India’s advertising industry is expected to grow 10.8% to reach Rs 62,577 crore by the end of this year, mainly aided by rapid growth in digital advertising, according to a report. The advertising sector, which had experienced a decline in 2020 due to the pandemic, is expected to receive Rs 70,343 crore by 2022, according to dentsu’s 2021 digital report.
“The advertising industry is expected to make a comeback and grow 10.8% to reach Rs 62,577 crore by the end of 2021. In addition, it is expected to grow at a CAGR (annual growth rate compound) of 11.59%. hundred to reach Rs 70,343 crore by 2022, ”the report said.
India’s advertising industry currently stands at Rs 56,490 crore and has seen a decline of 17.5% from 2019 due to the pandemic, he added. Most sectors like manufacturing, trade, tourism, transportation, real estate and automobiles were affected during the initial phase of the lockdown in India.
While the digital advertising industry had grown by 15.3% in 2020 despite the pandemic at Rs 15,782 crore against Rs 13,683 crore by 2019, this space is expected to reach Rs 23,673 crore by 2022 “Digital media will grow 20% to reach a market size of Rs 18,938 crore by 2021 and with a CAGR of 22.47% to reach Rs 23,673 crore by 2022,” the report states.
In 2020, broad reach TV media remained the biggest contributor with 41% market share with Rs 23,201 crore in 2020, followed by digital spending at 28% (Rs 15,782 crore ) and printed with 25 percent (Rs 13,970 crore). Currently, the FMCG segment has the highest ad spend with a contribution of 21% (Rs 11,554 crore), followed by e-commerce with 17% (Rs 9,788 crore) and consumer durables with 10% (Rs 5,751 crore).
“FMCG spends a large majority of its advertising budget on television (64%), while the retail, automotive, media and entertainment segments spend a large portion of their advertising budget on print media The report says. The biggest consumers of digital media are banking, financial services, and insurance (BFSI) at 57 percent, followed by consumer durables at 45 percent, telecommunications at 40 percent, and commerce electronic at 39 percent.
CEO of dentsu, India, Anand Bhadkamkar, said, “2020 has presented a monumental challenge for us – as individuals, businesses and society. It allowed us to witness time and space in a way that many generations had only read in textbooks or heard from aging viewers of yesteryear history. ”
“… over 50% of our revenue comes from digital at a time when the market average in India is still 10-12%. At dentsu, we expect 2021 to see a colossal increase in advertising digital.
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