New Delhi: As the advertising industry recovers from the blow it received from the pandemic, the domestic advertising industry is demonstrating an 18.1% growth since 2021 with a market size of ₹85,769 crore, finds a new report.
The sector is expected to further grow at a compounded rate of 15.07% to reach ₹1.13 lakh crore by the end of 2024, said ‘Dentsu India Digital Report 2023’. It said that a heavy skew was towards digital mediums with digital advertising having a market share of more than a third of the entire market size at ₹29,784 crore, growing at a much faster rate at 39.5% over 2021. It is predicted to reach ₹51,110 crore, with a compounded growth rate of 31%, by 2024.
While digital media is expected to overtake the ad spends share of television in 2023, at the moment television remains the largest advertising spend mediums, with a share of 40% of the entire pie. Currently digital media and print media have a share of 35% and 21%, respectively.
As it has been the trend in earlier years too, the FMCG sector contributes the most to the total advertising spends with about 30% coming from the sector, followed by the ecommerce category at 18%.
FMCG and e-commerce are the largest contributors to the digital media industry, accounting for 38% and 20%, respectively, followed by consumer durables, pharmaceuticals, and automotive, the report added.
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.
Simi Sabhaney, chief growth officer for the company in India added: “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."
Sabhaney said as the digital economy paces up, with a talent pool in India which is fluent in English, and digitally literate, will also pave the way for more advertising. “This may vary the stance that businesses have held for many years. Indian consumers are poised to adopt the dynamically evolving technology," she said.
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Published: 03 Feb 2023, 04:28 PM IST
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