India becomes the fastest growing market in terms of ad spends, forecast to grow 16 per cent year-on-year to a market size of $11 billion for 2022l.
For 2021, India was one of the top fastest-growing markets, growing at 21.8 per cent to $9.6 billion. This data comes from Dentsu’s annual report on global ad spends. The report also notes that the boost will be led by both TV and Digital categories, which are forecast to grow at the rate of 14.5 per cent and 31.6 per cent, respectively.
“The easing of lockdown restrictions has opened up categories such as travel and hospitality which were not spending during the pandemic. Categories including edtech, fintech, Gaming and Cryptocurrency have shown growth on over-the-top (OTT) platforms,” said the report.
According to the report, at 33.4 per cent share of spend digital will be the key medium for digital first brands and consumer tech companies in 2022. TV continues to garner a 41.8 per cent share in 2022 and has recovered fully, boosted by the airing of new content and sports events such as the Indian Premier League.
For the next year, significant growth is forecast in OTT, connected TV, online gaming, and e-commerce segments. The India advertising market is projected to grow by 15.2 per cent in 2023 and by 15.7 per cent in 2024.
Global ad spend
While the market for ads is growing fast in India, it is still miniscule compared with the United States, which is the global leader clocking ad spends worth $258.9 billion for 2021.
Globally, as per the report, ad spend forecasts point to a continued recovery despite another year of economic uncertainty, with global 2022 ad spend of $738.5 billion and the market likely to grow by 8.7 per cent this year.
Inflation continues to be a headwind affecting media globally. In India, inflation in TV is up by 11.9 per cent, and 10 per cent in digital as far as ad spends are concerned. This is in line with broadcasters’ reports regarding their ad spends being hit as a result of the inflationary environment.