Indian advertising industry's revenue growth will accelerate to 16.8 per cent in 2023, a report said on Monday.

The advertising industry in the country, which has a relatively stronger economic outlook as compared to the world markets, will grow 15.8 per cent to $14.9 billion in 2022, the report by Group M said.

"This growth (16.8 per cent in 2023) is led by pure-play digital advertising, which accounts for the largest share (48.8 per cent) in 2022 and is expected to continue rising above pre-pandemic levels," the report said.

The size of retail media in India is forecast at $551 million in 2022 and is expected to nearly double by 2027, it said.

The report said TV advertising, representing 36 per cent of the advertising market share, is expected to grow 10.8 per cent in 2022, and will continue growing double digits, driven by strong growth in both traditional and connected TV.

On the macro front, it said, the Indian economy is also facing uncertainty amid wider geopolitical risks, enduring inflation pressures from a weak currency, high unemployment and high interest rates.

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When compared to China, which is expected to have advertising revenues of $137.8 billion in 2022 despite the Covid-related lockdowns, the size of the Indian advertising industry is very small, but unlike China, which is set to experience a 0.6 per cent de-growth in 2022 and estimated to rise 6.3 per cent in 2023, India's prospects are much brighter, the report said.

Globally, advertising revenue growth will slow down to 5.9 per cent in 2023, as against 6.5 per cent expected to be achieved in 2022, the report said.

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