After a strong recovery in the second half of 2021, the Indian advertising industry expects strong double-digit growth in overall advertising expenditure (AdEx) in 2022 due to the entry of new advertisers in the form of technology companies. general public and the increase in media spending by traditional advertisers. Experts believe digital and TV will drive AdEx’s growth, but print, radio and outdoor are expected to recoup some of the lost ground due to aggressive advertiser spending across all categories.
The above assumption is based on the premise that there will be no major disruption to the economy due to Covid-19. However, the rise in cases of the novel coronavirus variant Omicron remains a major concern for media platforms, advertisers and agencies.
Ashish Sehgal, Director of Growth at ZEEL – Ad Revenue, estimates that AdEx will grow 15% in 2022 if things continue as they are and there is no disruption. He further stated that TV AdEx in 2022 will be driven by new era advertisers, elections, growth in ad inventory yield, FTA, GEC and movie channels in Hindi and regional markets.
“AdEx was down 25-30% between April and June due to the second wave. If we don’t have another wave of Covid-19 in 2022, that in itself will add 3-4% growth to the overall AdEx, as AMJ is the second largest quarter after the festive quarter which is OND,” did he declare.
While digital and television are expected to be the main winners, print will also see significant growth from a weaker base. “Television and digital will drive AdEx growth, but this time print will also see growth, which will also contribute to overall growth. Print will recover some of its lost AdEx, but it is difficult to predict the extent of recovery. Printing has been developing well since September,” Sehgal noted.
Sehgal noted that the combination of new and traditional advertisers bodes well for the advertising ecosystem. He also expects categories such as travel and automotive to start mass advertising, which will help AdEx’s overall growth. “FMCG has increased its digital ad budgets, but they have not reduced TV. FMCG’s overall media spend has increased, so TV has not seen any reduction in FMCG investment. TV AdEx will increase, but the percentage will be lower for FMCG and the percentage will be higher for Tier 2 and Tier 3 customers. New age companies will spend more money because they want to reach critical mass,” he said. he declares.
For television, growth will come from higher prices as advertising inventory is limited and the entry of new-era digital brands has driven up prices. “AdEx’s growth in 2022 will be through yield. Gone are the days when agencies made plans based on price. “advertisers in the technology space. These advertisers are now competing with traditional advertisers for this space on television. This is slowly driving up prices,” Sehgal said.
Sujata Dwibedy, Commercial Director of Dentsu India-owned Amplifi Group, agrees with Sehgal. Television, she said, remains an important platform for both new and traditional advertisers.
“Television will remain the most popular and robust medium in India despite the pandemic. TV advertising volumes will continue to show healthy growth, we have already seen this trend in the second half of 2021. Historically, marketers have leveraged the power of TV to increase the visibility of their brands. Even newer categories such as edtech, fintech, e-commerce and now cryptocurrency advertisers have also gone on TV for quick reach and awareness. Television contributes nearly 40% of media ad spend and has recovered well. Ad revenue saw a steep decline initially but managed to rebound with new content, sporting events such as the Indian Premier League (IPL), World Cup and an upbeat festive season with many properties across the Impact,” she said.
In digital, Dwibedy thinks OTT, search, video and voice should do well. “For brands and marketers, this represents a stronger opportunity to explore a comprehensive brand strategy. Expected to see more technology innovations next year, new platforms and innovations. Digital will be the medium key for digital-focused brands and consumer tech companies More D2C brands would enter the market, existing emerging categories would grow further with more brands entering the space.
She also expects the traditional media categories to fully recover in 2022. “Expecting a full recovery in print and radio, in addition to their strengthening of their digital wing. OOH & Cinema should go back. All of this would happen provided the year goes well without another round of the pandemic.
According to Dwibedy, connected TV has become a key way to reach premium customers. This segment will experience significant growth in 2022. “During the pandemic, connected TV has established itself as a video source for millions of viewers. Even as the growth of broadband connections stalled, marketers began to focus on CTV. CTV’s steady growth is expected.
DDB Mudra Group Country Head & Managing Partner – Integrated Media Rammohan Sundaram said the agency expects AdEx growth to be in the range of 10-12%. “As an organization, we’re seeing growth in the 20% range with our client set in terms of AdEx, but industry-wise, I think it’ll be in the 10% to 12% in 2022.”
For him, some of the biggest takeaways from 2021 are sporting events that have had a huge impact and non-fiction properties that have attracted a slew of new advertisers. Additionally, the advertising dollars spent by consumer technology companies have been unprecedented. “Due to Covid-19, digital adoption has naturally increased, leading to digital/consumer tech companies spending a lot of money on advertising, which has led to growth in AdEx,” said he added.
He thinks radio will see many innovations in the future, whether it’s podcasts or adding value to advertisers through their digital presence and RJs going out of their way to create engagement with audiences. .
According to a senior official from a leading media conglomerate, AdEx’s growth in 2021 could be 6-8% as many advertisers did not fully spend in 2021. He added, however, that the AdEx is expected to grow more than 10% in 2022. He also said the growth in gross ad revenue from Google and Facebook poses a big challenge for traditional media companies.
“Polarization is definitely happening and only the big properties are able to hold their own. Everywhere else there is massive pressure and this market is taken mainly by Google followed by Facebook. Google and Facebook attract many new advertisers. Our estimate is that 40-45% of what Google gets comes from new advertisers such as small and medium-sized businesses (SMBs). I don’t think Google and Facebook are eating into the existing ad pie. At the same time, they put pressure on conventional media on how to expand. Not just conventional platforms, even OTT platforms are feeling the pressure due to the growing duopoly,” the official said.
To protect their turf from encroachment by Google and Facebook, the official suggested that the digital arms of most media companies should do much better than they have done so far. “In addition to investing in advertising technology, digital platforms should also offer better branding options. The real money television has is in branding.
According to a seasoned ad sales professional at a major media company, most broadcasters will see 10-20% growth in ad revenue in 2021 due to a strong second half. He also said that television will appeal to a diverse set of customers due to its inherent strengths. He thinks print and radio will also see growth in 2022.
“Any brand that wants to build credibility at scale will have to come to TV. Digital enables performance marketing, but brand building happens on TV. If you look at all the unicorns and consumer tech companies , they are one of the biggest advertisers on TV. Much of the growth generated by the TV industry in 2021 is due to brands like Byju’s, Cred, PharmEasy and Vedantu. I think most of the Broadcasters will show ad revenue growth of between 10 and 20%.Even media like print, radio and outdoor are growing.Is their growth up to pre-Covid levels?Probably not, but c is more than it was last year,” he added.
Mirum India Media Director Preetam Thingalaya pointed out that 2021 will be a break even year for AdEx due to revenge spending by advertisers. He also said that one of the major trends of the year was that the online industry advertised heavily on traditional platforms while traditional advertisers heavily used digital. According to him, Google, Facebook, OTT and short video platforms have seen tremendous growth in 2021.
“There has been a paradigm shift in the industry. Consumer technology companies spent a lot of money on advertising in 2021. These companies played a significant role in the overall increase in AdEx. There are still many advertisers who spend less on advertising. Edtech, gaming and cryptocurrency platforms have spent a lot of money on advertising across all mediums. Many new era advertisers have outpaced some of the traditional advertisers in terms of overall spend,” he said.
He thinks 2022 will see appropriate growth as new categories outspend as big traditional advertisers and traditional advertisers have also prepared for growth. “Old and new customers will spend money on advertising,” Thingalaya said.
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