More than half of all ad spends in 2023 to be digital | Mint
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Business News/ Industry / Advertising/  More than half of all ad spends in 2023 to be digital
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More than half of all ad spends in 2023 to be digital

There will be a 15.5% increase in ad spends in India, with an increment of about ₹20,000 crore, as compared to 2022

India has moved up to the eighth position globally in terms of ad spendsPremium
India has moved up to the eighth position globally in terms of ad spends

New Delhi: Of the entire advertising spending expected in the current year, over half the amount is likely to flow into digital advertising. According to a new report, there will be a 15.5% increase in ad spends in India, with an increment of about 20,000 crore, as compared to 2022, making the entire advertising industry worth 1.46 lakh crore.

As much as 56% of the entire pie will be spent on digital advertising, said advertising agency GroupM’s ‘This Year Next Year 2023’ report released today. Digital spends will grow at 20% CAGR over last year.

The report said India has also moved up to the eighth position globally in terms of ad spends and will continue to be the fastest-growing market in the top 10 markets worldwide, the report added. While, the growth of SMEs in the advertising space has been prevalent for some years, coupled with a revival in the rural economy and funding for the startup ecosystem will drive ad spends. Additionally, telecom, BFSI, retail, fintech, gaming as well as travel & tourism are expected to drive ad spending, it said.

GroupM runs companies like Wavemaker, EssenceMediaCom, Mindshare, mSix&Partners, and Motivator.

Prasanth Kumar, South Asia CEO, of the company said, “The past three years have been marked by macroeconomic volatility and global events that have impacted advertisers’ businesses and ad spending. The Indian economy though is expected to weather these challenges and is poised to grow in the coming years."

The report said that in 2023 it expects connected TV households will increase from the current 22 million to 30 million households. This accelerates the need of integrating Connected TV or CTV planning with Linear TV. A CTV is a device that supports video content streaming. The growth was primarily driven by factors like 90% of the TVs sold were smart TVs; there was a sharp increase in broadband connections. There was also a content explosion on OTT and increased daily usage. One case in point was that FIFA viewership touched 11-12 million on connected TVs.

On the sports front, the report added that with the government increasing the Union Budget for sports by 34%, from 2462.59 to 3397 crore, there will be an increased interest in the investment in the sports ecosystem.

The company said it sees a strong move towards localisation of sports, encouraging regional players and providing opportunities for the nation to become a playing nation rather than just a “watching" one.

While top dollars are being committed at the top of the funnel with IPL and ICC media rights, it sees platforms democratising the sports broadcast space at an amateur level by providing streaming platforms to local sports tournaments and amateur games.

“It’s essentially developing smaller cohorts of sports enthusiasts who play, watch, support and enjoy their friends and family performing on-field at local, community events. With more Indians becoming fitness conscious and participating in active sports, we see this medium developing further, creating and catering to a niche audience and corresponding set of advertisers," it said.

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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.
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Published: 14 Feb 2023, 03:40 PM IST
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