Moneycontrol PRO
UPCOMING EVENT:Special webinar on Highlights of global investing in 2021 and what lies ahead' at 2 pm on 21st January, 2022. Register Now!
you are here: HomeNewsBusiness

COVID-19 impact | India ad spend to grow by 23% in 2021 after falling 21.5% in 2020

While 2020 was a tough year, the ad market started seeing a month-on-month upturn since the third quarter last year.

February 17, 2021 / 09:01 PM IST
India ad spends are expectred to see a growth of 23.2 percent to reach an estimated Rs 80,123 crore this year.

India ad spends are expectred to see a growth of 23.2 percent to reach an estimated Rs 80,123 crore this year.

The Indian advertising market last year was hit hard due to the COVID-19 pandemic-led lockdown as ad spends fell 21.5 percent, according to a recently released report by GroupM India, a marketing services conglomerate.

Last year, India fell a position in the global ad market from rank 9 in 2019 to rank 10 in 2020.

The segments that saw a sharp drop last year include cinema, outdoor, audio and print, seeing a drop of 83 percent, 73 percent, 49 percent, and 43 percent, respectively.

When it comes to television, the drop was 14 percent and least drop was seen by digital at two percent.

While 2020 was a tough year, the ad market started seeing a month-on-month upturn since third quarter last year.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

This is why the report estimates that ad spends will see a growth of 23.2 percent to reach an estimated Rs 80,123 crore this year.

"With the gradual easing of the lockdown backed by seasonal spends and big-ticket events like the IPL (Indian Premier League), we expect 2021 to continue to build on that momentum," said Prasanth Kumar, CEO, GroupM South Asia.

In addition, digital share of overall India ad spend in 2021 is projected at 35 percent, which will see a 28 percent growth in terms of ad spends this year. Plus, it is expected that along with FMCG and e-commerce, auto, telecom, retail, and durables will be growth drivers of India ad spend in 2021.

Television, which is the biggest medium for advertisers, it will see an 18 percent growth to reach Rs 35,914 crore from Rs 30,436 crore in 2020.

India, which is the second fastest growing market in the top 10 countries globally and will be the sixth largest contributor to incremental ad spends in 2021, will get back to its 2019 position this year.

“Along with digital, television saw a spike in consumption during the lockdown. Print and radio are expected to be backed by local advertisers. We expect OOH and cinema to see double-digit growth after a difficult year,” said Sidharth Parashar, President-Investments and Pricing, GroupM India.
Maryam Farooqui
first published: Feb 17, 2021 09:01 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark