Indian Ad Market to Hit ₹1.2 Lakh Crore in 2024, Led by Digital Media Growth

The Indian advertising market is expected to grow by 11.8% to reach ₹1,22,155 crore in 2024. This growth is mainly driven by digital media, with traditional media also seeing significant growth.

Growth Projections

According to IPG Mediabrands’ Magna Global Advertising Forecast 2024:

• Traditional media (TV, print, radio, outdoor) ad revenue is expected to grow by 8.4% to ₹64,398 crore.
• Digital media is set to grow by almost 16%, reaching ₹57,757 crore. This growth is supported by the expanding internet base and the government’s focus on digital infrastructure.

Market Share

• Traditional media may receive 53% of all ad spending, while digital media will take up the remaining 47%.
• This traditional media share is higher than the global (29%) and APAC (24%) averages.
• Digital media’s share of total ad spending could reach 50% by 2026.

Future Predictions

India is projected to become the 11th largest ad market in 2024, behind South Korea, and could enter the top 10 by 2025. Magna estimates the Indian ad market will grow at a 10% CAGR, reaching ₹1,70,000 crore by 2028.

Key Insights

Venkatesh S, SVP, director of Intelligence Practice at Magna India, is optimistic about the ad market’s growth despite challenges. Key drivers include:

• Strong performance of listed companies.
• Double-digit growth in the FMCG sector in Q1 2024.
• Growth in the auto sector across all segments.
• Continued e-commerce expansion into lower-tier markets.
• Increased rural demand due to a normal monsoon and higher government spending.

Digital vs. Traditional Media

While digital media continues to grow rapidly, traditional media will also see robust growth. Social media and search are expected to take 34% and 33% of the digital ad market, respectively, with display and video at 19% and 14%. Social media and video are the fastest-growing formats.

TV and Print Media

• TV ad revenues are projected to grow by 8.7% to ₹39,333 crore in 2024, driven by elections and cricket. TV reaches 778 million viewers, with overall viewing time increasing to 230 minutes.
• Print media, known for its trustworthiness and a circulation of 402 million copies in 2022-23, will grow by 6.1% to ₹18,771 crore, boosted by national and local elections in 8 states. Digital print revenue is estimated at ₹1,300 crore.