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Indian communications agency, Madison World predicts that Indian advertising expenditure will grow by 16 per cent in 2023 to cross the Rs 1 lakh crore mark to settle at Rs 1,04,230 crore.
According to the Pitch Madison Advertising Report 2023, Indian Adex has grown by 21 per cent in 2022 to reach Rs 89,803 crore. Digital grew by 35 per cent to become the largest medium in Adex with a 38 per cent share, compared to TV’s 34 per cent. TV grew by a modest 9 per cent versus Madison World’s projection of 14 per cent.
Compared to the Indian Adex growth rate of 21 per cent, Global Adex, according to WARC, grew by just 8 per cent in 2022. The Top 11 countries that account for 70 per cent of Global Adex grew by only 1 per cent.
In absolute terms, Indian Adex has grown from Rs 74,231 crore to Rs 89,803 crore in 2022 and this is the second highest gain of the last two decades.
Traditional Adex (print, TV, radio) dominates Indian Adex with a 62 per cent share, as against 32 per cent in Global Adex. With 14 per cent growth in 2022, traditional media at Rs 55,399 crore, has crossed its 2019 figure of Rs 52,136 crore.
Digital Adex is now the largest medium with a share of 38 per cent, followed by TV with a share of 34 per cent.
FMCG continues to be the largest category, but its share has moved down from 38 per cent in 2020 to 32 per cent in 2022. Ecommerce has now established itself as the second biggest category of Adex, growing in share from 4.9 per cent in 2019 to 14 per cent in 2022. The Top 5 Advertisers in Adex are HUL, Reckitt, RIL, Dream11 and Mondelez. There are only 11 Start-Ups in the Top 50 Advertisers List versus 15 last year, confirming that VC money is drying up.
A 10-year review shows that digital has grown from a mere Rs 3,050 crore with a 9 per cent share, to Rs 34,405 crore with a 38 per cent share today. Inspite of this growth, Digital Adex in India trails behind Global Adex. Digital’s share in Global Adex is 68 per cent.
Linear TV Adex is showing the first signs of weakening as TV registered a modest growth of 9 per cent, against Madison World’s forecast of 14 per cent to reach Rs 30,662 crore. “In 2022, for the first time, we see signs of stress in Linear TV and its share has come down from a high of 42 per cent in 2020 and 38 per cent in 2021, to a new low of 34 per cent. With increasing spends in Digital, TV has now moved dropped to the second position in Indian Adex,” said the report.
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