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India’s ad revenue to reach $14.9 billion by end CY22; digital to take 48.8% share: GroupM

Advertising growth in CY23 will predominantly come from TV and digital.

India’s ad revenue to reach $14.9 billion by end CY22; digital to take 48.8% share: GroupM
(image source: official website) According to GroupM’s This Year Next Year 2022 forecast, India’s growth will be led primarily by pure-play digital advertising

Leading media investment company GroupM expects India’s advertising revenue to touch $14.9 billion in CY22, a growth of 15.8% year-on-year. The company projects the revenue growth will acclerate further to 16.8% in 2023.

According to GroupM’s This Year Next Year 2022 forecast, India’s growth will be led primarily by pure-play digital advertising, which will account for the largest share in the advertising pie at 48.8% this year. This growth is expected to keep rising above the pre-pandemic levels. Retail media advertising in India will touch $551 million in 2022 and is expected to nearly double by 2027.

TV advertising, representing 36% of advertising market share in India, is expected to grow 10.8% this year, driven by strong growth in both traditional and connected TV.

Advertising growth in CY23 will predominantly come from TV and digital. While TV is expected to grow at 13.8% in 2023, digital advertising will see growth rise from 17.3% in 2022 to 21% in 2023.

The projections for India look brighter than that in several other markets and the global average. Globally, advertising revenue in CY2022 grew by 6.5% and it is expected to grow by 5.9% in CY2023, implying a drop from the agency’s June estimate of 6.4%. The GroupM report, however, expects stronger gains in connected TV, retail media and some fast-growing markets such as India.

Globally, digital advertising is expected to grow by 9.3% in CY22, on the back of 31.9% growth in CY21, taking the overall share of digital advertising to 67% of the pie this year. That number is expected to rise to 73% by 2027. Advertisers will be keen to spend on brand-safe and innovative platforms offering diversification beyond Google and Meta, which will capture 47.2% of global advertising revenue this year, ex-China.

Retail media has emerged as one of the fastest growing segments of the global advertising industry and is expected to reach $110.7 billion by the end of CY22. Television advertising growth is expected to remain between 1% and 3% over the next five years, with connected TV seeing double digit growth. Out-of-home (OOH) advertising will register an estimated 2.2% growth globally or an 18.1% growth on an ex-China basis.

The country, which has been the largest OOH market for the past six years, has seen numerous lockdowns this year on account of the government’s zero-Covid strategy, which has impacted outdoor advertising growth.

After a brief respite in 2021, traditional print advertising will record a decline of 7.4% in 2022. Print revenues are expected to fall to near parity with OOH by 2027.

Also Read: Indian advertisers expect TV marketing to have increased budgets: GroupM Report

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First published on: 06-12-2022 at 08:29 IST