TV expected to gain largest portion of telecom ad spends with 4G roll-out

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India is the world's 2nd largest telecommunication market, with over 1 billion subscribers as of May 2015. The wireless segment (97%) dominates the market. During FY 07-15, wireless subscriptions witnessed a CAGR of 25% to 970 million. It is also the 2nd largest country in terms of internet subscribers. India's telecommunication market is expected to experience further growth, fueled by non-voice revenues and higher penetration in rural market- IBEF. It is also one of the largest spender on advertising and marketing on various mediums.

According to the GroupM report, telecom, FMCG and auto sector are expected to be the highest spending brand categories during the year. A major portion of these ad spends goes towards television, which is followed by radio, print and digital. According to the Pitch-Madison report telecom/internet contributed 13.6% of the ad spends and was the second largest spender on the medium after FMCG. This category in 2015 is expected to see a very large growth of 51.2% on TV. While on radio its contribution was 9.4% in 2014 and in top 3 spenders, it is now expected to grow by a large 33.7%. Telecom on the print medium contributed to 5.9% of the ad spends which is expected to now grow by 48.8% in 2015.        

The reason for this large growth in the ad spends of the telecom sector is due to the rolling out of 4G services various players. Currently Airtel is the only one that has rolled out its 4G services. However, other players such as Vodafone are expected to roll out its 4G services by December 2015. New entrant Reliance Jio is also expected to roll out its 4G services by March 2016 said a media report. Apart from this Idea Cellular too is expected to launch its 4G services around the same time. Media planners as well as media industry experts expect to see a very large increase in ad spends from these players during their 4G services launch.

- See more at:

http://www.exchange4media.mobi/advertising/tv-expected-to-gain-largest-portion-of-telecom-ad-spends-with-4g-roll-out_62520.html
 
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