H2 advertising growth slowed to 4.7% in 2013 from 7.3% earlier due to a weakening economy and rupee. Several advertising categories such as television, print, radio, and cinema saw declines in growth rates, bringing full year 2013 ad growth down from 9.9% to 8.5%. Political and government spending was expected to increase due to upcoming elections, while automotive and media were poised for growth due to new launches and channels. However, FMCG, telecom, and banking faced challenges from high input costs, imports, and interest rates that would limit advertising. Overall digital advertising was forecast to remain strong while other categories slowed.

1. H2 adex slows to 4.7% from earlier 7.3%
1
H2’13 Original Revised
TV 7.6% 5.9%
Print 4.8% 0.7%
Radio 5.7% 2.5%
Digital 30.0% 30.0%
OOH 3.8% 3.8%
Cinema 21.4% 12.2%
Total 7.3% 4.7%
Growth rates v/s H2 2012
H2 defined as July-Dec

2. A slowing economy Weakening rupee
H2 slowdown brings down full year growth
from 9.9% to 8.5%
2
Categories growing Categories slowing
• Political parties & government spending
to increase owing to general elections in
2014 and state elections in 2013
• Auto- Many new launches lined up in the
forthcoming months
• Media to continue on new channel and
program launches
• FMCG facing pressure on raw material
prices and manufacturing processes
• Telecom- handset manufactures heavily
dependent on imports of smartphones
and feature phones
• BFSI- Interest rates not relenting,
financial markets under performing
2 key concerns

3. Digital spends will hold rest will slowdown