The Indian advertising market is to grow by 16 percent in 2022 to reach $11.1 billion or ₹88,639 crores, making it the fastest-growing market globally.
According to Dentsu Global Ad Spend Forecasts for July 2022, the Indian ad market will grow by more than 14.5 percent in TV and 31.6 percent in the digital segment.
And there are good reasons for this growth. For example, ending lockdown restrictions has made options like travel and hospitality available again, which were closed during the pandemic. And edtech, fintech, gaming, and cryptocurrency have grown on OTT and online streaming platforms.
The Dentsu report said digital would be a crucial medium for digital-first brands and consumer tech companies this year. Boosted by the airing of fresh content and sports events such as the IPL (Indian Premier League), digital has fully recovered from the pandemic slowdown.
The US is on top of ad spending regions at a staggering $329.6 billion. It’s also the most dynamic area, with spending increasing by 13.1 percent. However, India, with its 16 percent year-on-year growth, will stay ahead of the US, 12.8 percent, and Brazil, 9.0 percent, as the fastest growing market, said Dentsu.
According to the report, “significant growth” is expected in OTT, connected TV, online gaming, and e-commerce.
The Indian ad market was around $9.6 billion in 2021. It is estimated to grow by 15.2 percent in 2023 to $12.8 billion and 15.7 percent to $14.8 billion in 2024.
Globally, advertising spending would increase by 8.7 percent in 2022 to $738.5 billion. With digital accounting, ad spending in Asia is expected to reach $250 billion.
In the region, China’s advertising market is estimated to grow by a further 5.6 percent in 2022 to reach $130.2 billion.
Prerna Mehrotra, Dentsu International Media’s APAC CEO, said that despite another year of economic uncertainty, the latest Dentsu ad spend points to a continued recovery based on a growth forecast of 5.1 percent.
“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.