MAM

India's ad-revenue to rebound over 2020-25 with 13 % CAGR : MPA

The report features ad spends in key APAC markets in 2020 & growth projections till 2025.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2021/06/14/photogrid_plus_1623655728990.jpg?itok=1LXjPuwI

New Delhi: After a 27 per cent plunge in 2020, ad revenue in India is forecast to rebound strongly over 2020-25 with a CAGR of 13 per cent, said a new report released by Media Partners Asia (MPA) on Monday.

According to the report- Asia Pacific Advertising Trends 2021, digital advertising is expected to benefit from India’s expanding digital economy across online gaming, ed-tech, food and delivery platforms, outgrowing television to become the largest advertising segment by 2024.

Overall, APAC advertising expenditure is forecast to grow at 5.4 per cent CAGR to reach $245 billion by 2025, powered by growth across key markets such as China, India, Japan, and Korea, says the report.

Digital ad-revenue most resilient

According to the report, digital ad revenue remained most resilient through the pandemic, with consumers across APAC spending more time online and brands accelerating digitization efforts. The medium is projected to contribute 67 per cent of APAC ad revenue in 2025, eating into TV’s share (18 per cent), it said.

The role of e-commerce in advertising surged in 2020, with e-commerce contributing an estimated 39 per cent of China’s ad revenues, while growing significantly, albeit from a small base, in India, Indonesia, Japan and Korea. Search and social advertising benefited as well. As per MPA’s projections, digital advertising’s share of net advertising spend is likely to grow from 59 per cent in 2020 to 67 per cent in 2025.

TV ad-spend to rebound in 2021 growing 4.6 per cent Y/Y

Television advertising faced further pressure in 2020 as advertisers accelerated their transition to digital, declining 15 per cent Y/Y to $43.3 billion.

While the dips in TV ad spend are expected to be permanent in mature markets such as Australia and Japan, the medium remains important in key markets like India, Indonesia, the Philippines and Thailand where it retains its position as the largest ad segment as of end-2020. Overall, TV advertising is expected to rebound in 2021, growing 4.6 per cent Y/Y, before secular decline sets in again in 2023, according to the report.

MPA projects total Asia Pacific TV advertising spend to grow at a CAGR of 0.7 per cent over 2020-2025 to reach $44.8 billion in 2025.

Online video advertising to grow $ 33.3 billion in 2025

TV broadcasters are growing online video ad market share through catch up and dedicated AVOD streaming services, particularly in connected TV markets such as Australia, Japan and Korea. MPA estimates online video advertising, led by YouTube, contributed 16 per cent to APAC digital ad revenue in 2020. With various local and regional AVOD and freemium platforms, including broadcaster-led platforms driving growth, online video advertising is forecast to grow to $33.3 billion in 2025, representing 20 per cent of the APAC digital ad pie while topping 40 per cent in emerging markets such as India & Indonesia.

Ad-spend to exceed $ 200 billion by end-2021 in Asia-Pacific

According to the report, net advertising expenditure in Asia Pacific, calculated after discounts, declined 4.3 per cent Y/Y in 2020 as Covid-19 ravaged the countries across the globe. Pandemic-induced macroeconomic uncertainty softened advertiser demand in the first half of 2020.

However, as economies rebound, recovery is underway with ad spend forecast to exceed $200 billion by end 2021, topping pre-pandemic levels for the region. China was the single largest contributor to advertising expenditure, with 55 per cent share of APAC ad spend. The growth was largely led by digital advertising, which accounted for 70 per cent of China’s total ad spend, anchored to short video, live streaming, social, and e-commerce platforms. Ad markets in Korea and Vietnam will also return to pre-pandemic net ad spend levels by end-2021.

Most other countries including India will follow in 2022, bolstered by the growth of digital advertising; TV advertising will return to pre-pandemic levels in India, Thailand and Vietnam, it said.

KOREA: Ad spend fell one per cent in 2020, with a 9 per cent decline in TV advertising and bolstered by 12 per cent growth in digital advertising, led by mobile, display and search ads. The Korean advertising market is forecast to grow at 6 per cent CAGR over 2020-25. TV has bounced back strongly in Q1 2021 and digital advertising, including video, continues to maintain double digit growth levels.

JAPAN AND AUSTRALIA: Ad spend is projected to grow by 2 per cent over 2020-25, led by digital. TV remains scalable in both markets. Video’s share of digital advertising is growing in both markets with global tech majors dominant though broadcasters are growing rapidly from low base through dedicated streaming platforms.

SOUTHEAST ASIA (INDONESIA, PHILIPPINES, THAILAND AND VIETNAM): Ad markets are recovering rapidly with TV & online benefiting. Indonesia remains Southeast Asia’s largest advertising market and is projected to grow at 4 per cent CAGR over 2020-25, powered by digital (including video) and free TV.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/04/adi_godrej.jpg?itok=yChh5ccq
Adi Godrej steps down from GPCL board

FMCG major Godrej Consumer Products Ltd (GCPL) on Wednesday announced that Adi Godrej will step down from the board of directors of the company, effective 30 September. He will continue to remain chairman emeritus of the company.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/04/photogrid_plus_1628082451517.jpg?itok=Jt94qRkf
dentsu X tops global RECMA rankings for third time in a row

Mumbai: RECMA, the independent research firm that evaluates media agencies, has launched its ‘overall activity volume rankings’ report for July 2021. According to the report, dentsu X has been acknowledged as the ‘fastest-growing media agency globally'. With 8.8 per cent Year-on-Year (YoY) agency...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/04/photogrid_plus_1628076811731.jpg?itok=WfuIh5Q4
The Sleep Company ropes in Anil Kapoor as brand ambassador

Mumbai: D2C mattress maker The Sleep Company has introduced Bollywood actor Anil Kapoor as its first-ever brand ambassador.

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/04/photogrid_plus_1628075512726.jpg?itok=ygQ4WLah
Myntra’s latest campaign features leading fashion icons

Mumbai: Fashion e-commerce platform Myntra has launched its latest brand campaign featuring leading fashion icons and the company’s new brand ambassadors Hrithik Roshan, Vijay Deverakonda, and Dulquer Salmaan. Existing celebrity ambassadors Kiara Advani and Samantha Akkineni are also part of the...

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/04/photogrid_plus_1628072655722.jpg?itok=paR-Y3up
Aditya Puri joins Solara Active Pharma's board as chairperson

Mumbai: Solara Active Pharma Sciences Ltd on Wednesday announced that veteran banker and HDFC Bank's former CEO & MD Aditya Puri has joined its board as the chairperson. Puri will also head the Nomination and Remuneration Committee of Solara's board. "Aditya Puri, former MD of HDFC Bank and a...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/04/photogrid_plus_1628069205615.jpg?itok=Put51IQJ
Shipsy onboards Mohamed Reza as VP-head of marketing

Mumbai: Supply chain and logistics management platform Shipsy has brought on board Mohamed Reza as vice president - head of marketing. This development comes when the company is rolling out aggressive expansion plans and strengthening its foothold in the global supply chain and logistics market.

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/04/photogrid_plus_1628059835889.jpg?itok=VM5h0kCD
Leo Burnett bolsters strategic planning team with new appointments

Mumbai: Creative solutions agency Leo Burnett India on Wednesday announced new appointments to bolster its strategic planning team. Mittu Torka and Bonnie Michael are named executive vice president – strategy in Mumbai and Ankit Singh is elevated to executive vice president – strategy in Delhi.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/04/photogrid_plus_1628059369398.jpg?itok=KMlwe03y
Mrig Sight Media bags digital media mandate for Devagabond

Mumbai: Global branding and marketing agency Mrig Sight Media has bagged the digital media mandate for Devagabond, a travel gear manufacturer. The account will be handled out of the agency’s Noida office.

MAM Media and Advertising Account
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/08/04/photogrid_plus_1628058116234.jpg?itok=4wb6xcsk
Grapes Digital expands footprint; strengthens team in Bangalore market

Mumbai: Marketing agency Grapes Digital has announced its expansion by strengthening its first-ever team in Bangalore. In the last few months, the company has been on an expansion phase and has added new members in both the offices, Delhi and Mumbai.

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required