India’s ad market grows in leaps and bounds

Advertising expenditure in India grew 21% last year, almost three times as fast as the global average, and is forecast to increase a further 16% this year. 

That’s according to the latest Pitch Madison Advertising Report, which highlights how the market is changing as digital spending continues to grow, now exceeding TV spending.

Key stats

• Traditional media ad spending dominates overall with a 62% share (compared to a global average of 32%).
• Digital Adex is now the largest single medium with a share of 38% (compared to a global average of 68%), followed by TV with a share of 34%.
• Digital is the third fastest growing channel (35%) behind cinema (317% as it recovers from Covid-era lockdowns) and OOH (68%). 
• Digital Video dominates Digital Adex: it has grown 40% and increased its share 29% to 30%.
• Social grew the most at 45% and increased its share from 20% to 22%. 
• E-commerce is now the second biggest category: its share has grown from 4.9% in 2019 to 14% in 2022.

Why it matters

While digital spending is increasing fast, its share remains some way below the global average, indicating there is plenty of headroom for further growth. That is being accelerated by government policy to develop the country’s digital infrastructure and growing data penetration, creating a mass market in areas like OTT and e-commerce. Pitch Madison is forecasting 25% growth in digital spending in 2023.

Key quote

“Media habits of Indians are rapidly changing and this is reflected in our Adex numbers and commentary. Advertisers who ignore these changes will do so at their own peril” – Sam Balsara, Chairman, Madison World. 

Sourced from Pitch Madison