Indian ad industry revenues to hit Rs 1.2tn in 2024; OOH revenue will increase +16%: MAGNA

Indian advertising industry continues its growth trajectory from Rs 1.1 trillion (US$13.1 billion) in 2023 to Rs 1.2 Trillion (US$14.6 billion) in 2024, 50% higher than pre-pandemic period, as per the MAGNA Global Advertising Forecasts released this month. 

Venkatesh S, SVP, Director - Intelligence Practice, MAGNA India, said: "The Indian advertising market is set to expand by 11.8% in 2024, reaching ₹1.2 trillion, driven by a robust 15.9% growth in digital media. Traditional media formats are also growing, enduring the relevance of Print, OOH and Radio in addition to Television. The government’s emphasis on digital public infrastructure is propelling digital ad spend to nearly half of total revenues by 2026. Our forecast highlights social media's significant rise, overtaking search as the second largest media format after television." 

CPG, Auto, Retail, Government & Political advertising, and Finance are expected to be the most dominant sectors contributing to India’s adex growth in 2024, followed by Pharma, Education, Real Estate, Media & Entertainment and Building Materials making up the top ten sectors.

OOH media is on a growth trajectory and is expected to cross 2019 levels this year. All 3 forms, Traditional, transit and DOOH is showing incremental revenues. Government push on infrastructure and urbanisation will boost OOH inventory especially premium formats. In 2024 OOH revenue will increase +16% to reach Rs 34 billion (US$402 million). DOOH share to total OOH is at 6%, growing at a CAGR of +33%, by 2028 share of DOOH will touch 11%. Roadstar, a unified audience measurement tool for the OOH industry promoted by the IOAA is likely to see light, should help demonstrate effectiveness of the medium and facilitating growth. 

In-cinema advertising was the biggest casualty of covid which has recovered to the extent of 72%. Successive come back from all languages with box office hits in 2023 and good inflow of content in 2024 will drive both demand from advertisers as well as surge in audience foot falls. In 2024, the growth is estimated to be +19% to reach ₹8 billion (US$95 million).

Hema Malik, Chief Investment Officer, IPG Mediabrands India, commented: “India's advertising industry is gearing up for an impressive 2024, with significant growth driven by pivotal events like the general elections and ICC T20 World Cup. We expect substantial ad spend increases across sectors such as auto, retail, and CPG. The anticipated 11.8% growth in ad revenues highlights the market's resilience and potential. With rural demand expected to rise due to favorable monsoons and digital ad spend projected to reach ₹580 billion, the convergence of traditional and digital media presents unique opportunities for advertisers."