India’s ad market to grow fastest at 14.7% in 2023: Report

India's advertising market is forecast to grow the fastest among key markets at 14.7% in 2023, a report by Tokyo-based ad and marketing agency Dentsu says. The continued double-digit growth forecast for 2023 for India will see its ad market grow to $12.6 billion. 

In 2022, India’s ad market is estimated to have grown by 18.1%, with a 39.4% growth in the first half of the year. For India, digital remains a crucial driver of the ad market, with 32% growth and 40% share of spend expected in 2023, when it is forecast to overtake television spending for the first time, the report says. 

The data shows e-commerce is driving investment in search, social and video ad markets. “An upward trajectory is also forecast for TV, 7.2% bolstered by the acceleration in online retail as brands use TV to grow brand awareness and drive performance metrics. Continued growth in VOD and connected TV is expected as the number of targeting options broadens its appeal," says the report.

For the years 2024 and 2025, the Indian ad market is expected to grow steadily by 15.5% and 14.9%, respectively. 

Overall, the global ad market growth is seen at 8% in 2022, with the overall market reaching $713.6 billion, up $53 billion. The twice-yearly report, which combines data from close to 60 markets worldwide, anticipates $740.9 billion will be spent globally next year.

Globally, the year 2022 began strongly, but a slowdown in growth was seen as the year progressed with the ad market impacted by economic uncertainty. "Over a third of the 58 markets analysed revised down 2022 growth, however despite this all regions maintain positive growth with the Americas at 13.2%, EMEA 4.3% and APAC 3.9%.” 

Among all ad channels, digital is expected to reach $422.8 billion by the end of 2023, accounting for 57.1% of all advertising spending. It is expected to increase further to 58.2% share in 2024 and 59.5% in 2025. The report, however, observes the pace of digital growth is easing. “Digital spend increased by 13.7% in 2022 but is forecast to slow in 2023 to 7.2% revised down from the previous forecast of 9.3% in the July 2022 report.”

Growth is expected in almost all other channels too: Television ad spending is expected to grow by 0.2%, reaching $182.7 billion. Following the downward trend worldwide, ad spending in newspapers and magazines will continue to decline by -3.6%, but there is growth within online news and magazine spending. This is because publishers are starting to pivot from paper traditional paper formats.

The advertising market in 2023 is expected to retain a positive trajectory in all regions – APAC 4.0%, EMEA 3.8%, Americas 3.7% and in almost all markets (51 of 58), however more moderate growth is forecast at 3.8% compared to 2022. In 2024, Dentsu expects the global ad market to pick up to 4.8% and $776.9 billion, boosted by events like the Paris 2024 Olympic and Paralympic Games.