The digital ad space is estimated to grow twice as fast as ad spending through television
New Delhi, NFAPost: The Indian advertising market is forecast to grow by 16% in 2022 to reach $11.1 billion (Rs 88,639 crore), becoming the fastest growing market globally, a report said.
This would lead to over 14.5 per cent growth by TV and 31.6% on the digital side, said Dentsu Global Ad Spend Forecasts July 2022.
The easing of lockdown restrictions has opened up categories such as travel and hospitality, which were not spending during the pandemic. Besides, categories like edtech, fintech, gaming and cryptocurrency have shown growth on Over-The-Top (OTT) platforms.
“Digital, at a 33.4% share of spend, will be the key medium for digital-first brands and consumer tech companies in 2022. TV continues to garner a 41.8% share in 2022 and has recovered fully, boosted by the airing of new content and sports events such as the Indian Premier League,” it said.
The digital ad space is estimated to grow twice as fast as ad spending through television.
In 2022, the US will be both the top ad spending region at $329.6 billion and the most dynamic region with spending increasing by 13.1%.
“In terms of growth, however, India (+16.0% YOY growth) will stay ahead of the United States (+12.8%) and Brazil (+9.0%) as the fastest growing market,” said Dentsu Global Ad Spend Forecasts.
According to the report, looking ahead, “significant growth” is forecast in OTT, connected TV, online gaming and e-commerce.
“The India advertising market is forecast to grow by 16 per cent in 2022 to reach $11.1 billion led by TV (+14.5%) and digital (+31.6%),” it said.
In 2021, the Indian advertising market was around $9.6 billion. It is projected to grow by 15.2% in 2023 to $12.8 billion and by 15.7% to $14.8 billion in 2024.
While globally, advertising spending would increase by 8.7% in 2022 to $738.5 billion. Ad spending in the Asia Pacific is anticipated to reach $250 billion, with digital accounting for much of this amount.
In the region, China advertising market is forecast to grow by a further 5.6% in 2022 to reach $130.2 billion.
Dentsu international CEO Media APAC Prerna Mehrotra said the latest Dentsu Ad Spend July 2022 points to a continued recovery despite another year of economic uncertainty, with APAC 2022 ad spend of $250 billion, based on a growth forecast at 5.1 per cent.
“However, continued lockdowns in key markets, geopolitical tension and ongoing supply logistics issues could add pressure on businesses with a cascading impact on marketing spends,” she said.
Agencies
