Digital, traditional media & Q-Comm rake in Rs 1 L Cr ad revenue in FY24

The advertising revenues of major digital and traditional media companies, along with Q-commerce platforms in India, witnessed significant growth, reaching Rs 1,03,621 crore in FY 2023–24. This marks a 19.9% increase compared to Rs 86,388 crore in FY 2022–23.

This growth was primarily driven by strong performances from tech giants Google, Meta and Amazon, which collectively captured a significant market share.

While ad revenues of media houses such as Zee, Sony and Network18’s entertainment division (excluding news) remained stagnant or saw a decline, reflecting the impact of a subdued advertising market, Jagran Prakashan and Dainik Bhaskar Group also recorded growth in ad revenues for FY24 by 6% and 18%, respectively.

Google India’s revenue climbed by 14%, reaching Rs 31,221 crore, underscoring its dominance in the digital advertising space. Meanwhile, Meta India reported an impressive 24.1% rise in revenue to Rs 22,720 crore, further solidifying its position as a key player. Amazon’s revenue also surged by 24%, hitting Rs 6,649 crore, while Flipkart achieved a striking 50% growth, bringing in Rs 4,972 crore. These gains highlight the expanding influence of e-commerce and social media platforms in the advertising ecosystem.

Network18, while not disclosing advertising revenue separately, reported consolidated revenues from advertising, subscription, and programme syndication at Rs 8,076.6 crore in FY 2023–24, up from Rs 5,537 crore in the previous fiscal year—a massive growth of 45.8%. The company’s consolidated advertising revenue is estimated to have reached approximately Rs 4,500 crore on the back of its news business.

Other media companies faced contrasting fortunes. Zee Entertainment Enterprises Ltd (ZEEL) maintained a stable performance, with negligible change in advertising revenue, reporting Rs 4,057.6 crore in FY 2023–24 compared to Rs 4,057.8 crore in FY 2022–23. ZEEL attributed its flat growth to a sluggish linear advertising environment, slow consumption demand recovery among FMCG companies—particularly in rural markets—and weak spending sentiment from new-age companies throughout the year.

Sony Pictures Networks (Culver Max Entertainment Pvt Ltd) experienced a 12% decline in advertising revenue, dropping to Rs 2,824 crore from Rs 3,209 crore. Similarly, Sun TV saw a mild 2% decrease, with ad revenues declining to Rs 1,493.1 crore from Rs 1,521.8 crore. Star India also faced challenges, reporting a 4% decline as ad revenue fell to Rs 10,736.9 crore from Rs 11,183.04 crore. These declines reflect the pressures faced by traditional broadcasters amidst evolving consumer behaviours and shifting advertiser priorities.

Conversely, Bennet & Coleman reported a positive trajectory, with ad revenues increasing to Rs 6,328 crore in FY 2023–24 from Rs 5,600 crore in the previous fiscal year. This growth underscores the resilience of select legacy media companies in navigating the changing landscape.

Jagran reported a total ad revenue of Rs 1,368 crore in FY23-24, up by 6% from Rs 1,290 crore FY23. DB Corp’s ad revenue stood at Rs 1,752 crore in FY24, up by 18% from Rs 1,482 crore in FY23.

Even the Q-commerce platforms have emerged as disruptors for well-established leaders like Amazon and Flipkart which collectively reported an ad revenue of over Rs 11,000 crore. According to industry experts, the ad revenue of major Q-comm firms put together could be in the range of Rs 5,000.

According to the data available, Zepto has surpassed Rs 1,000 crore in annual advertising revenue last fiscal, according to co-founder and CEO Aadit Palicha’s LinkedIn post which went viral.

Blinkit earned over Rs 400 crore from advertisements alone in FY24. Industry experts predicted it could cross the four-digit mark in FY25.

For the entire financial year, Zomato, the food delivery platform, reported a consolidated net profit of Rs 351 crore. The company had posted a consolidated net loss of Rs 971 crore at the end of FY23.

The overall growth in digital and traditional media advertising revenues highlights the dynamic shifts within India’s advertising industry. While digital platforms continue to capture an increasing share of ad budgets, traditional media—though facing challenges—remains a significant player.

According to Pitch Madison Advertising Report 2024, the share of television in the Indian advertising market was 33% at Rs 32,886 crore, while in 2022 it stood at 34% with Rs 30,662 crore. From 2022 to 2023, TV ad revenues saw a growth of 7%, which was 2% below the projection. As per the 2023 report, TV advertising was projected to grow at 9% in 2023.

The report also notes that linear TV will continue to grow because large and seasoned advertisers continue to believe in the brand-building power of TV. It is expected that TV will add another Rs 2,700 crores and grow by 8% in CY2024 to reach a total of Rs 35,575 crore.

On the other hand, the digital ad market saw a 15% growth in 2023, against the projected 25%. It stood at Rs 39,714 in 2023, up from Rs 34,405 crore in 2022.
The report predicted that Digital will continue to be the key driver of AdEx and is expected to grow by a modest 17% in CY2024.