the region’s most scalable markets for digital advertising, on track to generate $5.1 billion in revenue by 2023.
The MPA report has forecast that online video’s share is expected to grow to 20% across APAC by 2023, representing $27 billion in spend. Over the next five years, the largest markets for this category in APAC will be China, Japan, and Australia, with India following close behind in the fourth place.