MAM
India set to be 7th biggest advertisement market by 2020 : Magna Global report
MUMBAI: In its latest report on the global advertising marketplace, Magna Global estimates that media owner advertising revenues grew by +3.2 percent in 2015 to $503 billion. This is lower than the previous forecast (+3.9 percent in June 2015) and represents a slowdown compared to the 2014 growth (+4.9 percent).
In 2016, advertising revenues will be boosted by economic stabilization and the incremental spending generated around non-recurring even-year events (US Presidential and General elections, UEFA Football championship in Europe, Summer Olympics in Brazil). Magna Global is thus predicting ad sales to grow by +4.6 percent, marginally less than its previous forecast. Neutralizing the impact of non-recurring events (NREs) in 2014, 2015 and 2016 (generating approximately 0.9 percent of extra growth in even-numbered years), the global ad market would have grown by +4.1 percent in 2015 and +3.7 percent in 2016, which suggest no real 2016 acceleration in the underlying ad demand, beyond the cyclical drivers.
In terms of geographies, Asia-Pacific emerged as the most dynamic region with a growth rate of 6.5 per cent. As China is slowing down (slightly), India has become the most dynamic economy among BRICs and among all the large nations monitored by Magna. Real DGP grew by 7.3 per cent in 2015 and will grow again by 7.5 per cent in 2016 according to the IMF. In that context advertising spending grew by 16.3 per cent in 2015 to approximately $8 billion allowing India to become the 12th biggest ad market in the world at the expense of Russia.
Looking at India specifically, Magna reports that advertising revenue will increase by Rs 68 billion (Rs 6,800 crore) and is expected to touch Rs 487 billion (Rs 48,700 crore) in 2015. Television revenue on the back of increased volume will add +18.5 percent (December 2014 +11.9 percent) to reach Rs 200 billion (Rs 20,000 crore). While the television market’s share is up by a percentage point (41 per cent), print goes down from 41 per cent to 38 per cent to touch Rs 183 billion (Rs 18,300 crore) with a growth of 7.7 per cent. In 2016 television and print is estimated to grow at +15.1 percent and 8.2 per cent respectively.
Digital formats will continue to grow the maximum at 49 percent to touch Rs 57 billion (Rs 5,700 crore), increasing their market share to 12 per cent. Ad sales generated from video and social increasingly will be through mobile impressions while the desktop in the near future will still be the domain for search and display. Share of mobile will increase from 32 per cent to close to half the pie in 2016.
Newer formats and revenue streams after Twitter and Instagram opening up new advertising and influencer management platforms, bandwidth expansion through 4G launch and traditional advertisers increasing their digital budgets, will contribute to the growth of 67.3 per cent in 2016.
Radio, with a market share of 4 percent will also grow at 14 per cent in 2015. Through the expansion of foot print, and there by volume, is estimated to add 16 per cent in 2016. Last but not the least, OOH will grow at 11.9 percent in 2015 and by another 10.4 per cent in 2016.
Magna Global estimates total advertising revenue to touch Rs 576 billion (Rs 57,600 crore) in 2016. The T20 World Cup, encouraging response from audiences to non-cricketing leagues, state elections, 4G launch are some of the drivers for the advertising economy in 2016 in India. E-commerce will continue to pursue GMV’s, most action will be seen in the telecom sector followed by auto and FMCG advertising.
Digital television and expansion of the measurement panel will allow advertisers to reach more consumers and broadcaster to better monetize their audience in 2016. While so far India is bucking the global trend of declining spends on Print by growing at a high single digit rate, Digital market shares are projected to equal Print by 2020.
Hope 2016 round of data will get the currency out of the data dark period and aid the category to fight market share erosion. The second round of the Phase III auction, commissioning of the new stations won in the first round of bidding will keep radio top of mind.
Brands
YES Bank hands the keys to SBI veteran Vinay Tonse as it bets on a new era
Former SBI managing director appointed as YES Bank’s new MD and CEO
MUMBAI: YES Bank is done rebuilding. Now it wants to grow. The private sector lender has appointed Vinay Muralidhar Tonse as managing director and chief executive officer-designate, with RBI approval secured and a start date of April 6, 2026 confirmed. The three-year term signals the bank’s intent to shift gears from crisis recovery to full-throttle expansion.
Tonse, 60, is no stranger to scale. Most recently managing director at State Bank of India, he oversaw a retail book of roughly $800bn in deposits and advances, one of the largest in the country. Before that, he ran SBI Mutual Fund from August 2020 to December 2022, a stint that saw assets under management surge from Rs 4.32 lakh crore to Rs 7.32 lakh crore across market cycles. Add stints in Singapore and four years leading SBI’s overseas operations in Osaka, and the incoming chief arrives with a genuinely global CV.
His academic grounding is equally solid: a commerce degree from St Joseph’s College of Commerce, Bengaluru, and a master’s in commerce from Bangalore University.
The appointment follows an extensive search and evaluation process by the bank’s Nomination and Remuneration Committee. NRC chairperson Nandita Gurjar said the committee unanimously backed Tonse, citing his leadership track record, governance credentials and ability to drive the bank’s next phase of transformation.
Non-executive chairman Rama Subramaniam Gandhi was unequivocal. “I am certain that Vinay Tonse, with his vast experience as a senior banker, will propel YES Bank to its next phase of growth,” Gandhi said, adding that the bank remains focused on strengthening its retail and corporate banking franchises and expanding its branch network.
Rajeev Kannan, non-executive director and senior executive at Sumitomo Mitsui Banking Corporation, the bank’s largest shareholder, said Tonse’s experience across retail, corporate banking, global markets and asset management positioned him well to lead the lender. SMBC said it looks forward to working with Tonse and the board as YES Bank pursues its ambition of becoming a top-tier private sector lender anchored in strong governance and sustainable growth.
Tonse succeeds Prashant Kumar, who took the helm in March 2020 when YES Bank was in freefall following a severe financial crisis, and spent six years painstakingly stabilising the institution, rebuilding governance and restoring operational scale. Gandhi was generous: “The bank remains indebted to Prashant Kumar, who is responsible for much of what a strong financial powerhouse YES Bank is today.”
Tonse, for his part, struck a purposeful note. “Together with the board and my colleagues, I remain deeply committed to creating long-term value for all our stakeholders,” he said, pledging to build on Kumar’s foundation guided by his personal motto: Make A Difference.
Beyond the balance sheet, Tonse played cricket at college and club level and represented Karnataka in archery at the national championships — sports he credits with teaching him teamwork, situational leadership, discipline and focus. In quieter moments, he reaches for retro Kannada music, classic Hindi songs, and the crooning of Engelbert Humperdinck, Mukesh and Kishore Kumar.
YES Bank has its steady-handed rebuilder in Kumar to thank for survival. Now it has a scale-obsessed growth banker at the wheel. The next chapter starts April 6.
