Indian adex is expected to grow by 22% in 2022, reaching Rs 107,987 crore. Out of this Digital is estimated to get 45% of ad spend share, roughly Rs 48,603 crores in spends, followed by TV (Rs 42,388 crores) and print (Rs 12,667 crores), according to Group M’s TYNY 2022 report,
The report also states that the start-up and unicorn culture in the country is being translated into increased ad spends from the sector to drive growth. According to, Sidharth Parashar, President – Investments & Pricing, GroupM, many companies that were previously spending on traditional mediums are now spending on digital to attract younger audiences. However, the new-age companies that are actually concentrated towards digital, are also spending on traditional mediums to drive overall reach.
“India was adding about nine unicorns each year till 2020. The Covid situation provided an unexpected boost and there were 12 unicorns in 2020. 44 unicorns were added in 2021 and in the next year, there are going to be about 75 unicorns,” he said.
“In the initial stages, they will advertise heavily on digital. They will then reach to traditional media for overall reach. This trend is likely to continue,” he added.
The ad spends on digital are set to overtake TV and it will become the largest medium. According to Parashar, for every 1 advertiser present on TV, 5 advertisers are spending on digital. However, television is expected to grow by 15% in 2022 vs 2021.
Sector-wise spends digital vs traditional mediums
The pandemic induced digital growth has also changed the pattern of ad spends of different sectors between digital and traditional mediums.
According to the report, the FMCG share on digital is low; 12% vs 25% on traditional mediums. The SME sector’s share is higher on digital at 43% vs 20% at all media.
E-commerce has a slightly higher share on digital at 20% vs 15% on traditional media. Other sectors like auto, BFSI, consumer durable, tech have almost similar spends on both digital and traditional mediums.