Digital-led recovery will bring ad revenues back to $10 billion in 2022: Report
According to the CII BCG Big Picture 2021 report, digital’s share of spend has grown from 20% in 2019 to 29.4% in 2021 and is expected to reach about 33% by the end of 2022
The advertising sector in India is set to regain its pre-pandemic glory in 2022 with the revenues touching back to nearly $10-10.5 billion, predicts CII BCG Big Picture report 2021. The ad revenues were in the tune of $10 billion in 2019.
Over ⅓ of the ad revenue in 2022 is likely to come from digital advertising which has shown immense growth in the pandemic time. With the possibility of the third wave of the COVID-19 looming large, the focus on digital ads would go several notches up, experts feel.
The report highlights that India’s Media & Entertainment industry is expected to grow to $55-70 billion by 2030 at 10-12% CAGR, driven mainly by strong growth in OTT, Gaming, Animation, and VFX.
Digital’s share of spend has grown rapidly in the country, from 20 percent in 2019 to 29.4 percent in 2021, and is expected to reach about 33 percent by the end of 2022.
However, TV continues to be the most popular platform with a leading 40.9 percent share of spending that shows resilience despite the pandemic and a 7.7 percent growth over the past year.
A report released by dentsu in 2021 suggests a shift towards connected TV (CTV) and over-the-top (OTT) and reveals that audiences are moving more towards digital media consumption. This means more advertisers will line up over these platforms.
Less than 0.1% of GDP
Indian ad spend as percentage of GDP is among the lowest in the world, less than 0.1 percent, although it is rising with a little less than 4% of CAGR, the Big Picture report points out.
This is much lower as compared to the other BRICS countries like China, Brazil, and Russia, where ad revenues don't only have a larger share in GDP but the industry is rising faster than India.
More focus on ROI
Advertising is transitioning in an accelerated manner to sharper requirements for ROI measurement, the report states.
Advertisers are seeking real-time tweaking of campaign parameters to get more bang for the buck and reach the right audience in a cost-efficient manner at a low scale.
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