MAM
Digital ad-spend to be 37.6% Vs TV’s 35.9% by ’18: DAN
MUMBAI: The world media is reaching a tipping point in ad spend now as digital overtakes television, mobile overtakes desktop and paid search overtakes print. Dentsu Aegis Network’s forecasts suggest that, in 2018, digital will be the top media in terms of global share of spend, taking over television for the first time. Digital’s share of total media spend is predicted to reach a 37.6% share in 2018 (up from 34.8% in 2017), versus 35.9% for television (down from 37.1% in 2017), amounting to a total value of US$ 215.8 billion.
Based on data received from 59 markets across the Americas, Asia-Pacific, Europe, Middle East and Africa, Dentsu Aegis Network’s Ad Spend Forecasts – June 2017 point to a more cautious economic outlook in 2017 than the previous year, with global ad spend growth falling from 4.8% to 3.8% (see Figure 1). However, conditions are set to improve in 2018 with forecast growth in ad spend of 4.3%. Events will play a key role in 2018, with events such as the Winter Olympics & Paralympics in South Korea, the FIFA World Cup in Russia and the US Congressional elections all expected to stimulate ad spend growth.
· New ad spend growth forecasts show caution in 2017 but improved outlook for 2018.
Global ad spend to hit $563.4 billion in 2017 with digital driving growth.
Global ad spend growth holds at 3.8% amid cautious near-term outlook
· Globally, mobile ad spend is set to overtake desktop in 2017, with digital overtaking TV in 2018
· Innovation in digital advertising (video, social, programmatic) powers spend growth
Despite concerns about the economic impact of Britain’s decision to leave the European Union, UK ad spend growth held up better than expected in 2016 at 6.1%. While there are signs of caution in 2017, with growth dipping to 4%, 2018 is forecast to see growth bounce back to 5.9%. A similar picture unfolds in the United States, where a slowdown to 3.6% is forecast for 2017, followed by a slight improvement in 2018 to 4.0%. The United States also remains the largest market in the world, accounting for 37.7% of global advertising spend in 2017. Advertising spend in emerging markets continues to outpace developed economies. For example, ad spend growth in India is forecast to grow at 13% in 2017, while China is the second largest market in the world by share of advertising spend—remaining the only emerging economy to feature in the top five largest ad markets.
Mobile and digital become the new default settings: Our forecasts show how digital technology continues to disrupt and drive innovation in the way brands connect with their consumers. In 2017, we forecast that advertising spend on mobile will overtake desktop, reaching 56% in terms of share of global Digital advertising spend. In 2018, mobile ad spend will grow further to account for a total of US$116.1 billion. With smartphone subscriptions set to reach 4 billion by 2025 and about a third of consumers reporting that their smartphone is their primary source of entertainment, we can expect to see this trend continue to strengthen.
Furthermore, our forecasts suggest that in 2018 digital will be the top media in terms of global share of spend, taking over television for the first time. Digital’s share of total media spend is predicted to reach a 37.6% share in 2018 (up from 34.8% in 2017), versus 35.9% for television (down from 37.1% in 2017), amounting to a total value of US$215.8 billion. Reflecting the continued disruption by digital technology of the print media industry, Paid Search (advertising within the sponsored listings of a search engine) is forecast to overtake traditional print media (newspapers and magazines) in 2018. Print media has been on a downward trajectory for some years now, but will likely fall to a 13.8% share of total spend in 2018 (down from 15.1% in 2017) while paid search is forecast to grow to 14.6%, up from 13.6% in 2017.
Video, social and programmatic power innovation and growth: While digital ad spend is growing rapidly and set to overtake television, within digital there are a number of new sources of growth that point to the future of advertising. For example, in 2017, online video is set to grow by 32.4%; social by 28.9%; and programmatic (i.e. automated ad buying) by 25.4%. Looking ahead, brands will need to embrace the potential of disruptive technologies such as virtual reality, artificial intelligence and voice activation. However, research suggests that only 8%of brands currently intend to use virtual reality for advertising purposes.
Commenting on the latest ad spend forecasts, Dentsu Aegis Network CEO Jerry Buhlmann said, “We are reaching a tipping point in ad spend now as digital overtakes television, mobile overtakes desktop and paid search overtakes print. Digital and data must now be the default settings for advertisers. Evolving to people-based marketing rather than audience-based marketing and using data to increase addressability is essential for brands to manage tighter conditions in 2017 while positioning themselves for future growth.”
“At the same time, the challenge for brands is to ensure that they are ready to embrace the potential of new innovation. As technologies such as virtual reality and voice activation become more prominent, brands must ensure that they remain relevant by creating new value for their consumers.”
Carat India MD Kartik Iyer commented, “India continues to be amongst the few countries seeing growth rates in double digits. While this may be slightly lower than past expectations owing to various market drivers like demonetization and GST, the growth is clearly expected to continue. Driving this growth is Digital with a growth rate of over 35% which is far in excess of that seen by other more traditional media. And with digital quickly progressing on its path of becoming the Go To media for entertainment, this trend is also expected to continue. Other media like TV and cinema are expected to grow at around 12% while Radio and OOH should see a growth of 10% and Newspapers around 8%.”
“Another medium that is driving growth is that of ambient (at over 15% growth rates). Considering the changing retail environment, the medium, in tandem with digital is becoming pivotal for delivering quality engagement with consumers.”
AD Agencies
Abhay Duggal joins JioStar as director of Hindi GEC ad sales
The streaming giant brings in a seasoned revenue hand as the battle for Hindi television advertising heats up
MUMBAI: Abhay Duggal has a new desk, and JioStar has a new weapon. The media and entertainment veteran has joined JioStar as director of entertainment ad sales for Hindi general entertainment channels, adding 17 years of hard-won revenue experience to one of India’s most powerful broadcasting operations.
Duggal is no stranger to big portfolios or bruising markets. Before joining JioStar, he spent a brief stint at Republic World as deputy general manager and north regional head for ad sales. Before that, he put in three years at Enterr10 Television, where he ran the north region for Dangal TV and Dangal 2, two of India’s leading free-to-air Hindi channels. The north alone accounted for more than 50 per cent of total channel revenue on his watch, a number that tends to get attention in any sales meeting.
His longest stint was at Zee Entertainment Enterprises, where he spent over six years rising to associate director of sales. There he commanded the Hindi movies cluster across seven channels, owned more than half of north India’s revenue across flagship properties including Zee TV and &TV, and closed marquee sponsorships across the Indian Premier League, Zee Rishtey Awards and Dance India Dance. He also handled monetisation for the English movies and entertainment cluster and the global news channel WION, a portfolio that would stretch most sales teams twice his size.
Earlier in his career Duggal closed what was then a Rs 3 crore single deal at Reliance Broadcast Network, one of the largest in Indian radio at the time, before that he helped launch and monetise JAINHITS, India’s first HITS-based cable and satellite platform.
His edge, by his own account, lies in marrying data and instinct: translating audience trends, inventory signals and client demands into long-term partnerships built on cost-per-rating-point discipline rather than short-term deal chasing. In a media landscape being reshaped by streaming, fragmented attention and AI-driven advertising, that kind of rigour is increasingly rare and increasingly valuable.
JioStar, which blends the scale of Reliance’s Jio platform with the content firepower of Star, is doubling down on its advertising business at precisely the moment the Hindi GEC market is getting more competitive. Bringing in someone who has spent nearly two decades doing exactly this, across some of India’s most watched channels, is a pointed statement of intent. Duggal has spent his career turning audiences into revenue. JioStar is clearly betting he can do it again, and bigger.
