The Indian advertising agency is finally out of the pandemic induced lows. As per a dentsu report, the advertising industry in the country clocked 8.6 percent growth in 2023, reaching a market size of Rs 93,166 crore. Projections indicate a further 9 percent growth, targeting Rs 1,01,591 crore by the end of 2024.
The momentum is not expected to pause with the current calendar year. Looking ahead to 2025, the industry is all set for further expansions, with an anticipated compounded growth rate of 9.86 percent, aiming for Rs 1,12,453 crore.
“As we enter the third-year post-pandemic, there is a noticeable resurgence in growth rates, returning to the pre-pandemic level. The previous two years have played a pivotal role in shaping the future trajectory, surpassing the pre-pandemic estimates,” said the report.
The growth in 2023 was propelled by categories such as tourism, government and social organisations, real estate, and media and entertainment.
“In 2023, the Indian advertising sector emerged as a beacon of optimism, boasting the fastest growth rate among large economies. The acceleration in the Indian market was fuelled by various events such as the Indian Premier League (IPL), ICC Cricket World Cup, Women’s World Cup, Asia Cup, and other cricketing events, in addition to the Assembly elections,” the report added.
In the current year Lok Sabha elections, the Indian Premier League, other cricketing and sporting events, and the ever-thriving festive season are expected to boost the ad industry.
As per the report, in 2024, growth in ad spends is expected in categories like automotive, FMCG, Government and social organisations, and travel and tourism.
Overall, digital medium is expected to take the lead when it comes to boosting the AdEx. Widespread adoption of smartphones and devices, alongside affordable internet connectivity contribute significantly to this growth.