Advertising to grow at 10.8% in 2021: Report

The Indian advertising industry is expected to bounce back from pandemic disruption and will grow at 10.8% to reach ₹62,577 crore by 2021, said a report by Dentsu India. The industry currently stands at ₹56,490 crore having witnessed degrowth of 17.5% over 2019 due to the pandemic.

Barring digital, every other media vertical took a hit as the majority of brands cut down on offline advertising with outdoor taking the biggest hit. Digital advertising grew by 15.3% last year to touch Rs. 15,782 crore. It is expected to maintain the momentum growing at 20% to reach a market size of ₹18,938 crore by 2021. Currently, the highest proportion of spends on digital is being contributed by social media (29%) followed by online video (28%), paid search (24%) and display banners (16%).

Due to the pandemic, there has been a huge positive shift in the time spent on digital apart from an uptick in online shopping. Therefore, advertising on e-commerce platform touched Rs. 4,700 crore in 2020 which is expected to grow at a CAGR of 40% this year. This has increased advertising spends share on digital from 20% in 2019 to a whopping 28% in 2020.