India ranked 8th globally on ad spends and continues to be the fastest-growing market in 2023
56% of ad spends are estimated to be on digital in 2023
GroupM India released its This Year Next Year report today, highlighting the advertising expenditure forecast for 2023. GroupM predicts INR 20,000 crores of incremental ad spend in 2023 compared to 2022. This highlights the continued growth and potential of the Indian advertising industry and the opportunities it presents for advertisers. The report highlights a 15.5% increase in ad spend in India, reaching INR 1,46,450 crore in 2023. India moves up to the eighth position globally in ad spend and continues to be the fastest-growing market in the top 10 markets worldwide.
Prasanth Kumar, South Asia CEO, GroupM said, “As technology redefines interactions between consumers, brands and businesses the ad industry must navigate thru this changing environment. The past three years have been marked by macroeconomic volatility and global events that have impacted advertisers’ businesses and ad spending. The Indian economy though is expected to weather these challenges and is poised to grow in the coming years.”
Ashwin Padmanabhan, President — Investments, Trading and Partnerships, GroupM India said, “Indian Adex will be the fastest growing globally at 15.5% supported by robust macroeconomic conditions. Digital at 56% of all advertising spends and growing at 20% over last year is driving the growth of Adex. India stands out globally with all mediums expected to grow with TV, print and radio growing at high single digits! We see 2023 panning out stronger as we move into the second half of the year and are confident of the Indian Adex staying on course to grow as projected.”
Parveen Sheik, Head of Business Intelligence, GroupM India said, “The growth of SMEs in the Adex has been a feature for the past few years, this year too we see the same trend. We also anticipate the revival of the rural economy as well as improved funding for the start-up ecosystem. Additionally, telecom, BFSI, retail, fintech, gaming as well as travel and tourism are expected to drive ad spending.”
The launch and expansion of 5G services beyond top metros, combined with affordable smartphones, is also expected to drive ad spend growth.
The report mentions several exciting emerging trends for 2023 that will impact how brands engage with consumers and drive growth. Key trends include:
- Moving towards attention planning
- Content breaks boundaries and creates new opportunities
- Rise in retail media
- Visual search goes mainstream
- New dimensions of omnichannel
- Democratization of commerce with ONDC
- Sporting nation in the making