Ad spends of ‘Brands of Bharat’ grew by 255% in 2022 over 2020: TAM report

The ad spends of ‘Brands of Bharat’ grew by 255% in 2022 over 2020, the report unveiled by LV Krishnan, CEO, TAM Media Research, on Wednesday, stated. The report named’ ‘Advertisement spending and the future of brands of North Bharat’ stated that the ad spends of Brands of Bharat increased by 52% in 2022 over 2019 and by 255% in 2022 over 2020. It added that on average, 12%+ growth YOY is expected for the sector’s ad spends in the next 4 years and the SMB/MSME sector will continue to contribute 30%+ to India’s GDP.

Digital versions of TV Channels, and print publications have seen 2 times and 6 times the number of advertisers respectively, the report said, adding that hyperlocal categories including real estate, coaching centres, hospitals, food chains/restaurants, retail stores, etc are the ones to look out for as the next big advertisers across digital and traditional media.

Adding further, the report revealed that ad spends of hyperlocal advertisers grew on TV, radio and digital with GEC Genre seeing the highest increase in ad duration. Meanwhile, cable advertising saw 2 lac+ ads across 54 channels. Further, over 70 regional categories showed continuous growth in Print, more than 50 regional categories showed continuous growth in Radio and over 30 regional categories showed continuous growth in TV.

The top 5 advertisers on TV in the year 2022 included Pepsi Co India Holding, Prataap Snacks, Agro Tech Foods, ITC, Parle Products while the top 5 advertisers on Print were Good 2 Great Industries, Gopal Snacks, Bikaji Foods International, Haldiram Bhujiawala, Agrawal Papad and Haldirams Food International.

Talking about ad spends, SMB/MSME group of advertisers contributed to an average of 61% to the overall media ad spends with the total all India ad spends accounting to Rs 85,600 Cr in the year 2022. The report informed that 30% of India’s GDP is contributed by SMB/MSME sector with GDP amounting to Rs 270 trillion with a growth rate of 6.5%.

Adding further, the report stated that the SMB/MSME sector touched Rs 81 trillion with a growth of 7.1%. The global SMB/MSME market is valued at Rs 30 crore with India’s share being 20% which is 6.3 crore, growing at 5% every year. The factors driving the growth of SMB/MSME are new entrepreneurship, booming startups of which 48% is contributed by Urban/Semi-Urban market while 52% is contributed by rural markets.

Presenting the report, LV Krishnan, CEO, TAM Media Research, noted how the advertising landscape in India has evolved in the past 20-25 years. “In the year 2000, when we started monitoring campaigns, 70 per cent of marketing budgets were coming in from multinational companies. Now, we are seeing a completely different picture which many policy makers and even corporates don't look at. India has the world’s largest SMB market. It is not just the number, it's actually the sheer market share of SMBs that is unmatchable in the world.”

Krishnan said that there are over 30 crore SMBs across the world, of which 20 per cent are in India alone. The SMBs contribute to 36 per cent of Indian ad spend now.

He further noted that not just five core categories of education, food, fashion, home decor, medical-health, there are nearly 70 regional and hyperlocal categories that are growing consistently over the past four years, despite the pandemic, inflation and recessionary pressures.

“There are around 50 regional categories that are propelling the growth of the radio sector. On TV, over 30 regional categories are fuelling growth. Same is the story of the digital domain. Hyperlocal advertising is growing all over. Even Cable TV is getting a lot of ads despite its minuscule nature. Radio stations of smaller cities like Nagpur, Auranagabad and Ludhiana are getting good ads,” he explained. 

Click here to download the report: https://bit.ly/3wbZ9Sp