Home / Industry / Advertising /  India’s ad spending growth to outstrip global average: report

NEW DELHI: Advertising spends in India are projected to grow at 15.2% in 2023 and 15.7% in 2024, the highest for any market in the world. In 2022, Indian advertising will grow at 16%, said a report by Dentsu titled ‘Global Ad Spend Forecasts.’ Ad spend growth rate for China in 2023 is forecast at 4.0% and 5.4% the following year. Around the world, ad spends will likely grow at about 8.7% in 2022, it said.

The Indian advertising market will hit $11.1 billion in 2022, led primarily by digital advertising which will grow 31.6% and television ads which are expected to increase at 14.5%.

As per the report, TV will continue to command higher share of ad spend than digital this year. While the share of digital advertising in India is seen at 33.4% as it is the key medium for digital-first brands and consumer tech companies, TV will garner a 41.8% share in 2022 as it has seen full recovery, boosted by fresh content and sports events such as the Indian Premier League. The report said significant growth is forecast in over-the-top (OTT) platforms, connected TV, online gaming, and e-commerce.

Easing of lockdown restrictions has opened up categories such as travel and hospitality which were not spending during the pandemic. Categories including ed-tech, fintech, gaming and cryptocurrency have also shown growth in the over-the-top (OTT) platform category.

“The report points to a continued recovery despite another year of economic uncertainty, with APAC 2022 ad spend of $250 billion, based on a growth forecast at 5.1%. However, continued lockdowns in key markets, geo-political tension and ongoing supply logistics issues could add pressure on businesses with a cascading impact on marketing spends," said Prerna Mehrotra, CEO Media APAC for Dentsu International.

Globally, the US made up for the largest advertising spends. In 2021, when India spent $9.8 billion on advertising, the United States alone accounted for $258.9 billion spend. Comparatively, China spent $123.3 billion in the same year. But India is poised to grow to a projected $14.8 billion by 2024. The US then will still have the lion’s share and will account for $323.1 billion, and China about $272 billion.

The report added that it expects 2023 global advertising market to expand 5.4% to reach $778.6 billion, followed by another 5.1% growth in 2024.

Mehrotra said this year India (16.0%), Malaysia (11.0%) and Hong Kong (10.1%) had all achieved double-digit growth. Digital continues to drive growth accounting for 60.7% of all spending in Asia Pacific with social, video and search predicted to lead digital growth.

“Marketers need to better understand their audiences and meet their needs with relevant messaging as online behaviour surges in Asia. Use of first party data to identify the most profitable customers, combined with third-party data to target the prospects in the most efficient channels will help drive efficiency and manage costs," Mehrotra said.

Overall ad spend growth in Asia Pacific is driven by key sporting events such as Indian Premier League, FIFA World Cup, Beijing 2022 Winter Olympics and Paralympics, and country elections in Australia and India. Digital continues to be the powerhouse driving APAC ad spend, as the fastest growing medium at 11.5% to reach $151.7 billion, a 60.7% share of total ad spend.

ABOUT THE AUTHOR

Varuni Khosla

Varuni Khosla is a journalist with close to 14 years of experience in writing business news stories for mainstream newspaper companies like Mint and The Economic Times. She reports and writes on luxury and lifestyle brands, hospitality and tourism news, the business of sports, the business of advertising and marketing and alcohol brands.
Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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