Ad revenue in India is forecast to rebound over 2020-25 with a CAGR of 13%: Asia Pacific Advertising Trends 2021

Ad revenue in India is forecast to rebound over 2020-25 with a CAGR of 13% Asia Pacific Advertising Trends 2021
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According to a new report titled Asia Pacific Advertising Trends 2021 from Media Partners Asia, ad revenue in India is expected to return with a CAGR of 13% over 2020-25, following a 27 percent drop in 2020. Furthermore, India’s increasing digital economy is predicted to help digital advertising across tech, food, online gaming, and delivery platforms, with digital advertising outgrowing television to become the largest advertising category by 2024. Media Partners Asia (MPA) publishes Asia Pacific Advertising Trends every year, which includes a complete examination of advertising media across 14 markets in the Asia Pacific, with an emphasis on the TV and digital sectors.

In 2020, net advertising spending in the Asia Pacific fell 4.3 percent year on year after discounts. As economies recover, ad spending is expected to surpass US$200 billion by the end of 2021, surpassing pre-pandemic levels for the region, owing mostly to China, which will account for 56% of total Asia Pacific advertising spending in 2021. By the end of 2021, ad markets in Korea and Vietnam will have returned to pre-pandemic net ad expenditure levels. Most other nations will follow in 2022, aided by the expansion of digital advertising; TV advertising in India, Thailand, and Vietnam will return to pre-pandemic levels.

TV advertising, which fell 15% year over year to US$43.3 billion in 2018, is predicted to rebound in 2021, gaining 4.6 percent year over year, before resuming its secular drop in 2023. Total Asia Pacific TV advertising expenditure is expected to rise at a CAGR of 0.7 percent from 2020 to 2025, reaching US$44.8 billion in 2025, according to MPA.

Digital ad income was shown to be the most robust across the pandemic, according to the Asia Pacific Advertising Trends 2021 research, with consumers throughout APAC spending more time online and companies boosting digitalization initiatives. E-commerce in advertising grew dramatically in 2020, with e-commerce accounting for an estimated 39 percent of China’s ad sales, while also expanding rapidly in India, Indonesia, Japan, and Korea, though from a modest foundation. In addition, search and social advertising profited. Digital advertising’s proportion of net advertising expenditure is expected to rise from 59 percent in 2020 to 67 percent in 2025, according to MPA.

Online video advertising, lead by YouTube, is expected to account for 16 percent of Asia Pacific digital ad revenue in 2020, according to Media Partners Asia. Online video advertising is expected to increase to US$33.3 billion in 2025, representing 20% of the APAC digital ad pie and 40% in growing markets like India and Indonesia, thanks to different local and regional AVOD and freemium platforms, including broadcaster-led platforms.

Written by Hardik Tokas

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