India is set to be one of the fastest growing markets for advertisement spending, alongside the growing supremacy of the digital medium in 2022, according to media investment company Group M’s report.
The annual report said India is ranked fifth globally for incremental ad spends, which is projected to be $3 billion in 2022.
The Indian advertising industry is expected to spend ₹1,07,987 crore in ad spends this year, with digital set to overtake television as the preferred medium. At ₹48,603 crore, digital adverts will account for 45 per cent of the total projected ad spend, while TV’s share will be 39 per cent.
Globally, ad spend is projected to grow 11 per cent to touch $850 billion in 2022, with digital commanding 66 per cent of it. Indian ad spend is estimated to grow 22 per cent in 2022, compared with 2021, with digital growing 33 per cent. In digital, video will lead the growth, with ad spends by small and mid-sized enterprises driving the segment.
On the industry’s digital pivot, Tushar Vyas, President – Growth and Transformation, GroupM South Asia, said, “Much of advertising witnessed a drastic skew to digital over the last two years... As digital capabilities enhance and connectivity becomes omnipresent, technology will further poise and change almost every sector of India’s economy. This will also bring opportunities for marketers to be more creative and innovative.”
Consumer sensitivity
Other trends highlighted by the report include increased impact of consumer sensitivity around issues of sustainability, gender equality, LGBTQIA sensitivity and inclusion of other marginalised communities into brand marketing.
Engagement on Web 3.0 or metaverse will also become increasingly important for brands, according to the report. Consumers, too, are increasingly prioritising the use of “privacy first” data for advertising solutions, alongside a preference for “creator-led branding” on commerce.
Sports boom
The report says India’s sports business will see a major boom in 2022.
“2022 is expected to create history in the Indian sports media rights landscape. IPL’s media rights are expected to be announced followed by ICC and BCCI’s home series. Improved mobile internet infrastructure and increased consumption of OTT platforms has made this sector extremely competitive and hence also in the driver’s seat for these media rights. Today, live sports remain unique and most sought after considering its promise of appointment viewing and sustained audience Interest,” the report said.
This transformation of the space is increasingly inviting private equity and investor interest, according to the report.
“What started in 2021 will continue taking shape in 2022 as well. The world speaks about NFTs, fan tokens and digital collectables passionately. Platforms and rights creators will continue testing different ownership models to determine the optimal balance of fuelling consumer demand and maintaining intellectual rights. There will definitely be a lot of moulding and remoulding but it is only going to make it exciting for brands and open newer avenues for consumer engagement,” the report said.