Growing fastest in the world, Indian adex to grow 9% reaching $12.3 bn in 2024: Dentsu

The Indian adex is projected to be the fastest growing by 9% in the world, reaching $12.3 billion in 2024, as per Dentsu’s forecast.

Dentsu further forecast that ad spends in India will grow by 8.6% to reach $11.3 billion in 2023.

It is estimated that the Indian adex will grow by 10.7% and reach $13.6 billion in 2025 and 11.5% to reach $15.2 billion in 2026. 

The ad spends grew by 18.2% and was $10.4 billion in 2022 in India.

Digital advertising in India to grow by 25% in 2024

Dentsu emphasised that digital is expected to continue to perform as the essential growth driver of the Indian ad market in 2024 (25.0% growth YOY).

“The rapid growth of digital in India can be attributed to the improvements in infrastructure and the rising penetration of high-speed internet,” it stated in the report.

“Along with the growth in digital advertising, the 2024 political elections in India are poised to be a significant catalyst for the growth of media expenditures,” the report further mentioned.

Adex in India stands at 0.30% of the GDP; much less than global average

Despite the economic outlook, most of the 12 biggest advertising markets (Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Spain, UK, US) will spend more relative to their GDPs in 2024 (vs. their 20-year average).

While the ad spends in markets like Japan, the UK and the US are more than 1% of their country’s GDP, Indian adex will be a mere 0.30% of the GDP and much less than the global average in 2024.

The report stated that the Indian adex ratio with the GDP is not at odds with its 20-year average of 0.24% and is more reflective of a structural tendency to conservative ad spending, rather than a 2024 anomaly in investments.

Advertisers in India will spend just  $9 per capita in 2024

In 2024, advertisers will spend, on average, $139 per capita across the world. It is about 75% more than what they spent 20 years ago ($80).

On the contrary, in India, advertisers will spend just  $9 per capita in 2024.

US advertisers will spend the highest ($940) per capita in 2024.

The report pointed out that this increasing advertising pressure per capita reinforces the idea that media practitioners must move past traditional media metrics and rally behind attention-based strategies if they are to stand out.

Ad spends in Asia-Pacific is predicted to grow by 4.0% in 2024

Ad spends in Asia-Pacific is predicted to grow by 4.0%, to account for $240.9 billion. In the total growth of adex in the region, 64.4% share would be of digital in 2024.

Asia-Pacific is forecast to grow at 4.4% in 2025 to reach $251.5 billion and a 32.1% share of global ad spend.

2023 adex growth was 3.5% in the Asia-Pacific region.

In 2024, the majority of the $9.3 billion of additional spend is expected to come from China ($5.6 billion), Japan ($1.3 billion), India ($1.0 billion).

Global advertising spending is expected to grow by 4.6% in 2024

According to the dentsu forecast, global advertising spend is expected to grow by 4.6% in 2024 with media inflation driving the increase to reach US$752.8 billion.

Digital continues to rise with 6.5% growth in 2024 to reach $442.6 billion and 58.8% of overall spend, with retail media leading the acceleration of investment.

Following two consecutive years of declining ad spend, TV is predicted to return to growth (2.9%) and capture 23.0% of ad spend in 2024.

Connected TV ad spend growth doubles year on year, up 30.8% in 2024, as major video platforms launch or refine their ad offering, reshaping the channel.

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