India has strengthened its position among the world’s top advertising revenue markets. As per the 2023 Global End-of-Year Forecast by GroupM, India climbed to number eight from nine last year, in terms of the largest market for ad revenue in the world. While the U.S. and China retained their positions as the two largest ad revenue markets, respectively, the U.K. has overtaken Japan for the third spot. Germany and France maintained their rankings, with Canada moving back from seven to nine and Brazil rising from eight to seven. Australia remained the tenth largest market for ad revenue.
As per the report, the global advertising market is poised for 5.8 percent annual growth at the close of 2023, despite challenges such as inflation, high interest rates, China’s economic slowdown, and lingering pandemic impacts. The projected total for global advertising in 2023 is expected to reach $889.0 billion, excluding the impact of U.S. political advertising.
The report also highlights three major trends.
“Advertisers, even those enlisting the expertise of agencies, are drawing on deeper and often more direct relationships with their customers. This is especially true of the automotive, media and entertainment sectors, disintermediating customer marketing and allowing for more personalized messaging (where consented/logged in),” said the report.
The other trend is about how brands are leaning into shared experiences and live, fan-based events as something that can create a sense of community.
Lastly there is artificial intelligence.
“Just as every business is now a “digital” company, the same will soon be true of AI—especially in the world of advertising. Artificial intelligence will permeate products, services and operations at all companies, even if early benefits accrue primarily to those technology providers developing large language models and supplying the compute needed to train and query them,” said the report.
The top industry categories that contributed to the global AdEx in 2023 are CPG, auto, luxury, technology, media and entertainment and digital endemics.