As the crisis loomed large in the early part of the year, the grimmest of forecasts were made for the global, and Indian, marketing and advertising sector. In a world of cost control, marketing purses are the first to be restrained. As the year ends, however, the industry changing catastrophe is dubbed more a ‘mild setback’. The key reason for this is not only the rise in media such as digital but also the fact that certain industry sectors delivered more than others. 

“Covid-19 impacted what we buy, how we buy, and from where we buy. During this period, one of the biggest disruptors, and enablers, is digital. Digital has fuelled innovation in this period, and changed consumer behaviour,” comments Nikhil Mathur, Managing Director – India, GfK. 

High Ad Growth Market

The rise of digital marketing is a global reality. As per GroupM’s December 2020 ad forecast, the ad industry (excluding the U.S. political advertising) will drop by 5.8% in the year, which is a much better expectation than the company’s June forecast of an 11.9% decline for 2020. GroupM predicts for global advertising to grow by 12.3% in 2021.

The trend is near replicated in the IPG Mediabrands’ Magna ad forecast as well. Magna expects that in 2021, with a Covid-19 vaccine and postponed Olympics, the global ad marketplace will rebound to increase by 7.6% to $612 billion. Linear media will grow by 3.5% and digital will grow by 10.4%. While every key market will see a rebound in ad spend, the highest is expected from India, which is expected to grow by 26.9%. 

India’s growth number should not be seen lightly. As per Magna, India’s ad market grew by 10.6% in 2019 but recorded a massive drop of 15.8% in 2020. In fact, this drop was the sharpest across all global markets. Subsequently, the projected 26.9% increase is the highest across all markets including the likes of US and China.

Fifth Largest Economy

The expectations from India also come from the fact that the economy is expected to bounce back to normalcy faster than other markets. India is said to overtake the UK to become the fifth largest in 2025 and race to the third spot by 2030.

“India has been knocked off course somewhat through the impact of the pandemic. As a result, after overtaking the UK in 2019, the UK overtakes India again in this year’s forecasts and stays ahead till 2024 before India takes over again,” the Centre for Economics and Business Research (CEBR) said in an annual report. The CEBR forecasts that the Indian economy will expand by 9% in 2021 and by 7% in 2022. 

Transformational Times

There is a shift in priorities of brand and market leaders in the next normal. Digital transformation has become top of the agenda, and maximising marketing return on investment is top priority. 

“The world around us is opening, but it is out of compulsion and not with confidence. As marketers prepare themselves for 2021, they must consider a host of factors,” Preeti Reddy, CEO, Kantar Insights South Asia. 

Experts call out product and experience as the two pillars of focus for any brand in 2021, layered with building trust and creating a sustainable proposition. What was once seen as ‘doing good’ has now become a business imperative.