The dentsu-e4m Digital Advertising Report 2024 points to an incredible growth story for the Digital advertising industry. 2024 is all about tech-enabled advancements, and after witnessing an impressive growth of 36.6% over 2022, with a market size of INR 40685cr., Digital is stronger than ever before. The report estimates that by 2025, Digital AdEx will see a market size worth INR 62045cr., growing at a compound rate of 23.49%. The overall Indian advertising industry on the other hand also saw a growth of 8.6% over 2022, and the year 2023 ended with a market size of INR 93166cr.
According to the report, advertising spends for categories such as tourism, government and social organisations, media and entertainment, and real estate have seen a huge growth. Of course, 2023 was a landmark year in the post-COVID era, with the market being fuelled by popular events such as the ICC Cricket World Cup, Women’s World Cup, IPL, Asia Cup, and the Assembly elections. This good streak is expected to continue this year as well with the General Elections around the corner and of course the IPL.
Spends on Advertising by Mediums
In 2023, Digital saw the highest spends on advertising with INR 40,685cr. spends, and Cinema saw the lowest with INR 300cr. Television ranks second with INR 29,836cr. spends, playing second fiddle to a more dominant Digital media. This incredible development has been made possible due to brands and marketers leaning towards Digital, and it grows by leaps and bounds. Print is ahead of OOH and Radio with INR 18,652cr. spends. OTT, e-commerce, online payment modes, social media, e-sports, and gaming are some of the factors that are helping Digital to reach the top of the charts.
The 2024 projection for the Indian advertising industry, according to the report, suggests that it is expected to reach INR 1,01,591cr by December, growing by 9%. Subsequently, the 2025 projection suggests a growth of 10.7%. This means that the growth is projected to be at a rate of 9.86 CAGR, from 2023 to 2025.
In all this, Digital media is expected to continue its impressive growth streak, to the extent that it is expected to attain a 50% contribution to the Indian advertising market by the end of 2024. Consequently, Television spends is expected to see a degrowth, from its current 32% to 28% by the end of 2024. However, the report also comments on the fact that advertisers continue to view Television as a secure platform for brands.
Another interesting development is the growth of Connected TV (CTV), with increasing conversation around it in the media. The report expects advertisers to increase investments in CTV advertising, as streaming partners compete for broadcast rights, and brands increasingly focus on programmatic advertising, data-driven insights, and dynamic and interactive ad insertions.
Print media saw a decline of 1.8% over 2022, and is further expected to become even smaller at a negative compound rate of 3.01%. Radio will manage to maintain spends share of 2% in the future, as online radio has returned helping the medium to regain its glory to some extent. Music streaming, podcasts, and personalised content have allowed Radio to stay relevant. OOH is expected to grow with spends share of 2% for the next few years. Digital billboards, interactive displays, and programmatic advertising in OOH ads are the deciding factors here. Cinema has maintained its share of ad spends, and is expected to increase at a compounded rate of 2.50% by 2025.
Media Spends According to Category
FMCG topped the chart in this regard, contributing 34% to the Indian advertising market, and it was followed by e-commerce (14%), consumer durables (6%), and automotive sectors (6%). FMCG has always been the top spender, and in 2023, it witnessed ad spends growth of 22.6% over 2022. Travel and tourism saw incredible growth during the same time frame, recording a whopping 73.4% growth over 2022. Furthermore, government advertisements witnessed a 62.2% increase, and real estate grew 41.7% over 2022. The big boost in ad spends by travel and tourism is being attributed to expanding urbanisation and an increase in the income of the middle class. Travellers are hence returning to their pre-pandemic travel routine. Other factors such as the government’s Visit India 2023 campaign, and a focus on infrastructure development have also contributed to this humongous growth.
Tech Themes of 2024
Addressing the tech themes of 2024, the report cited Teads, a leading global media platform that is set to release its much-anticipated report, ‘Tech Themes of 2024: 5 Key Media Topics Shaping the Industry.’ The five themes are as follows –
The dominance of Connected TV – The research by Teads points out that ROI in CTV advertising is more than linear TV’s, and hence 70% of advertisers reported experiencing much better or slightly better ROI compared to traditional television advertising.
Omnichannel strategy and brand recall – A 67 percent increase in the unaided brand recall has been attributed to a combined CTV and mobile advertising strategy. The power of the omnichannel approach is being highlighted here through TV’s synergy with mobile advertising.
Contextual targeting – There is a shift towards contextual targeting, as 16% of advertisers are prepared for a cookieless shift, and 14% of publishers have an action plan. There are concerns with data accuracy and reliability that are transforming the targeting strategies.
Brandformance – According to Teads, Brandformance is a fusion of brand building and performance marketing. According to the report, it is altering the playbook for agencies and marketers as 74% of marketing executives are looking to increase budget allocations in the next year.
Premium partnerships for responsible advertising – This is considered to be a key strategy for responsible advertising, as top-tier ads command viewers’ attention for an average of 11.3 seconds, resulting in a substantial 49% spike in engagement. So there is now an importance of high-quality content and strategic partnerships in capturing audience interest.
