Media Insights & forecasting arm of IPG, Magna Global has presented its latest Advertising Forecast for the upcoming year. Though the report paints a comparatively somber picture for the gross revenue growth in the global economy, India’s prospects seem to be glowing in comparison. According to the report, global economy will continue to grow at a modest 3.5% whereas real GDP will chug along at 3.3% according to the revised October report of media analysis firm IMF.
Why the caution?
The recent economic turmoil in the USA & Europe has left many companies on the back-foot when it comes to investing in media & advertising. Hence, the companies are crossing their fingers to avoid a relapse of US or Europe who may fall into their respective fiscal and debt ‘cliffs’ leaving investments high & dry.
However, this precise reason is a blessing in disguise for Indian companies who are benefiting from the economic downturn. Hence, the report pegs Asia Pacific’s (APAC) advertising revenue growth forecast at a healthier 8.7% per annum. APAC countries, especially India is witnessing a healthy adoption of the mobile internet & content therein.
Where to invest?
Though Television continues to dominate the ad-space & offer a much larger audience base, the other avenues have been growing steadily. Owing to its low cost, Radio has ironically gained revenue despite a shrinking share of audience. One of the largest losers of revenue have been the print (-4.3%) & newspaper (-3.4%) division. Hence, it seems obvious that such companies are now launching digital editions of their publications.
Sectors like in-video advertising are showing greater promise than ever. Additionally, newer platforms which will witness a lot of action are the mobile-based formats of apps/games/sites. Large screened phones & tablets combined with growing prowess of Operating systems like Android & iOS, these miniature yet powerful devices will attract & retain target audiences in large numbers.
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Image Courtesy | campaignasia