Advertising Spends in India

The global economy has been shrinking since mid 2018 as a result of the rise of trade barriers and global political tensions between the US and China. To add the negative trend the advent of the pandemic accentuated the shrinkage of the global economy. The resultant is that the global economy contracted in 2020 by 3.2% as per the IMF's World Economic Outlook July 2021.

In India from March 2020 the country was in a prolonged lockdown due the rampant spread of the COVID virus. This had an adverse impact on the economy across all sectors, resulting in a 7.3% contraction in the economy as per the same report.

Advertisers in India which was growing year on year at 11 ~ 14% per annum, slowed down to a 3% as a result of slow economic activity. India's advertising spend totalled to a INR 72,600 crs. in the FY 20.

Source : KPMG

Breaking down the ads spends by media.

The contraction in 2020 is driven by Print, Films, Out of Home & Radio primarily due to the lockdown and the slow economic activity over the year.

Digital had a robust growth due to the limited movement during the lockdown and consumption increased from a news, entertainment, communication (chat) area.

Television the largest media in the country saw a modest growth in the year primarily due to the depressed economic activity.

Print as a medium was effected by drop in circulation due to the national and regional lockdowns, and distribution disruptions due to the social distancing norms.

Films as a medium had a wipe out year due to the closure of cinema halls and delay in releases of new movies due to social distancing norms.

Out of Home & Radio mediums which are consumed on the go or outdoors, were affected due to lockdown.

Television the largest media in the country saw a modest growth in the year primarily due to the depressed economic activity.

Ad Spends by Industry ...

Source : Densu e4m Digital Advertising in India 2021

Source : Densu e4m Digital Advertising in India 2021

Trends & Forecasts

Expectations are towards a recovery of the economy in FY21, Industries will bounce back in different degrees.

Source : KPMG

Ad Spends

Digital will sustain its growth with the change in media consumption habits during lockdown sustaining. Other medium will take longer to bounce back to the pre-COVID levels.

Television continues to be the largest medium, though its dominance is being challenged by the digital. Print lost is second largest media position to digital in 2020.

Projections show that Digital as a medium is challenging Television and expected to overtake in a couple of years.

Source : Densu e4m Digital Advertising in India 2021