Group M does a follow-up of its global market report that was released in June 2022. The latest report ‘This Year Next Year 2022 Global End of Year Forecast’ analyses the growth and decline of global and Indian advertising market. Here are few key highlights of the report:
- According to the report the global advertising revenue would witness a decline in 2023. The year 2022 had an advertising growth rate 8.4% which would fall to 5.9% in 2023.
- As Group M counts India among its top 10 markets and its advertising revenue from Indian market has been at a growth rate of 15.8% in the year 2022 which will further rise to 16.8% in the year 2023.
- The overall adverting revenue to be generated by the advertising industry in the 2022 is expected to reach $14.9 billion.
- According to the reports the digital advertising share will be on the rise in Indian market. Digital advertising share will be 48.8% and will continue to accelerate. On the other hand, traditional media like Television continues to be the leader of advertising with 36% share. The share will see a growth rate 10.8% owing to the rise in demand of both traditional TV and internet enabled TV.
- Other than traditional media, the reports suggests that the retail media is going to be the game changer as retail advertising in India will reach $551 million in the year 2022 and will see a continues rise to just double itself by the year 2027. By retail media, it refers to the advertisements placed on the retailer’s online network such as apps, websites and other digital channels.
- Although, India will have witness a huge rise in advertising revenue but its global ad share would not exceed by any large numbers.
- The reports also reveal that the owing to maturity in most of the markets, the digital revenue contributed to search, video and display would witness a steep fall form double-digit growth rate to mid-single digit growth rate in next 5 years.
- The report has also concluded that in the year 2022, TikTok will double its revenue.
- For traditional media like the Newspaper, it is not much of a relief as Print-based media continues to decline. The print media witnesses a decline of 7.4% in 2022.
In a nutshell:
Summarizing the Group M report, we can conclude that Digital advertising share is sure shot winner as it continues to grow and its advertising share is likely to reach 73% by the year 2027. Another, advertising media that is growing continuously including Indian advertising market is the retail advertising. Retail media will reach approximately $110.7% in the year 2022.