MAM
China to overtake Germany as No. 3 ad economy; global ad spends recovering
MUMBAI: The rise of China as a powerhouse stretches to the advertising world as well. China will overtake Germany to become the third largest advertising economy in the world in 2011, behind the US and Japan.
While the global advertising market will continue to recover steadily over the next three years, China will outpace this growth to touch $34.24 billion in 2013, a 51 per cent growth over the next three years, according to a forecast by ZenithOptimedia.
China could soon beat Japan, a country hit by deflation and high public debt which will slow down ad growth to 5 per cent through 2013. The Chinese ad market, which is currently just over half the size of the Japanese market, will be three-quarters that of Japan in 2013, according to Zenith.
Meanwhile, Russia will enter the top ten list in 2012, outpacing Australia and Canada to take ninth place, and overtaking Italy to take the No. 8 spot in 2013.
The global ad market is on a rebound. The global ad spends will continue to recover steadily and by 2012 will surpass the 2008 levels, according to two new research studies published today.
Group M‘s forecast has predicted the $500 billion mark to be achieved “at some point in 2012”. According to the WPP-owned media buying agency network, the Internet will overtake newspapers as the second biggest global advertising medium behind TV.
ZenithOptimedia forecasts the overall ad market to grow between 4.6 per cent and 5.2 per cent annually for the next three years. Driven by the rapid growth of online video and social media, Internet advertising will lead the pack at 48 per cent growth. Outdoor advertising will grow by 18 per cent and TV and cinema 19 per cent each. Radio will lag behind with 10 per cent and newspapers and magazines will see a two per cent dip.
ZenithOptimedia global CEO Steve King said Internet advertising “will grow three times as fast as the rest of the market as a whole” and the “importance of the internet is underrepresented” in the figures.
According to Publicis‘s media buying agency network, this growth over the next three years will be sponsored by the developing markets – Asia Pacific will grow by 23 per cent and Latin America by 26 per cent.
“The key result of this update is the continued rise of developing markets and digital media, and their central role in driving global growth,” elaborated King.
“Advertisers are investing a lot more in owned and earned media, where their activities do not count as ad expenditure in the traditional sense,” adds King.
Brands
Hard Rock kitchen appliances to enter India through EBG Group
Coffee machines and gadgets set to tap Rs 29,000 crore market
MUMBAI: EBG Group has partnered with Hard Rock International to bring a new range of Hard Rock branded coffee machines and small kitchen appliances to Indian consumers, marking the global brand’s entry into the country’s premium home appliance segment.
The partnership will see EBG Group design, develop, manufacture and distribute the appliances under a licensing agreement. The collaboration is backed by a planned investment of Rs 100 crore and is targeting revenue of Rs 500 crore over the next five years.
The companies are looking to tap into India’s fast growing premium home appliance market, estimated at around Rs 29,000 crore and expanding at an annual growth rate of about nine per cent. Their aim is to capture roughly five per cent market share in the coming years.
Globally, Hard Rock has built a strong presence across hospitality, entertainment, retail and lifestyle merchandise. The new venture extends the brand’s music inspired identity into everyday household products, bringing its distinctive design language to modern kitchens.
EBG Group founder and chief executive officer Irfan Khan said the collaboration blends brand appeal with product performance. “Hard Rock represents energy, authenticity and a globally aspirational lifestyle. Through this partnership we aim to introduce a differentiated portfolio of premium coffee machines and kitchen appliances that combine design, reliability and strong brand experience,” he said.
The upcoming product range will pair Hard Rock’s bold aesthetics with high performance technology and premium materials. The first phase of the launch will focus on key metropolitan markets, followed by expansion into other major cities.
Products will be available through leading retail chains, major e commerce platforms and select premium distribution channels, targeting urban consumers looking for appliances that deliver both performance and lifestyle appeal.
