Mumbai: India ad spends are estimated to reach Rs 107,987 crore in 2022, growing by 22 per cent over last year, as per the GroupM futures report ‘This Year, Next Year’ (TYNY) 2022. The country is set to be the fastest-growing market in ad spends among the top ten global markets retaining its ninth rank and the fifth highest contributor to incremental ad spends. Also, digital is expected to cross television as the lead medium with a reach of 45 per cent media share in 2022, predicts the report.
GroupM India announced its advertising expenditure (AdEx) forecasts for 2022 on Tuesday. The agency also shared some of the top trends that will shape the Indian consumer and therefore industry. The trends presented were around the shifts in organisational structures, consumer sensitivity and sustainability, digital experience, data, commerce, creator ecosystem, growth of sports business, use of technology, performance marketing, addressable TV and evolution of offline media.
“The pandemic has pushed the envelope towards digital and has hence topped the pie, with advertisers keen to explore more of it," remarked GroupM South Asia CEO Prasanth Kumar. "E-commerce and telco will drive the economy, we also expect FMCG and auto to slowly catch up and contribute towards this growth.”
GroupM South Asia president – growth and transformation Tushar Vyas opined that as digital capabilities enhance and connectivity becomes omnipresent, technology will further poise and change almost every sector of India’s economy. “With the pivot to digital by consumers and companies alike, digital emerges as the largest medium in 2022 with an estimated share of 45 per cent. Digital is estimated to grow by 33 per cent in 2022," he shared.
“With consumers gravitating towards themes like sustainability and sensitivity, brands are adapting rapidly, and media has the power to lead this change," said GroupM South Asia chief strategy officer Parthasarathy Mandayam. "Flexible, specialist and distributed teams are the order of the day and this trend will be further enhanced with the arrival of 5G. The emphasis on performance marketing has further accelerated and is at the very core of marketing. Intelligent & responsible leverage of first-party data will be critical for brands & marketers in driving this.”
GroupM India president – data, performance & digital products Atique Kazi added, “Marketers will have to bring together innovation, intelligence and integration in their strategy to win on Digital. In 2022; we will also see addressable TV coming to India in some scalable form and connected tv surge with smart TV sales and new fibre/broadband connections will be on the rise. Focusing on eCommerce, performance marketing, outcome-based media and addressable data is winning formula in 2022.”
“While digital is set to take the larger pie, we are expecting a noteworthy revival for OOH & cinema too after a tough period," said GroupM India president – investments and pricing Sidharth Parashar. "Advertising on e-commerce, the rise of influencers and short format videos along with OTT has witnessed growth in 2021, which would continue in 2022.”
GroupM India president – partnerships and trading Ashwin Padmanabhan added, “The rapid digital transformation of companies, brands and the way they connect with consumers is reflected in the global advertising spends as well as the way even traditional media is expanding with their digital extensions. India in 2022 will see a rapid manifestation of these Global trends and thus fundamentally altering the media industry.”
