Indian advertising industry will grow by 7% in 2025, a decline from the 8.8% growth seen in 2024, due to a slowdown in consumption, according to GroupM.
In monetary terms, the company anticipates ad spending to reach Rs 1.64 lakh crore, an increase from Rs 1.53 lakh crore in 2024, as said in the report titled ‘The Year Next Year 2025'.
“While ad spending will fall in percentage terms in 2025, the total figures will still rise. We need to see improvements in consumer spending,” said Chief Operating Officer Ashwin Padmanaman during an interview with NDTV Profit at the event.
Of the anticipated increase of Rs 10,730 crore in 2025, GroupM expects that Rs 10,225 crore will come from digital advertising.
Digital advertising has become the fastest-growing medium for ad revenue. GroupM expects it to grow by 11.5% in 2025, down from 13.5% the previous year.
In addition to digital, cinema and out-of-home advertising are projected to grow by 10% and 8%, respectively, compared to 12% each in 2024.
GroupM also predicts a slowdown in print ad revenue growth, forecasting a rise of 4% compared to 5% last year. They expect a decline in TV ad revenue to -1% from 1% in 2024. Radio is also expected to decline to -1% from 4% last year.
According to the report, digital and TV together account for 86% of advertising, with digital expected to contribute 60% of all ad revenue in 2025.
The company identifies small and medium enterprises, real estate, education, banking, financial services, and technology as key sectors driving ad revenue growth. Other contributing sectors include automotive, retail, fast-moving consumer goods, and durable goods.
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