Digital to overtake TV to become the largest advertising medium in India: GroupM report
In the coming time, more advertisements are going to be given to digital than any other media format. This will be possible in view of the increasing demand for digital. According to a report released by media agency GroupM , advertising spending in India is estimated to grow at a rate of 22 percent to Rs 1.08 lakh crore in the year 2022. During this time, the advertising expenditure on digital mediums will also overtake television. The report said that in the year 2021, Indian advertising revenue grew at a rate of 26.5 percent to Rs 88,334 crore.
GroupM Chief Executive (South Asia) Prasanth Kumar said, The pandemic has led to an increased inclination towards digital in terms of advertising revenue. Advertisers seem to be willing to give more preference to this medium in the future.
Highlights of the report:
India ranks 10th in the fastest growing market list; ranked 9th globally and ranked 5th on incremental ad spend for 2022
Indian ad spend is estimated to grow by 22% in 2022 compared to 2021
All media is estimated to grow in India in 2022 compared to 2021
TV estimated to grow by 15% in 2022 compared to 2021 in India
For the medium of OOH, the projected growth, driven by DOOH (digital out-of-home), is at 25% growth over the current 5% value in the next few years.
According to the report, the advertising revenue of digital platforms is expected to grow at a rate of 33 per cent to Rs 48,603 crore in the year 2022. In the year 2021 also, the advertising expenditure of digital media grew by 38 percent. In comparison, the advertising expenditure on television, which is the preferred medium of advertisements, is expected to grow by only 15 per cent to Rs 42,388 crore.
According to the report, the small business segment is a major contributor to the growth of digital advertising. On the other hand, advertising expenditure in print media, which is largely dependent on advertising revenue for its operating expenses, is estimated to grow by about five per cent this year to Rs 12,667 crore from 17 per cent growth in 2021.
However, considering the possibility of reopening of cinemas in the year 2022, there is a possibility of a strong jump of 467 percent in cinema advertisements to Rs 635 crore. In the year 2021, it was only Rs 112 crore.
