Due to the structural change in the e-gaming industry, the advertising sector has also seen a big change. As per the reports, the advertising sector will grow at a speed of 6% in the fiscal year 2024 it was reportedly 12% in the previous year. The advertising sector would reach $16 – 17 billion by 2024.
This came after the decline in consumer spending over the recent five to six quarters. This decline results from private equity and venture capital backing out their funding for various sectors. The 28% GST regulation also impacted the real-money gaming industry, with various startups needing more funding.
As per the report published by RedSeer, the industry also saw some positive growth through the setbacks. In advertisement expenditure (adex) only e-commerce is expected to see an estimated growth of 15% in FY24. Just like gaming, the education sector also saw a big drop in growth, while other sectors like consumer durables, travel, and hospitality maintained their adex spends between FY23 and FY24. Advertisers are now looking for new options such as the Media and entertainment sector to get more reach.
Despite ups and downs Advertising industry is quickly adapting new methods to keep up with the rise of new platforms, consumer trends, and technological advancement. According to the report, Advertising spending will grow at a CAGR of 9-10% over the next few years to reach $23 – 24 Billion in 2028. Digital advertising is expected to surpass other markets, growing at a speed of 11-12%, and getting the largest share in the advertising industry. Internet users are expected to exceed satellite users and reach 800 million in upcoming years.
In FY23, retail-led sectors such as consumer goods, retail, e-commerce, electronics, and automobiles hold 60% of digital advertising spending, while content and service sectors hold 27% of the ad spend. Furthermore, the consumer sector will see exponential growth in advertising spend in FY24.
The advertising sector is now looking to use several trends, including Influencers and performance advertising. They are focusing on spending and reaching the Tier 2 and Tier 3 city users, to reach out more.Â
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