According to the report, after a brief respite in 2021, traditional print continues its decline of 7.4% in 2022. Print-based media will decline by 3.7% when including digital extensions, which are forecast to make up nearly half of the total revenue this year and more than three-quarters of revenue by 2026.

With spends of Rs 82,542-crore, digital is expected to retain its spot as the highest contributor of ad spends and will contribute 56% of the total ad expenditure this year compared to 54% in 2022. 

TV is second on the list, with a forecasted growth of Rs 43,227-crore and its total contribution to Indian advertising revenues are expected to have a slight dip of 30% (from 31% in 2022). 

Global ad spend is expected to reach USD 859-billion, up from USD 821 in 2022 and USD 762 in 2021. Digital’s contribution to this is expected to be 76%. 

India is the fastest-growing market in the top 10 and will contribute around 2.1% of the total ad revenue.

Prasanth Kumar, South Asia CEO, GroupM said, “As technology redefines interactions between consumers, brands and businesses the ad industry must navigate through 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.”

Highlights of the report 

• Global advertising to grow 5.9% in 2023, behind the IMF’s expectation for global inflation of 6.5% and a downgrade from our 6.4% June estimate 
• Retail media, one of the fastest-growing segments of the advertising industry, is now estimated to reach USD 110.7-billion dollars in 2022, an upgrade from our September forecast of USD 101-billion 
• Television continues its recovery to pre-pandemic levels, albeit more slowly in 2022, with an expected global growth rate of 1.7% (excluding US political advertising)
• Growth in global OOH this year will amount to 2.2% globally (excluding US political spending), or 18.1% on an excluding-China basis
• Audio is projected to grow 3.8% globally in 2022 (excluding US political advertising) and decelerate to 1.3% growth in 2023

(Courtesy: Campaign India)