India advertising market may surge to $12.6 billion in 2023: Dentsu

India's advertising market is poised to expand 14.7% to reach $12.6 billion in 2023, advertising and marketing agency Dentsu has said in a report.

The '2023 Global Ad Spend Forecasts' report said the Indian ad market is forecast to grow 18.1% in 2022, driven by its strong 39.4% performance in the first half of the year.

The report said digital will continue to be a key driver of the Indian ad market with 32% growth and 40% share of ad spends in 2023 when it is forecast to overtake television spending for the first time.


It added that advertisers are upping their investments in search, social, and video due to a huge surge in e-commerce.

The report also said that TV advertising is projected to grow 7.2% bolstered by the acceleration in online retail as brands use TV to grow brand awareness and drive performance metrics.

Continued growth in VOD and connected TV is expected as the number of targeting options broadens its appeal, it added.

The report also stated that the Indian ad market is expected to grow steadily by 15.5% in 2024 and 14.9% in 2025.

GroupM, advertising behemoth WPP's media investment arm, in its 'This Year Next Year 2022 Global End of Year Forecast' stated that India's total advertising revenue has grown by 15.8% to reach $14.9 billion in 2022 led by growth in pure-play digital advertising.

The agency further said that the Indian advertising market is expected to further grow at 16.8% in 2023.

It also noted that digital accounted for the largest chunk of India's total advertising market in 2022 with a 48.8% share. It is expected to continue rising above pre-pandemic levels, the GroupM report said.

Retail media, a subset of digital advertising, has been pegged at $551 million in 2022 and is expected to nearly double by 2027.

TV advertising, which had a 36% share of the Indian ad market, is expected to grow 10.8% this year and continue growing in double digits, driven by strong growth in both traditional and connected TV.