Ad revenue growth to slow down to 7% in 2025: Report

Mumbai, PTI: Ad revenue growth is estimated to slow down to 7% in 2025 from the 8.8% attained in 2024, a leading media agency said on Tuesday. WPP entity GroupM pegged the Indian advertising revenues across all media formats to grow at 7% to Rs 1,64,137 crore in 2025, from Rs 1,53,407 crore in 2024. India will be the ninth biggest advertising market globally in a list that has the US, China, and the UK as the top-three countries. Globally, the ad revenue growth is set to slow down to 7.7% in 2025 from 9.5% in 2024.

Digital ad spends will be driving the growth for India with an 11.5 per cent growth in ad revenue to nearly Rs 1 lakh crore, as per the agency's 'This Year Next Year' report. The report said digital spends will be 60% of the overall spends in India, as against 82% globally in 2025. Television will be the second biggest by revenues at Rs 42,431 crore, but is likely to witness a 1% decline in revenues in 2025 from the Rs 42,859 crore in the yearago period. Print ad revenues will grow 4 per cent to Rs 15,947 crore, giving the medium a 10 per cent share in overall revenues in 2025, the report said.

Outdoor and hoardings advertising will grow 8 per cent to Rs 3,671 crore, radio will decline 1 per cent to Rs 2,009 crore, while cinema advertising will see a 10% growth to Rs 942 crore in 2025, the report said. The company's Chief Operating Officer, Ashwin Padmanabhan, said streaming TV is now accounting for 12.6% of total TV ad revenue, which signals a critical shift for brands to optimise across high-growth platforms. He added that key sectors such as small businesses, realty, education, banking financial services and insurance, and technology/ telecom will be contributing 60 per cent of total advertising, and are set to grow at around 10 per cent.