MAM
Indian ad spends to grow by 11.3% in 2016; digital to lead way: Carat
MUMBAI: Global media network Carat’s first forecast for worldwide advertising expenditure in 2016 shows that Indian advertising spend is poised to grow by 11.3 per cent in 2016.
Following the formation of a stable government in 2014 led by Narendra Modi, the economic prospects look bright in India.While Indian advertising spends increased by +8.7 per cent in 2014, as per the agency’s forecast, it is poised to leap by double digits of +11 per cent in 2015.
Carat’s also released its latest forecasts for 2015 and actual figures for 2014, with all markets ring-fencing digital media spending, even when faced with negative economic headwinds.
Asia Pacific
In the Asia Pacific market, advertising spend is forecast to grow by a solid +5.2 per cent in 2015. This has however been revised down from the +5.9 per cent previously forecast in September 2014, with its major market Japan moderating forecasts from +1.7 per cent to +0.9 per cent, alongside a number of other markets including Hong Kong, Taiwan, Malaysia and Vietnam. Growth is expected to pick up pace in 12 out of the 14 markets in 2016 with growth overall of+5.8 per cent in 2016.
Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat’s global advertising expenditure forecast showsthat digital media, with a predicted $17.1 billion or +15.7 per cent increase in spend in 2015, is outpacing previous Carat predictions from September 2014. Powered by a dramatic rise in mobile ad spending globally of +50 per cent and online video of +21.1 per cent predicted in 2015, Carat forecasts that digital will, for the first time, account for more than a quarter of all advertising spend in 2016 with a market share of 25.9 per cent.
From a global perspective, Carat forecasts that in 2015, advertising spend across all media will increase by $23.8 billion to reach $540 billion, accounting for a +4.6 per cent year-on-year increase. Market optimism continues into 2016 with Carat’s first forecast for the year predicting a year-on-year global advertising growth of +5.0 per cent.
Carat Advertising spend forecast -March 2015
Digital media spend continues to be the star driver of growth in the global advertising market, with a predicted $17.1 billion increase in spend in 2015 corresponding to a 15.7 per cent year-on-year growth rate, outpacing previous Carat predictions from the September 2014 report.New predictions for 2016 highlight that digital will continue to grow at double-digit levels, at 13.8 per cent, and will account for more than a quarter of all advertising spend globally.
Trend Highlights from the report:
·Digital’s unwavering positive trajectory is being powered by a dramatic rise in mobile, online video, social media and programmatic spending. Carat predicts that in 2015, global mobile spend will increase +50 per cent, and online video will be up +21.6 per cent. US programmatic display advertising spending is predicted to grow +137 per cent to reach $10 billion this year, accounting for 45 per cent of the US digital display ad market.
·Digital media spend is being ring-fenced by advertisers even in markets with significant negative economic headwinds.In Central & Eastern Europe for instance, while total advertising spend is predicted to decrease by 2.2 per cent this year, digital media will see a double-digit growth of +12.9 per cent. Digital media is the only media expected to grow in this region this year.
·Carat’s first advertising expenditure forecasts for 2016 show elevated confidence in the advertising market, a robust +5 per centgrowth despite a still-recovering economic climate boosted by a year of events- the UEFA European Football Championships, Rio 2016 Olympic Games and US presidential elections.
·Global forecasts for 2015 have been revised down from the +5.0 per cent previously forecast in the September 2014 report, to +4.6 per cent. This is due to a reduction in advertising spend predictions in key markets including Russia, Japan and Brazil.
·The recovery in Western Europe has driven a second consecutive year of growth in 2015, predicted at +2.8 per cent. This follows a +2.3 per cent increase in advertising spend in the region in 2014. Growth is driven by the UK market, which is predicted to grow strongly by +6.4 per cent, and Spain by +6.8 per cent following the improved economic climate and consumer sentiment there. Greece (+8.0 per cent), Ireland (+5.7 per cent) and Portugal (+9.4 per cent) are also showing relatively high growth rates this year recovering after suffering severely from the global economic recession. Growth of advertising spend in Western Europe in 2016 is forecast to continue at the predicted level for 2015 of +2.8 per cent.
By media, whilst Digital is the star performer in terms of growth, achieving higher that predicted levels in 2014 of +17.4 per cent and accounting for 21.7 per cent of market share, TV will continue to command the majority of market share for the foreseeable future, reaching 42.7 per cent in 2014, and is predicted to grow by more than +3 per cent year-on-year in 2015 and 2016. The steady decline in Print is expected to continue, however Out-of-Home is now positioned as the second fastest growth media, behind Digital, with a global market share of spend of 7.1 per cent. For the first time, Out-of-Home is predicted to outpace Magazines global share of advertising spend, with Magazines forecast to achieve 6.9 per cent market share in 2015, and with continuing declines for this media, it is predicted to fall behind Radio for the first time in 2016.
Commenting on the Carat Advertising Expenditure forecasts, Dentsu Aegis Network, CEO Jerry Buhlmann said, “The strength of Digital continues to dominate discussions and the new distribution of spending. With a quarter of the global population now owning and relying on their smartphones daily, they are our second brain in our hands. Mobile dominates the way consumers access information, view content, browse products and purchase goods and this is reflected in the innovative services and approach we are discussing with our clients.
By media:
Globally,digital media spend is forecast to increase by $17.1 billion this year to reach 23.9 per cent of total global media spend in 2015.Digital’s growth far outpaces all other media types with a forecast increase of +15.7 per cent in 2015 and +13.8 per cent in 2016.
Growth in digital spend is high in all regions. The highest in Asia Pacific at +20.1 per cent in 2015, followed by an impressive +16.4 per cent in North America and +16.2 per cent in Latin America. Even in Central & Eastern Europe, which is showing overall sluggish ad market growth, digital spending is predicted to achieve double digit growth this year of +12.9 per cent. In Western Europe growth is in high single digits (+9.8 per cent) this year.
Mobile spend is notably rising dramatically at +49.7 per cent in 2015 with circa 50 per cent growth in each of the regions – Western Europe, Asia Pacific, North America and double digit growth in Latin America and C&EE. With the rise in smartphone ownership rates and data usage, mobile is playing a huge role in the way consumers access information, view content, browse products and purchase services and goods.
Carat is seeing a major shift in behaviour with internet usage on mobile devices catching up with PC usage and exceeding it in some markets yet at an investment level, there is still a significant discrepancy with the amount of time spent with mobile media disproportionate to the advertising share mobile attracts.A factor, which is holding back investment in mobile is the difficulty in proving the ROI for more traditional businesses. Much of the early investment in mobile advertising has been amongst pure-play, app economy brands and business for whom there is an easily demonstrable ROI for investing in mobile.
Mobility is the primary reason behind social’s explosive growth. Facebook and Twitter will continue to be the big winners in the mobile social space. Facebook leads the way in mobile advertising investment with their cost effective solution to advertisers, non-intrusive native advertising experience to audiences, targeting capabilities and selection of ad formats. Twitter is moving up with an increase in spending behind promoted tweets, its Amplify pitches and improvements to its targeting options such as the development of its TV targeting offering. One of its big plays this year is the introduction of Promoted Video for advertisers – a new way for brands to post videos that users can play in their timelines with a single tap.
Online Video demonstrates continuing strong growth, +21.6 per cent forecast for 2015, with growth partly driven by a shift of investment away from TV. Expectations are particularly high for original content. In the US, nearly half (48 per cent) of online video budgets will go to ’made for digital’ video.
Display spends including Video and Social is forecast to increase by 15.8 per cent in 2015. However it is ‘Search’ that continues to command the highest share of total Digital spend at 45 per cent, with growth of+12.6 per cent this year and +11.5 per cent in 2016.
TV continues to command the highest share of spend, 42.2 per cent globally in 2015, remaining popular particularly in Latin America and the Middle East with share of spend above the global average in APAC and C&EE.
There are indications, however, of TV’s share slowly eroding as it has decreased by 1.2 per cent points over the past five years. Growth was boosted last year by a slew of events with +4.4 per cent growth. TV spend is predicted to increase by +3.6 per cent this year, picking up in 2016 a quadrennial year – to +3.9 per cent.
MAM
India’s financial sector spent less on TV ads in 2025 but flooded the internet
Banks, insurers and lenders cut tv ads as digital jumps, LIC and Muthoot lead tv and Axis Bank tops online
MUMBAI: India’s banking, financial services and insurance sector, one of the most prolific advertisers in the country, delivered a split verdict on media in 2025. It spent less on television, held its nerve in print, turned up the volume on radio and deluged the internet with a ferocity that left every other medium looking pedestrian. The picture that emerges from TAM AdEx’s cross-media report for the BFSI sector is of an industry in transition, still wedded to the news bulletin but increasingly seduced by the algorithm.
Television: a retreat with caveats
TV ad volumes for the BFSI sector fell 16 per cent in 2025 compared with 2024, a sharp reversal after two years of consistent growth that had pushed volumes 16 per cent above 2021 levels by 2023 and a further 7 per cent higher by 2024. Within 2025 itself, the drop was concentrated in the middle of the year: the second and third quarters saw ad volumes slide 35 per cent each against the first quarter, with a partial recovery of 13 per cent in the fourth.
The retreat did not reshuffle the deck. Life insurance retained first place among TV categories with 19 per cent of ad volumes, mortgage loans held second with 16 per cent, and the top ten categories together accounted for 82 per cent of all BFSI television advertising. The dominance of news channels was equally pronounced: news claimed 68 per cent of ad volumes, general entertainment channels a distant 14 per cent and movies 12 per cent. Together, news and GEC captured 82 per cent of the sector’s television spend. News bulletins alone took 48 per cent of programme-genre volumes, with feature films second at 12 per cent. Prime time, between 6pm and 11pm, drew 34 per cent of ad volumes, followed by afternoon at 22 per cent and morning at 20 per cent. A full 82 per cent of all ads ran between 20 and 40 seconds.
Life Insurance Corporation of India was the sector’s biggest TV spender with 11 per cent of ad volumes. Muthoot Financial Enterprises came second with 9 per cent, followed by National Payments Corporation of India at 6 per cent, Tata AIG General Insurance at 5 per cent and State Bank of India at 5 per cent. The top ten advertisers together accounted for 51 per cent of total TV volumes. Three names were new to the top ten in 2025: Tata AIG General Insurance, IIFL Finance and Tata Capital. At brand level, Muthoot Finance Loan Against Gold led with 9 per cent share, Tata AIG Health Insurance entered the top ten for the first time, and the top ten brands together contributed 35 per cent of ad volumes.
Print: the long climb continues
Print told a different story. Ad space for the BFSI sector has grown every year since 2021, rising 16 per cent in 2022, 30 per cent in 2023, 51 per cent in 2024 and 64 per cent in 2025, all measured against a 2021 baseline. Within 2025, ad space was flat in the second quarter but surged 46 per cent in the third and 33 per cent in the fourth compared with the first. Life insurance led print categories with 21 per cent of ad space, followed by mutual funds and banking services and products at 13 per cent each, and corporate financial institutes at 11 per cent. The top ten categories together took 82 per cent of print ad space. LIC led print advertisers with 6 per cent share, and the top ten together covered just 19 per cent of ad space, a reflection of how fragmented print spending remains. Three new entrants joined the top ten in 2025, with Billion Brains Garage Ventures the only exclusive presence not seen in 2024’s list. In the top ten brands, LIC dominated with a 2 per cent share, while Nippon India Mutual Fund rose to third position from fourth in 2024. English accounted for 62 per cent of print ad space, Hindi for 20 per cent. Business and finance publications took 59 per cent of the genre split. The south zone led regional spending with 33 per cent of print ad space, Bangalore topping that zone, while New Delhi and Mumbai were the leading cities nationally.
Radio: louder than ever
Radio ad volumes for the BFSI sector have climbed steadily, rising 12 per cent above 2021 levels in 2023, 36 per cent in 2024 and 45 per cent in 2025. The quarterly pattern within 2025 was volatile: a sharp drop of 43 per cent in the second quarter and 42 per cent in the third, followed by a near-full recovery in the fourth. Life insurance led radio categories with 22 per cent of volumes, banking services and products second at 14 per cent and corporate NBFCs third at 11 per cent. LIC of India held its position as the leading radio advertiser with 20 per cent of ad volumes; the top ten radio advertisers together covered 69 per cent. Muthoot Financial Enterprises led radio brands with 10 per cent share, five of the top ten brands belonged to LIC alone, and SBI Mutual Fund made a remarkable leap to fifth position from 272nd in 2024. Evening and morning time-bands together captured 84 per cent of radio ad volumes, with evenings at 44 per cent and mornings at 40 per cent. Maharashtra was the leading state for radio BFSI advertising with 18 per cent share; Maharashtra, Gujarat and Uttar Pradesh together accounted for 43 per cent.
Digital: the five-times surge
If one number defines the 2025 BFSI advertising story, it is five. Digital ad impressions for the sector multiplied fivefold between 2021 and 2025, having already doubled in 2023 and doubled again in 2024 before the 2025 leap. Within the year, impressions dipped 19 per cent in the second quarter and 12 per cent in the third before recovering 8 per cent above the first quarter by the fourth. Banking services and products led digital categories with 27 per cent of impressions, life insurance and credit cards tied at 19 per cent each, and securities and sharebroking organisations fell from first place in 2024 to fourth in 2025. Axis Bank was the runaway leader among digital advertisers with 12 per cent of impressions, followed by ICICI Bank at 9 per cent, IDFC First Bank at 7 per cent and Kotak Mahindra Bank at 6 per cent. The top ten digital advertisers covered 59 per cent of impressions, and seven of them were new entrants compared with 2024, signalling rapid churn in the digital spending hierarchy. At brand level, Axis Bank led with 9 per cent, ICICI HPCL Super Saver Credit Card vaulted to third place from 921st in 2024, and six of the top ten digital brands were new to the list. Programmatic buying accounted for 91 per cent of all digital BFSI transactions; combined with ad networks, it captured 96 per cent.
The data from TAM AdEx paints the portrait of a sector that still believes in the power of the television news bulletin to sell insurance to the masses, but increasingly knows that the next generation of borrowers, investors and cardholders is scrolling, not watching. The race is now on to reach them before the algorithm serves up someone else’s loan offer first.
