Digital ad spends estimated to grow by 15.9% to reach Rs 580 billion in 2024

The Indian advertising industry is forecasted to continue its growth trend, with projected revenues increasing from Rs 1.1 trillion in 2023 to Rs 1.2 trillion in 2024, marking a 50% rise compared to the pre-pandemic era, as per the report by MAGNA titled ‘GLOBAL ADVERTISING FORECASTS – JUNE 2024 UPDATE’. However, certain sectors like print, radio, and cinema are still below their 2019 levels. As per the report, the industry is expected to see an 11.8% growth in advertising revenue in 2024, slightly higher than the 11.2% growth seen in 2023.

As mentioned in the report, one of the driving forces behind this growth is the digital media sector, which is expected to grow by 15.9%. This surge is attributed to the Government of India’s efforts in expanding digital infrastructure and making the Internet more accessible and affordable. The digital media sector’s share is anticipated to reach 50% of total revenues by 2026, with social media overtaking search to become the second-largest media format after television.

“India’s advertising industry is gearing up for an impressive 2024, with significant growth driven by pivotal events like the general elections and ICC T20 World Cup. We expect substantial ad spend increases across sectors such as auto, retail, and CPG. The anticipated 11.8% growth in ad revenues highlights the market’s resilience and potential. With rural demand expected to rise due to favourable monsoons and digital ad spend projected to reach Rs 580 billion, the convergence of traditional and digital media presents unique opportunities for advertisers,” Hema Malik, chief investment officer, IPG Mediabrands India, said.

Traditional media formats are also experiencing growth, with linear formats projected to grow by 8.4% in 2024. This growth is indicative of the continued relevance of print, out-of-home (OOH), and radio advertising alongside television.

The Indian economy is expected to maintain its robust growth, with GDP projected to grow by 6.8% in 2024 and 6.5% in 2025. This growth is driven by strong domestic demand and a rising working-age population. With increasing per capita income, the consumer spending outlook remains positive, contributing to India’s status as one of the world’s dynamic consumption environments.

In terms of sectoral contributions to adex growth in 2024, Consumer Packaged Goods (CPG), Automotive, Retail, Government & Political advertising, and Finance are expected to lead the pack. These sectors are followed by Pharma, Education, Real Estate, Media & Entertainment, and Building Materials.

Digital media consumption trends continue to favour platforms such as social media, video & audio streaming, and online gaming. The rise in mobile penetration and declining data costs are expected to further bolster internet usage and digital ad spends. In 2024, digital ad spends are estimated to grow by 15.9% to reach Rs 580 billion, with social and search being the primary drivers of digital ad revenues.

Television remains a dominant medium, reaching 778 million viewers in 2024. The growth in television ad revenues is attributed to events like general elections and the ICC T20 Cricket World Cup, which are expected to boost advertising spending on TV.

Print media, despite facing challenges from digital platforms, maintains its position as a trustworthy source of information. The sector saw growth in circulation and ad sales revenue, with digital print revenue also making a notable contribution.

“The Indian advertising market is set to expand by 11.8% in 2024, reaching Rs 1.2 trillion, driven by a robust 15.9% growth in digital media. Traditional media formats are also growing, enduring the relevance of Print, OOH and Radio in addition to Television. The government’s emphasis on digital public infrastructure is propelling digital ad spend to nearly half of total revenues by 2026. Our forecast highlights social media’s significant rise, overtaking search as the second largest media format after television,” Venkatesh S, SVP, director – Intelligence Practice, MAGNA India, said.

Radio advertising is recovering gradually, with increased government ad rates and recommendations supporting growth. The out-of-home (OOH) media sector is also on an upward trajectory, benefiting from government initiatives on infrastructure and urbanisation. In-cinema advertising is recovering from the impact of the pandemic, with expected growth in 2024. Financial Express