Indian ad spend surges in Q1 2010

Country leads Asia-Pacific in television, total growth

NEW DELHI -- What recession?

Indian advertising in television, newspapers and magazines surged 32% in the first quarter of 2010, the highest growth amongst 12 Asia Pacific markets covered in a survey on media spends by The Nielsen Company.

India also emerged as the most confident nation in Q1 2010, according to The Nielsen Global Consumer Confidence Survey, indicating that the country was on a fast track recovery from the recession.

Overall across the 12 markets in the region, media spends grew by 18%, also the second consecutive quarter with no declines in ad spending.

“Economic prospects are improving rapidly and consumers’ spending intentions are turning into actual spending reality. This is a sign that marketers, manufacturers and retailers have been eagerly waiting for and is seen translating into advertising spends. The challenge now for marketers however, will be right brand positioning and strengthening brand awareness as visibility diminished during the downturn,” said The Nielsen Company India President Piyush Mathur.

Year on year growth for a 12-month period to March 2010 saw an increase of 26% in main media ad spends in India. Across the 12 markets main media spends grew by 15%.

Newspaper advertising was the main driver of growth in India which experienced 30% year on year growth in ad spends, the highest percentage growth for newspaper ad spends across all 12 markets covered while overall newspaper ad spends grew by 14% YOY.

All other media such as radio, outdoor, pay TV and cinema, put together, showed a growth of 28% in the same period.

But across the region it was television that spearheaded media spends with a 16% YOY growth while in India TV ad spends grew 26%, second to newspapers, although in the 12 markets surveyed India's TV growth was the highest.

Magazine ad spends grew by 7% in India while across the 12 markets it grew by 4%. India followed China in magazine ad spends, which posted 18% YOY growth.

As for top-spending industries in India, the biggest spenders were from telecom followed by insurance.

Another emerging trend is the increase in media spends on social issues, which include not only government campaigns, but also corporations and brands that have aligned themselves to a relevant social cause. TV soaps and prime time serials that have shifted focus to social issues have contributed to this as well.

“The outlook for media advertising across the remainder of 2010 appears extremely positive in India and the 12 markets surveyed. Consumers are out there spending and intending to loosen up their purse strings, so the onus is now on marketers to ensure their products and services return to top of mind,” added Mathur.
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