The 7th edition of the dentsu-e4m Digital Advertising Report 2023 was jointly unveiled today by dentsu and the exchange4media Group in Mumbai in the presence of esteemed dignitaries.
The report highlights significant trends of 2022-23, real-time facts and figures pertaining to the entire digital domain, and covers spends and insights across all sectors. It was unveiled by Divya Karani, Media Chief Executive Officer, dentsu South Asia; Vinod Thadani, Chief Digital Growth Officer, dentsu Media & CEO iProspect; Abheek Biswas, AVP Consumer Insights, Dentsu Creative India, Dr Annurag Batra, Chairman and Editor-in-Chief, BW Businessworld and Founder, exchange4media, and Nawal Ahuja, Co-Founder, exchange4media and top leadership from dentsu.
The dentsu-e4m Digital Advertising Report 2023 further stated that the Indian advertising industry is likely to grow at a compounded rate of 15.07% to reach Rs 1,13,575 crore by the end of 2024, while the digital advertising industry stood at a market size of Rs 29,784 crore, growing at 39.5% over 2021 and is forecasted to reach Rs 51,110 crore, with a compounded growth rate of 31%, by 2024.
Talking about the evolving digital space, the report stated that the evolution and growth of the digital economy will further catapult the growth of the Indian advertising industry, making it the fastest-growing market in the world over the next few years. The ad industry in India has grown by 18.1% in 2022, over the previous year. The industry ended the year 2022 with a market size of Rs 85,769 crore, growing at 18.1% over 2021.
A year after recovering from the pandemic, the industry is now witnessing the stabilization of the advertising space with a higher average growth rate and reinvigorated opportunities compared to the pre-pandemic era. Advertising spends in categories such as e-commerce, retail, consumer durables, pharmaceuticals and BFSI have grown the most in the past year.
The report said that by the end of 2022, television contributed the largest share of 40% (Rs 33,954 crore) to the advertising market in India, while digital media was close enough with a contribution of 35% (Rs 29,784 crore). Print media contributed 21% (Rs 18, 258 crore) to the Indian advertising market.
“Advertising spends on digital media has seen a growth of 39.5% over 2021 and is expected to reach a spends share of 40% in 2023, overriding television media and becoming the biggest media in terms of advertising share in India. This growth can be attributed to the constant improvements in the digital infrastructure which has been responsible for bringing this technology to the masses. This can be further witnessed in the usage of large screens viz. connected televisions and other unified interfaces where around a third of the content consumed is social media, OTT or gaming. The spends share of digital media is further expected to reach 45% by the end of 2024,” the report added.
“With digital media contributing the largest share of media spends, the share of television is expected to come down from the current 40% to 37% in 2023 and further to 34% by 2024. Also, the spending share of print media may drop from the current 21% to 19% by the end of 2023", it added.
Comparing the growth of digital media and TV, the report said that digital media is expected to grow further and reach a market size of Rs 39,315 crore by the end of 2023, growing at a rate of 32% and overtaking television as the largest media. It added that the rise in advertising spends on digital media can be attributed to the surge in consumption of OTT and online video, on account of higher penetration of smart devices and internet connectivity while the growth in usage of digital transactions and e-commerce is also driving advertising spends on digital media. In addition to these major factors, the growth of advertising opportunities on e-commerce and D2C platforms is pushing digital media to new heights, resulting in the rapid adoption of digital technologies among the masses, furthering the development of mass market, the dentsu-e4m report revealed.
The dentsu-e4m Digital Advertising Report 2023 attempts to capture the trends and media spends of the overall Indian Advertising industry with a special focus on the digital advertising industry.
The event has been co-powered by Criteo. Bobble AI is the Co-gold partner while Lemma is the lanyard partner.
Click here to download the dentsu-e4m Digital Advertising Report 2023: