In the eighth edition of its comprehensive report on Indian ad industry titled ‘dentsu Digital Report 2024‘, Dentsu India has projected that the Indian advertising industry would grow from Rs 93,166 crore in 2023 to Rs 1,01,591 crore in 2024 and Rs 1,12,453 crore in 2025, growing at a CAGR of 9.86%.
This upward trajectory has been attributed to key events such as Assembly and Lok Sabha Elections, the IPL and other cricketing properties and sporting events, and the ever-thriving festive season, in the report.
What does the dentsu Digital Report say?
As per the dentsu Digital Report, the digital advertising industry, which witnessed the fastest growth rate of 36.6% over 2022 and amounted for 35% of the overall ad spends in 2022 to 44% by the end of 2023, is predicted to grow from Rs 40,685 crore in 2023 to Rs 50,857 crore in 2024 and Rs 62,045 crore in 2025 at a CAGR of 23.49% to reach a spending share of 55%.
The report also denoted that given the ever-evolving nature of the Indian advertising landscape, the year 2024 will stand out for its innovation, adaptability, and transformative shifts in technology along with a prominent transition towards a new era of creativity, and sustainability.
That being said, the dentsu Digital Report 2024 highlights that digital media has surpassed television, securing the largest advertising spends share of 44%, followed by television (32%) and print media (20%).
“The telecom sector allocates 64% of its media budgets on digital, closely followed by e-commerce and pharmaceuticals categories. And, within digital media, telecom evenly distributes around 80% of their digital budget across online video, social media and paid search. Meanwhile, FMCG segment divides 94% of its media budgets equally between digital and television and E-commerce segment dedicates 61% of the overall media budget to digital media with 52% of that allocated to paid search,” the report stated.
It also throws light on to the fact that, under digital advertising, it is Social Media that dominates digital media spends, contributing with a 30% share (Rs. 11,962 crore), closely followed by online video with 29% and paid search with 23%.
Moreover, in its report, Dentsu also mentioned that in the past one year, advertising spends in industry categories such as tourism, government and social organizations, real estate, and media and entertainment have exhibited remarkable growth.
In fact, in 2023, as per denstu Digital Report 2024, the Indian advertising sector witnessed the fastest growth rate among large economies owing to events such as the IPL, ICC Cricket World Cup, Women’s World Cup, Asia Cup, Assembly elections, etc.
Giving the breakup of 2023’s media spends, the report mentioned that digital media accounted for a 44% share in the ad pie with Rs 40,865 crore surpassing Television which amounted for Rs 29, 836 crores and a 32% share in the overall ad pie.
The remaining 24% of the ad pie as mentioned in the report is attributed to Print at 20% and Rs 18,652 crore; OOH at 2% and Rs 1,878 crore; Radio at 2% and Rs 1,814 crore; culminating with Cinema at 0.3% and Rs 300 crore.
“In 2024, growth in ad spends is anticipated in categories like automotives, FMCG, Government and social organizations, and travel and tourism,” the report highlighted.
Moreover, the dentsu Digital Report also pointed out that as the share of digital media grows, Television ad spends are likely to decrease from their current 32% to 28% by the end of 2024, followed by a negative compounded rate of 2.05% to have a 25% spends share in the overall ad pie by the end of 2025.
Similarly, it also mentioned that the ad spends on Print media are also expected to shrink at a negative compounded rate of 3.01% to have a share of 16% by the end of 2025.
On the other hand, the report mentions that Radio is expected to maintain a spends share of 2% in the coming years, and that Out-of-Home (OOH) medium will continue to grow with a steady spends share of 2% for the next few years, characterised by a compounded growth rate of 8.49%. As for Cinema, the report stated that the medium will also maintain a consistent share with ad spends projected to increase at a compounded rate of 2.50% by 2025.
That being said, the report also clarified that, despite the declining share of TV, advertisers perceive the medium as a secure platform for brands, possessing considerable influence and effectiveness in advertising with a capability to enhance the performance of other media channels.
“Another major shift happening in this space is the growing popularity of connected TV (CTV). With hyper-personalized content recommendations, cross-device viewing and a magnitude of content options including OTT services, CTV is revolutionizing television consumption and forging a dynamic landscape in the media and advertising industry in India. Consequently, advertisers are expected to allocate more resources to engage their audiences in these evolved environments, leading to increased investments in CTV advertising. Streaming partners are playing a crucial role in the competition for broadcasting rights, and brands are now leveraging programmatic targeting, data driven insights as well as dynamic and interactive ad insertions to deliver personalized and impactful advertisements,” the report added.
It attributed the foreseeable decline in Print media’s share in the overall ad pie to the rise of digital technology and shifts in the consumer preferences towards the digital screens, particularly among the younger demographics, as well as the rising costs, distribution challenges, and
environmental sustainability concerns pertinent to the growth of print publications.
Sharing his views on the launch of the same, Harsha Razdan, CEO- South Asia, Dentsu, said –
“India’s digital revolution is more than a surge of numbers; it’s a wave of change that is sweeping across our lives, our industries, and our society. Artificial intelligence is the driving force behind this change, enabling our e-commerce market to reach $200 billion by 2026. But as we embrace this AI-powered era, we must also redefine our vision of success. It’s not enough to aim for financial growth; we must also strive for social good. We must be human in the face of technology—empathetic, creative, and courageous—shaping the future of Indian advertising with transparency, accountability, and ethics. The dentsu India Digital report 2024 is not just a snapshot; it’s a call to action to join us in creating a future that is ours to shape.”
Adding to Razdan’s viewpoint, Narayan Devanathan, Group Chief Strategic Advisor, Dentsu India, also mentioned –
“The dentsu India Digital report is a testament to our commitment to providing our clients with the best-in-class solutions and insights that help them navigate the dynamic and complex media landscape. We believe that digital media is not just a medium, but a mindset that drives innovation and creativity across all platforms and formats. The report showcases how digital media has become the dominant force in the industry, surpassing television and influencing other media as well. It also reveals the potential of emerging sectors, trends, and technologies that will shape the future of advertising and consumer engagement. We are confident that this report will serve as a valuable resource for advertisers, media owners, and industry stakeholders, as well as inspire them to embrace the opportunities and challenges that lie ahead.”
To access the report, click here.
