India Advertising Market Report and Forecast 2024-2032

India Advertising Market Size

The advertising market size in India was valued at approximately INR 916.32 billion in 2023. The market is projected to grow at a CAGR of 11.0% during the forecast period of 2024-2032 to reach around INR 2344.01 billion by 2032.

India Advertising Market Outlook

• Through the integration of augmented reality (AR) and virtual reality (VR), advertisers are exploring immersive experiences to captivate audiences.

• Increasing penetration of the internet and digital platforms is aiding the growth of the market.

• Dynamic ad content that can be updated in real-time based on changing variables is becoming a strategy to capture audience attention and relevance.

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India Advertising Market Growth

Advertising is a form of marketing communication that aims to persuade, inform, or influence individuals or groups to take specific actions. Advertising can take place through a variety of communication channels, including traditional media such as television, radio, print, and outdoor advertising, as well as digital platforms like social media, email, and search engines.

The growth of India advertising market depends heavily on the penetration of different media outlets in the region. India, with its developing economy, is providing advertisers with numerous growth opportunities, along with expanding media channels. Economic growth has also led to an increase in consumer spending power, producing a consumer-conscious and affluent brand.

India Advertising Industry Trends

Increasing trend of programmatic advertising, rising focus on privacy and consent, and the growing popularity of interactive ads are the major trends supporting the India advertising market value

Rise of Programmatic Advertising

Programmatic advertising has emerged as a key driver in the India advertising market landscape. Advertisers can leverage data analytics and AI to reach specific demographics, enhancing the impact of their campaigns.

The rising penetration of the internet and smartphones

The rising penetration of smartphones and internet access in India is driving the digital advertising market in India.

Increasing focus on data privacy and consent

Advertisers are adapting to evolving privacy regulations and consumer expectations and focusing on transparent data practices and obtaining user consent for personalised advertising.

Growing popularity of interactive and shoppable ads

Interactive and shoppable ads are gaining popularity as they enhance user participation and create a more engaging experience.

Recent Developments

Jan 24th, 2024

Kai India launched an informative Ad Campaign using cutting-edge tools to inform consumers about the significance of safety in kitchen practices.

Sep 27th, 2023

YouTube unveils AI-powered tools in Ads Creative Studio to support marketers to make enhanced marketing customisations and engage diverse and specific demographics effectively.

Jun 27th, 2023

Seekho revolutionised marketing with an AI-Crafted campaign for ‘SuperDegree’, through which the next generation of Indian graduates are prepared for a future shaped by generative AI.

Jun 1st, 2022

Vi Unveils 'Vi Ads' – AI and ML-powered Ad-tech platform in collaboration with TorcAi for enhanced marketer engagement.

India Advertising Market Analysis

The explosive growth of internet connectivity and smartphone usage in India has significantly fuelled the market expansion. This digital revolution has opened new avenues for advertisers, enabling them to reach a more extensive and diverse audience than ever before. The widespread use of smartphones has brought even the most remote regions within the realm of digital advertising and hence, has increased India advertising demand.

Furthermore, the rise of digital media platforms has provided advertisers with rich, data-driven insights. These insights enable the development of highly targeted and personalised marketing strategies. This precise targeting is made possible by the extensive user data collected by these platforms, offering a deep understanding of consumer behaviours, preferences, and purchasing patterns.

Additionally, the digital landscape allows for a variety of engaging ad formats – from video ads to interactive banners. These can be optimised for different devices and platforms, enhancing user engagement. The flexibility and innovation in ad formats cater to the varying preferences of a diverse online audience, making digital ads more effective and appealing.

The introduction of AI-powered tools in YouTube's Ads Creative Studio is a significant India advertising market development. This innovation is particularly impactful considering India's diverse and rapidly evolving digital landscape. India's demographic diversity poses unique challenges for advertisers. The AI-driven tools in YouTube's platform allow for the creation of more nuanced and targeted advertising campaigns. Moreover, one of the key advantages of AI-powered tools is the ability to customise content at scale. This is crucial in a vast market like India, where advertisers often need to create multiple versions of an ad to cater to different languages, regions, and cultural contexts.

Industry Outlook

According to Dentsu, Digital media has overtaken television, claiming the largest share of advertising spends at 44%, with television following at 32% and print media at 20%. As per India advertising industry analysis, digital media is projected to account for half of the total advertising expenditures by 2024. The telecom sector allocates 64% of its media budgets to digital, closely followed by e-commerce and pharmaceuticals. The FMCG segment splits 94% of its media budgets equally between digital and television. Social media leads digital media spending with a 30% share (Rs. 11,962 cr), followed closely by online video at 29% and paid search at 23%. Within digital media, telecom allocates 80% of its budget to online video, social media, and paid search. The e-commerce segment dedicates 61% of its overall media budget to digital, with 52% of that going to paid search.

As per India advertising industry statistics, in 2023, digital media led the Indian advertising sector with Rs 40,685 crore, accounting for 44% of total ad spends. Television followed with Rs 29,836 crore (32%), while print media received Rs 18,652 crore, making up 20% of the total expenditure. Out-of-home (OOH) advertising was allocated Rs 1,878 crore, representing 2%, and radio received Rs 1,814 crore (2%). Cinema advertising had the smallest share with Rs 300 crore, constituting 0.3% of the total ad spend. Such high expenditures on advertisements have positively impacted the India advertising industry revenue.

As per Press Information Bureau, Government of India, in 2021, WhatsApp had the highest number of users in India at 53 crores, followed by YouTube with 44.8 crores, and Facebook with 41 crores. Instagram had 21 crores users, while Twitter had the smallest user base among the major platforms at 1.75 crores.

Factors Contributing to the Growth of the Advertising Market Share in India

• Rapid digitalisation and increasing internet penetration drive digital media reach.

• The e-commerce boom leads to higher online advertising investments.

• Rising smartphone usage drives mobile advertising growth.

• Increased consumption of online content attracts higher ad spends and drives India advertising demand growth.

Challenges Faced by Competitors in the Market

• High competition among numerous players reduces margins.

• Increasing costs of media buying and placements strain budgets.

• Frequent regulatory changes add complexity and costs and influence India advertising market dynamics and trends.

• Rising data privacy concerns affect targeted advertising strategies.

• Changing consumer preferences necessitate constant adaptation.

Key Growth Opportunities in the India Advertising Market

• Surge in video content consumption, particularly on OTT platforms, drives video ad spend.

• Innovations in AR and VR create immersive ad experiences.

• The rise of e-commerce platforms boosts online advertising opportunities.

• Increasing internet penetration and smartphone usage open new avenues for digital advertising.

• Rising popularity of influencers creates new India advertising market opportunities.

• Increasing social media usage offers robust platforms for targeted advertising.

Changing Consumer Preference and Intense Competition is Impacting the Market Growth

• Frequent changes in advertising regulations add compliance costs and complexities.

• Intense competition from both domestic and international players reduces margins.

• Changing consumer preferences and media consumption habits impacts India advertising demand forecast.

• Difficulty in accurately measuring ROI across different media channels.

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India Advertising Industry Segmentation

The EMR’s report titled “India Advertising Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Medium

• Television Advertising

• Radio Advertising

• Print Advertising

• Internet/Online Advertising

• Outdoor Advertising

• Mobile Advertising

Market Breakup by Region

• North India

• East and Central India

• West India

• South India

India Advertising Market Share

Online and mobile advertising are expected to gain popularity in the forecast period due to their ability to offer tailored messages

In India, TV advertising is highly prevalent, primarily due to the medium's extensive reach and broad appeal across diverse demographics across urban and rural areas. It has the unique advantage of reaching a vast audience, including those not connected to the internet. However, according to the analysis of advertising industry in India, the advertising landscape is changing swiftly with digital mediums, especially online and mobile advertising, owing to their ability to deliver tailored messages and interactive capabilities, and the growing internet-savvy population.

Shifting dynamics of traditional advertising platforms are expected to aid the demand of India advertising market in the forecast period

Outdoor advertising maintains relevance through physical visibility, yet it lacks the dynamic targeting and interactive features that digital platforms offer. While radio and print remain pertinent, they are ceding market share to digital media. Companies are increasingly focusing on digital advertising, leveraging social media, search engines, and programmatic advertising.

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Competitive Landscape

Some major Indian advertising companies are adopting digital advertising solutions, leveraging social media, search engines, and programmatic advertising amid rising smartphone ownership

Crayons Advertising Limited

A renowned full-service advertising agency offering innovative solutions across various media platforms, known for its creative and strategic approach in the Indian advertising landscape.

The DDB Mudra Group

A leading marketing and communications network in India, providing a range of services from digital and data-driven marketing to creative and brand strategy.

Creation Infoways Pvt. Ltd:

As per the India advertising market report, the company specialises in digital marketing services, offering expertise in web development, SEO, and online advertising, catering to businesses looking to enhance their online presence.

Avail Advertising India Pvt Ltd

A dynamic advertising firm known for its integrated marketing solutions, offering services from branding and design to digital marketing and event management.

Other key players in the market are Triverse Advertising Pvt. Ltd, Purnima Advertising Agency Pvt. Ltd, Web Cures Digital, Urja Communications Pvt. Ltd, SocialPulsar, and Dentsu India, among others.

Competitive Strategies by Key Players in the India Advertising Market

• WPP India: Focuses on digital transformation and data-driven marketing to enhance client engagement and ROI.

• Dentsu Aegis Network India: Invests in innovative technologies and integrated marketing solutions to offer comprehensive services, which affects the India advertising market revenue.

• GroupM India: Uses advanced analytics and programmatic advertising to optimise media spends and campaign effectiveness.

• Madison World: Emphasises strategic planning and creative excellence to deliver impactful advertising campaigns and drive growth of the India advertising industry.

• IPG Mediabrands India: Leverages global expertise and local insights to tailor marketing strategies for diverse client needs.

• Publicis Groupe India: Integrates digital and traditional media strategies to provide holistic marketing solutions.

• Ogilvy India: Focuses on brand storytelling and creative innovation to build strong brand identities.

• Leo Burnett India: Uses human-centered design and consumer insights to create emotionally resonant campaigns.

• Havas Media India: Implements data-driven and performance-focused advertising to maximise client ROI.

• Rediffusion Y&R: Prioritises creative excellence and strategic thinking to deliver high-impact advertising solutions.

India Advertising Market Regional Insight

West India is expected to account for a significant portion of the market share owing to the presence of entertainment and financial companies

The Western region of India, including prosperous states like Maharashtra and Gujarat, is a strong player in the advertising field. Big cities like Mumbai and Pune are not only busy metropolises but also important advertising hubs. This region excels in mixing classic advertising methods with modern techniques, showing its widespread internet use and diverse population. Other regions, especially North India and South India are increasingly adopting digital advertising, along with traditional mediums, owing to high brand competition and a broad consumer base, which is leading to the growth of advertising industry in India.

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India Advertising Market Report Snapshots

Indian Advertising Market Size

Indian Advertising Market Growth

Indian Advertising Market Trends

Indian Advertising Market Share

Indian Advertising Companies

Indian Advertising Market Regional Analysis