The Quick Call: Sam Balsara on India’s AdEx slowdown

In the fourth episode of The Quick Call podcast by Social Samosa, CEO Hitesh Rajwani sits down with Sam Balsara, Chairman of Madison World, to discuss the Pitch Madison Advertising Report 2025, unpacking its highlights and shedding light on growth slowdowns, digital advertising trends, and the future of traditional media. Here’s a breakdown of the conversation.

The Indian advertising sector has been experiencing a significant deceleration in growth. From a robust 37% in 2021, growth declined to 21% in 2022, 10% in 2023, and further dropped to 9% in 2024. This slowdown was partially masked by high-profile events such as major cricket tournaments and parliamentary elections, which boosted advertising spends in the first half of the year. However, Q3 and Q4 saw minimal growth (1-2%), confirming an overall sluggish trend.

For years, digital advertising has been the shining star of the industry. However, the 2025 report indicates that even digital has lost some of its momentum. While digital ad spends grew by 42% in 2023, the growth in 2024 plummeted to 14%. This decline suggests that even digital’s dominance is not immune to economic pressures and market fluctuations.

A surprising trend in the report was the resurgence of Out-of-Home (OOH) advertising. According to Balsara, three factors are driving this growth:

1. Digital OOH expansion in metropolitan cities.

2. New airports and transit media driving ad placements.

3. Urbanisation in smaller towns leading to increased outdoor advertising.

This shift underscores how brands are diversifying their media mix, recognising OOH’s unique ability to capture consumer attention in high-traffic areas.

Both TV and print continue to experience consistent declines in growth. While print has admirably managed to retain a 19% share of ad spends—significantly higher than global averages of 3%—the post-pandemic period has been particularly tough. TV, on the other hand, is facing an alarming drop in advertisers, with numbers falling from 11,600 to below 9,000. Many brands are reallocating their budgets towards digital platforms.

Balsara noted that while television remains the “big boys’ game” for large-scale brand building, digital’s accessibility has opened the door for smaller brands and advertisers to enter the market. He also pointed out that the lack of case studies for TV and print advertising effectiveness has made it harder for younger marketing professionals to see their long-term impact, in contrast to digital, where performance metrics and case studies are widely available.

When asked about the next big thing in advertising, Balsara was optimistic on Connected TV (CTV). He referred to CTV as the "new dancing damsel”, noting its huge potential for growth in India, similar to what’s been observed in the U.S. Despite its growing audience base, media planners still allocate more budgets to traditional TV, overlooking CTV’s advantages.

Looking ahead, Balsara emphasised that the Union Budget will play a crucial role in shaping advertising growth. With increased money flow into middle-class households, consumer spending could rise, positively impacting ad spends.

One of the strongest messages from the conversation was the need to balance branding with performance marketing. Balsara cautioned that many marketers are over-prioritising performance-driven tactics while neglecting brand-building efforts. He emphasised that branding offers long-term power and market differentiation, advising advertisers to gradually shift focus from performance to branding as their businesses grow.

You can listen to the episode here!