First Half of 2024 in Advertising outshines 2023, fueling optimism for H2

The first half of 2024 (H1 FY24) has been eventful for the Advertising industry. The Fast Moving Consumer Goods (FMCG) sector, known for being the biggest spender in the industry, found itself under scrutiny by the Food Safety and Standards Authority of India (FSSAI). The food and beverages industry also faced significant challenges.

On May 7, 2024, the Supreme Court issued a directive requiring all advertisers and advertising agencies to submit a ‘Self-Declaration Certificate’ before publishing or broadcasting any advertisement. This mandate followed controversies involving advertisers like Patanjali, who were accused of making misleading claims in their advertisements. In response to industry feedback, the Ministry of Information and Broadcasting (MIB) has since limited this requirement to the food and health sectors only.

On the other hand, a billboard collapse in Mumbai led to more chaos. 

While the Advertising mediums have seen many ups and downs in the first half, which are discussed in detail below, the numbers have panned out well for the industry and seem to be in alignment with the projections made in the beginning of the year. Sports has had a major contribution to growth. 

Research reports have projected a significant increase in India’s ad revenue for 2024, with estimates indicating a growth rate of around 9-10%. According to the TAM report, ad revenue is expected to reach $18.5 billion, reflecting an anticipated growth rate of 9.5%. Meanwhile, GroupM’s TYNY report forecasts a 10.2% increase in ad revenue, reaching ₹1,55,386 crore in 2024. 

Reflecting on the projections and the industry’s performance so far, Ajay Gupte, CEO - South Asia, Wavemaker said, “Jan-March 23 was a disaster. So Jan-March 24 was a phenomenal improvement over last year.”

Gupte explained that the Advertising industry saw favourable winds, particularly in the automobile and durable goods sectors. The heatwave stimulated sales of refrigerators and air conditioners, while beverages like Pepsi and Coke also performed exceptionally well. The pharmaceutical sector benefited from increased demand for painkillers due to weather-induced illnesses.

He added that start-ups learned the hard way. The funding winter of 2023 significantly reduced their capital from 100 crores to 10 crores. However, this year, that 10 crores has grown to 12 crores, marking a 20% increase. This resurgence indicates a positive trend. 

Highlighting the mediums that performed well in H1, Deleise Ross, Senior VP & Business Head, Mudramax, noted that video—primarily Connected TV and Digital Video—witnessed the most growth over the last year. These mediums provided advertisers with the flexibility to pick and choose the most viable budget options, driving their popularity and effectiveness.

Impact of major men’s cricketing tournaments

The most compelling sports tournament, Men’s IPL which usually brings in a significant chunk of revenue in the first half of the calendar year experienced a rebound in the ad volumes in 2024, recovering from a substantial 50% drop in IPL 2023 compared to the previous year. Notably, the number of categories, advertisers, and brands rose by 40%, 26%, and 21% respectively showcasing a significant expansion in the Advertising landscape.

Gupte observed, “IPL may not be up to the expectations of the media owner, but it's done fairly well. We've had a lot of FMCGs and sponsors come on board. So that has also done well.”

Britannia, Parle Products, Mars chocolates, Tata Consumer Products, and Havmor Ice Cream, Charged by Thums Up, Cadbury Dairy Milk, Hide & Seek, Mountain Dew were some of the FMCG brands in the sponsor lineup.

As per mFilterIt report, the BFSI sector has directed a substantial 70% of its Advertising volume towards CTV platforms, showcasing a strong strategic focus on reaching audiences through this channel. On the other hand, the F&B sector maintained a ratio of 6:4 in favour of CTV over other platforms, indicating a preference towards leveraging CTV for Advertising campaigns within this industry.

Highlighting the performance of digital ad spending, Ross said, “IPL had a relatively higher impact on the budgets of the year. Auto, Foods & Beverages along with Fantasy Leagues are the biggest categories advertising. With IPL TV & Digital were considered by brands. But for the World Cup, Connected TV was highly preferred by brands and advertisers. This was due to the medium being able to enhance visibility along with being cost effective.”

Need for improved safety and stringent protocols in OOH

While Digital, TV and Connected TV have performed well in H1, the need for improved safety and stringent protocols in out-of-home (OOH) advertising has come to the forefront due to recent events.

On May 13, a 120x120-foot hoarding collapsed on a petrol pump at Chheda Nagar in Ghatkopar, Mumbai, due to a dust storm and unseasonal rains. As per reports, the hoarding allegedly weighed 250 tonnes and killed at least 16 people while 75 others were injured. 

Following the collapse, the BMC has also issued notices to the Central Railway and the Western Railway administrations to remove oversized hoardings erected on their land. As per a release, the notices have been issued under Section 30 (2) (V) of the Disaster Management Act, 2005, for the removal of hoardings above 40 x 40 feet in size.

Amyn Ghadiali, Country Head - India (GZ Creative Digital), said, “The billboard incident certainly made advertisers more cautious about ensuring that ad locations are thoroughly vetted. However, this did not lead to a complete rethink of out-of-home (OOH) advertising.” 

He shared that each advertising medium has a unique role in advancing campaigns and communication. The unfortunate incident highlighted the need for improved safety and stringent protocols, reflecting more on the authorities responsible for maintaining infrastructure rather than on the advertisers themselves. 

Ghadiali added, “Advertisers recognise the continued value of OOH advertising in reaching broad audiences and driving brand visibility. As a result, they continue to invest in OOH, albeit with enhanced due diligence regarding location safety and structural integrity.”

Speaking about OOH, the recent mishaps have only been a wake-up call for the industry to follow rules & guidelines and pick the right media. It has not directly impacted the investments in OOH but has made the brands more conscious of their choices and responsibility towards society.  - Namrata Soni, Director – Media Planning & Buying, Dentsu Creative India 

Soni highlighted that usually, June to July is a lull period for most of the brands & advertisers, considering the onset of monsoon across larger parts of India. However, July marks the beginning of one of the busiest quarters and a great opportunity for advertisers to leverage the EOSS buying patterns of consumers. 

She said that these points indicate that brands will continue to invest across channels and the value is set to grow over the months as we enter the much-awaited Festive period.

Validating the authenticity of brand claims

One of the biggest challenges that the industry faced in H1 is following the SDC mandate. However, the MIB issued a new directive earlier this month mandating the Food and Health sectors to upload an annual self-declaration certificate.

Soni noted, “The implementation of SDC led to an initial few weeks of uncertainty and ambiguity. However, the recent update received from the court has made it very clear that only specific categories of industry are required to submit the SDC.” 

This mandate has led advertisers and agencies to be more diligent in their claims, ensuring authenticity and transparency.

Ghadiali said, “The introduction of the Self-Declaration Certificate (SDC) is a significant step towards ensuring transparency and keeping consumers well-informed. It mandates that advertisers and agencies must now validate the authenticity of their claims.” 

This requirement has prompted a more meticulous approach in ad creation and strategy, fostering greater responsibility in the industry.

2024 to surpass 2023’s AdEx

As we look ahead to the second half (H2), experts are optimistic about growth, driven by festive seasons and continuing economic recovery. 

Ghadiali projected, “India's total advertising expenditure (AdEx) is projected to grow by 12.2% in 2024. This growth is driven by robust economic recovery, increased consumer spending, and significant digital transformation across sectors.”



The festive period, spanning from October to December, is crucial for ad spending, with brands planning extensive campaigns around major festivals like Diwali and Navratri.

Soni stated, “The AdEx is expected to grow at a steady rate in July and pick up further in August and September considering all the festive campaigns that will begin across India.” 

With increased consumer spending and strategic festive campaigns, the Advertising industry is poised to surpass last year’s figures.

Ross provided insights into the expected growth in H2. “Spends in H2 would broadly remain the same as compared to H2 of last year. In case there is a spike it will be majorly due to BFSI, FMCG & Auto. These categories normally peak during the festivities and second half of the year.” 

H1 of 2024 has set a foundation for the Advertising industry, overcoming early challenges and capitalising on key events like IPL. As we move into H2, with the festive season approaching, industries are likely to increase their advertising budgets, ensuring steady growth in the latter half of the year.