Ad spends in India to rise 15.5% to ₹1.46 lakh crore in 2023: GroupM TYNY report

• Predicts ₹20,000 crore of incremental ad spends in 2023 compared to 2022.
• The launch and expansion of 5G services beyond top metros, combined with affordable smartphones, is expected to drive ad spend growth.
• India moves up to the 8th position globally in ad spends and continues to be the fastest-growing market in the top 10 markets, the report said.

Ad spends in India will rise by ₹20,000 crore in 2023 compared to a year ago, predits GroupM, a media investment company in its report titled This Year Next Year (TYNY).

This highlights the continued growth and potential of the Indian advertising industry and the opportunities it presents for advertisers. The report highlights a 15.5% increase in ad spends in India, reaching ₹1.46 lakh crore in 2023.

India moves up to the 8th position globally in ad spends and continues to be the fastest-growing market in the top 10 markets worldwide, the report said.

“Indian adex (ad expenditure) 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,” said Ashwin Padmanabhan, president of investments, trading and partnerships at GroupM India.

The launch and expansion of 5G services beyond the top metros, combined with affordable smartphones, is also expected to drive ad spend growth.

The report mentions several exciting emerging trends for 2023 that will impact how brands engage with consumers and drive growth. Key trends include – moving towards attention planning, rise in retail media, new dimensions of omnichannel, democratisation of commerce with ONDC, among others.

ONDC is a non-profit company established by the Department for Promotion of Industry and Internal Trade of Government of India to develop open e-commerce.

Says Prasanth Kumar, South Asia CEO, GroupM India, “As technology redefines interactions between consumers, brands and businesses the ad industry must navigate through this changing environment. The past 3 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.”