India has witnessed a substantial shift from traditional advertising to digital advertising over the past few years. The advertising landscape in India is rapidly evolving, with digital advertising emerging as a dominant force. The e4m - GroupM Programmatic Report that was unveiled today reveals that the programmatic advertising revenue in India is projected to reach Rs 394 billion (US$5.42B) by 2024. In recent years, the country has seen atransitiontowards programmatic advertising as advertisers become increasingly aware of its efficiency and effectiveness in reaching their target audiences. This has led to a steady rise in ad spending allocated to programmatic advertising.
The report further states that a progressive shift towards programmatic advertising is likely in India in the coming years, reaching an estimated market share of 44% by 2024. It further adds that the M&E industry in India ranked 8th globally in 2023 and remains among the fastest-growing markets. It predicts that the industry is poised to touch a total revenue of $7.9 billion by 2027.
“The Indian media & entertainment (M&E) industry is poised for robust growth, driven by escalating consumer demand and improving advertising revenue. The industry witnessed 19.9% growth in 2022, surpassing the Rs 2 trillion (US$ 24 billion) annual revenue milestone for the first time and is expected to reach Rs 2.83 trillion (US$ 35.4 billion) by 2025”, the report added.
Talking about the growth and future of digital advertising, the e4m - GroupM Programmatic Report projects a seismic shift towards a digital-centric advertising future in India. By fiscal year 2024, digital ad revenue is likely to surge to nearly Rs 540 billion, poised to surpass the revenues generated by traditional mediums. “Indian marketers are expected to enhance their marketing strategies by utilizing data-driven buying techniques, enabling them to target their desired audiences efficiently. Projections indicate a digital advertising surge, likely to reach almost Rs 540 billion by 2024, surpassing television and print ad revenues”, the report added.
The predictions of the report suggest that by 2024, ad spend for video advertising formats will constitute of the projected digital ad spend of Rs 93,448 crore. In video advertising, YouTube boasts over 2.70 billion monthly users globally, with India leading the pack at 462 million users as of October 2023. Hotstar maintains 100 million average UVs, while MX Player, with its freemium model, boasts 120 million average UVs monthly.
The increasing availability of high-speed internet and affordable smart TVs has driven the adoption of Connected TV in India. As per the report, CTV households to rise from 22 million to 30 million by 2023. Furthermore, India’s internet advertising market surged remarkably in 2023 and ranked 8th globally. It continues to remain among the fastest-growing markets with a projection to grow with a total revenue of $7.9B by 2027. The OTT revenue is projected to grow to RS 21,032 crore (US$2.55B) by 2026, the report stated.
The surge in smartphone usage in India has transformed mobile marketing, enabled real-time engagement and personalized connections, and offered limitless opportunities for impactful advertising in India. The report says that India boasts the world’s second-largest internet population which is projected to exceed 900M by 2023.
To download the e4m - GroupM Programmatic Report, click here: https://e4mevents.com/programmatic-summit-2023/groupm-report#download-form
