India's advertising revenue to see 12% growth: GroupM TYNY report

As per the GroupM TYNY report, the global ad revenue is expected to grow at 5.9% while India is noticing a decline from the previously predicted 16.8% growth.

According to GroupM's This Year Next Year Mid-Year Global Forecast 2023, the global ad revenue is expected to grow by 5.9% at $874.5 billion, excluding U.S. political advertising. This estimate for 2023 growth remains unchanged from their December forecast.

However, the macroeconomic environment has led some markets to trim expectations for 2023 as compared to the previous forecast, including India which is now expected to see 12.0% compared to the December forecast of 16.8%.

The report also highlighted that digital ad revenue in 2023 will account for 68.8% of total revenue at $598.5 billion dollars. The digital advertising continues to increase, albeit more slowly. There has been a marked deceleration in growth from the 32.0% recorded in 2021, with 2022 coming in at 9.2% and 8.4% expected in 2023.

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Connected TV adoption, among consumers and advertisers, is growing rapidly, adding 10.4% in ad revenue between 2023 and 2028 on a compound annual basis. Consumer spending on subscription video on demand (SVOD) represents between just one-fifth and one-third of total video spending in major markets, leaving plenty of room for streaming providers to grow subscriptions.

Retail media is the third fastest-growing advertising channel in 2023 (behind digital OOH and CTV, although those channels are a fraction of the size). Retail media, which we now define as including ad revenue from last-mile delivery services, will grow 9.9% to reach $125.7 billion in 2023 and is forecast to exceed TV revenue (including CTV) in 2028. 

AI is likely to inform or touch in some way, at least half of all advertising revenue by the end of 2023.

You can see the full report here: