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India Leads Ad Spend Growth across Major Markets in Asia Pacific in Q2 2010: Nielsen

  • Issued By: Agency
  • City / State: Mumbai
  • Phone: 91 22 6663 2521
  • Company Website: http://www.nielsen.com
  • Submitted: October 29, 2010 6:55 pm

  • FOR IMMEDIATE RELEASE

Mumbai, October 29, 2010:

Continuing its growth trajectory, ad spend across mainstream media (Television, Newspaper & Magazine) in India witnessed a 28 percent Year On Year (YOY) growth and a 32 percent growth in Q2 2010 over Q2 2009, the highest amongst the 12 Asia Pacific markets covered in The Nielsen Company’s survey on Media Ad Spends.

By the close of the second quarter of 2010, the vast majority of Marketers and Media organizations were back to business as usual, with advertising activity across mainstream media outlets showing accelerated growth versus the previous year. Across the 12 markets in Asia Pacific the Q2 ad spends showed a robust 15 percent lift over Q2 2009, and a 17 percent lift in the first half of 2010 over the same period in 2009. However, of greater significance, is that after the first half of 2009 saw a minimal three percent lift over 2008, the first half of 2010 recorded an impressive 20 percent increase over the “Pre GFC” (Global Financial Crisis) period of 2008. India recorded a 33 percent increase in the first half of 2010 over the same period in 2009.

The ever increasing confidence levels of Indians in the economy, as reflected in the Q2 2010 Nielsen Global Consumer Confidence Survey, which India topped, has instilled greater confidence in Indians to spend on items that they want and need. This growing demand for products and services is not lost on marketers who have expanded their advertising budgets compared to the contraction they experienced during the economic slowdown.

“Consumers and marketers have more faith in the economy now and seem to be more confident of their financial prospects in the near future. The ‘recessionary mindset’ is fast becoming a thing of the past and marketers are using advertising strategies to reinvigorate brands by strengthening their visibility in mainstream media resulting in accelerated growth in media spends,” said Piyush Mathur, President, India, The Nielsen Company.

What’s driving this growth?

Across the region advertising spend is highest on Television, but the largest proportion of India’s media spend was garnered by Newspapers YOY for a 12 month period up to June 2010. Newspapers are also the highest ad spend growth drivers in India, growing at 32 percent YOY; the highest percentage growth for newspaper ad spends across all 12 markets covered in the Nielsen survey. Overall newspaper ad spends grew by 17 percent YOY in the region.

Television followed Newspapers in ad spend growth and grew at 24 percent YOY in India and 16 percent regionally. Amongst mainstream media, Magazines saw an eight percent YOY increase in ad spends in India and a nine percent growth across the 12 markets in the Asia Pacific region.

All other media combined like Radio, Outdoor, Pay TV, Cinema, etc. showed a growth of 31 percent in the twelve months up to June 2010 in India. Ad spends by all media sectors saw a growth of 28 percent YOY in the country.

A quarterly comparison of ad spends in India shows that in Q2 2010, all mainstream media recorded strong to bullish double digit growth to finish 32 percent ahead of the same quarter in 2009. Overall ad spending continued to be dominated by Newspapers with a 53 percent share of spend, followed by Television with a 28 percent share.

Top Advertising Categories

The top 10 Categories represented 51 percent of all mainstream media ad spend in India for the 12 months up to June 2010, and a robust 28 percent increase in activity YOY.

All the top Categories recorded a double digit growth. However, the ever dominant Services Category, which represented over eight percent of all ad spend in India, led the surge with an impressive 31 percent increase YOY. Followed by Food & Beverages, which grew by 27 percent in ad spend YOY. Among the biggest increases YOY were third ranked Personal Care/Personal Hygiene (+41%) followed closely at fourth place by Banking / Finance / Investment, with a 38 percent increase. Education which grew in media spends by 14 percent YOY rounded off the top five categories in terms of their ad spend.

A quarterly comparison shows that the Top 10 Categories represented over half of all media advertising in Q2 2010 and eight of the Top 10 Categories recorded double digit growth over Q2 2009. These were led by top ranked Services (+37%), Food & Beverages (+37%) and 3rd ranked Personal Care / Hygiene (+11%). The biggest percentage growth over Q2 2009 was for Banking / Finance / Investment, with a massive 79 percent increase.

Top Spending Products

Among the elite group of ad spenders were three Telecom sector products, two beverages and a more varied mix of products. Of special note is the first appearance of 10th ranked, Jaypee Infratech, which is engaged in the development of the Yamuna Expressway and related real estate projects, with an initial public offer of shares launched in April 2010.

“The resurgence of economic confidence buoyed by strong equity markets and the lead up to the festive season means that marketers will seek to maximize attention on their brands. Advertising volume is a lead indicator of market sentiment in this instance and will continue to thrive on a strong domestic economy,” said Mathur.

About The Nielsen Consumer Confidence Index

The Nielsen Consumer Confidence Index was conducted between May 10 and May 26, 2010 among over 27,000 Internet consumers in 55 countries throughout Asia Pacific, Europe, Latin America, the Middle East and North America. The study is based on consumers’ confidence in the economy, job market, status of their personal finances and readiness to spend.

About The Nielsen Company

The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications. The privately held company is active in approximately 100 countries, with headquarters in New York, USA. For more information, please visit www.nielsen.com

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  • PR Submitted by: Agency
  • Member Since: October 4, 2010