The advertisement industry is likely to be one of the few bright spots in India and estimated to grow at 15.5% in 2016, with digital spend by advertisers set to rise sharply by 47%, according to GroupM.
The media arm of global advertising group WPP Plc was quoted as saying by Mint in its This Year Next Year report, released on 19 January, that the total advertisement spending in India is projected to increase to Rs 57,486 crore in the current year from Rs 49,758 crore in calendar year 2015.
Television will continue to have the largest share at 47.1%, up from 46.3% last year, while print media's share is expected to drop to 29.7% from 32.4%. Despite the rise, digital's share will be 12.7%, though substantially up from 9.9% in 2015.
TV and radio advertising will grow 17.6% and 9.9%, respectively, in 2016, as against 18.6% and 10.4% witnessed in 2015, the Mint report added.
"India is the fastest-growing ad market among all the major markets of the world. The year 2015 was the best year for ad spend growth we've had in the last five years," said CVL Srinivas, chief executive at GroupM South Asia.
In terms of sectors, FMCG will account for about 28% of the total amount spent, followed by the auto industry at 8.2% and e-commerce at 8.1%. Other prominent sectors are retail, telecom and financial services.
Assembly polls to be held in Assam, West Bengal, Kerala and Tamil Nadu will also contribute to advertisement spending during 2016.
The two national parties â€” the BJP and the Congress â€” spent Rs 304.50 crore and Rs 231.24 crore, respectively, on media advertisements during their Lok Sabha 2014 election campaigns, according to the return filed by the two parties with the Election Commission of India.