Decoding India’s Ad Spend

The Indian Advertising Industry

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.

Breaking Down The Numbers

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%)

The Big Spenders, By Sector

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.

The Big Spenders on Digital Platforms

Here too, FMCG spends the most with 42%, followed by e-commerce  at 17%, FMCD at 6% and Pharma at 5%. 

The COVID Spike: Groceries & Essentials

During the pandemic, spending on digital ads for groceries and essentials saw a steep hike and the trend continues over a year later. 

The COVID Spike:   E-commerce 

Ad spends on ecommerce platforms have seen a sharp spike (of 2.5x) and now stand at Rs. 6300 cr.

E-commerce:  A Data Goldmine

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).

Digital Ad Spends: Breakup 

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%).

Digital: Set To Grow

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: Surging Ahead

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)

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