The dentsu-e4m Digital Advertising Report 2024 was jointly unveiled today by dentsu and the exchange4media Group in Mumbai in the presence of industry leaders. The eighth edition of the report explores the theme - ‘A Small Step for Humanity, a Giant Leap for Marketing’. The report captures the evolving trends and media spends in the Indian advertising industry.
Thedentsu-e4m Digital Advertising Report 2024was unveiled by Harsha Razdan, CEO - South Asia, dentsu; Narayan Devanathan, Group Chief Strategic Advisor, dentsu India; Amit Wadhwa, Chief Executive Officer, Dentsu Creative India; Dr Annurag Batra, Chairman and Editor-in-Chief, BW Businessworld and Founder, exchange4media, Nawal Ahuja, Co-Founder, exchange4media; Anita Kotwani, CEO Media South Asia- dentsu India; Anubhav Sonthalia, CEO, Merkle India; Santosh Gannavarapu, Chief Growth Officer, Merkle India; Abheek Biswas, AVP Consumer Insights, Dentsu Creative India and Naziya Alvi Rahman, Editor, e4m.
According to the report, the digital advertising industry in India is estimated to reach Rs 62,045 crore, growing at a CAGR of 23.49% by 2025.
“The Indian advertising industry grew 8.6% over 2022 and presently holds a market size of Rs 93,166 crore. By the end of 2025, it is expected to further grow at a compounded rate of 9.86% to reach Rs 1,12,453 crore. The digital advertising industry witnessed an impressive growth of 36.6% over 2022 with a market size of Rs 40,685 crore and is estimated to reach Rs 62,045 crore, growing at a compounded rate of 23.49% by 2025”, the report stated.
In the Indian advertising market, FMCG leads with a 34% share (Rs 31,428 crore), followed by e-commerce (14%), consumer durables (6%), and automotive sectors (6%). Tourism, Government and real estate saw significant growth too in terms of ad spends over the previous year.
2024 predictions
The growth of the Indian advertising sector has been propelled by significant advancements in digital infrastructure, connectivity, and user applications. The Indian advertising industry grew by 8.6% in 2023 and is expected to grow by 9% to reach Rs 1,01,591 crore by the end of 2024. The upward growth trajectory has been attributed to key events this year like the Assembly and Lok Sabha elections, IPL, other cricketing and sports events, and the festive season in India.
The report states that in 2024, ad spends is likely to further grow in categories like automotives, FMCG, government and social organizations, and travel and tourism.
Continuing with its rapid expansion, digital media is expected to maintain its impressive growth trajectory, projecting a 25% increase to attain a 50% contribution to the Indian advertising market by 2024. Additionally, digital media is projected to grow at a compounded rate of 23.49% by 2025, reaching a spending share of 55%.
With digital media playing an increasingly significant role in the growth of the Indian advertising industry, television ad spends is projected to decrease from the current 32% to 28% by the end of 2024. Furthermore, a negative compounded growth of 2.05% is expected, reaching a spending share of 25% by the end of 2025. Despite the declining share of TV, advertisers perceive the medium as a secure platform for brands, possessing considerable influence and effectiveness in advertising with a capability to enhance the performance of other media channels, the report says.
Digital Media Spends
The Indian digital advertising industry concluded the year 2023 with a market size of Rs 40,685 crore, marking a notable growth rate of 36.6% over 2022. Owing to global economic trends, digital media is expected be the predominant driving force for the Indian advertising industry with a growth rate of 25% to reach Rs 50,857 crore by the end of 2024. Additionally, it is expected to have grown at a compounded rate of 23.49%, reaching a market size of Rs 62,045 crore by the end of 2025.
The report further stated that spends on digital media has surpassed that of television, comprising 44% of all advertising spends, followed by television at 32%, and print media at 20%. FMCG leads with a 34% share (Rs 31,428 crore), followed by e-commerce (14%), consumer durables (6%), and automotive sectors (6%).
“Digital media has surpassed television, securing the largest advertising spends share of 44%, followed by television (32%) and print media (20%). By the end of 2024, digital media is anticipated to contribute half of the total advertising spends. Meanwhile, FMCG segment divides 94% of its media budgets equally between digital and television”, the report added.
Social media primary driver of digital media spends
Social media is the primary driver of digital media spends at 30%, followed by online video at 29% and paid search at 23%. Online video and social media experience the fastest growth among digital media formats. Programmatic buying of digital media has gained prominence, contributing 42% (Rs 17,088 crore) to the digital media industry by the end of 2023, growing at a rate of 37% over the previous year.
“Social media dominates digital media spends, contributing with a 30% share (Rs. 11,962 cr), closely followed by online video with 29% and paid search with 23%. The telecom sector allocates the highest proportion of its media budget towards digital (64%). Within digital media, telecom evenly distributes around 80% of their digital budget across online video, social media and paid search. E-commerce segment dedicates 61% of the overall media budget to digital media with 52% of that allocated to paid search”, the report said.
Harsha Razdan, CEO South Asia, dentsu, said, "India's digital revolution is more than a surge of numbers; it's a wave of change that is sweeping across our lives, our industries, and our society. Artificial intelligence is the driving force behind this change, enabling our e-commerce market to reach $200 billion by 2026. But as we embrace this AI-powered era, we must also redefine our vision of success. It's not enough to aim for financial growth; we must also strive for social good. We must be human in the face of technology—empathetic, creative, and courageous—shaping the future of Indian advertising with transparency, accountability, and ethics. The dentsu e4m Digital report 2024 is not just a snapshot; it's a call to action to join us in creating a future that is ours to shape".
Narayan Devanathan, Group Chief Strategic Advisor, dentsu India, said, "The dentsu e4m Digital report is a testament to our commitment to providing our clients with the best-in-class solutions and insights that help them navigate the dynamic and complex media landscape. We believe that digital media is not just a medium, but a mindset that drives innovation and creativity across all platforms and formats. The report showcases how digital media has become the dominant force in the industry, surpassing television and influencing other media as well. It also reveals the potential of emerging sectors, trends, and technologies that will shape the future of advertising and consumer engagement. We are confident that this report will serve as a valuable resource for advertisers, media owners, and industry stakeholders, as well as inspire them to embrace the opportunities and challenges that lie ahead".
Click here to download the report.
