With a focus on sporting events, AI-powered programmatic ads, connected TV, experiential branding, and audio advertising, brands are eyeing potential growth in reach and revenue in the second half of the year. As the festive season begins, India is expected to see a 6.8% rise in total AdEx for 2024.
After a quieter first half for brands and the advertising industry, Harsha Razdan, CEO, South Asia, dentsu, spoke with Storyboard18 about AdEx growth, premium brands increasing ad spends, and the comeback of audio advertising this year.
Edited Excerpts:
With festive season setting, how much growth in AdEx is expected during this year as compared to last year?
India’s advertising landscape is poised for modest growth. While we are looking at a 6.8 percent rise in total AdEx for 2024 based on our July data, the real momentum is expected in the final quarter—the festive season. Historically, this period has outperformed the rest of the year, and we anticipate similar results this time around. Despite a quieter first half, the groundwork has been laid with festivities like Onam and Ganesh Chaturthi. Digital advertising is projected to grow by 21 percent for the year, reflecting significant investment in online platforms. Additionally, we are seeing increased spending in reality shows, sports content across TV and OTT, and large-format Print ads. The second half of 2024 is shaping up to be a key opportunity for brands to connect with their audiences.
With multiple sectors expecting a better H2 this year. Which segments will contribute heavily to the AdEx?
Key sectors such as E-commerce, Auto, BFSI, FMCG, and Retail are set to dominate both Digital and Traditional media. The scale of offers and promotions in retail media, e-commerce, and D2C platforms will be significant. Additionally, product launches will drive consumer trials, contributing to a boost in overall spending.
With brands focusing heavily on Digital as a medium, which mediums will see an uptick in advertising revenues?
Digital and OOH are the frontrunners in driving ad spend growth this season. Television and Print will see an uplift due to reality shows and festive offers. As brands double down on impact buys, engaging content will be key to capturing audience attention across various media. It’s a game of reach and relevance, and those who strategically leverage these mediums will stand out.
Looking at the media spends, which sector is likely to spend heavily on advertisements?
FMCG brands continue to dominate the advertising space, followed closely by Ecommerce players and quick commerce brands, capitalizing on impulse buying. In addition, two-wheeler brands are expected to make a comeback, particularly with EVs gaining momentum during this festive period. We are witnessing brands sharpen their focus on building deeper connections with consumers, making the most of this opportune season.
With the wave of premiumization in India, are we also seeing a major growth in Ad spends by premium and luxury brands?
Indeed, premium brands are ramping up their ad spends, with a noticeable 8-10 percent increase. However, their spending is not confined to festive periods. Luxury buyers tend to purchase as and when they please, though curated offers and exclusive events during festivals often provide the necessary nudge. While digital remains their preferred playground, premium brands are also targeting sports enthusiasts, particularly during high-profile events like the IPL and Olympics, to engage the next generation of luxury consumers.
How do you sum up the growth of CTV in India along with the trends that are shaping the future of advertising industry?
The future of advertising is evolving to be smarter, faster, more data-driven, and deeply purpose-driven. AI-powered programmatic advertising is taking center stage, with brands becoming increasingly strategic, optimising their ad spend and improving targeting efficiency, especially in the digital space. Connected TV (CTV) is merging the precision of digital with the reach of traditional TV, delivering more personalised and impactful ad experiences.
At the same time, experiential and content-driven branding is reshaping how brands connect with audiences—it is no longer just about selling products but about creating memorable experiences. Audio advertising is also making a strong comeback, with platforms like Spotify giving premium brands access to niche, affluent audiences. Additionally, sustainability and purpose-driven campaigns are becoming essential, as consumers expect brands to align with values, especially around social causes.
Looking ahead, advertising will rest on three essential pillars: creativity, the power to inspire and connect with people, and the ability to drive meaningful outcomes that serve not only customers but society and businesses alike. It is not just about transactions anymore—it is about transforming ideas into innovations that leave a lasting impact. The ability to ‘Innovate to Impact’ will be what sets brands apart, ensuring they resonate in meaningful ways and drive progress in the market and beyond. This reflects the growing need for advertising to push boundaries—whether through smart technology, bold creativity, or purpose-driven initiatives that shape the world we want to build.