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Advertisers latch on to rural demand, quick commerce disruption | Company Business News

Arun Jain, 03/02/2025

Quick-commerce disruption and rural demand are shaping advertising spending.

While e-commerce and quick commerce brands continue to push digital advertising to exploit impulse buying, automotive and consumer goods makers target budgets at audiences in smaller towns and villages.

India’s advertising sector crossed ₹1,01,084 crore in 2024, growing 6.3%, according to dentsu e4m’ digital report, ‘Looking Through the Kaleidoscope’, released on Monday. In 2025, the industry is projected to grow 6.5%, reaching a market size of ₹1,07,664 crore.

Also Read | Quick comms brace for higher churn of dark store workers amid rising competition

Digital media continues to lead the charge, accounting for 49% of the total spend, or ₹49,251 crore, signalling further shift towards online platforms, the report said. Digital advertising grew at four times the pace of the industry at 21.1%, closing the year at ₹49,251 crore.

The report projects digital ad spending to reach ₹69,856 crore by 2026 with a compound annual growth rate of 19.09%.

Also Read | Quick commerce dark stores set to zoom but it will come at a cost

Television and print media remain important, contributing 28% ( ₹28,062 crore) and 17% ( ₹17,529 crore), respectively. However, key sectors such as e-commerce, automotive, BFSI (banking, financial services and insurance), FMCG (fast-moving consumer goods), and retail continue to invest heavily in digital, while sports content across both TV and OTT platforms also saw increased spending.

Social media and online video are the leading platforms for digital advertising, contributing 29% ( ₹14,480 crore) and 28% ( ₹13,756 crore), respectively. The FMCG and e-commerce sectors are the largest contributors to digital media ad spending, with FMCG allocating 44% of its budget to online video and e-commerce focusing on paid search (39%) and social media (31%).

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Also Read | Quick commerce to expand into new categories and cities in 2025; smaller cities embrace the model: Bernstein Report

The FMCG segment continues to dominate the Indian advertising market, contributing 31% ( ₹31,467 crore), followed by e-commerce and quick commerce brands that capitalize on impulse buying.

The focus on new commerce (direct-to-consumer, social commerce, quick commerce, and live commerce) is predicted to be a significant contributor to sectoral growth to roughly 8 times over the coming decade, according to the report.

Cricket to dominate 2025 ads

Sporting events like the upcoming Indian Premier League season, the ICC Champions Trophy, and the Asia Cup 2025 are expected to fuel advertising growth, giving brands opportunities to reach large and diverse audiences.

Television, print pie shrinks

Traditional advertising channels also show positive signs, with increased spending on reality shows and large-format print ads. The second half of 2024 set a foundation for continued growth, as brands refined their strategies across multiple media platforms, leveraging innovative content to strengthen engagement with their audiences.

However, according to the report, between 2023 and 2024, television’s share declined from 31% to 28% and is expected to drop further to 24% in 2025. Print media followed a similar trend, decreasing from 20% to 17% by the end of 2024. Its share is further expected to decline to 15% n 2025. Radio, which maintained a steady share of 2% in 2024, is expected to also decline to 1% by the end of 2025, reflecting the shifting dynamics of the advertising landscape.

Rural push

In 2024, rural consumption outpaced urban markets, particularly in automotive and FMCG. This shift is prompting brands to focus more on rural markets, adjusting their advertising strategies to cater to this growing consumer base. For instance, motorbikes and premium electric scooters drove strong growth in the two-wheeler industry, with rural demand exceeding urban offtake. However, the report said, rural audiences still rely heavily on traditional mediums like television, radio, and print for information.

ALSO READ  TCS CEO Krithivasan faces the biggest challenge amid uncertainty, Jeanai threat

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