The Indian advertising market is forecast to grow by 16 per cent in 2022 to reach USD 11.1 billion (Rs 88,639 crore), becoming the fastest growing market globally, a report said on Thursday.

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This would lead to over 14.5 per cent growth by TV and 31.6 per cent on the digital side, said Dentsu Global Ad Spend Forecasts July 2022.

The easing of lockdown restrictions has opened up categories such as travel and hospitality, which were not spending during the pandemic. Besides, categories like edtech, fintech, gaming and cryptocurrency have shown growth on Over-The-Top (OTT) platforms.

"Digital, at a 33.4 per cent share of spend, will be the key medium for digital-first brands and consumer tech companies in 2022. TV continues to garner a 41.8 per cent share in 2022 and has recovered fully, boosted by the airing of new content and sports events such as the Indian Premier League," it said.

The digital ad space is estimated to grow twice as fast as ad spending through television.

In 2022, the US will be both the top ad spending region at USD 329.6 billion and the most dynamic region with spending increasing by 13.1 per cent.

"In terms of growth, however, India (+16.0 per cent YOY growth) will stay ahead of the United States (+12.8 per cent) and Brazil (+9.0 per cent) as the fastest growing market," said Dentsu Global Ad Spend Forecasts.

According to the report, looking ahead, "significant growth" is forecast in OTT, connected TV, online gaming and e-commerce.

"The India advertising market is forecast to grow by 16 per cent in 2022 to reach USD 11.1 billion led by TV (+14.5 per cent) and digital (+31.6 per cent)," it said.

In 2021, the Indian advertising market was around USD 9.6 billion. It is projected to grow by 15.2 per cent in 2023 to USD 12.8 billion and by 15.7 per cent to USD 14.8 billion in 2024.

While globally, advertising spending would increase by 8.7 per cent in 2022 to USD 738.5 billion.

Ad spending in the Asia Pacific is anticipated to reach USD 250 billion, with digital accounting for much of this amount.

In the region, China advertising market is forecast to grow by a further 5.6 per cent in 2022 to reach USD 130.2 billion.

Dentsu international CEO Media APAC Prerna Mehrotra said the latest Dentsu Ad Spend July 2022 points to a continued recovery despite another year of economic uncertainty, with APAC 2022 ad spend of USD 250 billion, based on a growth forecast at 5.1 per cent.

"However, continued lockdowns in key markets, geopolitical tension and ongoing supply logistics issues could add pressure on businesses with a cascading impact on marketing spends," she said.