GroupM India released its 'This Year Next Year' (TYNY) report, highlighting the advertising expenditure forecast for 2023. The WPP Plc owned media agency predicts Rs 20,000 crores of incremental ad spends in 2023 compared to 2022. This highlights the continued growth and potential of the Indian advertising industry and the opportunities it presents for advertisers. The report highlights a 15.5 percent increase in ad spends in India, reaching Rs 1,46,450 crore in 2023. India moves up to the 8th position globally in ad spends and continues to be the fastest-growing market in the top 10 markets worldwide.
Digital will drive ad spend with a growth of 20 percent and digital’s share in 2023 is estimated to be 56 percent. (Image source: GroupM)
According to the report, digital is estimated to take 71 percent share from the incremental Rs 20, 000 cr and TV 18 percent. TV and digital together estimate to take 86 percent of ad spend share. The report also states that digital to drive ad spend with a growth of 20 percent and digital’s share in 2023 is estimated to be 56 percent. Sports, search, e-commerce platforms, online video, all languages and markets across print and radio estimated to drive growth. Telecom, retail, media, gaming, fintech, travel and tourism sectors estimated to drive growth in 2023.
Digital is estimated to take 71 percent share from the incremental Rs 20, 000 cr. (Image source: GroupM)
Prasanth Kumar, South Asia chief executive officer, GroupM, said, “As technology redefines interactions between consumers, brands and businesses the ad industry must navigate thru this changing environment. The past three 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.”
Ashwin Padmanabhan, president - investments, trading, and partnerships, GroupM – India, said, “Indian Adex will be the fastest growing globally at 15.5 percent supported by robust macroeconomic conditions. Digital at 56 percent of all advertising spends and growing at 20 percent over last year is driving the growth of Adex. 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 as we move into the second half of the year and are confident of the Indian Adex staying on course to grow as projected.”
Telecom, retail, media, gaming, fintech, travel and tourism sectors estimated to drive growth in 2023. (Image source: GroupM)
Parveen Sheik, head of business intelligence, GroupM India, said, "The growth of SMEs in the Adex has been a feature for the past few years, this year too we see the same trend. 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 & Tourism are expected to drive ad spending.”
The launch and expansion of 5G services beyond top metros, combined with affordable smartphones, is also expected to drive ad spend growth.