Digital to reach 45% media share in 2022
India 9th largest market in ad spends and 5th highest contributor to incremental ad spends
Mumbai, 15 February 2022 – GroupM India, today announced their advertising expenditure (Adex) forecasts for 2022. As per the GroupM futures report ‘This Year, Next Year’ (TYNY) 2022, the ad spends are estimated to reach 107,987crs in 2022. This represents the estimated growth of 22% for the calendar year 2022. India to be the fastest-growing market among the top 10 global markets and retains its ninth rank in 2022.
Commenting on the TYNY 2022 report, Prasanth Kumar, CEO, GroupM South Asia said, “The pandemic has pushed the envelope towards digital and has hence topped the pie, with advertisers keen to explore more of it. Ecommerce and Telco will drive the economy, we also expect FMCG and auto to slowly catch up and contribute towards this growth.”
Tushar Vyas, President – Growth and Transformation, GroupM South Asia added, “With the pivot to digital by consumers and companies alike, digital emerges as the largest medium in 2022 with an estimated share of 45%. Digital is estimated to grow by 33% in 2022. As digital capabilities enhance and connectivity becomes omnipresent, technology will further poise and change almost every sector of India’s economy.”
Parthasarathy Mandayam, Chief Strategy Officer, GroupM South Asia, said, “With consumers gravitating towards themes like sustainability and sensitivity, brands are adapting rapidly, and media has the power to lead this change. Flexible, specialist and distributed teams are the order of the day and this trend will be further enhanced with the arrival of 5G. The emphasis on performance marketing has further accelerated and is at the very core of marketing. Intelligent & responsible leverage of first-party data will be critical for brands & marketers in driving this.”
Atique Kazi, President – Data, Performance & Digital Products, GroupM India added, “Marketers will have to bring together innovation, intelligence and integration in their strategy to win on Digital. In 2022; we will also see addressable TV coming to India in some scalable form and connected tv surge with smart TV sales and new fibre/broadband connections will be on the rise. Focusing on eCommerce, performance marketing, outcome-based media and addressable data is winning formula in 2022.”
Sidharth Parashar, President – Investments & Pricing, GroupM India said, “While digital is set to take the larger pie, we are expecting a noteworthy revival for OOH & cinema too after a tough period. Advertising on e-commerce, the rise of influencers and short format videos along with OTT has witnessed growth in 2021, which would continue in 2022.”
Ashwin Padmanabhan, President – Partnerships & Trading, GroupM India added, “The rapid digital transformation of companies, brands and the way they connect with consumers is reflected in the global advertising spends as well as the way even traditional media is expanding with their digital extensions. India in 2022 will see a rapid manifestation of these Global trends and thus fundamentally altering the media industry.”
GroupM also shared some of the top trends that will shape the Indian consumer and therefore industry. The trends presented were around the shifts in organizational structures, consumer sensitivity and sustainability, digital experience, data, commerce, creator ecosystem, growth of sports business, use of technology, performance marketing, addressable TV and evolution of offline media.
Photographs, trends, media handouts and the press release can be found here.