Indian ad spends to grow between 6-8% annually over the next 5 years: GroupM TYNY Report

groupm tyny global report 2021

With 2021 coming to an end, GroupM Global TYNY report shares the year-end forecasts and key takeaways in advertising industry across media channels.

As we come to the end of 2021, GroupM has released its end-of-year TYNY report 2021. The Global end-of-Year forecast shows a much faster expansion in the advertising industry than previously anticipated, driven primarily by growth in the US, UK, and China.

Some of the key factors causing faster-than-expected growth include: 

  • New small businesses allocating greater resources to nationally oriented digital advertising
  • China-based marketers capitalizing on low-cost international shipping and using global digital  platforms to reach overseas consumers 
  • App developers or other “digital endemic” businesses rooted in the internet economy, many of  which focused on advertising-driven top-line revenue growth  

Encapsulating the overall Industry Forecast, the GroupM TYNY report 2021 highlighted:  

  • 2021 growth: 22.5% (excluding U.S. political advertising), an upward revision from June’s prediction of 19.2%. 
  • 2022 growth: 9.7% (excluding U.S. political advertising), an upward revision from June’s prediction  of 8.8%. 
  • Many underlying trends appear to be disproportionately concentrated in the U.S., the U.K. and  China, which together account for approximately 70% of all the industry’s growth, despite making  up about 60% of the total market. 

Looking at the top 10 advertising markets over the next five years, growth should get back to the  mid-to high-single digits:  

  • France, Germany, Australia and the U.S. all poised to grow in a range of 4-5% annually, on  average, over the next five years. 
  • India, the U.K., Brazil, Canada, Japan and China are forecast to grow between 6-8% annually, on average.  

Also read: Social media AdSpends to reach $177bn in 2022, overtaking TV at $174bn: Zenith AdSpends report

Here are the major areas considered in detail towards the end of 2021: 

Digital advertising: likely end 2021 growing by 30.5%, up from June’s forecast of 26% growth.

  • Digital advertising accounted for 64.4% of all advertising in 2021, up from 60.5% in 2020. 
  • Alphabet, Meta, and Amazon account for 80-90% of the global total.  

Television advertising: forecasted to grow by 11.7% in 2021, up from June’s estimate of 9.3%. Given 2020’s decline of 13.7%, the industry is not expected to return to 2019 levels until 2023. 

  • Subsequent years will be roughly flat up by 1-2% per year through 2026—for television advertising in most major markets around the world, as the largest advertisers continue  to incrementally shift spending.  
  • Overall, Connected TV+ will account for about 10% of total TV advertising in 2022 ($17 billion of a total of $171 billion) and is expected to double by 2026.  

Audio advertising: Expectations for audio are that it will grow 15.6% in 2021 and 6.4% in 2022. In subsequent years, the report assumes a reversion to historical trends: largely flat.  

OOH advertising: Outdoor advertising is expected to grow 17.1% in 2021 and 14.9% in 2022. In subsequent years, there will be a reversion to historical trends: mid-single-digit growth. 

You can read the complete report here: