India’s advertising market is expected to grow by 11% this year, adding another 12,000 crore to reach1.2 lakh crore, according to a report released by integrated media agency Madison World.
In 2024, the advertising industry grew by a mere 9% to reach `1.08 lakh crore, falling short of the agency’s 12% growth prediction.
Traditional ad expenditure, which spans TV, print, radio, cinema and outdoor advertising, grew by 6% last year, while digital advertising grew by 14%. Traditional continues to dominate the ad market for now, with a 58% share, compared with global spending where traditional gets only 25% of the pie. However, the report notes that TV has lost almost 2,500 advertisers to digital, influencer marketing and e-commerce advertising.
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The report notes that the audio-visual medium (encompassing linear, connected TV and OTT) accounts for 37% of the ad market in 2024. Within this, linear TV still takes the biggest share with 34,453 crore, while CTV earned1,453 crore and OTT took home `4,397 crore. Last year saw a strong performance in H1 with a 16% growth on the back of the ICC T20 World Cup and general elections. However, H2 saw a rather dismal 1% growth, which resulted in the muted 9% figure, said Sam Balsara, chairman of Madison World.
Digital continues to be the largest contributor to the ad market, with a 42% share, adding `45,292 crore. Video advertising and social account for 50% of digital spends. Social, e-commerce and search advertising have contributed to the growth, growing at 21%, 17% and 15%, respectively.
Expectedly, digital will continue to be the key driver in 2025, with the highest growth estimate of 17% and will further increase its share to 44%. CTV too has shown a remarkable 35% growth in the past year.
There is no change among the top three advertisers of 2024 since the previous year — HUL, Reckitt and RIL continue to reign supreme.
Speaking at the report’s unveiling, Balsara added, “We anticipate that 2025 will bring some relief to the Indian advertising industry, particularly following the current union budget. The relief from the budget is expected to drive growth in categories like retail, FMCG, auto, real estate and travel, which are traditionally the biggest contributors to advertising in India.”
