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Traditional media still rules in India, cash crackdown won’t affect ad spend: Report

People stand in front of advertising billboards in the Indian city of Thrissur, Kerala
Soltan Frédéric | Getty Images

While advertising dollars are shifting to digital media in many economies, in others more traditional ways of promotion prevail.

Figures released today show that TV and print media are the most popular means of advertising in India, while in the U.S. for example, spending on digital media overtook TV for the first time in 2016.

TV will take nearly 40 percent of ad spend in India in 2017, or $3.13 billion, while print including newspapers will take 35.7 percent, or $2.83 billion, an eMarketer online report forecasts.

People stand in front of advertising billboards in the Indian city of Thrissur, Kerala
Soltan Frédéric | Getty Images

Advertisers in India will spend about $1.21 billion on digital media, or 15.3 percent of overall media budgets. Advertising on mobile is likely to make up just over $460 million of that.

India has the fastest-growing smartphone market in the world, according to analyst IDC, and the number of subscriptions to mobile services is expected to hit 1.4 billion by 2021, according to the Ericsson Mobility Report, published in June 2016.

However, the country was hit by a demonetization drive in November 2016 which saw the government remove an estimated 86 percent of cash from circulation to crack down on fraud. But eMarketer does not expect this to have a long-term impact on ad spending.

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