Madison Media, an Indian marketing network, estimates that advertising expenditure in 2021 grew by 37% over 2020 and now stands at `74,231 crore. Despite the severe impact of the second wave of the Covid-19 pandemic, ad spending took off in the second half of the year, helping the industry surpass 2019 levels by 10%. Brands had spent `67,603 crore on advertising in 2019.
In the second half of the Indian Premier League (IPL) 2021, ICC Men’sT20 World Cup, coupled with the festive season attracted robust ad spends in H2 CY21. Fintech, ed-tech and e-retail brands were some of the fresh and significant spenders of 2021.
Earlier, in February 2021, Madison had estimated that ad spending will barely cross 2019 levels in 2021. It expected a 26% year-on-year growth over the muted 2020 spending at `68,325 crore. In 2020, the industry declined by 20% year-on-year and earned `54,151 crore, going back to 2017 levels.
Digital advertising was the only medium that had registered growth in 2020, bringing in `16,974 crore in ad spending. The Pitch-Madison Advertising Report (PMAR) 2021 had estimated that in 2021 digital advertising spending will grow by about 25% to reach `21,200 crore. Television ad spending amounted to `22,508 crore in 2020 and was estimated to grow by 17% to reach `26,350 crore in 2021. Print advertising was expected to attract `16,100 crore in 2021.
According to the preliminary PMAR 2022 report, advertising expenditure has not registered a 37% increase in the last two decades. The closest to it, a growth rate of 22.9%, was seen in 2007.