The Indian advertising expenditure (AdEx) grew by 10 per cent in 2023, much lower than the projected 16 per cent growth, making it the lowest growth in 6 years, apart from the Covid year, according to Pitch Madison Advertising Report.

Sam Balsara, Chairman – of Madison World, said, “Whilst the Outlook for Adex in India is extremely strong in the mid-term and long-term, in the short term, we are witnessing a slowdown in momentum because of India Inc’s focus on quarterly profits. This does not augur well for sustained growth in profits for Advertisers who should be focussing on volume growth.” In 2024, India Adex is expected to grow by 12 per cent versus 8 per cent for global Adex growth

In 2023, traditional Adex grew by 7 per cent, and digital grew by 15 per cent. “Increase in raw material prices in H1, continuing wars in Russia/Ukraine and Israel/Hamas, inflation, funding winter within the start-up industry are some of the factors that have contributed to the slow growth rate. Whilst the GDP growth is estimated at 7.3 per cent, if you look deeper, the contribution of the private final consumption expenditure component of GDP has come down, which may explain the reason for the lower buying of products and services by the middle class and rural India,” Madison Media said in its latest report.

Compared to the Indian Adex growth rate of 10 per cent, global Adex, according to WARC, grew by just 5 per cent in 2023. Brazil and India are now the two fastest-growing Adex markets.

Traditional Adex dominates Indian Adex with a 60 per cent share, whereas in Global Adex, the figure is just 27 per cent.

There is no change in the Top 3 Advertisers of Adex - HUL, Reckitt and RIL. Godrej Consumer Products is the new entrant in the Top 5 list, having moved up in rank from 12 to 5. The Top 50 Advertisers list has 20 FMCG companies and only 1 start-up company on the list, compared to 9 last year, reconfirming the funding winter in the start-up eco system.