New Delhi: Advertising spends growth in India is estimated to slip to 22 per cent to Rs 1.08 lakh crore in 2022, which will witness the digital medium overtake television, a report said on Tuesday.
In 2021, Indian advertising grew 26.5 per cent to Rs 88,334 crore but much of the gains were due to a base effect as the pandemic-hit 2020 had witnessed a drop in spends, according to the report by media agency Groupm.
Spends on digital are forecast to grow 33 per cent to Rs 48,603 crore in 2022, after the 38 per cent growth in 2021. Television, the traditional favourite, is set to witness a 15 per cent growth in spends on the medium to Rs 42,388 crore , the report said.
“The pandemic has pushed the envelope towards digital and has, hence, topped the pie, with advertisers keen to explore more of it,” the agency’s Chief Executive (South Asia) Prasanth Kumar said.
From a sectoral perspective, he said e-commerce and telecom companies will drive the economy but fast-moving consumer goods and auto are also slowly expected to catch up and contribute towards this growth.
The agency’s report added that the small businesses segment is driving the growth in digital advertising.
Advertising spends on print media, which is dependent on such revenues in the absence of the ‘user pays’ model, are estimated to grow five per cent to Rs 12,667 crore after a 17 per cent growth in 2021.
Cinema advertising, which fell due to the shutting down of theaters in the pandemic, is set to register a 467 per cent growth in spends to Rs 635 crore in 2022, up from Rs 112 crore in 2021.
Outdoor media or out of home ad spends will jump 85 per cent to Rs 2,036 crore, while ad spends on radio will grow five per cent to Rs 1,657 crore, the report said.
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