While internet advertising in many parts of the world may be facing challenges, India’s internet advertising sector stands out with remarkable growth. The country has positioned itself among the fastest-growing markets globally, showing an impressive 35.3 percent growth in 2022.
As per a recent PWC report, by 2027, India will be the fourth-largest TV advertising market globally, after the US, Japan and China.
The report highlights how the global internet advertising market growth fell from 30.8 percent in 2021 to 8.1 percent in 2022, leading to a total market value of USD 484 billion for the year. In contrast, India’s internet advertising market – among the fastest growing in the world. It grew from USD 3.3 billion in 2021 to USD 4.4 billion in 2022.
“Overall global revenue is expected to grow at a CAGR of 6.5% to USD 663 billion in 2027, while India’s internet advertising market is expected to grow at a CAGR of 12.3% and see the total revenue climb to USD 7.9 billion by 2027,” said an excerpt from the report.
With 782 million mobile internet subscribers in 2022, the country is a mobile-first market.
In emerging markets such as Indonesia, India and the Philippines, the main driver of internet advertising revenue is the increasing penetration and use of internet connectivity, particularly mobile and mobile sub-segments will continue to see strong growth.
PWC estimates predicts that although CTVs will continue to grow their share of internet advertising revenue, mobile’s share of global revenue will expand from 67.8 percent in 2022 to 73.4 percent in 2027.
“By 2027, mobile internet advertising will hold a 73 percent share of internet advertising revenue in the Indian market. In India’s mobile-first market, there were 30 million fixed broadband households in 2022 – a penetration rate of 10.8 percent – while there were 782 million mobile internet subscribers in 2022 – a penetration rate of 56percent. The addressable market in India is already considerable, and there is huge headroom for further growth,” said the report.
On the other hand, traditional advertising is also growing, the report says India’s OOH advertising market is also expanding rapidly. As per the report, growing at a CAGR of 9.9%, it will outperform every other OOH market in the world over the forecast period.