India set to reach Rs 394 bn in programmatic ad revenue

India’s advertising landscape is undergoing a profound transformation, shifting gears from traditional to digital advertising in recent years. The e4m - GroupM Programmatic Report, unveiled today, unveils projections of India’s programmatic advertising revenue skyrocketing to an estimated Rs 394 billion (US$5.42B) by 2024.

This transition towards programmatic advertising signifies a notable trend where advertisers increasingly recognize its efficacy in targeting specific audiences, resulting in a consistent uptick in ad spending allocated to this form of advertising.

Anticipating a continued surge, the report forecasts a progressive shift, expecting programmatic advertising to capture an estimated market share of 44% in India by 2024. The Media & Entertainment (M&E) industry, ranking 8th globally in 2023, is a pivotal player in this growth trajectory. Projections indicate a colossal leap, touching a total revenue of $7.9 billion by 2027.

“The Indian Media & Entertainment industry is on a trajectory of robust growth, driven by escalating consumer demand and an upsurge in advertising revenue. Achieving a growth rate of 19.9% in 2022, the industry surpassed the Rs 2 trillion (US$24 billion) annual revenue milestone for the first time and is poised to reach Rs 2.83 trillion (US$35.4 billion) by 2025,” the report emphasizes.

Delving into the future of digital advertising, the e4m - GroupM Programmatic Report envisions a seismic shift towards a digitally-focused advertising landscape in India. By fiscal year 2024, digital ad revenue is anticipated to surge to nearly Rs 540 billion, potentially surpassing revenues generated by traditional mediums.

The report underscores the trajectory of video advertising, projecting a substantial chunk of the estimated digital ad spend of Rs 93,448 crore to be attributed to video formats by 2024. YouTube, boasting over 2.70 billion monthly users globally, with India leading at 462 million users as of October 2023, and Hotstar with 100 million average UVs, are pivotal players in this space.

Furthermore, the report highlights the rapid adoption of Connected TV in India, estimating a rise in CTV households from 22 million to 30 million by 2023. India’s internet advertising market, ranking 8th globally in 2023, is set to grow, with a projected total revenue of $7.9B by 2027.

Smartphone proliferation in India has revamped mobile marketing, enabling real-time engagement and personalized connections, opening boundless opportunities for impactful advertising. The report underscores India's status as the world’s second-largest internet population, expected to exceed 900M by 2023.