Stage is set for a new era of advertising excellence: Ashwin Padmanabhan

GroupM India has made significant revelations in its annual This Year Next Year (TYNY) report, shedding light on the anticipated trends and growth prospects within the advertising industry for 2024. With comprehensive insights and forecasts, the report paints a picture of the evolving advertising landscape, particularly emphasizing the increasing prominence of digital platforms.

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Ad revenue in India to grow 10.2% to reach Rs 155,386 cr in 2024: GroupM TYNY 2024

Parveen Sheik, Head of Business Intelligence, GroupM India, set the stage by elucidating the global economic backdrop, emphasising the enduring impact of geopolitical tensions and inflationary pressures. “The world economies have been reeling under inflation,” noted Sheik, while pinpointing the geopolitical tensions of 2022 as the catalyst. “This translated into a subdued global economic growth of 3.1% in 2024,” she added, highlighting the far-reaching consequences for both consumers and nations.

Ashwin Padmanabhan, President - Investments, Trading, and Partnerships, GroupM – India, echoed Sheik’s sentiments, while delving into the specifics of advertising revenue projections for India in 2024. “We’re projecting an overall AdEX growth of about 10.2%,” said Padmanabhan, underlining the resilience of the advertising industry amidst economic turbulence. With a projected ad revenue reaching Rs 155,386 crore, Padmanabhan emphasises the pivotal role of digital advertising in driving this growth, contributing a significant 57% share.

The TYNY report unveils compelling statistics and trends that underscore the ascendance of digital platforms in the advertising ecosystem. With digital channels emerging as the preferred choice for brands to engage with their target audiences, advertisers are compelled to realign their strategies accordingly. “Digital advertising is poised to spearhead this expansion,” affirmed Padmanabhan, highlighting the strategic imperative for brands to leverage digital innovation and data-driven approaches effectively.

Crucially, the TYNY report forecasts a notable shift in advertising expenditure, with a significant portion of incremental spending flowing into digital channels. “Of the incremental ad revenue of Rs 14,423 crore in 2024, a significant 70% is expected to flow into digital advertising,” revealed Padmanabhan, underscoring the transformative impact of digital platforms on advertising strategies and consumer engagement.

Armed with the insights gleaned from the TYNY report, advertisers are empowered to navigate the digital frontier strategically. By capitalising on the growing prevalence of digital platforms and harnessing data-driven approaches, brands can enhance their advertising effectiveness and maximise their return on investment. “By embracing digital innovation and prioritising consumer-centricity, brands can position themselves for sustained growth and relevance,” emphasised Sheik, offering a roadmap for advertisers to navigate the ever-changing advertising landscape successfully.

As we venture into 2024 and beyond, the TYNY report serves as a compass, guiding advertisers through the complexities of an increasingly digital-centric advertising landscape. With digital advertising leading the charge, the future of the advertising industry holds immense potential for innovation, creativity, and impact. “The stage is set for a new era of advertising excellence,” concluded Padmanabhan, encapsulating the spirit of optimism and opportunity that defines the TYNY report for 2024.

GroupM’s TYNY 2024 report highlights 12 trends that paint a picture of a rapidly evolving media and marketing landscape in 2024. Brands that can adapt to these changes and leverage new technologies will be well-positioned for success.

1. Gen Alpha: The first generation born entirely in the 21st century is entering its teenage years and will have a significant impact on marketing strategies. They are the most educated, informed, and cautious generation yet, and their reliance on technology will require brands to engage them through voice, video, and gamification.
2. Attention Planning: With ever-decreasing attention spans, attention planning will become even more crucial in 2024. This will involve customizing insights for brands to take action, optimising not just media elements but also messaging and content, and measuring the impact on brands.
3. Connected TV: Connected TV advertising is expected to continue its explosive growth, driven by factors like increasing broadband connections, OTT content popularity, and the emergence of fast channels. Addressable TV will also become more prominent, allowing for hyper-personalised and hyper-local advertising.
4. Immersive Sports Experiences: Sports marketing is embracing immersive experiences through VR, AR, and other technologies, allowing fans to interact with their favourite athletes and teams in new ways. Virtual sponsorships and smart stadia are also emerging trends in this area.
5. Full Funnel Performance Marketing: The silos between branding and performance marketing are breaking down, with a focus on integrating the entire customer journey from awareness to action. This requires diverse data, diverse insights, and a new definition of performance marketing that goes beyond just short-term metrics.
6. Multi-Search Platform Ecosystem: Search is no longer confined to a single platform like Google. Consumers are using a variety of platforms depending on their intent, requiring brands to develop multi-platform search strategies that leverage diverse data and insights.
7. Commerce Transformation: Ecommerce is booming in India, with the total share of retail expected to reach 7% in 2024. The lines between online and offline are blurring, with physical stores becoming more digitised and offering D2C-like experiences. This creates opportunities for hyper-localised and hyper-personalissed product targeting campaigns.
8. AI-Powered Media Optimisation: AI will play a major role in optimizing media campaigns across platforms, predicting campaign performance, and creating personalised creative content. Additionally, AI will transform measurement by integrating voice and other data into business intelligence dashboards and enabling advanced creative analytics.
9. AI-Powered Content Creation: AI is helping content creators understand consumer preferences and personalise content across various formats, from short videos to music albums. This creates a full-funnel engagement journey for consumers and opens up new possibilities for influencer marketing.
10. Micro Marketing: Marketers are getting access to increasingly granular data, allowing them to prioritise markets at a micro level and develop hyper-localized strategies. Additionally, marketers are collecting rich zero-party data through their own platforms, enabling them to target micro consumer segments with personalised messaging. Micro communities and micro influencers are also gaining importance.
11. Zero Party Data: With stricter data privacy regulations and the decline of cookies, zero party data (information consumers willingly share in exchange for value) will become a critical tool for marketers. This data can be used for various purposes, from product development to media deployment.
12. Premiumisation: Premiumisation will continue to be a major trend in marketing, and zero party data will be a key driver of this trend. By understanding consumers’ preferences and behaviours, brands can create more personalised and relevant premium experiences.