Indian advertising to see muted growth in 2023
1 min read 13 Jun 2023, 01:29 PM ISTThe macroeconomic environment has prompted some markets, including India to trim expectations for 2023 compared with the December 2022 forecast
PremiumNew Delhi: India’s ad revenue is expected to grow by a subdued 12% to $17.3 billion in 2023, according to a report by advertising agency GroupM. However, the agency estimated this figure to rise to 13.6% next year.
The report titled ‘This Year Next Year 2023 Global Mid-Year’, said the macroeconomic environment has prompted some markets to trim expectations for 2023 compared with the December 2022 forecast. This list includes India, which is expected to see a 12% growth against the initial projection of 16.8%.
Global viewership trends are moving towards connected TV (CTV), encompassing digital, professionally produced video such as FAST and AVOD, excluding YouTube. The shift is particularly pronounced in major linear TV markets, leading to anticipated compound annual growth rates (CAGR) of 4.1% in the US, 2.8% in the UK, and 2.0% in China from 2023 to 2028.
Japan, the second largest TV market, is forecast to remain flat through 2028. Brazil and India, the number three and four linear TV markets, respectively, are still estimating growth, but at slower rates than that of the total advertising market.
But last year saw an increase in India’s sports sponsorship which grew from 2021’s $1288 million to $1799 million. Of this, sponsorships and media spends saw a disproportionately higher increase than endorsements. In India, the streaming and linear TV rights for the Indian Premier League (IPL) sold in 2022 for more than $6 billion dollars, with Disney ceding streaming rights to Viacom18. Estimates for the National Basketball Association (NBA) rights range as high as $75 billion over multiple years and will likely result in a split of rights across companies, with many expecting Warner Bros. Discovery to invest to keep live sports audiences for its linear channels and new streaming platform Max. Beyond media revenue, sports sponsorships are another source of growth
For this year’s print media projections, newspapers and magazines will continue to see a decline despite digital extensions growing, which will make up half of total print revenue in 2028. In 2022, print declined 2.9% versus 2021 (when there was uncharacteristic growth) and 2023 is forecast to decline a further 4.8%. Magazines are experiencing steeper declines; they represent just over a third of total print revenue. In terms of print’s share of total advertising revenue, the 2023 figure stands at 5.7% when including digital extensions. That is expected to fall to just 3.7% in 2028.
Germany remains the second-largest newspaper market behind the US, and German newspapers are expected to see 13.4% of total advertising revenue in 2023, more than double the global average. However, even in Germany that share is expected to fall to 9.2% in 2028. Norway, Sweden and Finland (where paper and pulp products accounted for 13% of exports in 2021),also have relatively high shares of newspaper advertising, as do several Asian markets including Hong Kong, India and Singapore.