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Digital to overtake TV to become largest medium for ad spends in 2022: GroupM's TYNY report

As per the report, digital will have a 66% share of global ad spends, while in India it is expected to have a share of 45% of total adex for the year

The AdEx forecast report for the year 2022, This Year Next Year (TYNY), by GroupM is out and predictions for the year set up high hopes for digital mediums in terms of ad spends. 

As per the report, India will sit at the ninth rank in terms of ad spends. US, with more than Rs 3.08 lakh crore spendings, China with more than Rs 1.12 lakh crore, Japan Rs 22,572 crore will be the top 3 markets followed by UK, Germany, France, Canada and Australia. 

Ad spends in India across mediums is expected to cross Rs 1 trillion in 2022. Last year, the report had forecasted a spend of Rs 80,123 crore in India. 

Total Ad spends estimation for 2022 

According to the report, digital will emerge as the biggest platform for advertising in 2022. In the year 2020, spending on digital increased by 5% and in 2021 it grew further by 38%. The report predicts that the trend will continue in the year 2022, as a growth of 33% is expected to make digital the biggest medium, with a 45% share of the total ad spends in the year 2022.  

TV, which has been the biggest medium in terms of adex, reported an increase from 41% in 2019 to 44% in 2020 and is estimated to retain around 39% of total ad spends in 2022, with a 6% dip as compared to 2021 numbers.

Outdoor and cinemas were severely affected by lockdown and lost a big share in 2020 and 2021. However, both the mediums are expected to have a revival with spends of Rs 2,036 crore, and Rs 635 crore, being estimated for both the mediums respectively. As per the predicted figures, the recovery is going to be 85% in OOH and 467% in cinemas as compared to the year 2021. 

Ad spends on print mediums, which reported a notable dip in 2020, is expected to pick up and become Rs 12,667 crore in the coming year. Similarly, radio is expected to grow with adex of Rs 1,657 crore in 2022. 

India Ad spends growth 

India Ad spends share by Media 

Prasanth Kumar

Commenting on the TYNY 2022 report, Prasanth Kumar, CEO, GroupM South Asia, said, “The pandemic has pushed the envelope towards digital and has hence topped the pie, with advertisers keen to explore more of it. Ecommerce and Telco will drive the economy, we also expect FMCG and auto to slowly catch up and contribute towards this growth.”  

Atique Kazi

Atique Kazi, President – Data, Performance & Digital Products, GroupM India, added, “Marketers will have to bring together innovation, intelligence and integration in their strategy to win on Digital. In 2022; we will also see addressable TV coming to India in some scalable form and connected TV surge with smart TV sales and new fibre/broadband connections will be on the rise. Focusing on eCommerce, performance marketing, outcome-based media and addressable data is the winning formula in 2022.”

Global Ad spends on different mediums 

Not only in India, but globally too, the digital medium is expected to grow exponentially. As compared to the previous years, the medium will grow further and capture 66% of the total ad spendings in the year 2022. 

Mediums, including TV, Print and Radio are forecasted to have a dip in their ad spends, except for slight improvements in the projected figures for cinema and OOH.

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