The much-awaited Pitch Madison Advertising Report 2023 was unveiled today in Mumbai in the presence of esteemed dignitaries. According to the predictions of the report, AdEx is expected to grow by 16% in 2023, more than 5 times higher than the global AdEx, which is expected to grow only by 3%. With a 16% growth rate, India's AdEx is expected to cross the landmark Rs 1,00,000 crore number and settle at Rs 1,04,230 crore.
The report was unveiled in presence of esteemed dignitaries including Sam Balsara, Chairman, Madison World, Vikram Sakhuja, Partner & Group CEO, Madison Media and OOH, Bharat Puri, Managing Director, Pidilite Industries, Lara Balsara, Executive Director, Madison World, Avinash Pandey, Chief Executive Officer, ABP Network, Nawal Ahuja Co-Founder, exchange4media and Sravanth Gajula, Co-founder, AdOnMo.
“Covid hopefully is now history and by 2023 we will cross a pre-Covid 2019 AdEx level of Rs 67,603 crore by a massive 54%,” the report said.
“India is certainly the bright spot in a gloomy and uncertain world. In today’s world, countries are interconnected with one another because of Trade and Commerce and therefore India is bound to get affected by the global gloom. Due to this, the estimates for growth in 2023 are a bit subdued at 16%, compared to the 21% growth achieved in 2022. For perspective, WARC’s forecast for Global AdEx in 2023 is a growth of only 3%.”
Sam Balsara, Chairman, Madison World, took the occasion of the unveiling of the report and said, “Despite all the setbacks, India’s GDP grew at 6.8 % and India’s AdEx grew by 21%. In absolute terms, AdEx has grown from Rs 74,000 crore to Rs 89,800 crore. There will be a gain of Rs 15,000 crore, and this is undoubtedly the second-highest gain in the last two decades. It was also the second consecutive year that the Indian AdEx has registered more than 20% growth.”
On the digital contribution, he further highlighted that 58% of total AdEx growth has been contributed by the digital sector which has grown by 35%. However, traditional media continues to play a prominent role in the advertising sector in all major economies, he noted.
Discussing the quarter-wise analysis of the AdEx numbers, he said AdEx would have registered a phenomenal growth of 29% in 2022 if not for the stagnant growth in Q1. “From a historical perspective, last year witnessed the second-highest growth in the last decade as the seven-year review shows.”
With regards to the media advertising share, Balsara said, “The medium-wise share for global and India’s AdEx shows up very substantial variations. While the digital share in Indian AdEx is 38%, for the globe it’s 68%. Outdoor, cinema and radio are more or less at par are 1, 4, and 3%.”
The report further says digital will continue to drive AdEx growth even this year and that the Indian digital share will further rise to 41% of AdEx. “Digital will remain a key driver of the Indian AdEx growth, overtaking TV and Print. We project that the Indian digital share will further rise to 41% of AdEx. Though the projected growth rate in 2023 is a little lower at 25%, than the 35% achieved in 2022, in absolute terms, digital AdEx will add Rs 8,600 crore and is likely to end the year at Rs 43,000 crore. Google Search, Meta, YouTube, and other social media platforms will retain their respective share of digital spends achieved in 2022,” the PMAR states.
As per the report, Linear TV advertising will continue to grow in 2023, but at a subdued rate of 9% to reach Rs 33,500 crore. For the second year in a row, TV will lose a further 2 percentage share points to digital, and TV’s share will further reduce to 32% of the Indian AdEx. In 2019, it was 37%. The report said that the adoption of YouTube, Facebook, and Connected TV, at a faster rate, post-COVID is the primary reason behind the declining Linear TV share.
Talking about Print, the report predicts Print AdEx to continue to grow at 9%, which will take Print AdEx to Rs 20,133 crore and reach pre-COVID levels. With this growth rate, the Print share of AdEx will fall further and for the first time will be lower than 20%.
OOH AdEx, which is likely to grow by a further 12% on the back of a 68% growth in 2022, is expected to reach Rs 4,106 crore, Rs 600 crore higher than the 2019 AdEx.
While Radio AdEx took a big hit during the pandemic years, it is yet to return to its pre-pandemic levels. The report expects that in 2023 this will be achieved, and Radio AdEx should settle at Rs 2,438 crore. However, Radio AdEx will have a share of just 2%, much lower than its 3% share of 2019.
After two years of subdued growth due to COVID-19, Cinema AdEx is now returning to normalcy. Its share will reduce from 2% in 2019 to 1% now in view of the phenomenal increase in total AdEx during these years.
The traditional AdEx in India is expected to grow by 10% on the back of good growth in the Television, Print and Outdoor sectors. Meanwhile, e-commerce will continue to grow and evolve on the back of aggressive advertising.
The Pitch Madison Advertising Report tracks and analyses how and where advertising money was spent in the past year and projects the future growth of the sector. It aims at understanding the challenges and opportunities that lie ahead for marketers and various media segments, including print, TV, radio, OOH, internet and cinema.
The event is co-powered by Viacom18 and Dangal TV. The presenting partner of the event is ABP News and Lemma Technologies is the lanyard partner.
Click here to download the Pitch Madison Advertising Report 2023: