India's ad revenue projected to reach $18.5 billion by 2024: GroupM report

According to Group M's 2024 Global Midyear Forecast report, global advertising revenue is expected to grow 7.8% in 2024, reaching $989.8 billion. This growth trajectory is set to continue, with the industry forecasted to surpass one trillion in revenue by 2025, increasing by 6.8% to $1.1 trillion, a year earlier than initially forecasted in December 2023. Notably, the revised estimates for the U.S. predict ad revenue to reach $365.9 billion, marking a 5.8% increase over 2023's $345.9 billion.

The report highlights the role played by the U.S. and China in driving global ad revenue, accounting for 57.1% of the total. These countries are set to add $44.5 billion to their revenue in 2024, nearly 1.5 times the combined $27.4 billion incremental revenue from all other markets. Moreover, they house 22 of the top 25 global media sellers and contribute over 40% to global GDP.

India's ad revenue is projected to reach $18.5 billion in 2024, with an anticipated growth rate of 9.5% and 8.7% in 2024 and 2025 respectively. Political advertising in India is estimated to contribute 0.9% to the total ad revenue.

"In the upcoming years, the marketing landscape is poised to encounter potential disruptions from global governments and regulatory bodies, which could significantly impact forecasts and alter predictions," according to the report. 

The report estimates that 69.5% of ad revenue will be informed by AI in 2024 with the percentage reaching 94.1% by 2029, three years earlier than previously forecast. "It is important for advertisers to be experimenting, learning and developing talent in this space now, not in a year’s time," the report stated.

Artificial Intelligence also has the potential to reshape the industry — as do regulations put in place to guide (or control) its growth. Those regulations, of course, depend on politicians, which in turn are determined by upcoming election cycles, as per the report.

Additionally, digital pure-play advertising (excluding the digital extensions of TV, audio, print, and OOH) will grow 10.0% in 2024 and make up 70.6% of total revenue for the year, equaling $699.0 billion. 

Total TV, including both linear or traditional TV and connected TV (CTV), is expected to grow 2.7% to $163.2 billion in 2024, following a decline of 0.4% in 2023. 

The report also suggests that Search advertising revenue is expected to grow 5.3% in 2024 and accelerate to 6.3% in 2025. Search will account for 20.9% of total ad revenue in 2024, a share that we predict will remain fairly stable over the next five years. OOH advertising is expected to reach $49.7 billion, 41.0% ($20.4 billion) of which will be digital OOH. This represents an 11.5% increase over 2023 for total OOH. 

The increasing interconnectedness of financial, commercial, and media systems globally can foster resilience akin to coral reefs, capable of recovering from various disruptions. Embracing innovation, fostering idea exchange, and collectively working towards enhancing the advertising industry's functionality for all stakeholders are key elements that will contribute to a promising and vibrant future.