Why Should Indian Companies Spend more on Branding

India's advertising industry has grown from a small business to a full-fledged industry. The advertising industry is expected to become the second fastest growing advertising market in Asia after China. By 2018, advertising costs are estimated to account for approximately 0.45% of India's gross domestic product (GDP). The Government of India has provided a great deal of support to the advertising and marketing industry. Advertising spending in the financial sector could increase due to the Reserve Bank of India (RBI) policy, which could lead to a more supportive business environment. In addition, the licensing and market sentiment improvements offered to new banks have made the Indian advertising and marketing industry a fertile space. Market size Printing accounts for almost 41.2% of total revenue, which is a significant proportion, while television accounts for 38.2% of total revenue and digital accounts for 11% of total revenue. The remaining 10% consists of outdoor, radio and cinema. India's digital advertising market is expected to grow at a compound annual growth rate (CAGR) of 33.5% by 2020, exceeding Rs 25,500 (US $ 3.8 billion). It will be 16% in 2018. Online advertising worth Rs.2.9 trillion (US $ 435 million) in 2013 could triple to Rs. 100 billion (US $ 1.5 billion) at an average annual rate of 28% over five years. The Governments of India and Canada have signed an audio-visual collaboration agreement to enable producers in both countries to combine arts, technology, finance and marketing resources to promote cultural and artistic exchanges between the two countries. This agreement could also lead to better promotion of Indian filming locations. "The agreement will also provide transparency in filmmaking funding and promote the export of Indian films to the Canadian market," the agreement said. India and Poland aim to strengthen cooperation in the digitization and restoration of film archives. This was decided at a meeting between India's Minister of Information and Broadcasting Mr. Bimal Julka and a delegation from Poland led by Secretary of State Ms Malgorzata Omilanowska. The two countries will form a collaborative working group to improve cooperation in areas such as student exchange programs, animation, film and digitization. Minister of Information and Broadcasting Mr. Rajyavardhan Singh Rathore has announced that the Government of India plans to increase advertising spending on digital platforms. This helps to increase the government's presence in digital media. Road ahead India's advertising and marketing department should grow steadily. Retail advertising is expected to grow as multiple players enter the food and beverage segment, e-commerce becomes popular in the country, and domestic companies test water bodies. Rural areas are potentially profitable targets. For example, in the automotive sector, concentrating motorcycles in rural areas can increase sales and advertising costs. Increasing smartphone penetration and lowering service provider prices could also grow the telecommunications sector.