Retailers keep TV ad spending strong, but growth shows signs of cooling

Television advertising in the retail sector has expanded sharply since the pandemic, with annual gains of 56 percent in 2021 and nearly doubling in 2022, according to a report by TAM Media Research. The momentum continued in 2023 with an 84 percent rise, but growth slowed to 65 percent in 2024, with ad volumes slipping 10 percent compared to the previous year, suggesting a potential shift in advertisers’ media strategies.

On a quarterly basis, television advertising retained its strength last year, with the second, third, and fourth quarters registering sequential gains of 8 percent, 25 percent, and 11 percent, respectively.

The concentration of advertising remained high, with the top 10 retail brands accounting for 51 percent of TV ad volumes in 2024. Vasanth & Co led with a 10 percent share, followed by Sathya at 9 percent, while Pothys and Ikea each held 5 percent. New entrants to the top 10 included Kalyan Silk, Croma, and My G, each capturing 3 percent of ad volume as they climbed from lower rankings in 2023. Advertisers continued to favor 20- to 40-second ad formats, which, along with shorter spots, made up 98 percent of retail advertising on TV.

Retail Advertising in Print Shows Mixed Trends

Print advertising in the retail sector also saw notable expansion, growing by 37 percent in 2021 and accelerating to 74 percent in 2022 and 88 percent in 2023, compared to 2020 levels. However, the pace moderated in 2024, with ad space shrinking by 5 percent year-over-year despite a 79 percent increase from the 2020 baseline.

Quarterly data showed declines of 9 percent and 11 percent in the second and third quarters of 2024, respectively, before a sharp rebound in the fourth quarter with a 49 percent increase over the first quarter.

Vishal Mega-Mart retained its lead in print advertising, accounting for 5 percent of ad space, while Smart Bazaar rose to fourth place in 2024 from 12th the previous year.

Retailers Turn Up the Volume on Radio

Radio advertising by retailers has seen sustained expansion, with ad volumes growing by 33 percent in 2021 and more than doubling in each subsequent year. Compared to 2023, volumes inched up 2 percent in 2024. The year saw mixed quarterly trends, with a 6 percent dip in the second quarter followed by gains of 18 percent and 40 percent in the third and fourth quarters, respectively.

Clothing, textiles, and fashion retail outlets dominated radio advertising, capturing 35 percent of ad volumes, while building materials retailers climbed into the top 10 categories. Reliance Retail was the leading advertiser with a 6 percent share, and new entrants such as MyG India and Gopu Nandilath Group made the top advertiser list. Maharashtra emerged as the top state for retail radio ads, followed by Kerala and Tamil Nadu, with the three states accounting for 45 percent of ad volumes.

Digital Advertising Surges, but a Dip Appears

Digital advertising in the retail sector has soared, with ad impressions increasing more than 13-fold in 2021 and rising over 30-fold in each subsequent year compared to 2020 levels. Yet, 2024 saw a 12 percent decline in impressions from 2023, reflecting a potential recalibration in spending amid a maturing digital landscape.

Despite the annual decline, quarterly figures showed robust growth through 2024, with ad impressions rising 63 percent in the second quarter and continuing to climb by 29 percent and 28 percent in the third and fourth quarters.

Home, interiors, and furniture retailers topped the category list with 39 percent of impressions. Ikea Services (India) retained its position as the top advertiser with a 27 percent share. Notably, Living Spaces jumped to ninth place from its previous rank in the 2,400s. Retail advertisers commanded 69 percent of ad impressions, with programmatic and programmatic/ad network channels accounting for 88 percent of delivery.

Read More:India's retail sector grows 4% in February 2025, says RAI