Print, OOH and radio saw sluggish growth in 2023 when it comes to advertising spends.
According to a dentsu report, in 2023, print media contributed 20 percent to the total advertising spends of the year. The medium clocked ad spends to the tune of Rs 18,652 crore during the year. The medium also saw a 1.8 percent decline in spending over 2022. It is further expected to shrink at a negative compounded rate of 3.01 percent to have a share of 16 percent by the end of 2025.
“The 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 to the growth of print publications,” said the report.
Radio on the other hand, despite a decline, will continue to maintain a spending share of 2 percent in the coming years.
In 2023, total ad spends in radio was Rs 1,814 crores.
“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 personalized 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,” said the report.
The Out-of-Home (OOH) medium too will continue to grow with a steady spends share of 2 percent for the next few years, characterised by a compounded growth rate of 8.49 percent.
In 2023, OOH contributed Rs 1,878 crore to the total AdEx.
According to the report, 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 utilizing 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,” said the report.
Cinema that contributed Rs300 crore to the AdEx with a 0.3 percent share will also maintain a consistent share with ad spends projected to increase at a compounded rate of 2.50 percent by 2025.