The slipping ad revenues are expected to bounce back in the future! After witnessing a 27 percent decline in 2020, the ad revenue is expected to rebound strongly by 2025, with ad spends on digital media overtaking those on television (TV) by 2024, as per Media Partners Asia (MPA) report.
As per the report, digital advertising will benefit from the growing digital economy across online gaming, edu-tech, food and delivery platforms, outgrowing television to become the largest advertising segment by 2024.
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The annual report by Media Partners Asia (MPA, contains a detailed analysis of advertising media across 14 markets in the Asia Pacific with a focus on TV and digital sectors. Media Partners Asia is an independent provider of research, advisory, and consulting services in the Asia Pacific.
Ad Revenue To Jump 13 Percent
Overall, ad revenue is expected to grow at a compound annual growth rate (CAGR) of 13 percent to touch $13.3 billion by 2025.
Ad Revenue In 2020
Advertisers made a strong comeback in the fourth quarter of 2020 after the restrictions imposed across the country to contain the spread of coronavirus were lifted and consumer spends surged, driven in part by pent-up demand. However, the second wave of the pandemic will still a drag.
Projections In 2021
The report estimated India’s advertising market will expand by 20.5 percent in 2021 to $8.7 billion, given the low base last year.
Digital Boost
Digital advertising is expected to benefit from India’s expanding digital economy, the report said. The Internet, which benefited majorly due to lockdown, will continue to grow steadily and expand its share of advertising from 36.6 percent in 2021 to 40.1 percent in 2025. The report has projected digital advertising’s share of net advertising spend to grow from 59 percent in 2020 to 67 percent in 2025.
It includes fast-growing categories such as online gaming, ed-tech, and food and delivery platforms, which will outpace TV to become the largest advertising segment by 2024, said the report, which covers Asian markets such as India, China, Korea, Indonesia, Vietnam, and Thailand.
Narrowing Gap Between TV & Digital Ad Spend
The report also highlighted the narrowing gap between ad spends on TV every year. Digital, which holds 35 percent market share, has overtaken print (16 percent) and almost closing the gap with television (45 percent), according to 2021 estimates by media agency GroupM.
Although the report reflected a similar trend, TV still holds importance in key markets, including India, where it retains its position as the largest ad segment as of 2020-end.
In the next three years, TV advertising will grow in double digits given the low-base effect and strong industry fundamentals. It will grow at 13.1 percent CAGR between 2020 and 2025 to reach $5.1 billion.