A report by research and analysis firm Redseer reveals that FY2024 is likely to be a muted year for advertising spend with a 6 per cent growth and is expected to touch $16-17 billion in FY2024, owing to a slowdown in consumption observed in the last 5-6 quarters as well as a dip in PE/VC investments because of rising interest rates and geopolitical tensions. Additionally, the advertising sector is recovering from the impact of the 28 per cent GST levy on the real money gaming format.

The report mentions that despite economic challenges affecting many consumer areas and their advertising budgets, e-commerce platforms are expected to increase their spending by around 15 per cent in the current fiscal year (FY2024). The rise of online-first brands, automated advertising, and improvements in digital ad platforms are changing the landscape of advertising.

Digital advertising is becoming increasingly popular, with an expected user base of 800 million internet users, surpassing TV viewership in the next 1-2 years. People in this group spend almost one-third of their awake time on the internet. This demographic is spending almost 1/3rd of their waking hours on internet.

Mukesh Kumar, Associate Partner at Redseer observes, “As digital natives shape consumption patterns across the nation, brands have a never-before opportunity to address a much-larger and diverse consumer pool through advertising. The rise of challenger platforms has defined the growth in digital advertising in FY2024 and expected to remain so in next years or so. It will be fascinating to witness cutting-edge creative strategies take shape across platforms especially with the possibilities that programmatic advertising and GenAI can offer for the sector.”