India is the country with the fastest rising ad expenditure internationally, however its rise in ad sales has stalled

 India is the country with the fastest rising ad expenditure internationally, however its rise in ad sales has stalled

India is the country with the fastest rising ad expenditure internationally, however its rise in ad sales has stalled

It is anticipated that government expenditure in anticipation of the national elections early in 2024 and festive spending during the second half of 2023 would account for 10–12% of the rise in advertising spending. This includes the ICC World Cup.

The growth rate of the advertising market in India dropped from 17.4% in 2022 to 11.8 percent this year. The increase of advertising revenue is predicted to decrease to 11.4 percent in 2024.

Global media investment and intelligence firm Magna projects that India's advertising industry would reach Rs 1 lakh crore in 2023 and Rs 1.2 lakh crore the following year.

Digital's share of growth fell from 25.7 percent in 2022 to around 14.2 percent in 2023. However, with a 46 percent share and an overall contribution of Rs 50,000 crore ($6.4 billion), digital continues to be the biggest source of advertising spending in India.

In a similar vein, India continues to expand at the quickest pace in the world, outpacing all other global markets in terms of growth.

The growth rate at the worldwide level was 5.5% in 2023 and is predicted to reach 7.2 percent by 2024.

India, Pakistan, and China were the main drivers of the Asia Pacific advertising economy, which increased by almost 8.2 percent to $286 billion this year, according to the report. APAC ad sales are expected to increase by more than 6% by 2024.

India, the world's eleventh biggest market, is setting the pace for growth in ad expenditure worldwide. By 2028, it is anticipated to break into the top 10 and take the eighth spot.

The amount spent on advertising rose by more than 9.6 percent in the first half of 2023. In the second half of 2023, spending rises to more than 13.8%. Festive spending and significant occasions like the ICC Cricket World Cup and elections are what are fueling this rebound, according to Venkatesh S., SVP, Director of Intelligence Practice at Magna India.

He made the observation that although digital and linear formats are expanding in India, traditional media owners' (TMOs) rise in advertising income is slowing down internationally. "Until at least 2027, traditional formats will continue to be the most popular, even though pure play is driving digital adex (ad spending)." Including podcasts, digital newspapers, advertising video on-demand, and DOOH (outside digital) non-linear format homes, TMO has been expanding steadily in double digits and now accounts for 5% of the company's overall income, the speaker said.

Spending by consumers is rising, with young people in the workforce being the main driver. These individuals are making investments in experience categories such as entertainment, cars, and travel. It is anticipated that the ICC World Cup, government expenditure in anticipation of the national elections that will take place early in 2024, and celebration-related spending would all contribute to a further 10–12% rise in Adex in the second half of 2023.

The main industries boosting India's index growth are consumer packaged goods (CPG), automotive, and fintech, followed by real estate, travel, communications, government, and tourism.

Retail, including e-commerce, financial services, media and entertainment, and fashion, will all enjoy average growth. As per the data, startups, which have been the primary focus of all tent pole properties, have shifted their attention from brand marketing to performance marketing or have reduced their expenses. Brands have been frugal with their expenditure in light of the new retroactive gaming taxes regime.

Speaking about media, mobile will account for 59% of all digital media this year. According to the report, social media has grown at the fastest rate among digital segments, with 467 million users across the nation. With the streaming platform showing robust development patterns led by increase in connected TV (CTV) subscribers, content choices, and local language play, total video recorded growth of over 16 percent. This year, there will likely be 50 million OTT subscribers. It is anticipated that overall digital growth would increase by more than 13.9%, reaching Rs 56,900 crore ($7.2 billion) in 2024.

The expected income from television advertising in 2023 would be Rs 36,500 crore ($4.6 billion), growing at a rate of more than 8.9 percent. By 2024, the growth rate is predicted to have increased by 9.9% to Rs 40,100 crore ($5.1 billion).

It is projected that the proportion of conventional media, such as print, radio, and television, in India's overall advertising spending would slightly decrease from 55% this year to 54% in 2024. By 2024, the percentage of digital content is predicted to rise from 45 to 46 percent.