Video advertising continues to dominate the ad landscape in India accounting for 46 percent of total AdEx or Rs 45,882 crore. This figure includes, not only linear spends but also the growing Connected TV (CTV) advertising.
According to the Madison report released on Thursday, advertising on Connected TV has increased from Rs 450 crores to around Rs 1000 crore in 2023. A combination of increased digital penetration, sports content, OTT content, targeted advertising capabilities and interactive formats have all contributed to this increase.
“The dramatic drop in prices of analogue TV sets and the availability of broadband at low prices has increased CTV population and made CTV find favour with advertisers,” the report said.
According to the report, the decision of Jio to sell IPL on Connected TV on a flat spot rate basis, covering the entire universe of Connected TVs also helped expose advertisers to the impact of connected TV.
Overall, AdEx in 2023 grew by just 10 percent, against forecasts of 16 percent. According to the Madison Advertising Report 2024 released on Thursday, AdEx closed just a little short of Rs. 1 lakh crore at Rs. 99,038 crore in the year gone by.
“ADEX continues to shock us year after year, either positively or negatively. Our GDP is projected to grow at 7.3 percent and reputed global economic Pundits and CEOs of management consultancies have been saying throughout the year that India is the country to be in or to watch out for. It has been our belief that there is somewhat of a loose relationship (though not statistically proven) between the rate of growth of GDP and the rate of growth of AdEX,” said the report.
In 2023 despite GDP having grown at 7.3 percent, AdEx seems to have grown at only 10 percent which is the lowest growth Indian AdEX has seen in the last 6 years, except the COVID year.
Read More: Fact or farce: Why are AdEx projections by Dentsu, GroupM and Madison thousands of crores apart?