The Financial Express
Advertising growth in India significantly comes from TV and digital. TV numbers had moved from 10.8% in 2022 to 13.8% in 2023 and digital increased from 17.3% to 21%, stated the TYNY 2022 Global end-of-year forecast report released by GroupM, WPP’s Media Investment Group. “We are seeing incredible growth in that market in the connected television (CTV) opportunity. The low-cost CTV technology is also making a big play in marketing, making it more accessible from a client or advertiser perspective,” Anita Munro, chief investment officer, Southeast and north Asia, GroupM, chair, APAC Investment Committee, said.
According to GroupM, traditional TV advertisers are optimistic about their budgets increasing into next year within the Indian context. It is certainly a market where there is continued VC funding coming in and an explosion of unicorns that come in with big budgets, consistently so. From a digital perspective, there is still a lot of growth potential in the Indian market, Munro added.
When asked about the role of cryptocurrency in digital marketing, the panel said that in the US, the last year’s Super Bowl was deemed the “Crypto Bowl” because of the large-scale advertising undertaken by cryptocurrency firms, both during and prior to the event. Although, they conceded that the cryptocurrency firms had decelerated their sales and marketing expense and this trend is likely to continue. “The currencies get devalued or they get a bit more conservative with higher interest rates as they are potentially leaving the market or spending less,” they highlighted.
India’s economic outlook appears to be stronger relative to other markets with the IMF projecting real GDP growth of 6.8% in 2022, positioning it as one of the fastest-growing economies in the world, the report observed. The advertising revenue growth forecast for 2022 is 15.8%, with that figure further accelerating to 16.8% in 2023. This growth is led by pure-play digital advertising, which accounts for the largest share (48.8%) in 2022 and is expected to continue rising above pre-pandemic levels. Retail media in India is forecast at $551 million in 2022 and is expected to nearly double by 2027. TV advertising, representing 36% of the advertising market share, is expected to grow 10.8% this year and continue growing double digits, driven by strong growth in both traditional and connected TV, it found.
GroupM expects global advertising to grow 5.9% in 2023, behind the IMF’s expectation for global inflation of 6.5% and a downgrade from our 6.4% June estimate, it reported. Of the largest markets responsible for the majority of growth in the previous two years, the economic outlook is decidedly mixed. In the U.S., the likelihood of a recession fell to 54% in mid-November, down from an October high of 64%, it added.
According to the report, the global advertising growth for 2022 is estimated at 6.5%. Moreover, the report stated that half of the 62 markets we markets which the company tracks have downgraded their growth expectations from the June forecast.
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