Experts Speak: General Elections, sports & tech expected to drive ad spends in 2024

The advertising industry touched INR 1 trillion by the end of 2023, as per MAGNA’s Global Ad Forecast. The larger reason behind this surge could be owed to the festive season accompanied by ICC Men’s Cricket World Cup and the release of Bollywood movies like Pathaan, Jawaan, Animal, and more that pushed expenditures.

“The year witnessed a turnaround with the festive season and the World Cup contributing to a positive growth of approximately 12% over 2022,” as per Hema Malik, Chief Investment Officer, IPG Mediabrands India.

With this, India is poised to maintain its position as the fastest-growing media market, projecting a growth of +11% in 2024, according to MAGNA numbers, she continues. 

“Elections and a busy cricket calendar will be the driving tentpoles for media trends in 2024. Digital dominance will persist, and linear TV is anticipated to maintain stability at around 33% adex share, growing at 10%.” 

- Hema Malik

Large events will significantly impact the segmentation of TV homes into categories such as Pay TV, Free TV, and Premium TV, Malik predicts and continues that India will remain a unique market, witnessing growth across media platforms, including Print.

Adding to this, Yatin Balyan, Managing Partner and National Head - Media Investments at Omnicom Media Group, India comments that the trajectory of media spends is expected to see a healthy double-digit growth.

He elaborates that the success of last year's festive season was notably buoyed by the World Cup as a significant driver, generating substantial engagement and spending that largely aligned with expectations. Now, Balyan notes the driving force for advertising in 2024.

“Creativity is going to be a key differentiator for brands and agencies alike this year with a massive potential to be more immersive than ever. The landscape indicates that key categories are driving 80-90% of media contributions, with a significant allocation toward digital platforms. This trend is anticipated to continue through 2024.”

- Yatin Balyan

Mediums & categories to dominate

Globally, advertising spends are expected to increase by 4.6% to $752.8 billion in 2024, Dentsu’s Global Ad Spend Forecast predicts with the ad spend growth to remain above 4% for each quarter. While the 2023 growth has been driven by media inflation, the report suggests that digital will still make up the majority of global ad spends taking up 58.8% and be the main driver of growth capturing the most incremental ad dollar investments.

Omnicom Media group’s Balyan says that digital and TV will continue to be at the forefront, building upon last year's momentum, and Connected TV (CTV) ad spends are expected to grow substantially.

The combined spending on TV and CTV is set to grow by over $12 billion between 2023 and 2027. Moreover, a survey revealed that a majority of respondents believe CTV is more effective than linear TV in measuring campaign performance (52%), converting leads into sales (44%), reaching high-value audiences, and driving ROI. In this context, 65% of marketers plan to increase their spending on CTV advertising.

At the same time, 2023 saw CGI and monument marketing gaining prominence with innovation changing the outlook for OOH advertising. What began as digital out-of-home (DOOH) experiments turned to innovative CGI use cases with brands like Maybelline, Jacquemus, UNIQLO, L’Oreal Paris and more coming up with their versions.

Amarjeet Hudda, COO, Laqshya Media Group notes that 2023 witnessed a steady increase in OOH spending across various sectors. Notably, the Auto Sector, Real Estate, Organised retail, and BFSI sectors emerged as the biggest spenders in leveraging OOH advertising to connect with their audiences.

Hudda states that there will be a lot of spending on OOH from Government and political parties owing to the 2024 General Election. 

“The industry should grow by 20-25% YoY. Emphasis will likely shift towards data-driven strategies, personalisation, and augmented reality experiences in OOH campaigns. Additionally, collaborations between OOH and digital platforms are expected to flourish, creating more integrated and impactful advertising avenues.”

- Amarjeet Hudda

Omnicom’s Yatin Balyan further elaborates that digital dominion is going to be a key trend that further shapes the OOH landscape this year. Cinema sector also anticipates an upward trajectory as Bollywood films regain momentum and South Indian cinema rakes in massive wins of late, and the medium will proliferate substantially in 2024. 

In the spotlight for 2024, a prevailing trend of premiumisation and the allure of exclusivity are shaping consumer preferences. Industries like automotive, insurance, and mobile handsets, are set to command unprecedented attention with substantial investments within the automotive sector, spanning both two-wheelers and four-wheelers. 

Alongside this, BFSI anticipates witnessing a surge in insurance offerings and mutual funds and e-commerce is poised to maintain its stronghold with substantial investments while FMCG continues to move hand-in-hand alongside it. 

On the other hand, the radio industry has experienced both challenges and opportunities in 2023 with an initial slowdown attributed to economic conditions and thereby cautious advertiser spending. 

Preeti Nihalani, COO, ENIL, Mirchi observes that there was a resurgence in the latter half of the year as the festive season coupled with the ICC Men’s World Cup and Elections in a few states, played a pivotal role in driving growth. 

“The radio industry grew by approximately 15% in terms of ad volumes, showcasing its resilience amidst varied growth rates in metro and non-metro markets. Some of the biggest growth-driving categories this year were Real Estate, Automobile, Health & Pharma, and Shopfronts.”

- Preeti Nihalani

With 2024, being marked by similar large-scale events, the ad spending in the Radio advertising market is projected to reach US $28.60 billion in 2024. The spending is expected to show an annual growth rate (CAGR 2024-2028) of -0.46%, resulting in a projected market volume of US $28.08 billion by 2028 as the number of listeners is expected to amount to 3.2 billion users by 2028.

Trends and themes to follow

With digital becoming an important platform to reach out to consumers and ad spends increasing, we have seen multiple trends in 2023 some of which are still on the rise. Jolene Fernandes Solanki, COO, Madison Media Ultra highlights the same.

• Rise of consumption of Short form videos

• Social commerce will continue to rise

• Content creators will continue to be king

• Rise of AI-generated content 

• Contextual and narrow Targeting on Social media

• Technology and AI becoming an important part of all business

“However, with the beginning of depletion of the cookie world this will encourage brands to start investing in building their own datacenter,” Solanki divulges.

This year onwards, advertisers and brands will be focusing on Data Privacy and Brand Safety which is an important aspect for every business and their consumer.

Navigating data privacy issues in emerging channels while still delivering personalised experiences is a critical challenge for brands in today's digital landscape, she highlights.

“Collect only the data that is necessary for providing personalised experiences. Investing in strong security measures to protect user data from breaches. Allow users to customise their privacy settings and the level of personalisation they want to experience.”

- Jolene Fernandes Solanki

Brands also would not want to be seen on content related to violence or terrorism however sometimes ads could appear on content creating a mismatch. The focus on contextual placement of ads becomes a huge challenge, in this case.

Brands also would not want to be seen on content related to violence or terrorism however sometimes ads could appear on content creating a mismatch. The focus on contextual placement of ads becomes a huge challenge, in this case.

Gaming is also becoming a primary focus for most advertisers. Solanki says it is important to ensure that you are not getting any IVT (Invalid traffic) from websites with your campaigns considering the primary consumer might not have attained a legal age.

Mitesh Kothari, Co-founder and Chief Creative Officer, White Rivers Media mentions, “While traditional media remains a mainstay in India, new digital horizons are emerging as primary ad spends. Podcasts, events, short-form videos, and influencer partnerships will be strategic avenues for amplifying your reach and engagement.”

Kothari comments that AI and hyper-personalisation are not passing fads, they are table stakes for success in 2024. 

“Adding voice search optimisation, user-generated content (UGC), privacy and data protection, sustainability and purpose-driven marketing, and social commerce is also likely to take centre stage this year,” he explains. 

2024 is the year to diversify media channels and unlock the immense potential of targeted digital investments with impactful digital media strategies.

Mirchi’s Nihalani shares the larger developments that are anticipated to shape radio's trajectory in 2024. 

“Tier II and Tier III markets are expected to drive growth, leveraging radio's hyperlocal strength and deeper consumer engagement. With the integration of FM with digital platforms players in the industry will continue to strengthen their multiplatform presence,” she explains. 

Nihalani also believes that the much-awaited Government reforms for the industry will provide a boost to the radio industry in 2024 if approved by the Ministry of Broadcast. 

These reforms include making the availability of FM Radio on Mobile Handsets mandatory for all manufacturers, de-linking the annual license fee of FM radio channels from the Non-Refundable One Time Entry Fee (NOTEF) and calculation of the license fee as 4% of the Gross Revenue (GR) of the FM radio channel (excluding GST) and allowing news on radio.

Adopting new technologies and embracing emerging trends will fundamentally redefine the OOH in 2024, opines Laqshya Media Group’s Amarjeet Hudda.

He continues, “The integration of CGI and monument marketing has revolutionised traditional OOH campaigns, enabling brands to create immersive experiences that captivate audiences. The success and buzz generated by these campaigns underscore the pivotal role of innovation in reshaping the outlook for OOH, driving engagement, and amplifying brand visibility digitally.”

As India cements its status as one of the fastest-growing media markets, elections and sports are bound to make for interesting spending opportunities in advertising as brands are expected to woo consumers through innovation and mediums like digital, CTV, OOH and more. 

Hema Malik of IPG Mediabrands India considers that innovation and technology will never be out of fashion. 

“As technological advancements persist, the future of media consumption will likely be characterized by even greater personalization, interactivity, and innovation.”