According to Dentsu’s India Digital Report 2023, the Indian advertising industry is expected to grow at a rate of 15.07% and reach Rs 1,13,575 crore by 2024.
The report further stated that the digital advertising industry in India is valued at Rs 29,784 crore, having grown by 39.5% in 2021, and is projected to reach Rs 51,110 crore with a 31% growth rate by 2024.
Television has the largest advertising spend with 40% share, followed by digital media with 35% and print media with 21%.
By 2023, digital media is expected to surpass television in advertising spend. FMCG and e-commerce account for the largest portion of advertising spend, with 30% and 18% respectively.
Digital media spends is driven by social media with a contribution of 30%, followed by 28% from online video and 23% from paid search. The spend on online video is expected to grow rapidly and be at par with social media spends by 2024.
FMCG spends a large portion of its digital media budget on online video, whereas pharmaceutical and e-commerce spend the majority on paid search.
Due to the rapid adoption of the next generation of Web3 technologies and the development of mass markets, Indian consumers’ expectations are set to evolve toward convenience, commerce, experiential media, and marketing in the new digital economy.
Simi Sabhaney, Chief Growth Officer, dentsu India, “The world witnessed a year of normalcy in 2022 after the Covid outbreak, however, the pandemic definitely accelerated digital growth in India. With brands going back to business as usual, the media budgets were seen to be flourishing across sectors. The Indian advertising industry grew at 18.1% over 2021 and is expected to witness a compounded growth of 15.07% by the end of 2024. Digital advertising in India continued to be at the tip of the iceberg with a substantial spike of 39.5% over 2021, putting TV advertising in a tight spot. The Indian government too helped pave a path towards digital success, through its initiatives and programs, business transformation drives, and focused efforts on propelling digital commerce. India is seeing a relentless push towards ‘Digital India’.
As the digital economy paces up, with a talent pool like ours that is fluent in English, and digitally literate, we are certainly up for growth in varied directions. This may indeed vary the stance that businesses have held for the many years. Indian consumers are poised to adopt the dynamically evolving technology. Thus, the 2023 edition of the Digital Report simply encapsulates advertising in today’s world, keeping in mind the many facets of today’s consumers. It offers a 360-degree view for brands to fruitfully plan their advertising budgets.”