Digital Advertising has been the fastest growing advertising medium in the past few years but recent concerns regarding data privacy and Google’s endeavor to establish a cookie-less ecosystem, the once notable surge in digital advertising witnessed in recent years has now become a relic of the past, according to findings outlined in the “Pitch Madison Advertising Report 2024”.
In 2023, the growth rate of digital ad spending tapered off to 15%, culminating in Rs 39,714 crore, a notable contrast to the 35% growth registered in 2022, where expenditures reached Rs 34,405 crore. The previous year, 2021, had seen the segment experience an impressive 50 % growth, catapulting from Rs 16,974 crore to Rs 25,438 crore.
Based on the report’s findings, the growth trajectory for digital ad spending in 2024 is anticipated to continue at a modest pace, hovering around 17 %. Driving factors behind this trend include persistent concerns surrounding data privacy and regulatory adjustments made by Google. Additionally, there has been a noticeable slowdown in expenditure by edtech startups. The report sheds light on the challenges faced by sectors such as Real Money Gaming, contending with a 28 % GST imposed by the government and the lack of recognition of cryptocurrencies as legitimate entities. The challenges for advertising in digital forms are present at the moment but nonetheless, there is scope for a high volume of brands pitching for digital platforms as the audience base and brands TG’s lies into this form of advertising.
Despite these hurdles, there has been a significant surge in advertising across various platforms including videos, e-commerce channels, and search engines. Notably, digital advertising is expected to claim an increased share of the overall ad expenditure, projected to rise to 42% in 2024 from 40% in the previous year. The challenges for advertising in digital forms is present at the moment but nonetheless, there is scope for high volume of brands pitching for digital platforms as the audience base and brands TG’s lies into this form of advertising.
In contrast, the report highlights a sense of stability in the print advertisement market share, a phenomenon unseen in 13 years. The projected growth in print ad spending, set to reach 7% and surpass pre-Covid levels, is attributed to the upcoming Parliamentary elections.The report underscores the enduring appeal of print media among politicians and political parties, with campaign spaces commanding premium rates.In 2024, the estimated print ad market share is expected to hold steady at 19%, marking a marginal decline over the past 19 years, particularly within the last 13 years.
Furthermore, TV advertisements, securing the second-highest market share after digital, are forecasted to experience single-digit growth at 8%. This follows growth rates of 9% in 2022 and 7% in 2023, indicating a consistent albeit slower expansion compared to previous years.
It is anticipated that TV will contribute an additional Rs 2,700 crore, marking an 8% growth in 2024, reaching a total of Rs 35,575 crore,” stated the report. Consequently, its market share is projected to decrease by 1%, settling at 32%.
