The size of the Indian ad industry as of 2021 is Rs. 70,715 cr (a growth of 18.6% from 2020). This is expected to grow to Rs. 81,025 cr in 2022 & Rs. 93,119 cr in 2023.
TV enjoys the largest share of media spends at Rs 29.7K cr (42%)
Digital comes second at Rs. 21.3K cr (30%)
Print comes third position at Rs. 16.6K cr (24%)
FMCG is the biggest overall spender at 23K cr or 34%, followed by e-commerce at Rs. 9619 cr or 14%. Auto and education contribute 7% and 6% respectively.
Here too, FMCG spends the most with 42%, followed by e-commerce at 17%, FMCD at 6% and Pharma at 5%.
During the pandemic, spending on digital ads for groceries and essentials saw a steep hike and the trend continues over a year later.
Ad spends on ecommerce platforms have seen a sharp spike (of 2.5x) and now stand at Rs. 6300 cr.
E-commerce platforms have high-quality audience data which is being leveraged by brands and leading to high growth numbers (which are projected to cross 10K cr by 2023).
Most ads are on social media (Rs. 6218 cr or 29%) followed by Online Video (Rs. 5907 cr or 28%) Paid Search (Rs. 5039 cr or 23%) and Display Banners (Rs. 3420 cr or 16%).
India has 600 mn subscribers and cheap data, so digital is set to scale up, growing at 30%/2x the pace of the industry growth rate (14-15%) and may grab 45% media share in 2022.
Digital ads are estimated to touch Rs 107,987 cr in 2022 (22% growth). And, with a huge short-form video market, may equal TV by 2023 or even surpass it.
(Source: Dentsu e4m report)