As per the Pitch Madison advertising report, in 2023, the advertising landscape in India experienced a somewhat sluggish growth trajectory, with the total Adex increasing by a modest 10%, falling short of the projected 16%. This subdued growth can be attributed to various factors including the increase in raw material prices, ongoing geopolitical tensions, inflationary pressures, and a funding slowdown within the startup ecosystem. Despite an estimated GDP growth of 7.3%, the contribution of private final consumption expenditure to GDP saw a decline, reflecting reduced spending by the middle class and rural population.
Comparatively, the global advertising expenditure, as reported by WARC, saw a mere 5% growth in 2023. Interestingly, India and Brazil emerged as the fastest-growing Adex markets globally, showcasing the country’s resilience amidst challenging economic conditions.
Traditional Adex continued to dominate the Indian advertising landscape with a commanding 60% share, far surpassing the global figure of 27%. The audiovisual medium, comprising linear TV and digital video, accounted for a significant 46.3% of total Adex, with linear TV alone contributing Rs 32,886 crores.
FMCG retained its position as the largest category contributor to Adex, capturing a 33% share in 2023. E-commerce emerged as the second-largest contributor with an 11% share, underscoring the sector’s growing significance in the advertising space.
Despite the overall sluggish growth, there were notable shifts within the top advertisers’ list, with Godrej Consumer Products making a significant leap to join the top five advertisers. However, the dominance of established players like HUL, Reckitt, and RIL remained unchallenged.
In the digital realm, growth was relatively modest at 15%, falling short of the projected 25%. Nevertheless, digital continued to maintain its position as the largest contributor to Adex, commanding a 40% share. Video, social, display, e-commerce, and search were identified as key drivers of digital advertising, with digital video emerging as the largest contributor within the digital space.
Looking ahead to 2024, digital advertising is expected to witness a modest growth of 17%, further consolidating its position as the primary driver of Adex. Television, on the other hand, is projected to grow by 8%, reaching a total of Rs 35,575 crores.
Despite challenges and uncertainties, the Indian advertising industry remains dynamic and resilient, poised for continued growth and innovation in the years to come.