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AdEx to grow at 12% to reach Rs 1.11 lakh crore in 2024: Madison

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Growth in advertising expenditure (AdEx) is expected to rebound in 2024, after falling to a six-year low, excluding the COVID-19 year, in 2023, according to the Pitch Madison Advertising Report (PMAR) 2024.

In 2024, AdEx is projected to grow at 12% to touch Rs 1.11 lakh crore driven by growth in ad spending on digital. It grew at 10% to touch Rs 99,038 in 2023 against the 16% projected ad growth.

“Whilst the outlook for AdEx in India is extremely strong in the mid-term and long-term, in the short term we are witnessing a slowdown in momentum because of India Inc’s focus on quarterly profits,” said Madison World Chairman Sam Balsara.

“This does not augur well for sustained growth in profits for Advertisers who should be focussing on volume growth.”

The report stated that digital advertising will grow by 17% to reach Rs 46,465 crore in 2024 driven by video, social, display, e-commerce, and search. Digital’s share of total ad spending is expected to rise from 40% to 42%.

The Indian Premier League (IPL) has significantly boosted advertising on Connected TV, increasing its ad market size from Rs 450 crore to around Rs 1000 crore in 2023.Even as digital is the single largest advertising medium, traditional mediums comprising TV, print, radio, outdoor, and cinema are expected to contribute 58% or Rs 64,545 crore of the total ad spends in 2024.However, the share of traditional in total advertising has dropped from 60% in 2023.

According to PMAR, TV Adex is anticipated to grow by 8% to reach Rs 35,575 crore. Its share of total AdEx is expected to fall from 33% in 2023 to 32% in 2024. TV AdEx grew 7% to touch Rs 32,886 crore in 2023 on the back of sports.

The print AdEx is expected to increase by 7% to reach Rs 20,613 crore, surpassing the pre-Covid figures in 2019. Hindi, English, and Marathi publications dominate the print advertising space consumed in India.

OOH AdEx, which experienced a 13% growth in 2023, is projected to reach Rs 4761 crore in 2024, with a 15% growth due to elections. Radio AdEx growth has surpassed pre-Covid levels, reaching Rs. 2,272 crore, and is expected to grow at 12% in 2024 to touch Rs 2549 crore.

Cinema AdEx is still to reach the pre-COVID level despite a 36% growth in AdEx to Rs 776 crore. The medium is expected to grow by 35% to Rs 1047 crore in 2024.

As per the report, FMCG, e-commerce, education, and automobile sectors are the top advertising categories in traditional media.

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