Latest news with #HemaMalik
Time of India
2 days ago
- Business
- Time of India
India's ad market projected to grow at 7.8% in 2025: Magna
India's advertising market is expected to grow by 7.8% in 2025, reaching Rs 1,37,099 crore, up from Rs 1,27,171 crore in 2024, according to Magna Global Advertising Forecast . Growth is expected to moderate slightly to 7.7% in 2026, compared with the 9.9% rise seen in 2024. Magna said India's broader economic outlook remains positive, supported by strong domestic demand, government investment, and a thriving services sector. Magna, a leading global media investment and intelligence company, is part of IPG Mediabrands . Digital advertising continues to outpace traditional media, with 'Digital Pure Players' projected to command 50% of the market in 2025, up from 48% in 2024. This segment, which includes platforms such as search, social media, and short-form video, is expected to grow 11.4% to Rs 67,991 crore. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bargain Prices on Unsold Container Houses in Rizal - Check Them Out! Shipping Container Homes | Search Ads Search Now Undo Within digital, social media is leading the expansion with a forecasted growth of 16.4% in 2025, followed by short-form digital video at 12.9%, and display advertising at 6%. Search advertising is also expected to perform steadily, growing at 8.9%. Traditional media owners, which still account for the other half of the market, are projected to grow at a slower pace of 4.5% in 2025 to reach Rs 69,108 crore, marginally ahead of Digital Pure Players in value but equal in share at 50%. Live Events Television and streaming services remain dominant in this segment, with ad spends of Rs 41,312 crore, though growth is expected to decelerate to 4%. Print is projected to grow 3.5% to Rs 20,486 crore, with digital versions expanding at twice the rate of print. Other traditional formats like radio and digital audio are set to grow 5.9%, while out-of-home (OOH) advertising continues its post-pandemic recovery with a robust 13.5% increase. Cinema advertising is forecast to grow 10% but will still hold only a 1% share of the overall market. Social advertising is poised to become the largest ad format and is expected to surpass television within the next five years. Together, Digital Pure Play and Video formats account for 80% of the total AdEx. 'Magna predicts above average ad spend resilience in 2025, neutralising the impact of ad spend on cyclical events in 2024 led by National Elections and the T20 World Cup,' said Hema Malik, Chief Investment Officer at IPG Mediabrands India. 'In 2025, Magna expects dynamic ad spend in Finance, Media, Pharma, Technology, Gaming and Retail, while Automotive and Electronics might lag. The trio of Video, Social and Retail will once again lead the AdEx growth.' Malik added that live sports, once the stronghold of linear TV, are increasingly being streamed. 'Ad-supported streaming is experiencing rapid growth in access, consumption, and advertising sales, as nearly all streaming TV platforms offer more affordable ad-supported plans. Long-form video is growing at a blistering pace of over 25% and is 6% of the total video forecast, estimated to gain double-digit share in the next three years.' Magna's forecast shows media owner revenues will rise across both digital and linear channels in 2025, with the first half expected to grow 6% and the second half by 9%. However, the impact of trade-related challenges could intensify in the latter half of the year, it added.
Time of India
2 days ago
- Business
- Time of India
India's advertising market set for significant growth, poised to enter top 10 globally by 2026: Report
India's advertising expenditure (Adex) is projected to experience substantial growth in the coming years, with Magna Global's June 2025 update forecasting Adex to reach INR 1476 billion by 2026. This trajectory is expected to position India among the top ten advertising markets worldwide next year. The positive outlook for India's ad market is underpinned by robust economic projections. The International Monetary Fund (IMF) has forecasted India's growth at 6.2 per cent in 2025, recovering slightly to 6.3 per cent in 2026, even as global growth is projected at a more modest 2.8 per cent in 2025. India is also on track to become the fourth-largest economy in 2025, surpassing Japan, and is expected to overtake Germany to become the third-largest by 2028. The nation's domestic growth drivers are seen as a key factor in its ability to navigate potential global trade disruptions. Total Adex is estimated to grow by 7.8 per cent in 2025, reaching INR 1371 billion (USD 15.9 billion), with a further 7.7 per cent increase anticipated in 2026. This growth is significantly driven by the continued expansion of digital advertising, which surpassed traditional advertising in 2024 to hold a 51 per cent share. In 2025, digital Adex is expected to rise by 12 per cent to INR 728 billion (USD 8.4 billion), while traditional media revenue is forecast to increase by 3.4 per cent to INR 643 billion (USD 7.5 billion). Within the digital landscape, social advertising is emerging as a dominant force and is predicted to surpass Television in terms of ad spend within the next five years. Hema Malik, chief investment officer, IPG Mediabrands India, commented on the market's resilience: "Magna predicts above average ad spend resilience in 2025 neutralising the impact of ad spend on cyclical events in 2024 led by National Elections and T20 World Cup. In 2025 Magna expects dynamic ad spend in Finance, Media, Pharma, Technology, Gaming and Retail, while Automotive and Electronics might lag. The trio of Video, Social and Retail will once again lead the Adex growth." Malik further noted the shift in sports consumption: "Live sports, which were the only Linear TV mainstays, have been upended with more people streaming sports content. Ad-supported streaming experiences rapid growth in access, consumption, and advertising sales, as nearly all streaming TV platforms offer more affordable ad-supported plans. Long-form video is growing at a blistering pace of over 25 per cent and is six per cent of the total video forecast, estimated to gain double digit share in the next three years." While the evolving global trade landscape may influence India's growth, the country's low dependence on exports and strong domestic growth drivers position it to manage potential disruptions. However, sectors crucial to both trade and domestic Adex, such as CPG, Auto, Textiles, Electronics, and Technology, face challenges, necessitating a cautious stance. The revenue outlook for media owners in 2025 is positive across both linear and digital formats, with a six per cent increase expected in the first half of the year and a nine per cent growth in the latter half. Any trade impact is likely to be felt in the second half, and while the forecast accounts for this, some uncertainty remains. Overall, the 7.8 per cent year-on-year growth in 2025 will see total revenue increase by INR 99 billion, from INR 1272 billion (USD 14.7 billion) to INR 1371 billion (USD 15.9 billion). Digital Pure Player formats, valued at INR 680 billion (USD 7.9 billion), are a primary driver, estimated to grow at 11.4 per cent, the report highlighted. Video, the second largest format at INR 413 billion (USD 4.8 billion), is estimated to grow by four per cent. Digital Video growth is stronger at 17 per cent, but overall video spends are tempered by linear television's forecast growth of 2.5 per cent. Digital Pure Play and Video collectively account for 80 per cent of the total Adex. Publishing is projected to grow by 3.5 per cent to INR 205 billion (USD 2.4 billion), with its digital version growing at twice that rate. Audio and Experiential, representing five per cent of the Adex, are expected to grow by 5.9 per cent and 12.9 per cent, respectively. In 2026, the overall growth is anticipated to be 7.7 per cent, stated the report.
