India advertising revenue growth forecast for 2022 is 15.8 percent, with that figure further accelerating to 16.8 percent in 2023, states a report from GroupM. This growth is led by pure-play digital advertising, which accounts for the largest share (48.8 percent) in 2022 and is expected to continue rising above pre-pandemic levels.
In its “This Year Next Year 2022” global end of year forecast, the agency states that retail media in India is forecast at $551 million in 2022 and is expected to nearly double by 2027. TV advertising, representing 36 percent of advertising market share, is expected to grow 10.8 percent this year and continue growing double digits, driven by strong growth in both traditional and connected TV.
The report highlights that India’s economic outlook appears to be stronger relative to other markets with the IMF projecting a real GDP growth of 6.8 percent in 2022, positioning it as one of the fastest growing economies in the world. Fiscal policy drivers, such as improved investments in digital infrastructure, a growing labour force and becoming an attractive exporter, partly explains its strong growth.
Like many of its global peers, the Indian economy is also facing uncertainty amid wider geopolitical risks, enduring inflation pressures from a weak currency, high unemployment and high interest rates.
The positive growth numbers for India is in contrast to the a nominal projection (or non-inflation adjusted) global advertising revenue growth in 2022 of 6.5 per cent, a significant deceleration from the 24.4 per cent growth observed last year and a downgrade from our June forecast of 8.4 per cent growth. The difference between our current estimates and the June forecast can primarily be explained by changed expectations for China, which has gone from 3.3 per cent growth to 0.6 per cent decline, and for the U.S., where we now predict 7.1 per cent growth (excluding political advertising) versus 10.1 per cent in June.
Globally, Retail media, one of the fastest growing segments of the advertising industry, is now estimated to reach $110.7 billion dollars in 2022, an upgrade from our September forecast of $101 billion.
Meanwhile, television continues its recovery to pre-pandemic levels, albeit more slowly in 2022. Growth in global OOH this year will amount to 2.2 percent globally (excluding U.S. political spending), or 18.1 per cent on an excluding-China basis.
Audio is projected to grow 3.8 per cent globally in 2022 (excluding U.S. political advertising) and decelerate to 1.3 percent growth in 2023.
After a brief respite in 2021, traditional print continues its decline of 7.4 percent in 2022.