Digital adex surpasses TV; to grow at 25% to reach Rs 50,857 crore in 2024: Dentsu

Digital advertising is expected to grow at the rate of 25% to reach Rs 50,857 crore by the end of 2024 with 50% share in the overall adex, according to dentsu estimates.

Dentsu’s digital advertising report stated that in 2023, digital media surpassed the dominance of television media spends, securing the largest share of 44% (Rs 40,685 crore), marking a notable growth rate of 36.6% over 2022 in the Indian advertising market.

Moreover, by the end of 2025, it is expected to have grown at a compounded rate of 23.49%, reaching a market size of Rs 62,045 crore and will have a share of 55% in the overall adex, as per the report.

The Indian advertising industry grew by 8.6% in 2023 and is expected to grow by 9% to reach Rs 1,01,591 crore by the end of 2024.The Indian advertising industry grew by 8.6% in 2023 and is expected to grow by 9% to reach Rs 1,01,591 crore by the end of 2024.

Television’s contribution now stands at 32% (Rs 29,836 crore), followed by print media at 20% (Rs 18,652 crore).

With digital media playing an increasingly significant role in the growth of the Indian advertising industry, television ad spends is projected to decrease from their current 32% to 28% by the end of 2024. Furthermore, a negative compounded growth of 2.05% is expected, reaching a spends share of 25% by the end of 2025, stated the report.

By the end of 2023, print media occupied a spends share of 20%, experiencing a decline of 1.8% over 2022. It is further expected to shrink at a negative compounded rate of 3.01% to have a share of 16% by the end of 2025.

Despite a decline, the radio medium will continue to maintain a spends share of 2% in the coming years.

The Out-of-Home (OOH) medium will continue to grow with a steady spends share of 2% for the next few years, characterised by a compounded growth rate of 8.49%.

Cinema will also maintain a consistent share with ad spends projected to increase at a compounded rate of 2.50% by 2025.

The telecom sector allocates 64% of its media budgets on digital, closely followed by e-commerce and pharmaceuticals categories. Meanwhile, the FMCG segment divides 94% of its media budgets equally between digital and television.

Social media dominates digital media spends, contributing with a 30% share (Rs 11,962 crore), closely followed by online video with 29% and paid search with 23%. The telecom sector allocates the highest proportion of its media budget towards digital (64%). Within digital media, telecom evenly distributes around 80% of their digital budget across online video, social media and paid search, the report stated.

E-commerce segment dedicates 61% of the overall media budget to digital media with 52% of that allocated to paid search.

Harsha Razdan, CEO South Asia, dentsu, said that India's digital revolution is more than a surge of numbers. It's a wave of change that is sweeping across our lives, our industries, and our society. Artificial intelligence is the driving force behind this change, enabling our e-commerce market to reach $200 billion by 2026.

“As we embrace this AI-powered era, we must also redefine our vision of success. It's not enough to aim for financial growth; we must also strive for social good. We must be human in the face of technology—empathetic, creative, and courageous—shaping the future of Indian advertising with transparency, accountability, and ethics. The dentsu India Digital report 2024 is not just a snapshot; it's a call to action to join us in creating a future that is ours to shape,” Razdan said.

Narayan Devanathan, Group Chief Strategic Advisor, dentsu India, mentioned that the dentsu India Digital report is a testament to our commitment to providing our clients with the best-in-class solutions and insights that help them navigate the dynamic and complex media landscape.

“We believe that digital media is not just a medium, but a mindset that drives innovation and creativity across all platforms and formats. The report showcases how digital media has become the dominant force in the industry, surpassing television and influencing other media as well. It also reveals the potential of emerging sectors, trends, and technologies that will shape the future of advertising and consumer engagement. We are confident that this report will serve as a valuable resource for advertisers, media owners, and industry stakeholders, as well as inspire them to embrace the opportunities and challenges that lie ahead,” Devanathan added.

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