India is going to be the fastest growing internet advertising market in world: PwC report
The sector will reach 2.25 billion dollar in revenue by the end of this year, suggests the report
In one of the most elaborate phases in its trajectory, Indian Media & Entertainment industry, over the next five years, is primarily going to be led by cinema, music, radio, podcasts, and internet advertising, revealed PwC's Global Entertainment & Media Outlook 2021-2025 report. The report suggests that India is going to be the fastest growing internet advertising market in the world, to reach 2.25 billion dollar in revenue by the end of this year.
Mobile advertising is going to see the maximum growth at 25.4% CAGR, becoming 75% of the overall internet advertising revenues by 2025.
OTT, too, will continue to be amongst the highest growing segments when it comes to advertising revenues. By 2025 India’s VOD market will be 2.9 billion dollars, growing at 17.5% CAGR. On the other hand, SVOD will grow at 18.3% CAGR from 2020 to 2025, growing from 1.2 billion dollars to 2.7 billion dollars.
However, TVOD takes market share of only 9.9% of total VOD and is forecast to decline to just 6.7% by 2025. One reason being the consumers have transitioned from analogue to SVOD first, the report indicates.
While internet advertising is destined to show a ravishing growth in the coming years, driving on the back of rising internet penetration and low data rates, the traditional advertising media is not going to get suppressed either.
The report highlights that TV advertising in the country is going to remain one of the largest revenue contributing segments with a growth rate of 2x of the global average. It is expected to grow at 8.6% in 2021 with diversified regional channels & content keeping the momentum. Multichannel advertising is going to be 92% of the total TV advertising market in 2025.
Similarly, while the newspaper and consumer magazine revenue is expected to decline, -1% CAGR globally, it is expected to grow at 1.82% CAGR for India. However, digital newspapers are going to play a big role in propelling this growth. Their circulation is expected to rise to 186 million dollars, at 12.8% & advertising revenue to 273 million dollars at 7.18% CAGR, during 2020-25, respectively.
Other key contributing media to India’s advertising revenue growth are going to be music, radio and podcasts (19.1% CAGR); video games and esports (31.6% CAGR); & Cinema (39% CAGR).
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