Indian advertising industry to hit Rs 1.25 lakh crore mark in 2024: FICCI & EY

Advertising industry: The Indian advertising industry is poised for substantial growth, with estimates indicating a 10 per cent increase in 2024, reaching Rs 1.25 lakh crore, a recent report by FICCI and EY said on Tuesday.  The report also added that the CAGR projections till 2026 stand at 9 per cent.

According to the report, key drivers fueling the growth include the anticipated rise in India's per capita income, a reduction in income inequalities through subsidies and employment schemes, and a focus on infrastructure development.

Digital Advertising

Digital advertising is a significant contributor, accounting for 52 per cent of total ad spends in 2023, up from 31 per cent in 2019. It is expected to further increase to 57 per cent by 2026, with a CAGR of 14 per cent.

“Factors fuelling this growth include the expansion of 5G, increased smartphone penetration, active Connected TV (CTV) households, and the use of rich consumer data for segmentation and accurate attribution,” the report added.

According to FICCI and EY's report on media and entertainment, various segments of the advertising industry are expected to witness growth, with digital, TV, print, out-of-home (OOH), radio, and cinema each having specific drivers.

The report highlighted that digital advertising will benefit from 5G expansion, while TV growth will be influenced by efficient Cost Per Rating Point (CPRP) and premium content. The print will tap into educated and affluent audiences, and out-of-home advertising will see improvements with digital screens and better measurement systems.

The SME advertiser base is expected to play a pivotal role, aligning with India's ambition to achieve a $ 5 trillion GDP.

The overall industry landscape is dynamic, reflecting a significant shift towards digital platforms and a continued evolution in various advertising segments. Specifically, SME and long-tail digital advertising spending is projected to increase from Rs 20,800 crore in 2023 to Rs 30,400 crore by 2026.