Indian advertising market to grow 16% in 2022, touch $11 billion: Report

The Indian advertising market will remain the fastest-growing in the world over the next two years, a new report by Dentsu International, released on Thursday, said.

With a growth rate of 16 per cent in 2022 and ad spending that will increase by 15.2 per cent in 2023 and 15.7 per cent in 2024, India will surpass markets such as China in terms of rate of growth, the Dentsu “Global Ad Spends Forecasts” said.

In terms of size, the Indian ad market will touch $11 billion in 2022 from $9.6 billion in 2021, the report said.

Despite the second wave of the Covid-19 in 2021, the Indian market had grown at nearly 22 per cent over the previous year, it said. Ad spend growth rate for China, on the other hand, is forecast at 4 per cent for 2023 and at 5.4 per cent the following year. The agency did not specify China’s ad rate of growth for 2022.

Globally, ad spends will grow at about 8.7 per cent in 2022. However, it is likely to grow by 5.4 per cent in 2023 and 5.1 per cent in 2024, Dentsu said.

Digital, in India, at a 33.4 per cent share of spend, will be the key medium for digital-first brands and consumer tech companies in 2022. TV continues to garner a high 41.8 per cent share in 2022 and has recovered fully, boosted by the airing of new content and sports events such as the Indian Premier League, the agency said.

Prerna Mehrotra, CEO, media, Asia-Pacific (APAC), Dentsu International, said, “The latest Dentsu ad spend forecast points to a continued recovery despite economic uncertainty, with APAC 2022 ad spend of $250 billion, based on a growth forecast at 5.1 per cent.”

However, continued lockdowns in key markets, geopolitical tension and ongoing supply logistics issues could add pressure on businesses with a cascading impact on marketing spends, she said.