India set to be among top 10 ad markets in 2020

GroupM and Zenith have estimated that India will be among the top 10 advertising markets in the world next year, projecting a 12-13 per cent growth rate for the local advertising market in 2020, taking its overall size to nearly US$13.3 billion.

December 9, 2019

The internet or digital advertising medium is expected to see the sharpest growth at 26.3 per cent, accounting for nearly 30 per cent in the total ad pie

The TV will account for 42.5 per cent of the total ad pie, with digital advertising taking 30 per cent, print taking up 19.3 per cent, with the rest by outdoor and radio advertising

Given that the bulk of the Indian population is below 30 years of age, the rise in ad spending is expected to be led by dynamic consumption growth

India, a market of over 1.3 billion people and 22 official languages, offers unmatched income opportunities in the sector with fast-expanding markets

According to media agencies GroupM and Zenith, India is expected to be among the top advertising markets in the world next year. Recently, GroupM projected a 12-13 per cent growth rate for the local advertising market in 2020, taking its overall size to nearly US$13.3 billion from US$8.8 billion in 2018. Zenith, on the other hand, said India would be among the top 10 global ad markets despite challenges faced by the economy, and added that it is expected to become the eighth largest market by 2021.

Experts said that the optimism by these top media agencies had been fueled in part by the general assessment that the Indian economy will show signs of recovery by the middle of next year. In the past few months, the government has slashed corporate tax rates, announced a stimulus package for the real estate sector, and injected liquidity into the banking system to get the economy back on track. 

According to GroupM, the internet or digital advertising medium would see the sharpest rate of growth in 2020 at 26.3 per cent, thus accounting for nearly 30 per cent in the total ad pie. This would be second only to television, which would grow at 11.1 per cent, to take up 42.5 per cent of the total. Outdoor and radio advertising is expected to grow at 8 per cent each. Print media’s share in the total ad pie would be only 19.3 per cent. The advertising opportunity targets a wide variety of content, from kids’ infotainment to religious programmes for senior citizens. This market has been further strengthened with new possibilities across multiple regional languages. 

Another study by PricewaterhouseCoopers earlier this year had predicted that the world’s fastest-growing media and entertainment (M&E) industry is expected to reach a valuation of around US$63.4 billion by 2023. Given that the bulk of the Indian population is below 30 years, the rise in ad spending is expected to be led by consumption growth. India, a market of over 1.3 billion people and 22 official languages, offers unmatched income opportunities in the sector.