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FMCG stood out as highest spender in 2023 with Rs 31,428 crore ad spends: Reports

In 2023, FMCG category witnessed an ad spends growth of 22.6 percent over 2022.

By  Storyboard18Feb 9, 2024 3:54 PM
FMCG stood out as highest spender in 2023 with Rs 31,428 crore ad spends: Reports
Historically, approximately one-third of the annual spends in Indian advertising industry has been attributed by the FMCG category. (Photo by Daria Volkova on Unsplash)

The advertising industry in the country clocked 8.6 percent growth in 2023, reaching a market size of Rs 93,166 crore and the FMCG (fast moving consumer goods) category held the largest share as contributors. According to a recent dentsu report, the category saw a 34 percent growth contributing Rs 31,428 crore to the total AdEx of the year. 

This was followed by e-commerce contributing 14 percent at Rs 12,803 crore spends, consumer durables at 6 percent with Rs5,540 crore as spends and automotive at Rs 5,223 crore spends contributing also contributing 6 percent to the AdEx.  “Historically, approximately one-third of the annual spends in the Indian advertising industry has been attributed to the FMCG category. In 2023, FMCG category witnessed an ad spends growth of 22.6 percent over 2022.

During the same timeframe, notable expansion was observed in the travel and tourism sector, recording a growth of 73.4 percent over 2022, followed by government advertisements with a 62.2 percent increase, and real estate experiencing a growth of 41.7 percent over 2022,” said the report.The travel and tourism category has seen a huge increase in the post pandemic era.

In fact, the sector has seen the highest growth. According to the report, this surge can be attributed to the expanding urbanization and the increasing income of the middle-class, resulting in a growing demand for multi-modal transportation services as travellers gradually return to their pre-pandemic travel routines. 

“To bolster inbound tourism, the government launched the ‘Visit India 2023’ campaign and provided unprecedented support for promoting sustainable tourism. Additionally, there has been a focus on technological advancements to develop and transform the air, road, rail, and waterways sectors, aiming for more efficient, faster, and safer modes of transportation,” the report said. 

Another category witnessing rapid growth in advertising spends is the Government and social organisations, especially in the wake of Assembly and General elections. In 2023, Government advertising spends have grown by 62.2 percent over 2022. Similarly, the housing and real estate segments are undergoing remarkable growth.

The sector has seen unprecedented expansion due to the rapid growth of the middle-class population, urbanisation, and increased transparency through government incentives and policies. As per the report, advertising spends in real estate grew by 41.7 percent in 2023 compared to 2022.


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First Published on Feb 9, 2024 3:54 PM
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