Digital media outshines combined share of TV, Radio, OOH, Cinema in 2023
In 2023, digital media’s share was Rs 6,857 crore more than the combined share of Television (32%), Radio (2%), OOH (2%) & Cinema (0.3%)
dentsu’s Digital Advertising Report 2024 has unveiled that in 2023 digital media surpassed the dominance of traditional media spends with a 44% share of the pie. This amounts to Rs 40,685 crore in the Indian advertising market.
This share is Rs 6,857 crore more than the combined share of Television (32%), Radio (2%), OOH (2%) & Cinema (0.3%).
TV vs Digital
Television’s contribution stands at 32%, amounting to Rs 29,836 crore, according to the e4m-dentsu Digital Advertising Report. The report attributes this significant shift to the relentless enhancement and development of the digital infrastructure, benefiting both the supply and access sides. This further catapulted the growth in segments like OTT, e-commerce, online payments, social media, gaming & e-sports applications across the entire user base, thus establishing digital media as the most accessed, utilised and trusted medium amongst consumers.
Digital media also witnessed the fastest growth rate of 36.6% over 2022, increasing its ad spends share of 35% in 2022 to 44% by the end of 2023. According to the report, it is expected to maintain its impressive growth trajectory, projecting a 25% increase to attain a 50% contribution to the Indian advertising market in 2024.
On the other hand, television ad spending is projected to decrease from its current share of 32% to 28% by the end of 2024. Furthermore, a negative compounded growth of 2.5% is expected, reaching a spend share of 25% by the end of 2025. Having said that, TV still remains a trusted medium for brands and advertisers, the report further revealed. Advertisers perceive the medium as a secure platform for brands, possessing considerable influence and effectiveness in advertising with a capability to enhance other media channels.
Another channel that has gained momentum amongst advertisers (especially over the past two years) is Connected TV aka CTV. The report said that going forward, advertisers are expected to allocate more resources to engage their audiences in such evolved environments, leading to increased investments in CTV advertising. Streaming partners are playing a crucial role in the competition for broadcasting rights and brands are now leveraging programmatic targeting, data-driven insights, as well as dynamic and interactive ad insertions to deliver personalised and impactful advertisements.
Print, OOH, Radio & Cinema advertising forecast
By the end of 2023, print media occupied a spend share of 20% amounting to around Rs 18,652 crores, experiencing a decline of 1.8% over 2022. It is further expected to shrink at a negative compounded rate of 3.01% to have a share of 16% by the end of 2025.
According to the report, this decline can be attributed to the rise of digital technology and shifts in the consumer preferences towards the digital screens, particularly among the younger demographics. Additionally, the rising costs, distribution challenges, and environmental sustainability concerns pose further obstacles for the growth of print publications.
Despite a decline, the radio medium (currently at Rs 1,814 crores) will continue to maintain a spend share of 2% in the coming years. The popularity of traditional radio is attributed to the rising consumption of and competition from online radio. A growing number of audiences, especially the younger audience, now prefer on-demand content, such as music streaming, podcasts, and personalised content on smart devices. This shift also provides advertisers with a more profound insight into audience demographics and consumption patterns enabling more precise targeting opportunities.
The Out-of-Home medium will continue to grow with a steady spend share of 2% for the next few years, characterised by a compounded growth rate of 8.49%. The pivotal factor driving growth in this segment is the digital transformation wherein digital billboards, interactive displays, and programmatic advertising infuse OOH ads with a more dynamic and engaging character.
The evolution of OOH media towards a more data-driven and targeted approach utilising data analytics and location-based targeting empowers advertisers to deliver highly relevant messages to specific audiences, ultimately enhancing the effectiveness of OOH campaigns, making them appealing in the era of digital ubiquity.
Cinema will also maintain a consistent share with ad spend projected to increase at a compounded rate of 2.50% by 2025. It will continue to provide advertisers with distinctive and significantly impactful opportunities to engage hard-to-reach segments of audiences in high-attention environments.
