The Pitch Madison Advertising Report, 2021, released on Wednesday projects a 20 per cent growth in advertising expenditure (ADEX) in 2022 to ₹89,285 crore from ₹74,231 in 2021.
“After battling two waves of Covid in the last two years, commercial activities have returned with a vengeance and the report estimates that India will continue to be the fastest-growing advertising market in the world followed by Russia at 14 per cent, the US at 13 per cent and China at 11 per cent. Global AdEx is estimated to grow at 11 per cent” the report noted
Medium specific predictions by the report are, a growth of 37 per cent in digital, adding ₹33,070 crore. Print is expected to add as much as ₹18,750 crore and achieve a growth rate of 21 per cent, followed by outdoor which should add ₹2,955 crore resulting in a growth of 3 per cent. Cinema is to achieve a growth rate of 1 per cent.
TV AdEx is set to grow by 36 per cent to close at ₹32,100 crore.
Sam Balsara, Chairman and Managing Director, Madison World, while unveiling the report, said, “While we had forecasted a 20 per cent growth in AdEx in 2021, we were surprised to see the industry growing by 37 per cent in the last year. In fact, not just in India, we saw advertisers spending money with vengeance. India remained the fastest growing advertising market.”
“While digital advertising grew more than 60 per cent over 2019, traditional advertising saw a dip of 6 per cent in 2021 over 2019. TV was the only traditional medium that surpassed the pre-Covid revenues. A number of cricketing tournaments and reality shows have contributed to this growth.
For 2022, after carefully considering multiple micro and macro trends globally, we forecast a 20 per cent growth in the overall AdEx, taking the Indian advertising industry’s value to ₹90,000 crore. India will remain the fastest-growing advertising market, followed by Russia (14 per cent), the US (13 per cent), and China (11 per cent). While we expect traditional AdEx to grow by 15 per cent, digital will be growing by 30 per cent. In fact, digital might surpass television as the largest advertising medium. It is expected to grow by ₹8,000 crore to reach ₹33,000 crore in valuation over 2022,” he said.