The Indian advertising industry had a market size of ₹93,166 crore in 2023, growing by 8.6 per cent from the figures reported at the end of 2022, according to Digital Advertising Report 2024 released by Dentsu. The report further stated that by the end of 2025, it is expected to further grow at a compounded rate of 9.86 per cent to reach ₹1,12,453 crore. The digital advertising industry witnessed an impressive growth of 36.6 per cent over 2022 numbers with a market size of ₹40,685 crore in 2023. It is estimated to reach ₹62,045 crore, growing at a compounded rate of 23.49 per cent by 2025, according to the report. 

In the Indian advertising market, FMCG leads with a 34 per cent share (₹31,428 crore), followed by e-commerce (14 per cent), consumer durables (6 per cent), and automotive sectors (6 per cent). Tourism, government and real estate saw significant growth too in terms of ad spending over the previous year.

For 2024, the report had the following predictions: The growth of the Indian advertising sector has been propelled by significant advancements in digital infrastructure, connectivity and user applications. “The Indian advertising industry grew by 8.6 per cent in 2023 and is expected to grow by 9 per cent to reach ₹1,01,591 crore by the end of 2024,” the report predicted. The upward growth trajectory has been attributed to key events this year like the Assembly and Lok Sabha elections, IPL, other cricketing and sports events, and the festive season in India.

Rapid expansion

The report states that in 2024, ad spending is likely to further grow in categories like automotive, FMCG, government and social organisations, and travel and tourism.

Continuing with its rapid expansion, digital media is expected to maintain its impressive growth trajectory, projecting a 25 per increase to attain a 50 per cent contribution to the Indian advertising market by 2024. Additionally, digital media is projected to grow at a compounded rate of 23.49 per cent by 2025, reaching a spending share of 55 per cent.

With digital media playing an increasingly significant role in the growth of the Indian advertising industry, television ad spending is projected to decrease from the current 32 per cent to 28 per cent by the end of 2024. Furthermore, a negative compounded growth of 2.05 per cent is expected, reaching a spending share of 25 per cent by the end of 2025. 

However, the report added that despite the declining share of TV, advertisers perceive the medium as a secure platform for brands, possessing considerable influence and effectiveness in advertising with a capability to enhance the performance of other media channels, the report says.

The Indian digital advertising industry concluded the year 2023 with a market size of ₹40,685 crore, marking a notable growth rate of 36.6 per cent over 2022. Owing to global economic trends, digital media is expected to be the predominant driving force for the Indian advertising industry with a growth rate of 25 per cent to reach ₹50,857 crore by the end of 2024. Additionally, it is expected to have grown at a compounded rate of 23.49 per cent, reaching a market size of ₹62,045 crore by the end of 2025.

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