India's AdEx likely to increase by 7.8% to Rs 1.37 lakh crore in 2025: Magna
Digital AdEx will outpace traditional media in the current calendar year. In 2025, digital AdEx is likely to rise by 12% to Rs 7,28,000 crore ($8.4 billion) while the traditional media revenue is forecast to increase by 3.4% to Rs 6,43,00 crore.
ADVERTISEMENT
Brands are likely to increase their advertisement expenditures in the current calendar year, with Video, Social, and Retail to remain the dominant industries in the Adex growth, according to IPG Mediabrands' Magna Global Ad Forecast report.
The overall AdEx is estimated to increase more than 7.8% in 2025 to reach Rs 1.37 lakh crore, the report mentioned. Whereas, Digital AdEx will outpace traditional media in the current calendar year. In 2025, digital AdEx is likely to rise by 12% to Rs 7,28,000 crore ($8.4 billion) while the traditional media revenue is forecast to increase by 3.4% to Rs 6,43,00 crore.
Social advertising is advancing to be the largest format and is expected to overtake Television in the next 5 years, the report added.
"MAGNA predicts above average ad spend resilience in 2025, neutralizing the impact of ad spend on cyclical events in 2024, led by National Elections & 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. Live sports, which were the only Linear TV mainstays, have been upended with more people streaming sports content. Ad-supported streaming experience 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," Hema Malik, Chief Investment Officer, IPG Mediabrands India, said.
According to the report, the media owners' revenue outlook appeared positive across linear and digital formats in 2025. The report predicted a 6% increase in the first half of 2025 in ad revenue, which may further grow to 9% in H2 2025.
Currently, digital pure players, valued at Rs 68,000 crore, are driving the advertising economy, which may further grow at 11.4% in 2025, the report added.
Video is expected to grow 4% in the current calendar year, while Digital Video growth is expected at 17% in 2025. Overall video spending will continue to be weighed down by linear television, which is anticipated to grow at 2.5%, the report mentioned. Notably, publishing will grow by 3.5% with the digital version of the format growing at twice the rate. Audio and Experiential, which is 5% of the adex, will be growing at 5.9% and 12.9% respectively. In 2026, the growth is expected to be at 7.7%.
