MAM
Indian AdEx to increase by 12.6 per cent in 2015: GroupM
MUMBAI: India’s advertising investment is expected to reach an estimated Rs 48,977 crores in 2015, up 12.6 per cent from last year. This was revealed in GroupM’s biannual advertising expenditure futures report titled This Year Next Year (TYNY).
As per GroupM, for the calendar year 2014, the ad spending stood at Rs 43,490 crores, which was an increase by 12.5 per cent over 2013. This growth was attributed to the heavy ad spending due to the General and State Elections and industry categories like e-commerce and Telecom. The FMCG sector, which contributes to nearly a third of the AdEx, had a steady year, growing broadly in line with the industry average.
Last year began with uncertainties on the political and economic front. Once a stable government came to power the mood changed to one of cautious optimism.
GroupM South Asia CEO CVL Srinivas said, “With a new Government coming to power the negative sentiment has lifted but there is still some bit of caution amongst advertisers. We continue to operate in the same zone as last year at an overall level. Digital, TV and cinema are expected to be the high growth media channels. We are seeing a lot more confidence amongst local businesses to invest in brand building than before. This is a positive sign for the industry. Penetration of smartphones coupled with the popularity of online video is making FMCG spend more on digital. Another trend is the emergence of categories like e-commerce and the increased competition in telecom both of which are aiding the growth of traditional media channels including print and TV apart from digital.”
As per the report, e-commerce is expected to lead the charge in 2015 in terms of ad spend growth although from a relatively smaller base than more established categories. There is increased competition in this sector and no dearth of funding. The FMCG, auto and telecom sectors are expected to do better than the previous year. More multinational entrants under single brand retail are likely to add to ADEX spending in the retail category.
The report added that the recent rate cuts by the Reserve Bank of India (RBI) will stimulate the banking sector, reactions of which are evident on a buoyant stock market. This year will possibly see a number of IPOs as there is a sense of stability in policy and investors are willing to take more risks. The market will also see higher spends from the Central Government as they showcase their new initiatives.
As per GroupM’s research of the Indian media industry, digital media continues to show the maximum growth with 37 per cent in 2015. Digital has been growing at an average rate of 35 per cent over the last two of years. Within digital media, video, mobile and social will be the biggest growth drivers this year.
Television shows a higher growth percentage in 2015 compared to last year with 16 per cent. TV channels will especially be bullish with cross media integration via their own digital platforms. The big ticket event this year is the ICC Cricket World Cup in February and March, with scope for programming and advertising innovation during the tournament.
Even with pressures on advertising revenues, the print medium shows an increase by 5.2 per cent as against the 2014 estimate of 7.6 per cent; however print magazines continue to be on the decline, as several are looking at digital delivery mechanisms.
The surprise element in the media mix has been cinema advertising, which finally closed 2014 with a 25 per cent increase. This year too, GroupM estimates this media category to grow at 20 per cent, as multiplex chains consolidate, leading to a more organised and accountable environment. With technology fuelling exhibition and distribution, especially in smaller towns, consumers will get a better viewing experience.
GroupM South Asia managing partner – Central Trading Group and Mindshare South Asia CEO designate Prasanth Kumar added, “Over the last few years, Indian media has been in a state of change. The next three to five years will be about embracing technology, which will allow both advertisers and media owners to customise distribution to a premium niche audience with very nominal margin of error. In 2015, programmatic buying will see an impetus, as all media in the future will see automation, backed by smart data and analytics.”
Brands
Wipro hires 7,500 freshers, withholds FY27 hiring outlook
Profit rises to Rs 3,522 crore, Rs 15,000 crore buyback announced.
MUMBAI- Hiring may be on, but visibility is off, Wipro is adding talent even as it pauses the crystal ball. The company hired 7,500 freshers in FY26 but stopped short of offering any hiring outlook for FY27, underscoring the uncertainty gripping the IT services sector as it pivots towards an AI-led operating model.
The disclosure came alongside its fourth-quarter earnings, where management flagged volatile demand conditions and refrained from committing to future workforce expansion. Chief human resources officer Saurabh Govil noted that over 3,000 of the total hires were onboarded in the March quarter alone, signalling continued intake despite a lack of clarity on deployment pipelines.
This divergence active hiring without forward guidance reflects a broader industry pattern where talent acquisition continues even as deal conversions remain uneven and client spending cycles stretch. Wipro expects its IT services revenue for the June quarter to range between a decline of 2 per cent and flat growth sequentially in constant currency terms, reinforcing near-term caution.
Chief executive officer Srini Pallia pointed to artificial intelligence as both a disruptor and an opportunity. He said evolving client priorities are pushing the company towards outcome-driven engagements, with Wipro increasingly focusing on a services-as-software model through its AI Native Business and Platforms unit. The shift marks a structural change from traditional headcount-led growth to AI-enabled delivery frameworks.
The company has already committed over $1 billion to its AI ecosystem, with investors closely watching how these investments translate into revenue. For now, the numbers present a mixed picture. Net profit rose sequentially to Rs 3,522 crore, while revenue grew 3 per cent to Rs 24,236 crore. However, core IT services performance remained under pressure, with full-year revenue declining 0.3 per cent in dollar terms and 1.6 per cent in constant currency.
Large deal bookings offered a counterpoint, rising 45.4 per cent year-on-year to $7.8 billion, highlighting a widening gap between deal wins and actual revenue realisation. On a quarterly basis, IT services revenue slipped 1.2 per cent sequentially, signalling continued softness in execution.
Margins, however, told a more optimistic story. Operating margins expanded to 17.3 per cent in the fourth quarter, up from 14.8 per cent in the previous quarter, reflecting improved cost discipline. That said, the company cautioned that upcoming wage hikes and the ramp-up of large deals could exert pressure going forward.
Attrition stood at 13.8 per cent in the March quarter, indicating stabilisation after periods of elevated churn. Alongside its earnings, Wipro also announced a Rs 15,000 crore share buyback, reinforcing its focus on shareholder returns, with a payout ratio of 88 per cent over the past three years.
Taken together, the numbers capture a company in transition investing in AI, maintaining hiring momentum, but navigating a demand environment where growth is uneven and visibility remains limited.
