Ashwin Padmanabhan, GroupM, highlights that in 2024, the main contributors to the advertising expenditure (AdEx) will be startup advertising investments, election campaigns, the automotive sector, and

In Mumbai, the advertising industry is expected to see a gradual recovery in startup spending, with key drivers including elections, the automotive sector, SMEs, and events like the Twenty20 World Cup following the IPL. However, potential obstacles such as geopolitical tensions between Russia and Ukraine leading to oil price hikes and uncertainty regarding the monsoon could impede ad expenditure growth in 2024, according to GroupM's annual report, forecasting a 10.2% increase in ad spend.

Ashwin Padmanabhan, president of investments, trading, and partnerships at GroupM, anticipates growth driven by sectors like auto, retail, and education, with FMCG remaining stable. Startups are expected to resume measured spending, particularly on profitable consumer acquisition, while retail media spending will increase, driven by the rise of commerce platforms contributing to sales.

Elections are expected to inject significant ad spending, particularly in news across TV and social media platforms like YouTube and Facebook. January 2024 has shown promising growth compared to the previous year, with a potential increase of 10-15%, indicating a positive trend since the stabilization observed from August 2023.

However, potential challenges to growth include geopolitical tensions affecting oil prices and commodity costs, as well as the impact of a weak monsoon on rural sectors like FMCG and two-wheelers. Padmanabhan emphasizes the need for enhanced measurement in digital media to connect audiences across different platforms, while highlighting innovations in outdoor advertising, particularly the integration of digital screens and programmatic environments.

Television is expected to see single-digit growth, with innovations in audience targeting needed for a return to double-digit growth. Padmanabhan suggests leveraging technology for audience segmentation, citing examples of audience-specific channel streams. Print media continues to grow, particularly in regional markets, with commerce companies investing in print to reach audiences in tier two and three cities.

Artificial intelligence is playing an increasing role in campaign execution and content development, enabling real-time optimization and personalized creative delivery based on consumer preferences.