The Indian advertising sector is expected to grow with a CAGR of 12 per cent and should reach Rs 1 lakh crore revenue by 2024, said a joint report by industry body Ficci and consultancy firm EY.
The Indian Media and Entertainment sector revenue grew 16.4 percent to Rs 1.61 lakh crore ($21.5 billion) in 2021, said the report titled ‘Tuning into consumer - Indian M&E rebounds with a customer-centric approach’.
''We expect the M&E sector to grow 17 percent in 2022 to reach Rs 1.89 lakh crore ($25.2 billion) and recover its 2019 pre-pandemic levels, then grow at a CAGR of 11 percent to reach Rs 2.32 lakh crore ($30.9 billion) by 2024,'' it said.
Though television remained the largest segment, digital media cemented its position as a strong number two segment followed by a resurgent print, it added.
''Digital media grew the most at Rs 6,800 crore and consequently, increased its contribution to the M&E sector from 16 percent in 2019 to 19 percent in 2021,'' it said.
The share of traditional media which includes television, print, filmed entertainment, OOH, music, radio stood at 68 percent of Media and Entertainment sector revenues in 2021, which was down from 75 percent in 2019, it added.
In 2021, except 'in-cinema' advertising and TV subscription, all segments in the Media & Entertainment grew.
While talking about the advertising sector, the report said despite COVID-19 disruptions, advertising revenues in India bounced-back from a 29 percent degrowth in 2020 to a growth of 25 percent in 2021.
''The highest growth was in television advertising of Rs 6,200 crore, followed by digital advertising of Rs 5,500 crore and then of Rs 2,900 crore from a resilient print. By 2024, India’s advertising market should reach Rs 1 lakh crore,'' the EY-FICCI report said.
Moreover, the report also expects the share of digital advertising to reach 41 per cent in 2024. Digital media comprised 24 percent of total ad spends in 2019, which has now increased to 33 percent in 2021.
In 2021, the advertising sector revenue was at Rs 74,600 crore in 2021 and is expected to have around 16 percent growth this year.
''The growth momentum is expected to continue in 2022 with a projected growth rate of 16 percent, taking overall advertising revenue to Rs 86,500 crore,'' it added.
It was at Rs 79,500 crore in the pre-pandemic year of 2019.
''They are now barely 6 percent short of their 2019 numbers,'' the report added.
EY conducted a survey of 50 marketers across 10 sectors in February 2022 and had found over 80 percent of them positive about growth in consumer spending.
This was led by several factors such as IPL media rights sale in 2022, increase in the number of unicorns and continued PE funding and launches in the auto sector.
Moreover FMCG, education and media-entertainment taking over online video and Pharma and e-commerce boom post-COVID-19 is also a key factor.
Marketers remained bullish on events spends too, it added.
(With PTI inputs)