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Magna has shared a winter update of its ‘global ad forecast’ which predicts that global media owners’ ‘net advertising revenues’ will reach USD 853 billion in 2023, a 5.5% increase from 2022. The forecast for 2024, predicts a 7.2% growth over 2023.
The Asia Pacific advertising economy grew +8.2% to USD 286 billion this year. Magna states that India, Pakistan and China are the predominant contributors to this growth. In 2024, Magna estimates APAC advertising revenues to increase by 6%.
In terms of growth, India is the fastest-growing market and is forecast to reach number eight by 2028. This year it’s ranked number 11 in terms of ad sales, as it grew by 11.8% to reach INR 1099 billion.
Digital continues to be getting the largest advertising pie with a 46% share of the ad sales which amounts to INR 500 billion. But given the pie is increasing, the growth of digital in percentage terms has reduced to 14.2, compared to 25.7 in 2022.
In 2023, linear formats in India are estimated to grow by +9.9% with both television and print growing equally at +8%. Radio is estimated to grow by 12.1% and OOH at 29.8%. In 2024, the Indian advertising market is estimated to grow by 11.4%. Digital’s growth will slow to 13.9% and reach INR 569 billion. Linear ad sales are estimated to grow by 9.3% to reach INR 655 billion.
Venkatesh S, SVP, director – intelligence practice, Magna India, said, “In 2023H1 advertising spend grew +9.6%, accelerated in the second half of 2023 to +13.8%. The recovery is driven by festive spending and marquee events like ICC WC and elections. Globally, traditional media owners’ (TMO) ad revenue growth is slowing down, while in India both linear (+9.9%) and digital formats (+14.5%) are growing. Traditional formats will still be the largest, at least till 2027, though pure play digital is driving the adex. Non-linear formats (AVOD, digital newspaper, podcasting and DOOH) of TMOs are growing steadily in double digits and contribute 5% to the total revenue of TMOs.”
Hema Malik, chief investment officer, IPG Mediabrands India, added, “India continues to script its unique narrative in the advertising landscape, boasting robust growth across diverse mediums despite evolving consumer preferences and market dynamics. The promising trajectory across television, digital, radio, and out-of-home channels signifies the dynamic nature of our advertising landscape. I am optimistic about the future as India’s advertising story unfolds, driven by innovation, adaptability, and a burgeoning consumer base.”
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