India's Advertising Market to Soar 11.8% in 2024, Driven by Robust Digital Media Growth

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India's Advertising Market to Soar 11.8% in 2024, Driven by Robust Digital Media Growth

Team Finance Saathi

24/Jun/2024

Key Points :

India's advertising market is projected to grow 11.8% to US$ 14.75 billion in 2024.
Digital media is expected to grow at almost 16% to reach US$ 6.98 billion, while traditional media will grow by 8.4%.
India is set to become the fastest-growing ad market globally, reaching a top 10 position by 2025.

India's advertising market is set to experience significant growth, expanding by 11.8% to reach US$ 14.75 billion (Rs. 1,22,155 crore) in 2024, according to the Magna Global Advertising Forecast 2024 report. This growth is primarily driven by the rapid expansion of digital media, which is expected to grow at a robust rate of nearly 16%, reaching US$ 6.98 billion (Rs. 57,757 crore). Despite the increasing dominance of digital platforms, traditional media, including television, print, radio, and outdoor advertising, is also projected to grow at a healthy rate of 8.4%, reaching US$ 7.78 billion (Rs. 64,398 crore) and maintaining a 53% share of the total advertising spend.

This juxtaposition of traditional and digital media in India contrasts with global trends. Globally, traditional media holds a 29% share of total ad spend, and in the Asia-Pacific (APAC) region, it is even lower at 24%. This indicates the unique landscape of the Indian advertising market, where traditional media remains significantly influential.

The Magna report highlights that digital media’s share of total ad spend in India could reach 50% by 2026, marking a pivotal shift in advertising dynamics. The Indian market, which is currently the fastest-growing advertising market globally, is poised to break into the top 10 global advertising markets by 2025. For 2024, India is expected to hold the 11th position, just behind South Korea.

Several factors contribute to this robust growth. The report cites the good performance of listed companies, sustained double-digit growth in the Fast-Moving Consumer Goods (FMCG) sector, and anticipated boosts in marketing activities from the automotive industry as significant drivers. Additionally, a normal monsoon and increased government spending are expected to stimulate rural demand, prompting businesses to ramp up their advertising efforts.

Television remains a stronghold in traditional media, with TV ad revenues projected to grow by 8.7% to an estimated US$ 4.75 billion (Rs. 39,333 crore). Print media, although growing at a slower pace, is expected to see a 6.1% increase, reaching US$ 2.27 billion (Rs. 18,771 crore). This growth in traditional media underscores its continued relevance and effectiveness in reaching diverse and broad audiences across India.

The digital advertising landscape in India is characterized by significant advancements and investments in technology, better internet penetration, and a growing base of digitally savvy consumers. Mobile advertising, in particular, is set to drive a large portion of the digital growth, supported by increasing smartphone usage and affordable data plans. Social media platforms, video streaming services, and e-commerce sites are also key contributors to the digital ad spend surge.

India’s advertising ecosystem is thus on a trajectory of dynamic change, where traditional and digital media are both growing, albeit at different paces. The overall growth rate of the Indian advertising market, estimated at a compound annual growth rate (CAGR) of 10%, is expected to propel the market to US$ 20.53 billion (Rs. 1,70,000 crore) by 2028. This sustained growth highlights the increasing importance of advertising in driving economic activity and consumer engagement in India.

The FMCG sector, a major advertising spender, is likely to continue its double-digit growth trajectory, spurred by innovation, diversification, and the need to cater to an ever-expanding consumer base. Similarly, the auto industry, which is recovering and looking to regain its momentum, is expected to boost its marketing activities significantly. This resurgence will contribute to increased ad spends across various media.

In addition to these sectors, other industries such as e-commerce, technology, and retail are also expected to increase their advertising investments. The festive season and major events like elections often result in spikes in ad spends, further fueling the market's growth.

In conclusion, India's advertising market is on the cusp of a significant transformation. The rapid growth of digital media, combined with the steady expansion of traditional media, presents a comprehensive growth scenario. Businesses are likely to continue leveraging both traditional and digital platforms to maximize their reach and impact, ensuring a balanced and effective advertising strategy. With the market set to break into the global top 10 by 2025, the future of advertising in India looks exceedingly promising.

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India's Advertising Market to Soar 11.8% in 2024, Driven by Robust Digital Media Growth

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