Advertising spends to grow 15.5% to Rs 1.46 lakh cr in 2023

Mumbai: Advertising spends in India will grow by 15.5 per cent to Rs 1.46 lakh crore in 2023, a media agency said on Tuesday.

In 2022, the industry is estimated to have grown by 15.7 per cent over the previous year, GroupM said in its outlook.

India will be fastest growing among top ten markets, and the eighth biggest market in the world by spending this year, it said.

With a bulk of the spends going to the digital, the new-age and more targeted medium will extend its share in the overall spend pie to 56 per cent courtesy a faster growth of 20 per cent.

The traditional favourite television will see a marginal decline to 30 per cent, from 31 per cent.

Of the incremental ad spends, digital will account for 71 per cent while only 18 per cent of the spends will come to TV, it said.

Print advertising spends will see a further decline to 10 per cent as against 11 per cent in 2022, even though the quantum will increase to Rs 14,520 crore from Rs 13,519 crore, the company estimated.

"The past three years have been marked by macroeconomic volatility and global events that have impacted advertisers' businesses and ad spending," its chief economist for South Asia, Prasanth Kumar, said.

Telecom, banking, financial services and insurance, retail, fintech, gaming, travel and tourism are expected to drive ad spending in 2023, its head of business intelligence, Parveen Sheik, said, adding that the rural economy will also revive in the new year.

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

The company said the introduction of the personal data protection Bill late last year makes data governance a key for advertisers, adding, “acquisition of data needs to be done in a far more judicious manner.” Companies will sharply scrutinize potential data partners, to ensure their data is fully compliant, it said.