Tech Giants Led 14 Percent Surge in FY 2024 Advertising Revenues

In FY 2023-24, the advertising revenues of major digital and traditional media companies in India reached Rs 95,502.6 crore, up from Rs 83,616.44 crore in FY 2022-23. This marks a 14.21 percent increase with Google, Meta, and Amazon leading the growth in revenue share.

This growth was primarily driven by strong performances from Google, Meta and Amazon, which collectively captured a significant market share. In contrast, ad revenues for media houses in the entertainment sector, including Zee, Sony, and Network18's entertainment division, either stagnated or declined, highlighting the effects of a sluggish advertising market.

An increase of 11 percent was registered in Google India's revenue, amounting to 31,221 crore, thereby strengthening its lead as a leader in digital advertising. Strong results were reported from Meta India as well, which increased revenue by 24.1 percent to 22,720 crore, thereby ensuring it remains a significant player. Revenues at Amazon surged by 24 percent, hitting 6,649 crore, while Flipkart did an astounding 50 percent jump with revenues of 4,972 crore. These numbers indicate how dominant e-commerce and social media will be in the advertising field.

Network18 is not disclosing a specific advertising revenue and consolidated revenue from advertising, subscription and programme syndication at Rs 8,076.6 crore in FY 2023-24, a major jump from Rs 5,537 crore in the previous fiscal year, pushing up the growth by 45.8 percent. The company's consolidated advertising revenue is estimated to have reached around Rs 4,500 crore, driven largely through its news business.

Other media companies experienced varying outcomes. Zee Entertainment Enterprises Ltd saw stable performance, with minimal change in advertising revenue, reporting Rs 4,057.6 crore for FY 2023-24 compared to Rs 4,057.8 crore in FY 2022-23. ZEEL attributed its flat growth to a sluggish linear advertising market, slow recovery in consumption demand from FMCG companies, especially in rural areas, and weak spending from new-age companies throughout the year.

Sony Pictures Networks had lowered their advertising revenue to 12 percent, which was now reduced at Rs 2,824 crores against Rs 3,209 crores. Similarly, Sun TV had a slighter pushback at 2 percent with ad revenues finally reaching Rs 1493.1 crore from Rs. 1521.8 crore. It would be seen that another brand in the group, Star India went through some harsh realities as its ad collection was at Rs 10,736.9 crore, with a 4 percent decrease from the previous amount of Rs 11,183.04 crore. These speak volumes about the ever-altering consumer reactions faced by traditional broadcasters along with changing priorities among advertisers.

The overall growth in both digital and traditional media advertising revenues emphasized the evolving landscape of India’s advertising industry. While digital platforms are gradually capturing a larger share of ad budgets, traditional media continues to face difficulties in preserving its dominant position.

According to Pitch Madison Advertising Report 2024, TV ad revenues grew by 7 percent from 2022 to 2023, falling 2 percent short of the projected 9 percent growth in CY2023.

On the other hand, the digital advertising market saw a 15 percent growth against the projected 25 percent for 2023. The report projected that Digital would continue to be the key driver of AdEx with a modest growth of 17 percent in CY2024.