FY2024 is likely to be a muted year for advertising spend with a 6 per cent growth, against 12 per cent growth last year and 42 per cent growth in the previous year. It is expected to touch $16-17 billion in FY24, owing to a slowdown in consumption observed in the last 5-6 quarters as well as a dip in PE/VC investments because of rising interest rates and geopolitical tensions, finds RedSeer Consulting.
Additionally, the advertising sector is recovering from the impact of the 28 per cent GST levy on the Real Money Gaming format.
Despite macroeconomic headwinds leading to most consumer sectors controlling their ad spending, e-commerce platforms continue to spend in FY2024 with a 15 per cent growth.
Digital advertising market in FY24 is expected to remain muted at a 6-7 per cent growth rate and reach $8.8 - 9.3 billion in the fiscal, with global platforms such as Alphabet and Meta set to moderate their market share from 62 per cent in FY2023 to 60 per cent in FY24. E-tailing and hyperlocal, on the other hand, is expected to grow at 20 per cent in FY24 and increase its market share from 18 per cent in FY23 to 20 per cent. Content-based platforms are set to continue retaining their 20 per cent share.
Digital Advertising is well on its way towards amassing a significant user base of 800 million internet users which will fast surpass television viewership in 1-2 years.
With consumption to rebound in the next 4-5 years, advertising spend is projected to grow at 9-10 per cent CAGR over the course of the 4 years, with digital advertising growing at 11-12 per cent in the same period.
