India’s Entertainment and Media (E&M) sector is expanding at a healthy pace, with total revenue projected to reach ₹2.34 lakh crore in 2023, an 8.1% increase from the previous year. A pivotal shift marks this growth: internet advertising has become the largest single segment within the sector. This development places digital ads ahead of television advertising for the first time, signaling a major change in how businesses reach consumers across the country.
Key Takeaways
- Internet advertising is now the top revenue generator in India’s E&M sector.
- The total E&M sector is expected to grow to ₹2.96 lakh crore by 2026.
- The rise is driven by increased internet access, affordable data, and high consumption of online content.
- While growing, television advertising now holds the second spot in terms of revenue contribution.
According to the recent FICCI-EY report titled ‘Windows of opportunity, India’s media & entertainment sector’, the internet advertising segment grew by 15% to reach ₹51,000 crore in 2023. This growth is expected to continue, with projections showing the segment could reach ₹73,600 crore by 2026. In contrast, television advertising, while still a massive ₹37,300 crore market, is growing at a much slower rate.
This change is directly linked to the widespread availability of low-cost smartphones and some of the world’s cheapest mobile data plans. An increasing number of Indians now spend their time on digital platforms. This includes social media giants like Meta and Google’s YouTube, as well as Over-The-Top (OTT) streaming services like Disney+ Hotstar, Netflix, and Amazon Prime Video. These platforms offer advertisers a direct and measurable way to connect with a large and engaged audience.
The consumption habits of the Indian audience have clearly moved online. Video content, in particular, attracts the highest advertising spend. Advertisers are allocating more of their budgets to digital video formats that appear before, during, or after streamed content. The growth of e-commerce has also played a crucial part. Online retailers are among the biggest spenders on digital ads, using them to drive sales and attract customers to their platforms.
While the spotlight is on digital, other traditional media segments are facing different futures. The film segment showed a strong recovery post-pandemic, growing 14% to earn ₹12,200 crore. However, the print media segment continues to face challenges, with advertising revenues remaining below pre-pandemic levels. The data clearly shows where the audience and the advertising money are headed. The Indian E&M sector’s story is now firmly tied to the growth of the internet.
Frequently Asked Questions (FAQs)
Q1: What is the E&M sector in India?
A: The Entertainment and Media (E&M) sector in India includes various industries such as television, print, films, radio, music, gaming, live events, and digital media, which includes internet advertising and OTT platforms.
Q2: Why is internet advertising growing so fast in India?
A: The rapid growth is due to three main factors: deep internet penetration into smaller towns and rural areas, affordable mobile data plans, and a large population of young users who spend significant time consuming content on smartphones.
Q3: Which is the largest segment in India’s E&M industry now?
A: As of 2023, internet advertising is the largest segment by revenue in India’s E&M industry, surpassing television advertising.
Q4: What is the future of TV advertising in India?
A: TV advertising is still a very large market in India and continues to grow, but at a much slower pace compared to digital advertising. It remains a key medium for reaching households, especially outside major metropolitan areas.
Q5: How big is India’s E&M market expected to become?
A: According to industry reports, India’s E&M sector is projected to grow at a compound annual growth rate (CAGR) of 9.4% to reach ₹2.96 lakh crore by the year 2026.
