PRESENTS

CO-POWERED BY

DESPITE SOFT
FESTIVE QUARTER

FORECAST 2023:
SLOWER RATE
OF GROWTH

16%
DIGITAL: 25%
TRADITIONAL: 10%

DIGITAL OVERTAKES TV IN 2022

2 Pitch Madison Report 2023
 ADEX
GROWS
PRESENTS

21 %
CO-POWERED BY

DESPITE
ADVERSE
CONDITIONS

Pitch Madison Report 2023 3

 Three years of extreme uncertainty, 2020-Covid Wave-I,
2021-Covid Wave-II, 2022 Covid Wave-III plus Russia-Ukraine
war which has left both US and Europe markets in distress
and impacted most parts of the world through inflation, raw
material shortages and a funding winter. It has also left many
start-ups in serious distress while causing a hole in ADEX. If
this is not a VUCA world, what is? Last year at this time we
had not anticipated the war, and forecasted a growth of 20%
in 2022.
But guess what? Despite all the set-backs that the World and
India has faced, our GDP grew at 6.8% and in our estimates
ADEX at 21%.

21% ?? You may well ask. Well there are some good reasons:

• We are conditioned by subdued environment in November

and December. We have had 9 reasonably good months in
the year.

• There are now quite a few family driven businesses who

have experienced good growth in the last 5 years and
have developed the ambition to break into the big league,
haveing substantially increased their advertising budgets.

• Many Advertisers are moving spends from conventional

BTL activity, which was not counted in ADEX earlier, to
Ecommerce which is now counted under Digital and is
ATL, so it has been included in our number.

In spite of two years of COVID, and the Russian-Ukraine war

last year, India’s ADEX has grown by 33 % over these 3 years.
If this is not resilience, what is? During the same 3 years global
ADEX also grew by 35%, but last year it grew by only 8%
versus 21% in India.

In absolute terms, ADEX has added Rs. 15,572 crores last year,
growing from Rs. 74,231 crore to Rs. 89,803 crore which is the
second highest gain of the last two decades.

PRESENTS

CO-POWERED BY

Sam Balsara Vikram Sakhuja Nilesh Bagaria

4 Pitch Madison Report 2023

 INDIAN ADVERTISING MARKET
OVER LAST 10 YEARS
Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Traditional Adex - Rs 29056 33435 38871 42165 43835 49202 52136 37177 48793 55399
Crores

Growth % 9 15 16 8 4 12 6 -29 31 14

Traditional Adex Share % 91 89 88 85 82 81 77 69 66 62

Digital Adex - Rs Crores 3050 3970 5120 7315 9303 11705 15467 16974 25438 34405

Growth % 32 30 29 43 27 26 32 10 50 35

Digital Adex Share % 9 11 12 15 18 19 23 31 34 38

Total Adex (Rs. in crore) 32106 37405 43991 49480 53138 60908 67603 54151 74231 89803

Growth % 11 17 18 12 7 15 11 -20 37 21

It is significant to note that 58% of the gain of Rs. 15,572

crore came from Digital ADEX and this report acknowledges
that Digital is now the largest shareholder in Indian ADEX
with a majestic share of 38%, having grown by 35% last year, PRESENTS

on top of a 50% growth previous year. In the last two years,

Digital ADEX has doubled from Rs. 16,974 crore in 2020 to Rs.
34,405 crore in 2022.
CO-POWERED BY

Traditional Media’s role and performance in India is also

noteworthy. Whilst its share has declined from 91% in 2013 to
62% in 2022, in absolute terms it continues to grow year-on-
year and by 14% last year, which is the second highest growth
rate in last seven years.

Linear TV has begun to show signs of stress. Against our

projected growth rate of 14%, it has grown only 9%, with
big TV properties in bigger distress because of the sudden
departure of start-ups, who are now forced to re-evaluate
their monetization plans by investors.

Sports has dominated TV ADEX and continues to be an

important driving force in TV ADEX. Sports contributed
around 23% to TV ADEX in 2022.

Print, the 2nd largest traditional medium has bounced back

well and registered a growth of 11% and recovered to 92% of
its pre-Covid level. However, it continues to not keep pace
with the overall growth rate of ADEX and has lost a further 1%
share, which now stands at 21%.

Pitch Madison Report 2023 5

 Between OOH, Radio and Cinema, OOH recovery is dramatic. It
has registered a growth of 68% and crossed the 2019 level, making
OOH the 2nd traditional medium after Television to cross the pre-
Covid level. Despite its low base, OOH contributes as much as 10%
of the overall ADEX growth in 2022 and has gained 1% share to
settle at 4%.

Radio, too has grown well registering a 17% growth, but it is yet to
cross its 2019 level and its share is static at 2% for the last 3 years.

Whilst Cinema shows a dramatic increase, it has reached only half

its pre-Covid level and its share stands at a mere 0.6%.

QUARTER WISE VOLATILITY:

A quarter wise analysis of ADEX numbers for last 4 years shows
the volatility that our ADEX has gone through. Last year started off
poorly because of the emergence of Covid Wave-III in the last week
of December 2021, and in February the Russia-Ukraine war broke
out. Q2 and Q3 were very good and registered very high growth
rates over corresponding quarters in previous years, but again Q4
was a little soft with most Advertisers reporting a poor Diwali and
ended lower than Q4 of 2021. If not for the slow down in Q1, ADEX
in 2022 would have registered a growth rate of a phenomenal 29%.

INDIAN ADEX VS GLOBAL ADEX

Compared to Indian ADEX’s growth rate of 21%, Global ADEX

according to WARC grew by just 8%. This growth rate is
comparable to the CAGR of 5 years ending 2019, which was 7%.

According to WARC, the top 11 nations (US, China, UK, Japan,

Germany, France, Australia, Canada, Brazil, India, and Italy) which
account for almost 70% of Global ADEX, grew in 2022 by only
1%. So as expected, ADEX in developing countries is growing at a
much faster rate.

A medium wise comparison of share across Global ADEX and

Indian ADEX shows substantial variations. Whilst Digital share
in Indian ADEX is at 38%, for the globe it is at 68%. Outdoor,
PRESENTS Radio and Cinema are more or less at par at sub 4%, 3% and 1%
respectively. Print is where there is a sharp difference with 21%
share in Indian ADEX and just 4% share in the globe.

CO-POWERED BY
Whilst TV is the number 2 medium in both India and globally, there
is a substantial difference in scale — 34% share in India but only
20% in the globe. So, Print and TV are losing out to Digital in Global
ADEX much more than they are in India.

6 Pitch Madison Report 2023

 INDIAN ADVERTISING MARKET
OVER THE LAST 4 YEARS (JAN - DEC)
Yr 2019 Yr 2020 Yr 2021 Yr 2022 Growth%
Medium In Rs % In Rs % In Rs % In Rs % Share 2022/21
Crore Share Crore Share Crore Share Crore
TV 25291 37% 22508 42% 28151 38% 30662 34% 9%
Print 20045 30% 11925 22% 16595 22% 18470 21% 11%
Radio 2260 3% 1270 2% 1733 2% 2032 2% 17%
Cinema 1045 2% 182 0% 136 0% 568 1% 317%
Outdoor 3495 5% 1292 2% 2178 3% 3666 4% 68%
Total Traditional 52136 77% 37177 69% 48793 66% 55399 62% 14%
Digital 15467 23% 16974 31% 25438 34% 34405 38% 35%
Total 67603 100% 54151 74231 89803 21.0%

INDIAN ADEX BY QUARTER

IN RS CRORES
Period Q1 Q2 Q3 Q4 Total
2019 15804 19305 15051 17443 67603
2020 14574 6724 12570 20284 54151
2021 16359 12872 18966 26034 74231
2022 17224 23432 23524 25623 89803
Growth% ( 22 / 21 ) 5% 82% 24% -2% 21%
Growth% ( 22 / 20 ) 18% 248% 87% 26% 66%
Growth% ( 22 / 19 ) 9% 21% 56% 47% 33%
2019 Share 23% 29% 22% 26% 100%
2020 Share 27% 12% 23% 37% 100%
2021 Share 22% 17% 26% 35% 100%
2022 Share 19% 26% 26% 29% 100%

Source: WARC Growth % % Share % Share

In US Bn $ Yr 2019 Yr 2020 Yr 2021 Yr 2022 2022 / 21 Yr 2021 Yr 2022
Traditional 310 255 278 286 3% 34% 32%
Digital 342 386 536 595 11% 66% 68%
Total 652 641 814 881 8% 100% 100%

Pitch Madison Report 2023 7

 Looking at the data, Category wise for Traditional Media,
excluding Outdoor, for which reliable numbers are available, we
see that whilst FMCG continues to be the largest contributor
PRESENTS
with 32% share, its share has been steadily declining from 38%
in 2020 to 34% in 2021, and further down to 32% in 2022.

E-commerce dominated by Amazon and Flipkart has been

CO-POWERED BY steadily growing in share and has moved up from 4.9% in 2019
to 14% in 2022, indicating that this is a mature category with
no funding issues. Unlike the other start-ups, the E-commerce
user base is constantly increasing with enough head room for
further growth.

The Education category that was growing rapidly, thanks to

Edtech has now lost share on account of funding issues and is
down from 9.2% to 7.6% and has been overtaken by Auto, and
moved down to 3rd rank in our ADEX.

This analysis does not adequately reflect the boom in Real

Estate sector, because many of them have moved substantial
spends from Print to Digital and our Category wise analysis
does not include Digital.

The top four categories, FMCG, E-commerce, Auto, and

Education which had moved upto 64.6% in 2021 from 52.2% in
2019 have now declined to 61.8%, but still command a dominant
position in ADEX. Shares of most other Categories are more
or less constant, indicating that they have kept pace with the
overall growth of ADEX.

YEAR 2022 INDIA GLOBAL

Medium % Share Growth 22 / 21 % Share Growth 22 / 21
TV 34% 9% 20% 4%
Print 21% 11% 4% -7%
Radio 2% 17% 3% 3.2%
Cinema 1% 317% 0.4% 51%
Outdoor 4% 68% 4% 8%
Total Traditional 62% 14% 32% 3%
Digital 38% 35% 68% 11%
Total 21% 8%

8 Pitch Madison Report 2023

 CATEGORY CONTRIBUTION
& CATEGORY GROWTH
ACROSS TV + PRINT + RADIO IN 2022
Growth Growth
Category Category Category Contribution Category
TV + Print + Radio - 2022 Contribution in Contribution in
Contribution - 2019 Contribution - 2021 - 2022 Growth %
2022 2022
In Rs
Product Category In Rs Crores In % In % In Rs Crores In % 2022 / 21 in % In Rs Crores
Crores

FMCG 15479 32.5% 15694 34% 16413 32.1% 5% 15% 719

E - Commerce 2337 4.9% 5987 12.9% 7159 14% 20% 25% 1172

Auto 4564 9.6% 3936 8.5% 4150 8.1% 5% 5% 214

Education 2479 5.2% 4263 9.2% 3883 7.6% -9% -8% -380

Real Estate & Home

2140 4% 2182 4.7% 2622 5% 20% 9% 440
Improvement

BFSI 1566 3% 1910 4.1% 2191 4% 15% 6% 281

HH Durables 2099 4% 1688 3.6% 2108 4% 25% 9% 420

Retail 1567 3% 1362 2.9% 1681 3% 23% 7% 319

Clothing Fashion
1685 4% 1140 2.5% 1596 3% 40% 10% 456
Jewellery

Telecom 3771 8% 1347 2.9% 1314 3% -2% -1% -33

Corporate 703 1% 723 1.6% 912 2% 26% 4% 189

Travel & Tourism 831 2% 226 0.5% 336 1% 49% 2% 110

Alcoholic Beverages 323 1% 131 0.3% 213 0% 63% 2% 83

Others 8053 17% 5890 12.7% 6586 13% 12% 15% 696

TOTAL 47596 100% 46478 100% 51164 100% 10% 100% 4686

Pitch Madison Report 2023 9

 DIGITAL
METEORIC
RISE
` 34,405

` 9,303

10 Pitch Madison Report 2023

 DIGITAL ADEX
A 11-fold increase from PRESENTS

Rs. 3,050 crores in 2013

to Rs. 34,405 crores in
2022 and an increase in CO-POWERED BY

share from 9% to 38%,

overtaking TV to become
the number 1 medium.
50%

35%
32%

27%
26%
10% `34,405
GROWTH %

`25,438
`16,974
`15,467
`11,705
`9,303
YEARLY SPENDS
(Rs CRORE)

2017 2018 2019 2020 2021 2022

SHARE % 18% 19% 23% 31% 34% 38%

Pitch Madison Report 2023 11

 DIGITAL MEDIA BY QUARTER
IN RS CRORES
Period Q1 Q2 Q3 Q4 Total
2019 3867 3093 3403 5104 15467
2020 4467 2005 4206 6296 16974
2021 6192 3502 5930 9814 25438
2022 6881 8601 8945 9977 34405
Growth% ( 22 / 21 ) 11% 146% 51% 2% 35%
Growth% ( 22 / 20 ) 54% 329% 113% 58% 103%
Growth% ( 22 / 19 ) 78% 178% 163% 95% 122%
2019 Share 25% 20% 22% 33% 100%
2020 Share 26% 12% 25% 37% 100%
2021 Share 24% 14% 23% 39% 100%
2022 Share 20% 25% 26% 29% 100%

Digital ADEX has grown by 35% in 2022 and this is on top

of a 50% growth in 2021. Over the last two years, Digital has
doubled in size from Rs. 16,974 crores to Rs. 34,405 crores in
2022. With this growth, its share has further risen to 38% and
PRESENTS

it has overtaken TV to become the largest medium in Indian

ADEX.

CO-POWERED BY A 10-year review shows that Digital has grown from a mere
Rs. 3,050 crores, with a 9% share to Rs. 34,405 crores with
a 38% share today. Over these 10 years, in all the years it has
grown by around 30% or more, each year, except in Covid
year 2020, when it grew by only 10%.

In spite of all this growth, we must note that Digital ADEX in

India trails behind Global ADEX. Digital share in Global ADEX
is 68%.

Looking at quarterly trends, they are in line with Traditional

media. Growth in Q1 and Q4 was muted. While Q2 saw a
phenomenal growth of 146%, Q3 grew only by 15%. In terms
of Share, for the first time in many years Q4 share was only
29%, compared to earlier years when it was 37% and 39%,
reflecting that Digital ADEX is not immune to an economic
slow-down.

Video, Social, Display, Ecommerce and Search drive Digital

ADEX. Digital Video continues to dominate Digital ADEX
and having grown by 40%, has further improved its Share
from 29% to 30%. The advertisers’ obsession and preference

12 Pitch Madison Report 2023

 PRESENTS

CO-POWERED BY

for an Audio Visual medium

is reinforced, if you combine
Linear TV (Rs. 30,662 crores)
and Digital Video (Rs. 10,314
crores) totalling to Rs. 40,976
crores, which would mean 46%
of our total Rs. 89,803 crores
ADEX is spent on an Audio
Visual medium.

Social, the 2nd largest

contributor, grew the most at
45% and increased its Share
from 20% to 22%. Display
has grown more modestly at
19% and has therefore lost 3
percentage share points from
19% to 16%. When Google
started, it was all about Search,
but Search today is only 16%
of the market. Whilst it did
grow by 32% last year, many
Advertisers are beginning to
resent the constantly rising bid
prices and are looking to find
cheaper ways of getting the job
done.

With the number of e-commerce

users rapidly increasing in India
and E-commerce Advertising
delivering results to Advertisers,
many medium and large
Advertisers now have started
to sell through e-commerce.
Some reports show that of
the 700 million active internet
users, more than 200 million
are already shopping online.

Pitch Madison Report 2023 13

 WITH GREAT
POWER
COMES GREAT
RESPONSIBILITY

With Digital now the undisputed leader of the Indian ADEX,

we looked at why advertisers believe in this medium, and
some factors to consider which if addressed, could strengthen
PRESENTS the faith. Equally, if not addressed it could lead to questions
being asked about this medium.

Digital’s power comes from its versatility, it has a key role

CO-POWERED BY
to play across the entire marketing funnel. We break up
Digital ADEX into Video, Display, Search, and E-commerce.
. But another cut could well be, Branding, Content and
Performance. While ATL budgets are growing on Digital,

14 Pitch Madison Report 2023

the overall 41% share is also being
contributed to by performance and
e-commerce. These budgets typically
come from BTL / Trade budgets. Social
has given rise to branded content
through posts, films, reels, stories, tweets,
blogs, influencers, etc., and has in a way
spawned a new economy.
Let’s look at Branding that the rest of
PMAR’s estimate captures. While it is
imprecise to dice up the 38,000 cr into
branding, it would be fair to estimate
a majority share of video, and minority
shares of social and display going into
Branding. Safely we can assume no
e-commerce or Search spend goes into
Branding.
Advertisers are pushing Digital branding
for a number of reasons.
One reason for Digital’s growth is
clearly its now massive reach across the
spectrum, with it overtaking TV Reach
in some States. Advertisers realise
that without Digital they will not reach
some key consumers. This is happening
through incremental reach in non-TV
homes (erstwhile Media dark home) as
well as TV homes that have cut the cord,
best exemplified by CTV homes that can
watch Linear and On-Demand Content
without using a cable or DTH connection.
The need of the hour is to have continual
definitive baseline studies that capture
the Indian Media landscape. For a variety
of reasons this has not happened.
The second reason is our ability to target
much more meaningfully on Digital
than conventional demographics into
psychographics, contextual targeting,
retargeting, hyperlocal targeting,
etc., and has opened up the exciting
opportunity to do scaled communication
in a customised manner. Moreover,
owing to the localised nature of Digital,
unlike TV or Print , threshold levels of
investment required to make an impact
is relatively modest. This has already
opened up the floodgates for small
advertisers, but large advertisers are now
increasingly opening up to local plans
with modest outlays.
The third reason is our ability in some
way or form to track some response
to advertising across the marketing
funnel. While not perfect, it is better
than to spray and pray. The advent of
Technology has also evolved our practice
of marketing analytics from multivariate
statistics to Ai/ML led modelling.
This takes us to a sobering realisation. As
Spiderman said, ‘with great power, comes
great responsibility.’ On Digital branding
it is important to call out some existing
lacunae. It is the only significant medium
which does not have an industrywide
Adex Measurement. There is no industry
digital audience measurement (leave
alone cross media measurement), and
some publisher giants choose to live
in walled gardens. Online video has
almost consciously (and inexplicably)
tried to distance its planning approach
from TV planning so that it looks like we
are planning for a completely different
media, whereas, as far as the consumer
is concerned they are watching an
ad while consuming content. The
viewership norms pertaining to coverage,
percentage of pixels, dwell time, are not
standardised nor enforced; Publishers bill
as per their internal logs even when third
party measuring tools indicate a dispute.
For Digital branding to procure a larger
share of those large players who seek
to build Brands, these gaps need to be
addressed at an industry level, to keep
the growth going.
Pitch Madison Report 2023 15
 ADEX in 2022 2021 2022 Share Share Growth
Vertical Rs Crores Rs Crores 2021 2022 2022 / 21
Video 7357 10314 29% 30% 40%
Social 5179 7525 20% 22% 45%
Display 4753 5675 19% 16% 19%
Ecommerce 4100 5535 16% 16% 35%
Search 4049 5355 16% 16% 32%
Total 25438 34405 100% 100% 35%

Because of this, e-commerce has registered a 35% growth

and now has a share of 16% of Digital ADEX. Whilst Google
and Facebook account for the lion’s share of Digital ADEX,
Amazon and Flipkart account for almost 80% of e-commerce
PRESENTS

spends.

Advertising on Connected TV (CTV) is yet to take off. And

CO-POWERED BY the current spend is only around Rs. 450 crores. Whilst there
is no agreement on the number of Connected TVs in India,
and estimates vary from 10 million to 40 million, everyone
agrees that there is going to be a phenomenal increase in
the population of CTVs, fuelling advertising on e-commerce;
because CTV offers Advertisers the impact of larger screen
size, with the sharp targetability options of Digital. OTT
operators are also pouring in huge monies into expensive
productions, which should accelerate the penetration of
Connected TV.

16 Pitch Madison Report 2023

Pitch Madison Report 2023 17
 TELEVISION
EARLY
SIGNS OF
SLOWING
DOWN!

18 Pitch Madison Report 2023

TV ADEX
Grows by 9% against
PRESENTS

our forecast of 14%

CO-POWERED BY

25%

19%

8% 9%

4%
-11%
GROWTH %
`30,662
`28,151
`25,291
`23,432 `22,508
`19,650
YEARLY SPENDS
(Rs CRORE)

2017 2018 2019 2020 2021 2022

SHARE % 37% 38% 37% 42% 38% 34%

Pitch Madison Report 2023 19

TELEVISION

TV MEDIA BY QUARTER
IN RS CRORES

Period Q1 Q2 Q3 Q4 Total
Yr 2019 5384 8815 5315 5777 25291
Yr 2020 4661 3423 5421 9004 22508
Yr 2021 5076 6748 7182 9145 28151
Yr 2022 4917 9754 7606 8386 30662
Growth% ( 22 / 21 ) -3% 45% 6% -8% 9%
Growth% ( 22 / 20 ) 5% 185% 40% -7% 36%
Growth% ( 22 / 19 ) -9% 11% 43% 45% 21%
Yr 2019 Share 21% 35% 21% 23% 100%
Yr 2020 Share 21% 15% 24% 40% 100%
Yr 2021 Share 18% 24% 26% 32% 100%
Yr 2022 Share 16% 32% 25% 27% 100%

ANY CHANNEL AVG TVR

TG Market 2018 2019 2020 2021 2022 2022 /21 2022 / 19

AA 15+ ABC India 11.6 11.1 12.0 10.5 9.7 -8% -13%

Most seasoned brand custodians have believed in the Brand building

power of Television in India. In spite of a slow but sure change in
media viewing habits and time spent in favour of Digital, the brand
custodians have continued to use TV as their dominant medium
PRESENTS

spending 60% to 90% of their media budgets on TV. Because of

this, TV continued to occupy the numero uno position in ADEX
with market share ranging from 37% to 42% in the last 10 years. In
CO-POWERED BY 2022, for the first time we saw signs of stress in Linear TV and its
share has come down from a high of 42% in 2020 and 38% in 2021
to a new low of 34%. In the face of growing Digital spends, TV
has now been relegated to number 2 position in the Indian ADEX
sweepstakes. TV ADEX in 2022 has grown by just 9% over 2021,
substantially lower than our forecast of 14%.

One of the major reasons for the low growth rate is the
disappearance of many new age clients from sponsorship of big
ticket shows, which are sold at a huge premium. But FCT too has
degrown by a marginal 3%. And this drop was seen throughout the
year in all quarters. The festive dominated Q4, which usually sees a
big spike, was missing in 2022.

20 Pitch Madison Report 2023

 TELEVISION

CATEGORY
CONTRIBUTION
& CATEGORY GROWTH
ACROSS TV IN 2022

PRODUCT CATEGORY YR 2020 YR 2021 YR 2022 GROWTH ABSOLUTE GROWTH CATG CATG CATG
RS CR RS CR RS CR % 22 / 21 GROWTH CONTBN CONTBN CONTBN CONTBN
IN 2022 2019 2021 2022

EDUCATION 11372 12834 13725 7% 892 36% 49% 46% 45%

FMCG 2572 4974 6034 21% 1060 42% 5% 18% 20%

AUTO 1268 1523 1682 10% 159 6% 7% 5% 5%

REAL ESTATE & HOME IMPROVEMENT 845 1628 1235 -24% -393 -16% 1% 6% 4%

RETAIL 901 1076 1195 11% 119 5% 5% 4% 4%

CLOTHING FASHION JEWELLERY 630 975 1097 13% 122 5% 3% 3% 4%

BFSI 1712 1165 1064 -9% -101 -4% 12% 4% 3%

E – COMMERCE 537 913 1009 11% 97 4% 2% 3% 3%

HH DURABLES 404 448 525 17% 76 3% 3% 2% 2%

CORPORATE 302 340 426 25% 86 3% 1% 1% 1%

TELECOM 127 292 344 18% 52 2% 1% 1% 1%

TRAVEL & TOURISM 186 125 210 68% 85 3% 1% 0% 1%

ALCOHOLIC BEVERAGES 50 68 107 59% 40 2% 1% 0% 0%

OTHERS 1602 1791 2008 12% 217 9% 7% 6% 7%

TOTAL 22508 28151 30662 8.9% 2511 100% 100% 100% 100%

Pitch Madison Report 2023 21

 TELEVISION
22
TV - GENRE-WISE
CONTRIBUTION
FCT
FCT Volume
Range in Crs in Yr Volume FCT Contribution FCT Contribution FCT Contribution FCT Growth FCT Growth
Genres 2022 (in
2022 2021 (in in % (2019) in % (2021) in % (2022) % 22 / 21 % 22 / 19
Mn)
Mn)

Hindi Main GEC 32 32 2% 1.40% 1.50% 2% -2%

7000 - 7500
Hindi 2nd GEC 63 93 4% 2.80% 4.20% 47% 21%

Sports 7000 - 7500 32 40 2% 1.40% 1.80% 22% 3%

News 2500 - 3000 247 226 10% 10.80% 10.20% -8% 9%

Tamil Regional 2500 - 3000 217 221 8% 9.50% 10.00% 2% 26%

Hindi Movies 1500 - 1800 178 183 8% 7.80% 8.30% 3% 12%

Telugu Regional 1200 - 1500 174 178 9% 7.60% 8.10% 3% -1%

Marathi Regional 1200 - 1500 111 106 4% 4.90% 4.80% -5% 29%

Kannada Regional 1000 - 1300 144 137 7% 6.30% 6.20% -5% 1%

Bengali Regional 1200 - 1500 154 152 7% 6.70% 6.90% -1% 5%

Malayalam
900 - 1000 100 102 5% 4.40% 4.60% 2% 6%
Regional

Music 600 - 700 66 83 4% 2.90% 3.70% 25% 2%

Kids 450 - 500 43 38 2% 1.90% 1.70% -10% -12%

Info 300 - 400 96 74 4% 4.20% 3.40% -23% -15%

Movies Eng 150 - 250 19 16 2% 0.80% 0.70% -15% -53%

Eng Niche 150 - 250 31 35 2% 1.40% 1.60% 11% -21%

Others 1800 - 2000 580 494 21% 25.40% 22.30% -15% 11%

TOTAL 2288 2210 -3% 7%

22 Pitch Madison Report 2023


Despite a 3% drop in FCT there
is a 9% increase in TV ADEX
because Sports which is high
value and low FCT, played a
more important role last year.
TV has also seen an 8% decline
in viewership over the last year,
CO-POWERED BY
and a 13% drop compared to pre-
Covid year 2019.
Also TV has seen a marginal
drop in Advertisers from almost 11,000 in
2021 to less than 10,500 in 2022.
FMCG continues to dominate TV ADEX.
However, the degree of dominance is
steadily decreasing from 52% in 2015 to
49% in 2019 to 45% today. Also FMCG
increased their spend by just 7%, lower
than TV ADEX growth of 9% and all media
growth of 21%. Whilst FMCG Advertisers
believe in the power of TV to grow and
maintain their Share, having been hit by
huge inflation in raw material prices, had
to be cautious in opening their purses, to
balance their books.
E-commerce which only had a 5% share
of TV ADEX, today has a 20% share. It
dramatically increased its share from 5% in
2019 to 18% in 2021 and further increased
it to 20% last year and is now firmly seated
as the second most important category
in TV ADEX. Paradoxically, growth of
e-commerce, helps a Traditional medium,
Linear TV grow!
Education, including EdTech dramatically
reduced its TV spends by 24%. EdTech
accounts for most of this decrease
and because of this Education is now
relegated to 4th position with a 4% share.
Auto has taken over from Education as
the third most important category and
TELEVISION
has maintained its share of 5%,
despite all the supply constraints.
PRESENTS
Real Estate which dominates
Print and Outdoor has
conventionally never taken to TV
and whilst it marginally increased
its share, its share is only 4%.
Telecom, which had one time
used TV as their battlefield has
further dropped spends in 2022
and its share has come down from 12% in
2016 to 4% in 2021 and 3% last year.
In terms of genre, Hindi GEC continues to
lead the pack with respect to TV ADEX,
but significantly last year more and more
Advertisers used more of second line
GEC, indicating that efficiency is top of
their mind.
Sports clearly is becoming as large as
Hindi GEC and despite very high CPRPs
is finding favour with more and more
Advertisers. The number of Advertisers on
Sport increased from around 370 in 2021
to around 470 in 2022.
News, witnessed a de-growth during
last year in the crowded genre, perhaps
signalling that viewers want News as and
when it happens. All the noise created by
the News channels during Covid as to who
is number 1, does not seem to have helped
its cause. Among the regional satellite
channels, Tamil continues to rule the roost,
followed by Telugu, Marathi, Bengali,
Kannada and Malayalam in that order.
Hindi Movies continues to find favour
amongst large Advertisers to drive cost
efficiency in their plans. English Movies,
Niche Channels, Infotainment and Kids
genres seem to be losing relevance.
Pitch Madison Report 2023 23
 PRINT
SMART
RECOVERY!

24 Pitch Madison Report 2023

 PRINT ADEX
Print recovers
PRESENTS

over 90% of its

Pre-Covid value CO-POWERED BY

and continues to
defy global ADEX
trends.
39%

11%

4%
3% 3%

GROWTH %
-41%

`20,045
`19,457
`18,640 `18,470
`16,595

`11,925
YEARLY SPENDS
(Rs CRORE)

2017 2018 2019 2020 2021 2022

SHARE % 35% 32% 30% 22% 22% 21%

Pitch Madison Report 2023 25
PRINT

PRINT MEDIA BY QUARTER

IN RS CRORES

Period Q1 Q2 Q3 Q4 Total
2019 4867 5830 4493 4855 20045
2020 4020 1217 2583 4105 11925
2021 4146 2204 4790 5455 16595
2022 4045 3698 5401 5326 18470
Growth% ( 22 / 21 ) -2% 68% 13% -2% 11%
Growth% ( 22 / 20 ) 1% 204% 109% 30% 55%
Growth% ( 22 / 19 ) -17% -37% 20% 10% -8%
2019 Share 24% 29% 22% 24% 100%
2020 share 34% 10% 22% 34% 100%
2021 share 25% 13% 29% 33% 100%
2022 share 22% 20% 29% 29% 100%

Print in India continues to surprise global Print barons and

defy global ADEX trends. Whilst globally WARC estimates
Print to be 4% of Global ADEX, in India Print in 2022 reigned
with a 21% share. Print ADEX grew last year by 11% to reach
PRESENTS

a value of Rs. 18,470 crores, almost equalling its pre-covid

figure of Rs. 20,045 crores. Whilst in most countries Print
is degrowing in absolute terms, not just in share terms, it is
CO-POWERED BY creditable that in India it is infact growing and grew last year
at a higher rate than TV’s 9% growth.

Print is substantially helped in its growth journey by the fact

that a lot of SMBs use Print as their only Advertising medium
and most Print titles, specially Regional Print get more than
50% of their Advertising revenue from such Advertisers,
which are also growing in numbers. There is also a recognition
among large Advertisers, even from FMCG and definitely HH
Durables and 4 and 2 wheelers that Print is irreplaceable for
announcements of New Launches and promotions.

Although the recently released ABC circulation numbers show

that for most publications, circulation has not reached the
Pre Pandemic levels, this fact does not seem to have daunted
advertisers from using print any less, since both Volume and
Value have gone up by 15% and 11% respectively.

H2 performed well for Print and 58% of its ADEX came from
H2 vs only 46% in pre-Covid year 2019.

26 Pitch Madison Report 2023

 PRINT

CATEGORY
CONTRIBUTION
& CATEGORY GROWTH
ACROSS PRINT IN 2022

PRODUCT CATEGORY YR 2020 YR 2021 YR 2022 GROWTH ABSOLUTE GROWTH CATG CATG CATG
RS CR RS CR RS CR % 22 / 21 GROWTH CONTBN CONTBN CONTBN CONTBN
IN 2022 2019 2021 2022

EDUCATION 1803 2526 2510 -1% -16 -1% 10% 15% 14%

FMCG 1977 2631 2427 -8% -204 -11% 14% 16% 13%

AUTO 1859 2272 2307 2% 35 2% 13% 14% 12%

REAL ESTATE & HOME IMPROVEMENT 683 1025 1241 21% 217 12% 6% 6% 7%

RETAIL 654 985 1213 23% 228 12% 6% 6% 7%

CLOTHING FASHION JEWELLERY 486 641 996 55% 355 19% 5% 4% 5%

BFSI 611 769 985 28% 217 12% 4% 5% 5%

E – COMMERCE 379 847 924 9% 77 4% 4% 5% 5%

HH DURABLES 392 561 851 52% 290 15% 4% 3% 5%

CORPORATE 214 328 420 28% 92 5% 1% 2% 2%

TELECOM 106 150 227 51% 77 4% 3% 1% 1%

TRAVEL & TOURISM 114 141 201 42% 60 3% 2% 1% 1%

ALCOHOLIC BEVERAGES 6 2 3 27% 1 0% 0% 0% 0%

OTHERS 2640 3716 4166 12% 451 24% 27% 22% 23%

TOTAL 11925 16595 18470 11% 1876 100% 100% 100% 100%

Pitch Madison Report 2023 27

PRINT

PRINT - LANGUAGE WISE PUBLICATION

VOLUME IN CC IN 2022 ( CC IN MN )

Growth % Growth %
Contribution in % Contribution in % Contribution in %
LANGUAGE 2020 2021 2022
(2019) (2021) (2022)
PRINT - LANGUAGE
( 22/ 21 ) (WISE
22/ 20) PUBLICATION VOLUME
IN CC IN 2022 ( CC IN MN )
HINDI 79 102 112 9% 42% 35% 37% 35%

ENGLISH 50 70 84 19% 66% 25% 26% 27%

MARATHI 17 22 27 19% 58% 9% 8% 8%

KANNADA 13 15 19 26% 49% 5% 5% 6%

TAMIL 12 16 18 15% 46% 7% 6% 6%

TELUGU 11 15 18 22% 68% 7% 5% 6%

MALAYALAM 8 10 12 14% 38% 4% 4% 4%

GUJARATI 8 10 12 20% 43% 4% 4% 4%

ORIYA 4 6 6 16% 44% 3% 2% 2%

BENGALI 3 4 4 3% 31% 2% 1% 1%

PUNJABI 1 2 2 3% 22% 1% 1% 1%

ASSAMESE 1 2 2 16% 54% 1% 1% 1%

Urdu 0 1 1 34% 75% 0% 0% 0%

TOTAL 209 274 316 15% 51%

28 Pitch Madison Report 2023

 PRINT

In terms of Categories, though Education de-grew marginally,

it emerged as the largest category in Print overtaking FMCG,
which degrew by as much as 8%. Two other large categories,
Clothing, Fashion and Jewellery, and Household Durables
PRESENTS

grew substantially by over 50%.

In terms of languages, Hindi Publications continue to

dominate, followed by English and Marathi, the latter two CO-POWERED BY

having grown by 19% over 2021. English publications have

almost reached their 2019 level of volumes using pricing as
a mechanism to attract more Advertising. Oriya, Bengali,
Punjabi, Assamese and Urdu publications continue to get very
poor Advertising support.

Pitch Madison Report 2023 29

 OOH
GETS ITS
OOMPH BACK!

30
30 Pitch Madison
Pitch Madison Report
Report 20232023
 OOH ADEX
OOH matches its high PRESENTS

growth rate of 69% in

2021. 2 years of high
growth helps OOH cross CO-POWERED BY

pre-pandemic level.

69% 68%
9%
4%
6%

GROWTH %
-63%
`3,666
`3,495
`3,365
`3,085
`2,178
`1,292
YEARLY SPENDS
(Rs CRORE)

2017 2018 2019 2020 2021 2022

SHARE % 6% 6% 5% 2% 3% 4%

Pitch Madison Report 2023 31

OOH

OOH is a medium which involves movement from one

touchpoint to another, hence mobility is vital to OOH. COVID
had affected out-of-home movement drastically in 2020 &
early 2021, but now with mobility back with a vengeance,
PRESENTS

in 2022, OOH is back in full form. It is the 2nd Traditional

medium after Television to cross the pre-COVID level.

CO-POWERED BY Festivities, Celebrations and Events are back, which has led
to increased mobility across markets. As per Oct 22, Google
mobility reports, mobility has grown by more than 30% on an
average.

OOH MEDIA BY QUARTER

IN RS CRORES

Period Q1 Q2 Q3 Q4 Total
Yr 2019 862 844 978 811 3495
Yr 2020 753 8 99 432 1292
Yr 2021 450 252 590 886 2178
Yr 2022 835 877 896 1058 3666
Growth% ( 22 / 21 ) 86% 248% 52% 19% 68%
Growth% ( 22 / 20 ) 11% 10863% 805% 145% 184%
Growth% ( 22 / 19 ) -3% 4% -8% 30% 5%
Yr 2019 Share 25% 24% 28% 23% 100%
Yr 2020 Share 58% 1% 8% 33% 100%
Yr 2021 Share 21% 12% 27% 41% 100%
Yr 2022 Share 23% 24% 24% 29% 100%

DOOH SCREENS BY LOCATIONS

DOOH SCREENS BY LOCATIONS
200000

150000

10000

50000

0
2020 2021 2022 2023

Airports Medical Centers Movie Theaters Offices

Outdoor Billboards Public Spaces Residential Apartments Restaurants / Café
Retail Media Shopping Malls Transit Media

32 Pitch Madison Report 2023

Pitch Madison Report 2023 33
OOH

CATEGORY
CONTRIBUTION
PRESENTS

& CATEGORY GROWTH

CO-POWERED BY
IN OOH IN 2022

PRODUCT CATEGORY YR 2020 YR 2021 YR 2022 GROWTH ABSOLUTE GROWTH CATG CATG CATG
RS CR RS CR RS CR % 22 / 21 GROWTH CONTBN CONTBN CONTBN CONTBN
IN 2022 2019 2021 2022

REAL ESTATE 268 472 683 45% 211 14% 14% 22% 19%

FMCG 174 289 477 65% 188 13% 11% 13% 13%

ORGANIZED RETAIL 145 298 463 55% 164 11% 15% 14% 13%

CONSUMER SERVICES 140 237 412 73% 174 12% 15% 11% 11%

MEDIA 126 152 328 116% 176 12% 6% 7% 9%

FINANCIAL SERVICES 169 281 295 5% 14 1% 10% 13% 8%

AUTOMOTIVE 94 111 205 84% 94 6% 6% 5% 6%

TELECOM 65 60 166 176% 106 7% 6% 3% 5%

E-COMMERCE 28 49 109 122% 60 4% 3% 2% 3%

ELECTRONIC DURABLES 23 40 73 80% 32 2% 3% 2% 2%

PHARMACY 6 15 31 104% 16 1% 1% 1% 1%

PETROLEUM/LUBRICANTS 3 8 5 -35% -3 0% 0% 0% 0%

ENERGY 1 2 2 13% 0 0% 0% 0% 0%

OTHERS 50 163 419 157% 255 17% 10% 7% 11%

TOTAL 1292 2178 3666 68% 1488 100% 100% 100% 100%

34 Pitch Madison Report 2023


OOH in 2022 became a Rs 3600 cr+
medium and grew at 68% over 2021,
registering a 4% share of ADEX.
DOOH continued to be the growth driver
with its big, bright, colorful, and moving
displays. Along with Destination DOOH,
Digital displays are continuously growing
on-road across markets. DOOH screens
have grown from 26,940 in 2020 to
57,690 in 2021 to 89,700 in 2022. 25%
of these screens were in Tier 1 cities in
2022. Tier 2 markets also have a good
proportion of digital screens, but these
are predominantly at transit points. We
estimate that Digital OOH is still very small
at about 12%.
To bring a common standard and connect
DOOH to the mainstream Digital Media,
the IAB Tech Lab published an addition
to the OpenRTB 2.x specification to
standardise how Digital Out-of-Home
inventory is handled programmatically.
OOH
PRESENTS
CO-POWERED BY
Open RTB’s adoption of Digital
Out of Home paves the way for an
omnichannel strategy. Integrating
Digital OOH into OpenRTB will improve
measurement and transparency while
protecting the privacy of audiences’
personal information.
Looking at quarter wise details, OOH
ADEX contributed almost Rs 900
crores each in the first 3 quarters.
Q4 was a bumper Quarter when the
medium crossed the Rs 1000 crore
milestone for the very first time and
contributed almost 30% to the full year.
Looking at the Categories, the top 4
contribute to 56%. Real Estate is leading
the pack with a share of 19% followed
by Retail, FMCG, & Consumer Services.
Expectedly, every Category registered
substantial growth except Lubricants
and Energy.
Pitch Madison Report 2023 35
 RADIO
GOOD
RECOVERY!

36 Pitch Madison Report 2023

 RADIO ADEX
Volumes recover, PRESENTS

but not Value

36% CO-POWERED BY

17%
14%
5%
7%

-44%
GROWTH %
`2,032

`1,733

`2,260
`2,144 `1,270
`1,875
YEARLY SPENDS
(Rs CRORE)

2017 2018 2019 2020 2021 2022

CONTRIBUTION % 4% 4% 3% 2% 2% 2%

Pitch Madison Report 2023 37

RADIO

RADIO MEDIA BY QUARTER

IN RS CRORES
Period Q1 Q2 Q3 Q4 Total
Yr 2019 615 566 548 531 2260
Yr 2020 497 71 260 441 1270
Yr 2021 475 162 453 643 1733
Yr 2022 479 336 533 684 2032
Growth% ( 22 / 21 ) 1% 107% 18% 6% 17%
Growth% ( 22 / 20 ) -4% 372% 105% 55% 60%
Growth% ( 22 / 19 ) -22% -41% -3% 29% -10%
Yr 2020 Share 39% 6% 20% 35% 100%
Yr 2021 Share 27% 9% 26% 37% 100%
Yr 2022 Share 24% 17% 26% 34% 100%

Radio has bounced back and crossed

the revenue threshold of Rs. 2,000
crores and achieved 90% of its 2019
PRESENTS
level. However, it seems to be losing its
importance in ADEX, having halved its
share of 2015, 2016, 2017, 2018 to just
2.3% today.
CO-POWERED BY

Ad volumes in Radio in 2022 increased

by a good 38%, but ADEX increased
only by 17%, indicating that Radio
stations were not able to command their
earlier established Unit rates.

A quarter wise analysis does show that

Radio has recovered well in Q3 and
infact has had its best quarter in 4 years
in Q4.

Real Estate has emerged as the largest

category in Radio accounting for 14%
share, piping FMCG, which now has
a 13% share, followed by E-commerce
and BFSI. The four categories, Real
Estate, FMCG, E-commerce, and BFSI
contribute to 47% of Radio ADEX
and the next three categories, Auto,
Education, and Retail account for 21%
of Radio ADEX. It is these 7 Categories
that Radio ADEX is all about.

38 Pitch Madison Report 2023

 RADIO

CATEGORY CONTRIBUTION
& CATEGORY GROWTH
ACROSS RADIO IN 2022

PRODUCT CATEGORY YR 2020 YR 2021 YR 2022 GROWTH ABSOLUTE GROWTH CATG CATG CATG
RS CR RS CR RS CR % 22 / 21 GROWTH CONTBN CONTBN CONTBN CONTBN
IN 2022 2019 2021 2022

REAL ESTATE & HOME IMPROVEMENT 129 183 284 55% 101 34% 9% 11% 14%

FMCG 157 229 261 14% 32 11% 9% 13% 13%

E – COMMERCE 97 166 201 21% 35 12% 6% 10% 10%

BFSI 152 229 196 -14% -32 -11% 8% 13% 10%

AUTO 117 141 161 15% 21 7% 7% 8% 8%

EDUCATION 56 109 138 27% 29 10% 4% 6% 7%

RETAIL 64 85 124 46% 39 13% 6% 5% 6%

CLOTHING FASHION JEWELLERY 39 50 75 49% 24 8% 4% 3% 4%

CORPORATE 41 55 67 22% 12 4% 2% 3% 3%

HH DURABLES 35 50 61 22% 11 4% 3% 3% 3%

TRAVEL & TOURISM 23 17 27 62% 11 4% 4% 1% 1%

TELECOM 34 32 24 -27% -9 -3% 6% 2% 1%

ALCOHOLIC BEVERAGES 3 3 1 -84% -3 -1% 0% 0% 0%

OTHERS 325 384 412 7% 28 9% 33% 22% 20%

TOTAL 1270 1733 2032 17.3% 299 100% 100% 100% 100%

Pitch Madison Report 2023 39

 CINEMA
NOT QUITE
BOUNCING
BACK!

40 Pitch Madison Report 2023

 CINEMA ADEX 317%
Reaches only half PRESENTS

its pre-Covid level;

South shines
CO-POWERED BY

37%

30%

12%
-25%

GROWTH %
-83%
`1,045

`805

`586 `568

`182
YEARLY SPENDS

`136
(Rs CRORE)

2017 2018 2019 2020 2021 2022

CONTRIBUTION % 1.10% 1.32% 1.55% 0.34% 0.18% 1%

Pitch Madison Report 2023 41

CINEMA

CINEMA MEDIA BY QUARTER

Period Q1 Q2 Q3 Q4 Total
Yr 2019 209 157 314 365 1045
Yr 2020 176 0 0 6 182
Yr 2021 20 4 21 91 136
Yr 2022 68 165 143 192 568
Growth% ( 22 / 21 ) 239% 4033% 584% 110% 317%
Growth% ( 22 / 20 ) -61% 3275% 213%
Growth% ( 22 / 19 ) -68% 5% -55% -47% -46%

With the easing up of Covid protocols and

Cinemas allowing full occupancy, one would
have expected Cinema to bounce back in
2022 to the levels of 2019. But unfortunately,
PRESENTS

we have reached only the halfway mark with

an ADEX number of Rs. 568 crores compared
to Rs. 1,045 crores achieved in 2019. This is
CO-POWERED BY possibly due to the lack-lustre performance
of many new Hindi movie launches.

One of the reasons for a half-hearted

recovery is a poor Q1, when most cinemas
were closed and opened only at the end of
the quarter. Recovery in Q2 was very good,
but Q3 and Q4 were unfortunately at only
50% of their 2019 levels.

Clearly 2022 belonged to the South with

block buster movies like RRR, Pushpa and
KGF 2 recording unbelievable revenues at box
office giving Bollywood movies, a complex.

Cinemas, specially multiplexes owned by

Public listed companies are trying every
trick in the book to bring audiences back to
cinema halls in the face of multiple options,
now available to consumers in their own
homes on big TV screens and mobiles.
But this did not deliver adequate audience
response in the second half of 2022.

42 Pitch Madison Report 2023

 TOP ADVERTISERS OF INDIA IN 2022:

DOMINANCE OF
TOP ADVERTISERS
REDUCES
3 out of top 5 Advertisers are FMCG;
14 New Entrants; Start-Ups reduce

While Advertising usually is a game of players with deep pockets,

and no new Advertiser can penetrate the top 50 list easily, this
year we do have a record of 14 new entrants in our Top 50 list.
PRESENTS

Venture Capital (VC) investments in Indian Start-Ups plunged

in 2022, as economic uncertainty and poor liquidity affected
their ability to raise funds. Its impact is clearly evident on
brands’ Advertising spends. Most of the start-ups reduced their CO-POWERED BY

Advertising expenditure, and now we only have 11 Start-Ups in our

List Vs 15 in 2021.

16 players gained and 19 players lost rank in the pecking order,

making our List look more different than earlier years.
Whilst HUL continues to top the list consistently, Reckitt, RIL,
Dream11, and Mondelez make it to the top 5 list.

While many Advertisers like Coca Cola, GCPL, Maruti, Samsung &
Pepsi gained many ranks, many brands like Colgate, Cred, Hyundai
and PhonePe dropped many ranks.

The contribution of Top 50 Advertisers to total ADEX dropped

dramatically from 38% to 30% this year. And so did the
contribution of Top 10, from 18% to 14%. Television and Digital
continue to be the favourites of top Advertisers accounting for
87% of their total spends.

A note of caution, some advertisers who feature in our list of Top

50, may well be at rank 51-55 and vice-versa. We may mention
that many Madison clients feature in this list, but we hasten to
add that we have not used confidential information that we are
privy to in arriving at this list. The list has been arrived at using a
standard structured process.

Pitch Madison Report 2023 43

TOP ADVERTISERS

YR 2022

Rank Rank Gain / Advertisers Range in

2022 2021 Loss Crores

1 1 0 Hindustan Lever 3800 - 4000

2 4 2 Reckitt Benckiser 1200 - 1400
3 7 4 Reliance Industries 1100 - 1300
4 3 -1 Dream 11 1100 - 1300
5 9 4 Mondelez India 800 - 1000
6 2 -4 Amazon Online India 800 - 1000
7 6 -1 Procter & Gamble 800 - 1000
8 5 -3 Byju’s 800 - 1000
9 11 2 Maruti Suzuki India 600 - 750
10 8 -2 Google 600 - 750
11 16 5 Coca Cola India 600 - 700
12 19 7 Godrej Consumer Products 500 - 600
13 26 13 Samsung India Electronics 500 - 600
14 15 1 Life Insurance Corp Of India 500 - 600
15 41 26 Pepsi Co 450 - 550
16 18 2 L’Oréal India 450 - 550
17 NA New Vini Product 450 - 550
18 10 -8 ITC 400 - 500
19 NA New Meesho 350 - 450
20 21 1 Hero Motocorp 350 - 450
21 NA New Flipkart.Com 350 - 450
22 NA New Tata Digital 350 - 450
23 12 -11 PhonePe 300 - 400
24 22 -2 Asian Paints 300 - 400
25 38 13 Apple Computer 300 - 400

44 Pitch Madison Report 2023

 TOP ADVERTISERS

YR 2022

Rank Rank Gain / Advertisers Range in

2022 2021 Loss Crores

26 24 -2 Glaxo Smithkline 300 - 400

27 NA New Tictok Skill Games (Winzo) 300 - 400
28 NA New Titan Company 300 - 400
29 NA New Pernod Ricard India 250 - 350
30 33 3 Tata Motors 250 - 350
31 36 5 K P Pan Foods (Kamala Pasand) 250 - 350
32 14 -18 Playgames 24*7 250 - 350
33 20 -13 Colgate Palmolive 250 - 350
34 17 -17 Cred 250 - 350
35 34 -1 Swiggy 250 - 350
36 23 -13 Vishnu Packaging (Vimal Pan Masala) 250 - 350
37 NA New Big Basket 250 - 350
38 NA New Acko General Insurance 200 - 300
39 48 9 AMFI 200 - 300
40 NA New Head Digital Works ( A23 ) 200 - 300
41 44 3 Nestle India 200 - 300
42 NA New Gameskraft Technologies 200 - 300
43 27 -16 Hyundai Motor India 200 - 300
44 40 -4 Marico 200 - 300
45 42 -3 Amul 200 - 300
46 NA New Patanjali Ayurved 200 - 300
47 NA New Spotify India 150 - 250
48 37 -11 Emami Limited 150 - 250
49 47 -2 Honda Motorcycle & Scooter 150 - 250
50 NA New Parle Agro 150 - 250

Pitch Madison Report 2023 45

FORECAST 2023

PRESENTS

CO-POWERED BY

FORECAST 2023
ADEX TO GROW
16% IN 2023
This is more than 5 times
higher than Global ADEX,
which is expected to grow only
by 3% Digital to continue to
drive ADEX growth

46 Pitch Madison Report 2023

 FORECAST 2023

INDIAN ADVERTISING MARKET

OVER LAST 4 YEARS (JAN - DEC)
YR 2019 YR 2020 YR 2021 YR 2022 GROWTH % 2023 FORECAST GROWTH %
MEDIUM IN RS % IN RS % IN RS % IN RS % IN RS %
CRORE SHARE CRORE SHARE CRORE SHARE CRORE SHARE 2022/21 CRORE SHARE 2023/22

TV 25291 37% 22508 42% 28151 38% 30662 34% 9% 33522 32% 9%
PRINT 20045 30% 11925 22% 16595 22% 18470 21% 11% 20133 19% 9%
RADIO 2260 3.3% 1270 2.3% 1733 2.3% 2032 2.3% 17% 2438 2% 20%
CINEMA 1045 2% 182 0% 136 0% 568 0.6% 317% 995 1% 75%
OUTDOOR 3495 5% 1292 2% 2178 3% 3666 4% 68% 4106 4% 12%
TOTAL TRADITIONAL 52136 77% 37177 69% 48793 66% 55399 62% 14% 61194 59% 10%
DIGITAL 15467 23% 16974 31% 25438 34% 34405 38% 35% 43036 41% 25%
TOTAL 67603 100% 54151 74231 89803 21.0% 104230 16%

As 2023 sets in, we are reminded of an old
Godrej Shaving Cream Ad of the late 80’s
which ended with “The one bright spot
in a man’s morning.” India is certainly the
bright spot in a gloomy, uncertain world,
so says not the Indian government, not
a patriotic, ever-optimistic Indian, but
the global CEOs of almost all reputed
Consultancies around the world.
Having said that, in today’s world,
countries are interconnected with one
another, because of Trade and Commerce
and therefore India is bound to get
affected by the global gloom. Because of
that, our estimates for growth in 2023 is
a bit subdued at 16%, compared to 21%
growth achieved in 2022.. For perspective,
WARC’s forecast for Global ADEX in 2023
is a growth of only 3%.
With a 16% growth rate, Indian ADEX will
cross the landmark Rs. 1,00,000 crore
number comfortably and settle at Rs.
1,04,230 crores. Covid hopefully is now
history and by 2023 we will cross a pre-
Covid 2019 ADEX level of Rs. 67,603 by a
massive 54%. Like the rest of the world,
Digital will be the main driver of growth.
Whilst the Annexure to this report gives
a longer economic justification for
our forecast of 16%, we recognise that
we will be aided by tailwinds coming
from Growing Consumer Confidence,
Moderating Inflation, Rapidly rising SMB
businesses, and complete recovery from
COVID. But we will get a bit pulled down
by headwinds from Global slowdown and
low capital inflow to Start-Ups.
Whilst Traditional Global ADEX is expected
to de-grow by as much as 4%, we expect
even Traditional ADEX in India to grow
by 10% on the back of good growth of
Television, Print and Outdoor.

Pitch Madison Report 2023 47

FORECAST 2023
PRESENTS
CO-POWERED BY
DIGITAL
Digital will remain a key driver of the Indian
ADEX growth. We project that Indian Digital
share will further rise to 41% of ADEX.
Though the projected growth rate in 2023 is
a little lower at 25%, than the 35% achieved
in 2022, in absolute terms, Digital ADEX will
add Rs. 8,600 crores and is likely to end the
year at Rs. 43,000 crores. Google Search,
Meta, YouTube, and other social media
platforms will retain their respective share
of the Digital spends, that they achieved in
2022.
Ecommerce will continue to grow
and evolve on the back of aggressive
Advertising by Amazon and many other
smaller players like Big Basket, now a Tata
company which will drive penetration..
OTT and Connected Television will also see
aggressive growth as content consumption
on these platforms is ever-increasing
and new users are pouring in, upgrading
48 Pitch Madison Report 2023
from Linear TV to Connected TV. We are
surprised that as yet a reliable figure for the
number of Connected TVs is not available
and estimates vary from as low as 10
million to 50 million. With the 5G rollout in
India, Brands will be able to engage their
customer or target audience in a deeper
way leading to higher adoption of Digital
Advertising.
TELEVISION
We expect Linear TV Advertising to
continue to grow in 2023, but at a subdued
rate of 9% to become Rs. 33,500 crores.
For the second year in a row, TV will lose
further 2 percentage share points to Digital
and TV’s share will further reduce to 32% of
Indian ADEX. In 2019 it was 37%.
Adoption of Digital Video (YouTube,
Facebook, Connected TV), at a faster rate,
post COVID is the primary reason behind
declining Linear TV Share. Upcoming

major cricketing tournaments such as
WIPL, IPL, AsiaCup, ICC Cricket World Cup
and multiple impact properties across the
Networks is likely to fuel TV ADEX growth.
FMCG, the largest category of TV Market,
is likely to substantially increase their
Advertising budgets, instead of reducing
consumer prices because of lowering of
raw material inflation, and the lion’s share
of this increase is likely to come to TV and
Digital Video.
PRINT
The growth of Print Advertising volumes
by 15% in 2022 indicates that Print offers
a compelling option for marketers for new
launches, topical communication, and
topical messaging. We therefore expect
Print ADEX to continue to grow at 9%,
which will take Print ADEX to Rs. 20,133
crore and reach pre-COVID levels. With
this growth rate, we expect that Print share
of ADEX will fall further and for the first
FORECAST 2023
PRESENTS
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time will be lower than 20%. For reference,
Print ADEX had a share of 32% in 2018.
The release of limited ABC circulation
figures which were lower than circulation
figures for 2019 demonstrated that Print
Advertising is not so elastic to Print
Circulation and Readership Data. However,
return of Print Advertising Volumes
demonstrate that it is more responsive
to Print Advertising rates. Something for
Publishers to chew on. If current market
rates of English Publications continue in
2023, we estimate a larger volume growth
rate in English Dailies than Hindi and other
regional publications.
OOH
2022 was a great year for OOH ADEX. We
expect 2023 to be another great year for
OOH ADEX which is likely to grow by a
further 12% on the back of a 68% growth in
2022, to reach a value of Rs. 4,106 crores,
Rs. 600 crores higher than the 2019 ADEX.
Pitch Madison Report 2023 49
FORECAST 2023
PRESENTS
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Its Share, though will remain at 4%. With
the government’s focus on Infrastructure,
we expect more opportunities to come up
in Transit media which will help it grow by
a further 20%. We also expect external VC
funding to come in to create an explosion in
the number of large format Digital screens
on Roads, which should increase share of
DOOH to about 25%. With infrastructure
already in place to offer Advertisers the
convenience and flexibility of Programmatic
Buys, we expect Programmatic Digital OOH
to grow by a further 50% in 2023.
The future story of OOH is likely to revolve
around DOOH. As of 2022, India had 89,700
screens. These are expected to grow to
1,50,000 in 2023 and 4,50,000 in 2025.
These screens will appear across all key
touch points like Airports, Malls, Transit
Media, Corporate Offices, and on Roads.
Whilst the number of screens on Roads will
be very small at just 1% or 2% of the total
screens, these are very large format Digital
screens and will have the largest impact
and change the face of OOH in India in the
years to come. Whilst most of these Digital
screens will be in Metros, we expect that
Tier 1 markets will have at least 15% of the
total screens in 2023.
50 Pitch Madison Report 2023
RADIO
While Radio ADEX took a big hit in the
two pandemic years and is yet to return
to its pre-pandemic levels, we expect that
in 2023 this will be achieved and Radio
ADEX should settle at Rs. 2,438 crores.
Unfortunately, inspite of this growth Radio
ADEX will have a share of just 2%, much
lower than its 3% share of 2019. In a Digital
world, Radio needs to be re-imagined and
several Radio stations are creating Social
and Digital properties, alongside audio
stories that are likely to fuel Radio ADEX in
the near future.
CINEMA
After two years of subdued growth due to
COVID-19, Cinema ADEX is now returning to
normalcy. The bounce back of the Hindi film
industry with the recent success of Pathan
at box office augurs well and we expect
Cinema to almost reach its pre-pandemic
level, but its share will reduce from 2% in
2019 to 1% now in view of the phenomenal
increase in total ADEX during these years.
 ANNEXURE:
WHY WE PREDICT
A 16% GROWTH
IN 2023 –
A MACRO VIEW
By NAGARAJ
KRISHNAMURTHY
Chief Strategy and Analytics Officer, Madison Media

Our recent past has been marked by an uncertain macro

environment. A Pandemic induced slowdown, followed by
the Russian-Ukraine conflict that led to a worldwide surge in
inflation. Global liquidity almost evaporated and Central banks
across all advanced economies adopted synchronised policy
rate hikes.

Most economists agree that compared to the global economy,

India is faring better and is expected to be an outlier in 2023 in
an otherwise gloomy world.

Our forecast of 16% growth in Adex is based on a recognition

of the following tailwinds and headwinds.

Tailwinds
• Complete recovery from pandemic slowdown
PRESENTS
• Moderate Inflation
• Growing consumer confidence
• SMB businesses on fast track

CO-POWERED BY
Headwinds
• Difficult for India to remain insulated from a slowdown in
Western world and global uncertainty
• Slowdown in capital inflow to Start-Ups

Pitch Madison Report 2023 51

ANNEXURE

1.0 Tailwinds to economy

1.1 Recovery from Pandemic Slowdown
PRESENTS

The January 2023 World Economic Outlook Update by IMF

projects that advanced economies will have subdued growth
and India will record highest rate of growth amongst large
CO-POWERED BY economies.

IMF latest growth estimates for different countries are as

follows

India 6.1%
USA 1.4%
Germany 0.1%
France 0.7%
Italy 0.8%
Japan 1.8%
UK -0.6%
China 5.2%
Brazil 1.2%
Growth Estimate for 2023

Professional forecasters on an average have estimated GDP

growth of around 6.9% for India.

India growth projections

by various agencies for FY23

7.3

7 7 7 7
6.9
6.8 6.8 6.8
6.7
6.6

S&P ADB Moody Fitch Goldman World Bank RBI SBI IMF Citogroup OECD

Growth Average

52 Pitch Madison Report 2023

 ANNEXURE

In the recent RBI Monetary Policy, RBI projects 6.4 percent

economic growth for 2023-24. As an early indicator of growth,
tax collection - both direct and indirect, has been buoyant and PRESENTS

exceeds Pre Covid levels.

TAX COLLECTIONS (APR-NOV)

(Rs Lakh Crore) CO-POWERED BY

Source: Economic Survey

Private consumption as % of GDP has rebounded and is at an

all time high. It appears that rebound in GDP growth will be led
by Private Consumption which augurs well for Adex.

1.2 Moderating Inflation

Generally, Urban inflation tends to be higher than Rural
inflation. However, the pandemic induced inflation resulted
in Rural inflation (See chart on Headline Inflation). We also
witnessed steep food inflation. Food Inflation dents everyday
consumption more severely. Inflation did not impact India
uniformly. The impact was less severe in South, while high in
Hindi belt. Consumption pattern broadly reflected this.

Early indications are that inflation is tempering across India.

RBI expects the Inflation to come down to 5.3 percent in 2023-
24, from average of 6.5 percent seen in 2022-23. Inflation is
an added ‘tax’ to the price consumers pay for everything. It’s
just not officially levied. It has been historically observed that

Pitch Madison Report 2023 53

ANNEXURE

Private Consumption as % GDP

PRESENTS

CO-POWERED BY

Source: NSO, MoSPI

Urban and Rural Inflation

demand peters out in an environment of high inflation. When

underlying demand is low, advertising has lower elasticity.

Fortunately, inflation has shown signs of moderation and the

worst is behind us. Inflation has moderated in Urban India
and and it is expected that Rural inflation will ease soon. High
inflation had dented the bottom of the pyramid consumption.
If softening in inflation sustains, then demand should bounce
back. Softening of inflation will be a big boost to consumption,
which in turn will see advertisers increasing their allocation to
advertising.

54 Pitch Madison Report 2023

 ANNEXURE

PRESENTS

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Source: MoSPI

1.2 Moderation in Input Inflation

Moderation in input price is even more encouraging. An RBI
study indicates that one per cent increase in global prices
could increase inflation in India by around 63 basis points.
Tempering of input prices is a huge relief to Advertisers as it
will result in easing of margin pressures.

Most Advertisers had hiked prices in a response to input

inflation. In many cases, the grammage was cut while
maintaining the same retail price – Shrinkflation as it is called!
With softening input price, advertisers will opt for using
advertising and promotions to bolster demand. For instance, in
the just concluded earnings call, Britannia Industries stated that
they will not reduce the Maximum Retail Price of its products
but will opt for promotions. Most advertisers will use the lever
of Advertising for demand generation rather than opt for price
reduction. Thus, falling input prices will be a big booster for
Adex.

1.3 Growing consumer confidence

RBI conducts survey to obtain current perceptions (vis-à-

vis a year ago) and one year ahead expectations on general
economic situation, employment scenario, overall price
situation and own income and spending across 19 major cities.
The Current Situation Index (CSI) as well as Future Expectation
Index (FEI) had taken a severe dent during pandemic. However,

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ANNEXURE

Sketching Global Commodity Prices

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Source: World Bank

the sentiment has improved in recent quarters with sentiment

index hovering close to Pre Pandemic levels. Intuitively,
demand for goods should go up with rising consumer
confidence.

1.4 SMB Business on Fast Track

SMBs are the backbone of Indian economy contributing to
nearly 30% of GDP and is estimated to employ more than 175
lakh individuals. There are more than 90 million MSMEs, and of
these, 15 million MSMEs come under GST. While most expected
GST to curb SMB growth, have emerged more resilient.
SMBs have consistently recorded growth higher than GDP
growth. One indicator is that offtake of credit from scheduled
commercial banks to medium, micro and small industrial
enterprises has zoomed in recent months on the back of
the government’s emergency credit line guarantee scheme
(ECLGS). Budget 2023-24 has proposed to expend a Rs 22,138
crore on allocations aimed at the micro, small, and medium

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RBI Consumer Confidence Indices

enterprises (MSMEs). This would accelerate the growth of

MSMEs, and eventually their ad spends.

TAM Adex estimates that large Advertisers account for 53% of

PRESENTS

advertising spend but they account only for 0.02% Advertisers

in terms of Numbers. The long tail of SMB Advertisers account
for 47% of Adex. Digital media and regional media lower the
cost of entry for smaller Advertisers. Thus, they are expected CO-POWERED BY

to spend more on Advertising in the coming years, accelerating

the quantum of Adex.

2.0 Head Winds

2.1 Global Uncertainty

The World Uncertainty Index is almost back to its mean and

has come down significantly from its recent peaks. This IMF
tracked Index is computed rather interestingly - The chart is
computed by counting the percent of the word “uncertain” (or
its variant) in the Economist Intelligence Unit country reports.
While the known unknowns are coming down, larger macro
picture in terms of geo political crisis (Ukraine-Russia, Hong
Kong-China) still looms large. Another bout of uncertainty and
high inflation could derail the recovery.

2.2 Slowdown in capital inflow to Start-Ups

Venture Capital funded start-ups had fuelled the Adex surge

Pitch Madison Report 2023 57

ANNEXURE

World Uncertainty Index

Source: Ahit, Bloom & Furceri

in the recent past. They had aggressively invested in large

format shows and in performance marketing lifting the total
Adex. Much of the VC flow was on the back of high global
PRESENTS
liquidity. The Federal Open Markets Committee (FOMC) sets
the Federal Funds rate in the United States. Also known as the
Federal Funds Target Fed Funds Rate, it guides the overnight
lending among U.S. banks. It’s set as a range between an upper
CO-POWERED BY and lower limit and is the barometer of global liquidity. The
Federal Funds Rate is currently 4.50% to 4.75%. In the first
quarter of 2022, the US Fed was holding the Federal Funds
Rate at around zero, driving global liquidity and risk appetite.
Higher the Fed Rate, lower is the global liquidity. We do not
expect another round of hawkish tightening. However, should
it happen, there will be a longer funding winter for Indian
Entrepreneurs.

Conclusion
Indian advertising has endured many economic shocks in the
recent past. Except for the peak COVID year, the general trend
of ADEX has been relative high growth rate year-on-year. Our
growth expectation hinges on the fact that India has been
fortunate that it has many levers going for it in the coming year.
While, we do not expect an accelerated growth – a cautious
growth estimate of 16% in ADEX should be achievable.

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