Indian advertising market to grow 11.8% in 2024, led by digital media

The Indian advertising market is forecasted to grow by 11.8% in 2024, reaching ₹1,22,155 crore, primarily fueled by digital media. Traditional media ad revenue is anticipated to increase by 8.4% to ₹64,398 crore, while digital media is expected to surge nearly 16%, reaching ₹57,757 crore. India’s traditional media market share is double that of global and APAC averages. However, digital’s share of total ad spending could rise to 50% by 2026.

The Indian advertising market is anticipated to expand by 11.8%, reaching ₹1,22,155 crore in 2024, driven mainly by digital media, with notable growth in traditional media. According to IPG Mediabrands’ Magna Global Advertising Forecast 2024, traditional media ad revenue, encompassing TV, print, radio, and outdoor, is expected to rise by 8.4% to ₹64,398 crore. Digital media, fueled by the government’s push for digital infrastructure and an expanding internet base, is set to grow almost 16%, reaching ₹57,757 crore.

Despite digital media’s faster growth, traditional media may still account for 53% of all ad spend, compared to digital media’s 47%. This traditional media market share in India is significantly higher than the global (29%) and APAC (24%) averages. However, the report predicts that digital’s share of total ad spending could hit 50% by 2026. As the fastest-growing ad market globally, India is expected to rank 11th in 2024 and move into the top 10 by 2025.

Magna estimates the Indian ad market to grow at a CAGR of 10%, reaching ₹1,70,000 crore by 2028. Venkatesh S, SVP, director, Intelligence Practice, Magna India, expressed confidence in the market’s robust growth despite challenges. He noted that strong performance in listed companies, the FMCG sector’s double-digit growth in Q1 2024, and an expanding auto sector are positive indicators. E-commerce is also expected to continue its efforts to penetrate lower-tier markets.

Venkatesh highlighted that a normal monsoon and increased government spending would boost rural demand, leading to higher corporate ad spending. While digital media is rapidly growing, traditional media also shows strong potential across all linear formats. The report projects TV ad revenues to grow by 8.7% in 2024, reaching an estimated ₹39,333 crore, driven by elections and cricket. TV viewership has grown to 778 million, with increased viewing time to 230 minutes. Print media, with a circulation of 402 million copies in 2022-23, is expected to grow by 6.1% to ₹18,771 crore, supported by national and local elections. Digital print revenue is projected to be ₹1,300 crore. Social and search could capture 34% and 33% of the digital ad market, respectively, followed by display and video at 19% and 14%. Social media and video are the fastest-growing formats.