Indian adex to grow by 15.07% to reach Rs 1,13,575 crore by end of 2024: Dentsu

The Indian advertising expenditure is expected to grow at a compounded rate of 15.07% to reach Rs 1,13,575 crore by the end of 2024, according to the Dentsu India digital report 2023. 

The total advertising expending in India is estimated to grow by 14.7% to reach Rs 98,363 crore in 2023. 

This growth can be attributed to major events like IPL, Women’s World Cup 2023 and FIFA World Cup Qatar 2022.

The Indian advertising industry currently has a market size of Rs 85,769 crore, having grown at 18.1% over 2021.

As per the report, the Indian digital advertising industry stood at a market size of Rs 29,784 crore, growing at 39.5% over 2021, and is predicted to reach Rs 51,110 crore, with a compounded growth rate of 31%, by 2024.

The digital advertising industry is expected to reach Rs 39,315 crore this year. 

By the end of 2022, television had the largest advertising spends share of 40% (Rs 33,954 crore), followed by digital media and print media with a share of 35% (Rs 29,784 crore) and 21% (Rs 18,258 crore), respectively. Radio, OOH, Cinema’s share in adex was 2% (1,745 crore), 2% (Rs 1,737 crore) and 0.3% (Rs 291 crore), by 2022 end. 

Digital media is expected to overtake the ad spends share of television in 2023. Print’s share will reduce to 19% (Rs 15,673 crore) in 2023.

The FMCG sector contributes 30% (Rs 25,638 crore) of total advertising spends, followed by the e-commerce category at 18% (Rs 15,673 crore).

The FMCG sector contributes 38% (Rs 11,403 crore) of total digital spends, followed by e-commerce category at 30% (Rs 5,982 crore) 

FMCG and e-commerce are the largest contributors to the digital media industry, accounting for 38% and 20%, respectively, followed by consumer durables, pharmaceuticals, and automotive.

Digital media spends is driven by social media with a contribution of 30%, followed by 28% from online video and 23% from paid search. The spend on online video is expected to grow rapidly and be at par with social media spends by 2024.

FMCG spends a large portion of its digital media budget on online video, whereas pharmaceutical and e-commerce spend the majority on paid search.

Due to the rapid adoption of the next generation of Web3 technologies and the development of mass markets, Indian consumers' expectations are set to evolve toward convenience, commerce, experiential media, and marketing in the new digital economy.

The evolution of the new digital economy will lead to the emergence of new markets and pave the opportunity for creating value and increasing the worth of customers, ushering in a new dawn of marketing and creativity that will be more spatial, experiential, and immersive.

Simi Sabhaney, Chief Growth Officer, dentsu India, said, “The world witnessed a year of normalcy in 2022 after the Covid outbreak, however, the pandemic definitely accelerated digital growth in India. With brands going back to business as usual, the media budgets were seen to be flourishing across sectors. The Indian advertising industry grew at 18.1% over 2021 and is expected to witness a compounded growth of 15.07% by the end of 2024. Digital advertising in India continued to be at the tip of the iceberg with a substantial spike of 39.5% over 2021, putting TV advertising in a tight spot. The Indian government too helped pave a path towards digital success, through its initiatives and programs, business transformation drives, and focused efforts on propelling digital commerce. India is seeing a relentless push towards ‘Digital India’. 

She further said, “As the digital economy paces up, with a talent pool like ours that is fluent in English, and digitally literate, we are certainly up for growth in varied directions. This may indeed vary the stance that businesses have held for many years. Indian consumers are poised to adopt the dynamically evolving technology. Thus, the 2023 edition of the Digital Report simply encapsulates advertising in today’s world, keeping in mind the many facets of today’s consumers. It offers a 360-degree view for brands to fruitfully plan their advertising budgets.”

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