2014: The Year of Elections and E-commerce

Another year is on the end and India is on the positive side of the growth bench. The year was more of the E-commerce, Elections, Digitalization, and their advertisement on Social Media. E-commerce sector got Billions of funding from other countries whereas Elections in India were the example of role of Social Media in attracting, delivering message, and knowing people. In both areas, Advertisement on social media played a big role. In my opinion advertisement, growth in 2014 was more than any other year.

This year, according to an estimate, advertising spends were increased by 12.5%. E-commerce was clearly the dominant category that showed significant increase in spending. Instead, the business ended up growing 10%. E-commerce companies including companies those that run popular sites Flipkart, Snapdeal, Jabong, Olx, and Quickr spend around Rs. 750 Crore in advertisement. These companies launched TV commercials, and in the un-up to the festive season that started in October, many companies went into advertising drive. It is not sure if e-commerce companies will remain as aggressive with their advertising in 2015.

It is a small component of India’s Rs.38 Trillion overall retail trade industry. Yet the, e-commerce format with sales of Rs. 1 Trillion managed to create the buzz in 2014. The year highlights were, Amazon raised $2 Billion in Indian e-commerce space followed by Softbank invests $627 Million in Snapdeal and $210 Million in Ola cabs. Flipkart also gets $1.7 Billion funding, taking valuation at $7 Billion. Footfalls in shops during festive season drop in favor of e-commerce and many more in the sector.

Advertising in Elections came on the back of a Rs. 300-350 Crore blitz by BJP in the parliamentary elections it won and another Rs. 200 Crore by the Congress. This year was more into Digitalization in India. Digital Advertising was more than the print advertising. Government spent Rs. 251 Crore on print advertising between April and November, 20.3% lower than the same period a year ago. Between April and November, Spending on Television advertisement also declined by 8.43%. Digital advertising grow by 30%.

Except ads, Elections in India saw a major change. People came into engagement through Social Media, Radio ads, and all the campaigns launched by PM were successful in making some impact. Everyone was aware of the activities of PM and other leaders. On the other hand, Indian Economy holds a momentum of growth. Inflation came into control at the end of the year. Oil price saw major decline after a decade and decline of $1 in Oil price, save India Rs. 3500 Crore.

Investors and businesses from other countries are investing in India because they find a promising and consistent government in country. PM vision of converting cities into smart cities and bringing in technology in every sector will improve work environment in India. Small businesses will grow and more business will emerge. Agriculture sector will also be benefitted, which holds the 52% contribution to Indian GDP. After so much in 2014, experts see better times ahead. There is high probability of Interest rates being cut. More spend on advertising will be there and everybody is hoping that more money will come in the country.