GroupM India released its annual This Year Next Year (TYNY) report in Mumbai on Tuesdays. The overall ad revenue is expected to reach Rs 155,386 crore in 2024, with an incremental Rs 14,423 crores compared to 2023. This is a growth of 10.2 year-on-year.
Digital at 13% growth is driving overall ad revenue growth in 2024, as per the report. It will take 57% share of AdEx pie in the year. All other media combined to grow at 6.8% in the year. Of the 14,423cr of incremental ad revenue in 2024, 70% to go to digital.
Within digital, retail media driving growth; CAGR of 41% in 2019-24F. Digital extensions of TV estimated at INR 5,750cr in 2024. Auto, realty, retail, SME estimated to drive growth in 2024
Said Prasanth Kumar, CEO, GroupM South Asia: “Despite facing macroeconomic challenges, we remain optimistic about the industry. At 10.2%, India will be the fastest growing top market. 2024 will also see an upside from the spends leading to the General Elections. Digital particularly retail media and digital extensions of TV are expected to drive the growth. SME continues to fuel the growth. Linear TV is at a point of inflection and needs to be enabled with rapid deployment of technology to stay relevant.”
Added Ashwin Padmanabhan, President – Investments, Trading, and Partnerships, GroupM – India: “The advertising landscape is evolving with the fragmentation of search, rapid rise of influencer marketing and retail media. Reflecting this, at INR 88,502 crores of the overall Rs 155,386 crore, digital will contribute to 57% of all ad revenue. Within digital ad revenue, search contributes 22%, retail media 18% and the rest 60%. Sectors like Auto, Realty and Offline Retail are expected to power the overall advertising growth.”
Said Parveen Sheik, Head of Business Intelligence, GroupM India: “Global advertising presents a steady picture: a projected 5.3% global growth in ad revenue for 2024, reaching $936 billion, with digital leading the charge at a commanding 79% share of all ad revenue. India continues to be ranked 8th globally and its ad revenue growth among its peers is a testament to its potential and resilience. Adaptability is key to navigating an evolving advertising landscape amidst inflation and geopolitical tensions.”
Added Parthasarathy Mandayam (Maps), Chief Strategy Officer – GroupM South Asia, “Zero Party Data will come to the fore, providing insights on attitudes, behaviour, and product consumption. The availability of granular data will lead to micromarketing strategies, be it in market prioritisation, ultra-niche consumer segments and micro influencers. Advances in AI will also transform measurement, messaging, and media optimisation.”
Said Priti Murthy, President -GroupM Nexus, “In 2024, brands will shift their focus to consumer experience through performance marketing, integrating brand activities and emotions. Search marketing will become more diverse due to growing complexity and skillsets. Attention planning will impact growth narratives and ROI. Technology will aid hyperlocal marketing, but modern retail still has room for digital growth.”
The GroupM TYNY report also unveiled several evolving trends for 2024.
Key trends include:
- Increasing influence of gen-alpha will drive distinctive marketing strategies
- Attention Planning – customising insights for actionability
- 21% of television homes to be addressable in 2024
- Sports to focus on immersive experience journeys
- Brand marketing becomes more accountable on performance, breaking silos
- Step-up on search
- Ecommerce drives deeper into organisations
- India’s general and modern trade getting digitised leading to rise of omnichannel commerce
- Rapid developments in AI will transform media, messaging, and measurement
- AI and technology dominate the content landscape and creator economy
- Importance of niche consumer segments will power the growth of micromarketing
- With consent becoming critical, zero party data will empower various areas of marketing
