Indian adex to grow by 10.2% to reach Rs 1,55,386 crore in 2024: GroupM TYNY

The overall ad revenue is expected to reach Rs 1,55,386 crore in 2024, with an incremental Rs 14,423 crore compared to 2023, said GroupM India in its annual This Year Next Year (TYNY) report. Of Rs 14,423 crore of incremental ad revenue in 2024, 70% will go to digital.

The 10.2% growth in overall ad revenue will be driven by digital which is expected to grow by 13% in 2024 while all other media combined to grow at 6.8% in 2024, predicted GroupM.

In terms of share, digital adex will command a 57% share of ad revenue in 2024.

Within digital, retail media will drive growth at a CAGR of 41% in 2019-24F.

GroupM estimated that the size of adex on digital extensions of TV will be Rs 5,750 crore in 2024.

Prasanth Kumar, CEO, GroupM South Asia, said, “Despite facing macroeconomic challenges, we remain optimistic about the industry. At 10.2% India will be the fastest growing top market. 2024 will also see an upside from the spends leading to the General Elections. Digital particularly retail media and digital extensions of TV are expected to drive the growth. SME continues to fuel the growth. Linear TV is at a point of inflection and needs to be enabled with rapid deployment of technology to stay relevant.”

Ashwin Padmanabhan, President - Investments, Trading, and Partnerships, GroupM – India, said, “The advertising landscape is evolving with the fragmentation of search, rapid rise of influencer marketing and retail media. Reflecting this, at INR 88,502 crores of the overall INR 1,55,386 crore, digital will contribute to 57% of all ad revenue. Within digital ad revenue, search contributes 22%, retail media 18% and the rest 60%. Sectors like Auto, Realty and Offline Retail are expected to power the overall advertising growth.”

Parveen Sheik, Head of Business Intelligence, GroupM India, said, “Global advertising presents a steady picture: a projected 5.3% global growth in ad revenue for 2024, reaching $936 billion, with digital leading the charge at a commanding 79% share of all ad revenue. India continues to be ranked 8th globally and its ad revenue growth among its peers is a testament to its potential and resilience. Adaptability is key to navigating an evolving advertising landscape amidst inflation and geopolitical tensions.”

Key trends in 2024 according to TYNY:

1. Increasing influence of gen-alpha will drive distinctive marketing strategies

2. Attention Planning – customising insights for actionability

3. 21% of television homes to be addressable in 2024

4. Sports to focus on immersive experience journeys

5. Brand marketing becomes more accountable on performance, breaking silos

6. Step-up on search

7. Ecommerce drives deeper into organisations

8. India’s general & modern trade getting digitized leading to rise of omni channel commerce

9. Rapid developments in AI will transform media, messaging, and measurement

10. AI & technology dominate the content landscape & creator economy

11. Importance of niche consumer segments will power the growth of micromarketing

12. With consent becoming critical, zero party data will empower various areas of marketing

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