India is predicted to enter the top 10 markets in 2025 and grow its advertising industry to Rs 1.7 lakh crore ($21.1 billion) by 2028.
In 2024, the advertising business is expected to rise due to two major events: the current T20 Cricket World Cup and the just concluded general elections.
According to a report by global media investment and intelligence company Magna, the first half of the year typically contributes less than the second half of the year. However, the general elections that were held from March to May and the ICC T20 Cricket World Cup in June and July are expected to boost H1 growth to equal the second half of the year.
Ad expenditure increase is predicted to be 11.9 percent in the second half of 2024, compared to a projected 11.8 percent in H1.
The amount spent on advertising (adex) in both digital and linear media will rise significantly in response to both live sports and general elections. TV ad sales are predicted to increase by more than 8.7% in 2024, reaching an estimated Rs 39,300 crore ($4.7 billion). The T20 World Cup and elections will be the main drivers of this rise, particularly for news advertising.
It is projected that ad spending on digital media will increase by more than 15.9%, with new or digital forms accounting for more than 60% of the additional income. By 2026, digital is predicted to account for 50% of total income, up from its present 47% share in overall adex (expenditure on ads).
A 50% increase over the pre-pandemic era, total advertising income is expected to reach Rs 1.2 lakh crore ($14.6 billion) this year from Rs 1.1 lakh crore ($13.1 billion) in 2023.
Magna projects that the advertising business would grow to a value of Rs 1.7 lakh crore ($21.1 billion) by 2028, and that India will break into the top 10 markets by 2025.
"A strong 15.9 percent increase in digital media is expected to propel the Indian advertising market's 11.8 percent rise to Rs 1.2 trillion in 2024. In addition to television, traditional media forms are expanding, maintaining the importance of print, out-of-home (OOH), and radio. Digital advertising spending is expected to account for over half of total income by 2026 due to the government's focus on digital public infrastructure. According to Venkatesh S, SVP, Director of Intelligence Practice at MAGNA India, "Our forecast underlines social media's significant rise, overtaking search as the second strongest media format after television."
Social and search, with respective shares of 34% and 33% of digital ad spending of Rs 58,000 crore ($6.9 billion), will dominate the market, followed by display and video, with respective shares of 19% and 14%. The fastest growing digital forms are social, expanding at a rate of over 21.9 percent, and video, growing at a rate of over 19.1 percent.
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