FMCG rules Indian ad market with 34% share, e-comm at 14%: dentsu-e4m report
In terms of digital media spends, FMCG takes the biggest chunk at 36%, the report says
The 8th edition of the dentsu-e4m Digital Advertising Report 2024 was unveiled today in Mumbai in presence of top industry leaders. The theme of this edition is ‘A Small Step for Humanity, a Giant Leap for Marketing’. The latest report delves into the dynamic landscape of the Indian advertising industry and provides insights about the evolving trends and media spends. As per the dentsu-e4m Digital Advertising Report 2024, the FMCG category holds the largest share in the Indian advertising market, contributing 34% (Rs 31,428 crore), followed by e-commerce (14%), consumer durables (6%), and automotive sectors (6%). Tourism, Government and real estate saw significant growth in ad spends over the previous year.
Talking about the contribution of the FMCG sector, the report revealed that the FMCG segment makes the highest contribution of 36% (Rs 14,755 crore) to the Indian digital media industry, showing a growth of 29% over the previous year. This spending has grown by 29% over the previous year. Meanwhile, the e-commerce category contributes 19% (Rs 7,865 crore) to the digital media industry, followed by pharmaceutical and automotive segments.
The dentsu-e4m report further revealed that the FMCG segment spends 47% of their media budget on television and digital respectively, 4% on print, 0.5% on radio, 0.3% on cinema and 1% on OOH. “Historically, approximately one-third of the annual spends in Indian advertising industry has been attributed by the FMCG category. In 2023, the FMCG category witnessed an ad spends growth of 22.6% over 2022”, the report stated.
The FMCG sector has witnessed remarkable growth in recent years, fuelled by factors such as rising consumer demand, urbanization, increasing incomes, and changing lifestyles. This sector encompasses a wide range of everyday products like packaged foods, beverages, personal care items, household goods, and more.
According to the report, the Indian advertising industry grew by 8.6% in 2023 and is expected to grow by 9% to reach Rs 1,01,591 crore by the end of 2024. This growth is attributed to key events this year, including Assembly and Lok Sabha elections, the IPL, sports events, and the festive season in India. In 2024, growth in ad spends is anticipated in categories like automotives, FMCG, Government and social organizations, and travel and tourism. The predictions reveal that the Indian advertising industry is set to grow at a compounded rate of 9.86%, reaching a market size of Rs 1,12,453 crore by the end of 2025.
