AdEx in India continues to surprise us: Sam Balsara

At the unveiling of the Pitch Madison Advertising Report 2025, Sam Balsara, Chairman of Madison World spoke about the market dynamics, consumer behaviours and economic factors that have led to the tepid growth of AdEx in India.

“Indian AdEx continues to surprise us. It has grown just by 9% at the total AdEx level, but if you take traditional AdEx alone, the growth has been even more dismal at 6%. Traditional AdEx’s growth has slowed from 14% in 2022 to 7% in 2023 and 6% in 2024. Digital AdEx has slowed down from 35% in 2022 to 15% in 2023 and 14% in 2024,” he said.

In absolute terms, the Indian advertising market crossed the milestone of Rs 1 lakh crore and is now valued at Rs 1,08,000 crore in 2024, adding additional revenue of Rs 8,942 crore.

Further, he listed the key factors that have contributed to the subdued growth of AdEx:

• Food inflation continued to play spoil sport for all sectors, but perhaps more for FMCG.
• Many companies, especially startups and SMEs, faced tighter cash flows, leading to a cut in marketing and advertising spends.
• Anticipation of weak festival demand during Diwali, made advertisers go slow on increased spending during the festival.
• “The slow growth of advertising, with only a 9% increase in 2024, is strongly reflected in the declining number of advertisers utilising mass media platforms. A significant drop has been observed in terms of TV advertisers, with the numbers shrinking from 11,100 in 2023 to 8,650 in 2024. Additionally, there is a bit of a reduction in the number of advertisers in Print and Radio too, but the decrease is not as significant,” he added.

“The slow growth of advertising, with only a 9% increase in 2024, is strongly reflected in the declining number of advertisers utilising mass media platforms. A significant drop has been observed in terms of TV advertisers, with the numbers shrinking from 11,100 in 2023 to 8,650 in 2024. Additionally, there is a bit of a reduction in the number of advertisers in Print and Radio too, but the decrease is not as significant,” he added.

The declining number of advertisers on TV is an indication that many erstwhile TV advertisers are now changing to Digital, Influencer Advertising and eCommerce advertising.

He explained, “A deeper analysis of AdEx by each quarter in 2024 highlights contrasting trends between the first and second half of the year. AdEx growth in the first half was driven by factors like Parliamentary Elections and Live Cricket.”

Whilst, the second half which typically contributes more to Indian AdEx saw a less encouraging performance during the festive season. You will see from the quarter-wise growth rates that whilst the growth in Q1 and Q2 is substantial, 15% and 22%, the growth in Q3 and Q4 falls to as low as 1% and 2%.

Global advertising spend should now cross the 1-trillion dollar mark. WARC estimates the spend to be 1,077 billion dollars. For the first time in quite a few years, Indian AdEx has grown lower than the global average. A medium-wise comparison of percentage share and growth rates across global AdEx and Indian AdEx shows some expected deviations.

“It is significant to note that the US, despite its humungous size (market share of 31.2%) grew at a growth rate of 11% in 2024. China on the other hand slowed down, registering a growth of just 3%, but in terms of market share comes at a distant second at 16.8%. Whilst we may lament the low growth in India of just 9%, India has registered the second highest growth rate of 9%, followed by France at 8% and then the UK at 7%,” he added.

TV grew by a mere 5%. Print, the second largest traditional medium, has once again shown resilience by registering a growth of 5% and crossing the Rs 20,000-crore mark for the first time post-COVID. OOH media contributes as much as 12% to AdEx. Radio sees a moderate growth rate of 8% and Cinema experiences a low growth of 10% on a very low base on the back of very few major releases. Digital continues to dominate and has established itself as the number one medium for the third consecutive year in a row.

He explained, “A category-wise analysis of different categories in the Indian market within only TV, print and radio shows a total spend of Rs 57,187 crore across these three media. The FMCG sector continues to dominate with a marginal increase. Following FMCG by a wide distance is the e-commerce sector contributing 11% but registering no growth. The automotive sector during the year showed a healthy growth of 7%.”

AdEx's low growth rate of a mere 9% comes despite a significant boost received by campaigns run by political parties during parliamentary elections. The political budgets were channelised into both traditional and digital media.

“We estimate a media investment of Rs 3,000 to Rs 3,500 crore, which also includes investments by government institutions and social advertisements as well,” Balsara explained.

Top Advertisers in 2024

In the competitive world of advertising, established players often dominate and this can be seen with nine players being common in our top 10 list compared to last year. Breaking into the elite circle of top 50 advertisers can seem like a daunting task but we do have 14 new advertisers this year in our elite list.

Five of the top 10 advertisers are predictably FMCG and TV remains the preferred medium for most FMCGmbrands allocating nearly 70% of their TV spend to television. HUL, Reckitt and Reliance Industries continue to dominate India's advertising landscape maintaining their positions as the top three advertisers. The top 50 advertisers contribute 34% to total AdEx up from 30% last year while the top 10 account for 16% compared to 14% previously.

Television and digital remain the preferred mediums making up 87% of the total spend of the top 50 advertisers. This share increases to 93% when considering only the top 10 advertisers.

Digital AdEx in 2024

Digital growth has slowed down from 30% almost year on year over the last 10 years barring the COVID year to 14-15% growth in the last two years. Digital AdEx now stands at 45,292 crores a growth of 14% but has firmly established itself as the number one medium for the third consecutive year.

What caused this slowdown in digital? This measured approach indicates a maturing market where brands are focusing more on strategic digital investments rather than indiscriminate experimentation. Additionally, the investment levels within the startup ecosystem have also stabilized. From an India perspective, digital is the leading medium no doubt. However, it's important to note that in the global AdEx digital accounts for as much as 75%.

Video advertising, the largest contributor, contributing 27% to total Digital Adex, experienced a low growth of 10%. Social media advertising, the 2nd largest contributor to Digital Adex, contributing 23% showed maximum growth of 21%. This surge is attributed to the burgeoning popularity of short-form video platforms like Reels and Shorts, coupled with the increasing prominence of Influencer Marketing.

eCommerce and Search contribute equally, 18% each to total Digital Adex and have grown by 17% and 15% respectively. It is significant to note that Ecommerce, which was previously growing at 35% and 25% over the 2 prior years, has now experienced moderate growth of 17%.

TV & CTV Advertising in 2024

“In 2024, CTV advertising in India has grown significantly by almost 35%, reaching an estimated market size of close to Rs. 1,500 crore. This reflects the increasing adoption of Connected TV platforms and their relevance as a medium for advertisers,” Balsara remarked.

The year 2024 was one of the toughest years for almost all TV Broadcasters in terms of ad revenue, and many industry experts point to a flat TV revenue. We began the year with a forecast of 8% growth but ended the year with growth of a mere 5% taking TV Adex to a revenue of Rs. 34,450 crores. TV Adex further lost 1% point in terms of share and is now at 32%. The growth rate of 5%, is the slowest in 7 years, barring the COVID year of 2020.

He added, “When looked at in terms of ad revenue by H1 and H2, H1 registered a handsome growth of 16% on account of ICC T20 World Cup, spends by Government institutions and political parties during general elections, with these 3 events contributing to Rs. 3000-3200 crores of TV Adex. The absence of ICC 50 Overs World Cup in Q4 of 2024, compared to Q4 of 2023 significantly dented Adex performance in Q4 2024.”

FMCG remains the dominant category, contributing 46% of total TV spending in 2024. It is significant that whilst FMCG growth is relatively modest, FMCG manufacturers are maintaining their spending levels. The Real Estate category has shown 12% growth, driven by growing Real Estate demand. With 8% growth, the Auto sector signals a recovery, mostly influenced by new vehicle launches and a bit of focus on electric vehicles.

Hindi GECs and Sports continue to dominate TV Adex with a combined contribution of approximately 50% of total TV Adex. Interestingly, Ad volume on GEC Mainline & Second line and Sports put together contribute to only 8% of overall TV volume, contributing around 50% of overall Adex revenue.

Regional genres have demonstrated higher growth rates of 9% to 12% indicating a growing shift in advertisers' interest towards regional markets and they contribute close to 30% to total TV ad revenue. Indian TV reality and impact-driven shows have seen strong growth in 2024 compared to 2023. This surge has positively impacted both Hindi and regional GECs, contributing significantly to their ad revenues.

While Music & Kids genres had revenue in a similar range to last year, Infotainment, English Movies and English Niche have virtually disappeared.

Print AdEx in 2024

The Print sector recorded an Adex of Rs. 20,272 crore in 2024 and now has finally managed to cross the preCovid level, after a long gap of 5 years. Print Adex in 2024 grew by 5%. For the second consecutive year, Print has maintained its share of 19% in overall Adex.

“The Print sector recorded an Adex of Rs. 20,272 crore in 2024 and now has finally managed to cross the preCovid level, after a long gap of 5 years. Print Adex in 2024 grew by 5%. For the second consecutive year, Print has maintained its share of 19% in overall Adex. The fact that Print Adex grew last year by a rate of 5% is indeed worthy, suggesting that Advertisers are re-discovering value in the medium, particularly its strength in delivering localised, high-trust advertising experiences,” Balsara remarked.

He adds, “Quarter two volume declined by 6% indicating that higher pricing and premium ad positions during the election season prevailed. India's print advertising share is 19%, significantly higher than the global average of 3%. Germany is the only other country with a comparable print advertising share of 19%.”

The primary growth drivers are Auto, FMCG, Education and Real Estate, which together contribute significantly to overall growth. The Auto sector grew by 7% in 2024, maintaining a stable 14% share of Print. The FMCG industry grew by 6%, with a steady share of 12% in the last two years.

Further, he shared, “The flat to degrowth of volume across most languages, stands in stark contrast to the 5% revenue growth in 2024, indicating higher ad rates and premium pricing, especially in English and Marathi.”

Hindi and English dailies contribute to 64% of the total print volume. Growth in Marathi volumes of 5% and stability in Kannada and Tamil reflect a robust regional demand. On the other hand, there were declines in Telugu (-10%) and Malayalam (-8%), signalling weak market conditions in those regions.

OOH AdEx in 2024

In 2024, the OOH Advertising Industry in India experienced the highest growth within traditional mediums. OOH Advertising revenue grew from Rs. 4,140 crores in 2023 to Rs. 4,650 crores in 2024, marking a robust 12% year-on-year increase.

At the top end, in metro and mini-metro cities, Digital OOH is growing at a fast pace. At the bottom end, newer airports are coming up, which allows airport media to come up at a fast pace. Not to be left behind is also regular OOH, which is coming up in smaller towns at a rapid pace. It is this triple barrel growth in Digital OOH, Airports and Regular Outdoor, that has resulted in a growth of 13% in 2023 and 12% in 2024. A standout quarter was quarter 2 with 16% growth driven by significant OOH spending during the general election.

Revenue rose from 1,003 crores to 1,162 crores in 24 reflecting political parties' heavy reliance on OOH media for visibility and outreach.

Organised Retail, Consumer Services, FMCG and BFSI are the other significant contributors. FMCG grew by 10%, contributing Rs. 506 crores in 2024 compared to Rs. 460 crores in 2023, and maintained an 11% share. The Election season brought joy to the OOH Industry, with it growing to Rs. 205 crores, a growth of 86% over the previous year’s Rs. 110 crores.

Radio AdEx in 2024

The radio advertising industry continues to be resilient and an adaptable medium despite increasing competition from digital platforms. Radio grew by 8% in 2024 reaching 2,462 crores compared to 2,272 Crores in 2023. For the last five years, the radio industry has more or less remained constant at a 2% share of addicts though having dropped from 2,260 crores to 1,270 crores during COVID.

Historically, quarter 4 has always been a high revenue quarter and so it has been in 2024. Real Estate & Home Improvement maintained its position as the largest contributor, accounting for 15% of total revenue in 2024.

FMCG remained stable at 12% of the total contribution. Auto saw a strong growth of 11%.

Cinema AdEx in 2024

In 2024 Indian Cinema industry slowly and steadily regained its footing, having grown from a high of Rs. 465 crores in 2015, to a high of Rs. 1,045 crores in 2019, before collapsing to Rs. 136 crores in the second year of Covid. Since 2021, it has slowly and steadily risen from Rs. 136 Crores to Rs. 851 Crores in 2024. Cinema advertising continues to contribute less than 1% to the total Indian AdEx.

Growth Forecast for 2025

“Our growth forecast for 2025 remains bullish compared to 2024, with an expected increase of 11%. If our estimates hold, the Indian advertising expenditure is projected to reach Rs. 1.2 lakh crore, adding an additional revenue of Rs 12,000 Crores,” Balsara shared.

He added, “Digital will grow marginally better than the previous two years at a rate of 17% and traditional media at a slower rate of 7%.”

• TV AdEx will increase by Rs 2,000 Crore, growing at 6% in 2025, bringing the total to Rs 36,520 crore.
• Print Adex to continue its upward trajectory, with an overall growth of 7%, reaching close to Rs 22,000 crore.
• Radio AdEx will grow by another 9% in 2025, taking the total to about Rs. 2,700 crore.
• OOH AdEx will grow by 12% in 2025, similar to the growth seen in 2024, reaching about Rs 5,200 crore.
• Cinema AdEx will witness a slower growth rate of around 9% in 2025, reaching about Rs 950 crore

Advice for marketers

Balsara concluded his remarks with advice for markers:

• Don’t lose focus on branding as you increasingly pay attention to performance to push sales because branding gives you lasting value.
• Urban growth is expected to bounce back. There is a huge consumption opportunity that can be tapped into with targeted marketing plans.
• Growth in the rural economy is here to stay. Prioritise markets at district levels and target the prosperous districts to take advantage of them

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