Festive frenzy: Advertisers gear up for record-breaking spend

As we approach the second half of 2024, the global advertising landscape is poised for remarkable growth. WARC’s latest report predicts a 10.5% surge in global ad spending this year, reaching a record $1.07 trillion. This growth trajectory, the best in six years since COVID, sets the stage for an even more dynamic market in the upcoming festive season, a critical period for advertisers in India.

Reflecting broader global trends, the 2024 Global Midyear Forecast by GroupM estimates that global advertising revenue will grow by 7.8% to $989.8 billion. This underscores the robust performance of the advertising industry, with global ad revenue expected to surpass the $1-trillion mark in 2025, a milestone anticipated to be reached a year earlier than previously predicted. The US and China, which together account for 57.1% of global ad revenue, are significant contributors to this growth, adding $44.5 billion in 2024 alone.

In India, this global momentum is echoed by industry experts.

Ashish Bhasin, Founder of The Bhasin Consulting Group, emphasizes the importance of the festive season, stating: "The festive season is the most important part of the advertising calendar. It typically kicks off with Ganpati in the West and extends all the way to New Year’s. Some festivals are big in specific regions—like Ganpati in the West, Durga Puja in the East, and Onam in the South. Diwali, for example, is celebrated nationwide. We usually see about 40% to 45% of the year’s total ad spend between Ganpati and New Year. This year, I expect at least a 10% to 15% increase compared to last year. The good monsoon so far is a significant boost for the rural economy, which is crucial for many large advertisers, especially FMCGs. This is a positive sign for advertising overall."

Manish Bhatt, Founder and Director at Scarecrow Communications Ltd, observes that this has been an interesting year.

"The first half was filled with a lot of sports events. The second half will be more focused on festivities, some movie launches, and the Olympics in between. It’s been a very interesting year with a lot happening, but at the end of the day, the year is just a year. The brands and creative work we do have a longer-lasting impact than specific events or halves of the year," says Bhatt.

Jolene Solanki Fernandes, COO of Madison Media Ultra, adds: "The first half of the year was filled with multiple events—IPL, elections, World Cup, Olympics, and more. This year started very well with advertisers investing in multiple properties and regular advertising. Does that mean the second half will go a little slow? I don’t think so. Festive in India has always been a ray of hope where consumer sentiments are positive due to cultural beliefs. Up to December, we will see a spike in consumer sentiments leading to increased spends across all categories, particularly in digital, with substantial growth in CTV and e-commerce."

Fernandes further comments on the year's outlook, noting: "At an overall level, yes, ad spends are set to surpass those of last year. The prediction was for a 12% growth in ad spends versus last year. As per Madison PMAR, we closed the year at ₹99,000 crores and expect 2024 to reach ₹111,000 crores. Most brands have realized that brand building is a long-term process and it yields returns over time. However, in the short term, the right blend for high brand engagement is built with a focus on both media and strong creative strategies, leading to better ROI."

Bhasin also expects a 12% to 14% increase, definitely surpassing last year’s figures by double digits. If the monsoons continue favorably and the festive season goes well, we’re likely to see at least a 12% to 14% overall growth in advertising, he adds.

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