GroupM’s annual This Year Next Year (TYNY) report was rolled out on 14 February 2023.
According to the report, the total ad expenditure for the year is estimated to reach INR 1,46,450 crores in 2023. In 2022, this was INR 1,26,818 crore and INR 1,07,987 crore in 2021. Ad spends in India is expected to grow by 15.7% this year (versus 15.5%) last year.
With spends of INR 82,542 crores, 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 INR 43,227 crores 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 thru 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.”