2024 tough year for ad industry but the worst is behind us: EssenceMediacom's Navin Khemka

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Subscribe to enjoy similar stories. MUMBAI : The advertising industry navigated a turbulent 2024, grappling with economic challenges that impacted consumer spending and marketing budgets. Navin Khemka, CEO, South Asia at EssenceMediacom, described the year as “extremely tough," attributing the slowdown to high food inflation, subdued rural demand, and cautious startup spending.

“We began 2024 with ambitious targets, but macroeconomic factors like reduced disposable incomes forced us to revise our outlook," said Khemka. The rural market, a traditional growth engine, experienced a downturn for most of the year. “Demand picked up slightly in the last quarter, but it wasn’t enough to offset earlier sluggishness.

Inflation and uneven monsoon rains worsened the situation," he added. Urban markets, meanwhile, saw a slowdown in discretionary spending on two-wheelers and budget cars, creating a challenging environment for marketers. At the same time, premiumization emerged as a key trend, reflecting a stark economic divide.

“The rich are getting richer, driving demand for luxury real estate and high-end products," Khemka said. While the upper end of the market thrived, Khemka stressed the importance of inclusive growth. “Wealth concentration in a few hands cannot drive the broader economy.

Entry-level car and two-wheeler sales depend on increasing disposable incomes for the masses," he said. Startups, an essential part of the advertising ecosystem, tightened their marketing budgets in response to economic uncertainties. “However, we also saw strong brand emergence from startups that successfully raised funds and listed in the market, signalling investor confidence in India’s future," Khemka said.