Ad spend to grow 15% in 2023, India fastest growing market worldwide: Group M report

Representative image.

Advertising expenditure (Adex) in India is estimated to grow by 15.5 percent in 2023, said a report by Group M, a marketing services firm.

Up to Rs 20,000 crore of incremental ad spend is expected to come in 2023 as compared to 2022 and Adex is projected to reach Rs 1,46,450 crore this year.

The digital segment at 56 percent share of all advertising spends and growing at 20 percent over last year is driving the growth of Adex, said Ashwin Padmanabhan, President - Investments, Trading, and Partnerships, GroupM.

In terms of businesses, the growth of SMEs in the Adex has continued for the past few years, and this year too the same trend can be seen. "We also anticipate the revival of the rural economy as well as improved funding for the start-up ecosystem. Additionally, telecom, BFSI, retail, fintech, gaming as well as travel and tourism are expected to drive ad spending," said Parveen Sheik, Head of Business Intelligence, GroupM India.

He added that the launch and expansion of 5G services beyond top metros, combined with affordable smartphones, is also expected to drive ad spend growth.

Globally, India has moved up to the 8th position in ad spends and continues to be the fastest-growing market in the top 10 markets worldwide, the report said. "India stands out globally with all mediums expected to grow with TV, print and radio growing at high single digits. We see 2023 panning out stronger and are confident of the Indian Adex staying on course to grow as projected,” said Padmanabhan.

As technology redefines interactions between consumers, brands and businesses, the ad industry must navigate through this changing environment, said Prasanth Kumar, South Asia CEO, GroupM. "The past 3 years have been marked by macroeconomic volatility and global events that have impacted advertisers’ businesses and ad spending. The Indian economy though is expected to weather these challenges and is poised to grow in the coming years,” he added.