Digital Media Overtakes TV In 2024, Becomes Largest Segment In India's Media Industry
The Digital media surpassed television in 2024, becoming the largest segment in the industry, according to the latest FICCI report on Thursday.
Digital media refers to content and promotions delivered through electronic platforms like websites, mobile phones, computers, podcasts, and apps.
With advertising revenue hitting an all-time high of ₹1.28 trillion, digital platforms now account for 56% of total advertising spend, surpassing traditional media’s 44%.
This growth mirrored the country’s nominal GDP increase of 8.7%. The rise in advertising revenue was largely driven by digital media, including performance ads on e-commerce platforms, digital Out-of-Home (OOH) media, and growth in print and radio retail advertising.
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New media, including digital platforms, accounted for 56% of total advertising revenue, surpassing traditional media for the second consecutive year, the report said.
Traditional media, which includes television, radio, and print, contributed 44%, with television advertising showing a decline, dragging overall growth by 20%. Television’s underperformance was linked to a drop in ad volumes and a shift in viewership towards connected TVs.
Performance advertising on digital platforms, especially e-commerce, played a significant role in driving growth, alongside premium digital OOH media.
However, some sectors faced challenges, such as a fall in subscription revenues due to reduced Pay TV homes and lower performance in films at the box office. The report also highlighted a 9.4% decline in animation and VFX revenues, impacted by both global and domestic demand fluctuations.
Looking ahead, the advertising industry is expected to continue growing at a compound annual growth rate (CAGR) of 8% until 2027, with digital media leading the charge.
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The report stated that by 2027, digital advertising is expected to account for 61% of total advertising, up from 56% in 2024.
The report also predicts that advertising revenue will reach ₹1.38 trillion by 2025, driven by factors such as rising per capita income, GDP growth, and increased participation of women in the workforce.
Digital media is a key tool for businesses, a platform for information, entertainment, and marketing. Websites play a crucial role in digital marketing, providing interactive, user-friendly content that adds value and helps visitors make informed decisions.
Email and SMS marketing are also important, as they are cost-effective, customisable, and have higher engagement rates.
