From a media perspective, we started 2014 with cautious optimism, keeping in mind the downturn of the previous year. However, with the general elections, the media industry got a boost. Digital advertising grew at high double digits, while TV continued to do well with approx. 15% growth. Regional language dailies helped grow the print sector. Cinema turned out to be the dark horse, with 25% growth though on a relatively small base. Unlike the past few years, we had a clear blip during the festive season this year across all media.
With a stable government at the centre and an overall positive sentiment about the Indian economy, the second half of 2014 raked in the advertising rupees from several industries. As GroupM revised its AdEx in August to 12.5%, industries like FMCG, BSFI, Auto and Telecom contributed to consistent spending on advertising. FMGC is the biggest sector in terms of adspends, as it continued to invest in advertising despite an uncertain monsoon and poor growth volumes. We expect FMCG to end the year with 12-14% growth. The auto industry continues to grow in terms of sales as well as adspends and with petrol and diesel prices coming down, we will continue to see this upswing in advertising. Popular auto brands also are looking to move adspends towards digital advertising and branded content, a trend that will continue over the next few years.
However, the surprise element was the retail industry, especially e-commerce, that not only contributed to digital spending but also advertising spends on traditional media. This sector will end up with more than 50% growth over last year closing the year at Rs 2500 crore of adspend. The upsurge in this sector too is expected to continue.
From a media perspective, India's had a great year across digital, as we became the second biggest market for Facebook. The number of people online in India is forecast to touch 302 million by the end of this year, overtaking the US as the second-largest Internet market in the world. (source: IAMAI- IMRB Report Nov 2014). Digital advertising specifically grew by 35%, with a great deal of innovation across content, social media and mobile marketing. GroupM and our agencies were instrumental is some of the most memorable digital campaigns this year- and we continue to invest in building our digital capabilities. 'Digital Also' campaigns have moved to 'Digital First' campaigns, as we see an increase in digital video consumption this year. Mash Up, our digital content churned out over 1500 pieces of digital content in the last 12 months!
And at the heart of this innovation was real-time measurement and smart data services. We have worked with leading global brands and television networks to set up digital command centres that monitor consumer conversations and allow course correction in marketing campaigns to get the best possible results on spends. The Loop Room, a great initiative by Mindshare has truly changed the way we work on media campaigns. Meritus, a WPP data and analytics company, continues to create benchmark products that empower brands to plan media across traditional, digital and experiential marketing.
Another emerging trend is audience planning, where digital inventory is combined with data to ensure better ROI for brands. GroupM's Xaxis is a platform that is at the forefront of innovation in this space.
If you thought that 2014 was action packed with the general elections, the FIFA World Cup and league sports getting a great start, wait for 2015 to dawn, for I assure you the very best in Indian media and advertising is yet to come.
Here's wishing you all a Very Happy New Year.
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