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Adex 17: TV to contribute 45pc, FTA to aid 8pc growth rate, says GroupM
MUMBAI: GroupM, one of the leading global media management investment conglomerates, has released its biannual advertising expenditure futures report ‘This Year Next Year’ (TYNY) 2017, forecasting India’s advertising investment to reach an estimated Rs.61,204 crores in 2017. This represents a growth of 10 per cent for the calendar year 2017 over the corresponding period in 2016.
As per GroupM, the ad spending in 2016 was Rs. 55,671 crore. Even though the year began on a very optimistic note, the overall Adex took a downturn due to lower than expected ad spend growth from sectors like FMCG, traditional retail, telecom and sporadic spending in categories like Ecommerce. In the Januray-October period itself the Adex was growing at a lower trajectory than forecast. Furthermore, demonetization in the last quarter had a negative impact of about 2 per cent on the total Adex in 2016.
Speaking on the TYNY 2017 report, GroupM South Asia CEO CVL Srinivas said, “Despite a volatile 2016, we are estimating advertising expenditure growth at 10 per cent in 2017. The first quarter will give a slow start to the year, with the market picking up from March-April, fueled by a stable recovery process post demonetization. Sectors that are contributing to this positive trajectory include Auto, Media and e-Wallets. In addition Government and Political parties will increase spending with elections in several states this year.” Explaining the media scenario, he added. “Digital is leading the Adex growth with a 30 per cent growth, while TV continues to be the largest medium in the mix. Print continues to grow at a stable rate of 4.5 per cent and is still the second largest medium in the Adex.”
Looking at the advertising industry worldwide, GroupM estimates the global advertising expenditure (adex) to grow by 4.4 per cent and Asia-Pacific to grow by 6.3 per cent. With an estimated adex growth of 10 per cent, India remains one of the fastest growing ad markets globally. While 80 per cent of incremental ad spend growth in major markets comes from digital media, in India the numbers are more evenly split between traditional and digital media. Digital media accounts for about 40 per cent of the incremental ad spend growth.
The Indian advertising expenditure growth rate is also in line with the revised GDP forecast; India’s GDP is estimated to grow between 6.5 to 7.5 per cent. This will be led by low interest rates, sustained urban demand and the impact of key policy reforms. Over the last seven years, ADEX to GDP growth ratio has been between 1.5-2X, and 2017 will be no exception.
GroupM also elaborated on the major media trends that will emerge in the Indian advertising industry. These include trends in sports programming, content, data and digital media. Globally, GroupM has been leading the conversation on viewability with brands and partners. Taking this program forward, chief growth officer Lakshmi Narashimhan, explained the importance of viewability, “As India matures as a digital advertising market, transparency and trust are critical for higher adoption of the medium. Those adopting high viewability standards will be able to differentiate themselves on quality parameters. Once implemented, platform choice and pricing will depend on viewability scores.”
GroupM estimates the Digital Adex to grow by 30 per cent in 2017 to Rs. 9,490 crore. The digital Adex is estimated to take a 15.5 per cent share of the total Adex this year. There will be a high emphasis on viewability metrics and outcome based optimization. Ad spends will grow on OTT platforms, as internet speeds improve and catch up TV gains ground.
2017 is estimated to be a modest year for newspapers with 4.5 per cent growth. The increase in ad spends expected from print heavy sectors like Auto, BFSI, e-wallets will contribute to this growth. Vernacular and regional newspapers will see a higher growth rate.
Television continues to be the largest medium contributing to the Adex with close to 45 per cent share. This year, the growth rate for TV is 8 per cent, with ‘Free To Air’ channels adding more inventory, and pure HD content gaining ground. The market will also see a consolidation of niche channels.
While Radio is expected to grow at a little over 10 per cent, there is scope for the medium to pick up as the Phase 3 rollout is completed in 2017. Higher growth is expected as stations will see the supply impact of the full year.
Other media such as OOH will witness good traction from sectors addressing rural audience and premium niche audience. As per the trend in recent years, Cinema advertising will grow at a high double digit rate of 20 per cent. Cinema consolidation has led to investments in infrastructure, this coupled with the growing acceptance of premium Indian and Hollywood content by advertisers augurs well for the medium.
This Year, Next Year, is part of GroupM’s media and marketing forecasting series drawn from data supplied by holding company WPP’s worldwide resources in advertising, public relations, market research, and specialist communications. The TYNY report is the most comprehensive understanding of the estimated media spends by advertisers in the current year. It also highlights some of the industry sectors that will have a major effect on advertising spends across media.
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Brands push beyond compliance as trust takes centre stage
ASCI AdTrust Summit 2026 spotlights shift from legal checks to credibility.
MUMBAI: In a world where a disclaimer can be legally sound yet socially suspect, brands are learning that compliance may tick boxes but trust wins markets. At the inaugural ASCI AdTrust Summit 2026, a panel on “Beyond Compliance: The New Currency of Trust” unpacked a growing industry reality: the gap between what the law permits and what consumers accept is widening and fast.
Moderated by Meenakshi Ramkumar of National Law School of India University, the discussion brought together leaders across law, marketing and academia to examine how brands must evolve in a digital ecosystem increasingly shaped by scrutiny, scepticism and speed.
Ramkumar set the tone by highlighting a critical shift, advertising today operates in the same digital space that fuels misinformation, scams and fake news, making credibility harder to establish. “The challenge is not just about what brands do, but the broader context of low institutional trust,” she noted, adding that when violations go unchecked, trust erodes not just in brands but in the regulatory system itself.
This vacuum, she said, has given rise to consumer activism from boycotts to social media backlash as a parallel accountability mechanism.
For Amit Bhasin, Chief Legal Officer at Marico, the distinction was clear, legal compliance is non negotiable, but insufficient. “Compliance is the minimum threshold. The real challenge is staying aligned with changing consumer expectations,” he said.
He pointed to how advertising narratives have evolved from traditional depictions of gender roles to more shared responsibilities reflecting a broader societal shift. “Earlier, it was fine to show one person doing the household work. Today, that may not land well. Consumers expect brands to reflect reality,” Bhasin observed.
He also highlighted internal debates where campaigns that may be legally permissible are still rejected for being culturally insensitive, noting that responsible advertising often requires asking uncomfortable questions before the public does.
If compliance is the baseline, reputation is the battlefield.
Bhasin noted that reputational risk has become a far greater concern than legal exposure, particularly in an era where campaigns can be dissected within hours online. “Earlier, a controversial ad might invite a newspaper editorial. Today, within hours, you’re at the centre of a storm,” he said.
Brands, he added, now evaluate campaigns through a dual lens legal viability and reputational vulnerability with the latter often proving more decisive.
From a healthcare perspective, Satish Sahoo of Cipla Health underscored the complexity of operating within fragmented yet stringent regulatory frameworks, spanning drugs, food, cosmetics and Ayush. “Anything under a drug licence is the most tightly regulated,” he said, adding that this necessitates proactive, not reactive, compliance.
He shared an example from the oral rehydration salts (ORS) category, where Cipla resisted the temptation to position products aggressively despite competitive pressure. “Our product is WHO compliant, and our communication reflects that. We chose not to blur the lines, even if others did,” he noted.
The long term payoff, he suggested, lies in credibility built over consistency, not quick wins.
Yet, as Harsha N of National Law School of India University pointed out, even perfect compliance does not guarantee trust. Drawing from historical and modern examples from exaggerated product claims in the 1800s to contemporary environmental and health advertising, he argued that legal frameworks often lag behind consumer expectations. “A brand can be fully compliant and still be perceived as misleading,” he said, citing instances where fine print disclosures fail to reach or convince the average consumer. He added that larger companies carry a disproportionate responsibility to set ethical benchmarks, even in areas where the law remains silent.
The conversation also turned to digital advertising, where the challenge extends beyond content to how ads are experienced. From algorithmic targeting to personalised messaging, brands now operate in an environment where regulation struggles to keep pace with technology.
Sahoo noted that social media has amplified awareness, with influencers and consumers increasingly scrutinising product claims and calling out inconsistencies. “Awareness has gone up dramatically. People are questioning what goes into products and what brands are saying,” he said.
The role of self regulatory bodies such as Advertising Standards Council of India also came under the spotlight.
Harsha acknowledged that while SROs play a crucial role, they are not immune to criticism, particularly around perceived conflicts of interest and enforcement gaps. “SROs have a higher threshold of responsibility not just to interpret the law, but to anticipate societal expectations,” he said.
He added that failures in self regulation often push the burden back onto government intervention, underscoring the need for stronger, more proactive oversight.
One of the more nuanced debates centred on whether building trust comes at a cost. While Sahoo acknowledged that quality and compliance can increase costs, he argued that companies must absorb them as part of their long term strategy.
Bhasin, however, framed the challenge differently not as cost, but as competitiveness in a market where not all players play by the same rules. “The real tension is when others cut corners and you choose not to,” he said.
The panel concluded with a call to embed trust into business metrics.
Sahoo suggested that organisations must go beyond revenue targets to include consumer equity and trust based KPIs, ensuring that ethical considerations are not sidelined in the pursuit of growth. “Trust sounds abstract, but it can translate into measurable consumer equity,” he said.
As the discussion wrapped up, one message stood out: the rules of advertising are being rewritten not just by regulators, but by consumers themselves. In an ecosystem where attention is fleeting and scepticism is high, brands that merely comply may survive, but those that build trust are the ones that endure.
