Indian OOH adex to grow by 12% to Rs 4,106cr in 2023: Pitch Madison Ad Report

DOOH continues to be the growth driver, the report states

The Pitch Madison Advertising Report 2023, launched on February 15 in Mumbai, cites that OOH has has registered a 68% increase and crossed 2019 levels and contributes 4% to Adex, while taking the industry to Rs. 3,666 crore. Further, The OOH adex is expected to grow by 12% in CY2023 to clock Rs 4,106 crore from Rs 3,666 crore in 2022. Digital OOH continues to be the growth driver with its big bright, colorful and moving displays.

Bharat Puri, Managing Director, Pidilite Industries, who was the Chief Guest at the event and launched the Report said, “Experiment, innovate, know your consumer and don’t be afraid of failure”. He said, “Whilst chasing impressions, don’t forget to make an impression!”

The Highlights of the Report were released by Sam Balsara, Chairman, Madison World. According to Madison Media, Adex has grown by 21% in 2022 to reach Rs. 89,803 crore. Adex is expected to grow further in 2023 by 16% and will cross the landmark Rs. 1 lakh crore number to settle at Rs 1,04,230 crore. In 2022, Digital grew by 35% to become the largest medium in Adex with a 38% share, compared to TV’s 34%. TV grew by a modest 9% vs our projection of 14%.

Key findings of the Report:

Figures at a glance:

Other highlights of the report as follows:

 Overall

• In 2022 total Adex grew by 21%, Traditional Adex by 14% and Digital Adex by as much as 35%.
• Compared to Indian Adex growth rate of 21%, Global Adex, according to WARC grew by just 8% in 2022. The Top 11 countries that account for 70% of Global Adex grew by only 1%.
• In absolute terms, Adex has grown from Rs 74,231 crore to Rs 89,803 crore and this is the second highest gain of the last two decades.
• Traditional Adex dominates Indian Adex with a 62% share, whereas in Global Adex the figure is 32%.  With a growth of 14% in 2022, Traditional Media at Rs 55,399 crore, has just crossed its 2019 figure of Rs. 52,136 crore.
• Digital Adex is now the largest medium with a share of 38%, followed by TV with a share of 34%.
• The Audio Visual medium contributes to 45.6% of total Adex. Linear TV at Rs 30,662 crore and Digital Video at Rs 10,314 crore, totalling to Rs. 40,976 crore.
• FMCG continues to be the largest category, but its share has moved down from 38% in 2020 to 32% in 2022.
• Ecommerce has now established itself as the 2nd biggest category of Adex, growing in Share from 4.9% in 2019 to 14% in 2022.
• The Top 5 Advertisers in Adex are HUL, Reckitt, RIL, Dream11 and Mondelez. There are only 11 Start-Ups in the Top 50 Advertisers List vs 15 last year, confirming that VC money is drying up.

Sharing the highlights of the Report, Sam Balsara, Chairman, Madison World said, “Indian Adex is the bright spot in a relatively dull and uncertain global environment. Our Adex has grown by leaps and bounds in the last 3 years marked by Covid and the War, except in 2020. However, media habits of Indians are rapidly changing and this is reflected in our Adex numbers and commentary. Advertisers who ignore these changes will do so at their own peril.”