The Dramatic Rise of Political Ad Spending on Google in India

Introduction

In this new era where digital media dominates communication, the landscape of political campaigning has undergone a transformative evolution. Political ad spending on platforms like Google has emerged as a significant aspect of election strategies, particularly in India, the world’s largest democracy. This shift towards digital platforms has raised questions about transparency, regulation, and the overall impact on electoral outcomes, enlightening us about the changing face of politics.

This shift has not just changed the way political parties communicate with voters, but it has also influenced the way voters engage in political discussions. Traditionally, political campaigns in India have depended on mediums such as television, radio, and print. However, with the increasing usage of the internet and smartphones, digital platforms have become the new battleground for securing votes. Google, being one of the most frequently visited websites in India, has actively shaped this digital shift, making it a significant player in Indian politics.

Annual Political advertising on Google in India

Fig: 1

There’s a dramatic rise in political ad spending on Google in India, especially from 2023 to 2024. The 2024 spending (₹2.95 billion) is nearly 2.5 times that of 2023 (₹1.18 billion). The substantial increase in 2024 correlates with the Indian general elections, held in April-May. Political parties tend to ramp up their digital advertising efforts during election years. The number of ads has increased exponentially, from 42,768 in 2023 to 2,17,210 in 2024, indicating a much broader and more aggressive digital campaign strategy. 

Fig: 2

There’s a noticeable dip in spending and number of ads in 2020, possibly due to the COVID-19 pandemic and associated restrictions on political activities. Post-2020, there’s a steady increase in both spending and the number of ads, suggesting a recovery and growing reliance on digital platforms for political messaging. The average cost per ad has fluctuated over the years. In 2024, despite the massive increase in total spending, the cost per ad seems lower than in previous years, possibly indicating a shift towards more numerous, targeted ads rather than fewer, more expensive ones.

Monthly Political advertising on Google in India

Election Year Patterns

In 2019, a notable spike in spending occurred in April (0.19 billion), coinciding with the Indian general election held from April 11 to May 19. This surge reflects substantial campaign expenditures in the lead-up to and during the election period. Similarly, in 2024, there was an unprecedented rise in spending between January and May, jumping from 0.11 billion in January to 1.1 billion in May. This massive increase underscores the heightened intensity of digital campaigning in preparation for the 2024 general elections.

Fig: 3

Year-by-Year Analysis:

In 2019, spending was concentrated in the first half of the year, particularly during the election months. In 2020, overall spending was lower, likely due to the COVID-19 pandemic, with the highest expenditure in February (0.03 billion) before widespread lockdowns began. In 2021, significant spikes occurred in March (0.2 billion) and April (0.1 billion), possibly linked to state elections. February 2022 stands out with 0.13 billion in spending, likely related to state elections in Uttar Pradesh, Uttarakhand, Goa, and Punjab. In 2023, there was a general increase in spending throughout the year, culminating in a massive spike in November (0.38 billion), likely driven by state elections in Madhya Pradesh, Rajasthan, Telangana, and Chhattisgarh.

Seasonal Trends

There’s often higher spending in the first quarter (January-March) of each year, which could be related to budget allocations or the start of campaign seasons. The end of the year (November-December) also frequently shows increased spending, possibly due to the winter session of parliament or year-end political activities. The data shows a clear dip in spending from March 2020 onwards, with amounts dropping to double digits in some months. Recovery seems to have started in August 2020, indicating a gradual return to digital political advertising. 

There’s high month-to-month volatility in spending, particularly noticeable in non-election years. This could reflect reactive advertising based on current political events or issues.This analysis reveals the dynamic nature of digital political advertising in India, showing clear correlations with election cycles, the impact of external events like the pandemic, and an overall trend towards increased digital campaign spending.

Ads Format-wise Political advertising on Google in India

Fig: 4

Video ads consistently account for the majority of ad spending across all years, ranging from 59.6% (2020) to 83.7% (2023) of total spending. The share of spending on video ads has generally increased over time and reached a peak of 83.7% in 2023.  Image ads show more variation in their share of spending. They peaked at 40.4% in 2020 but have since declined. In 2023, it reached a low of 16.0%. Text ads consistently represent the smallest portion of ad spend. However, their share has grown from 0.0613% in 2019 to 0.320% in 2024, indicating a slow but steady increase in their use.

The year 2020 shows a different pattern, with video ads having their lowest share (59.6%) and image ads their highest (40.4%). This could be related to the COVID-19 pandemic and changing political communication strategies. Total spending on video has increased significantly from ₹216M in 2019 to ₹2.41B in 2024, indicating a growing investment in digital political advertising.

Overall, this insight indicates a change in political advertising strategies or audience preferences. The consistently high spending on video ads suggests that political advertisers find this format most effective for reaching and engaging their audience.

State-Level Political advertising on Google in India

High-Spending States 

Tamil Nadu tops the list with a total spending of ₹748,200 K, showing an extremely high expenditure in 2021 (₹284,000 K) and even higher for 2024 (₹287,000 K). This suggests a highly competitive political environment in the state, with heavy investment in digital ads. Uttar Pradesh follows with ₹416,260 K, with notable spikes in 2022 (₹96,400 K) and ₹235,000 K in 2024, reflecting its significance in national elections due to its large population and number of parliamentary seats. Telangana (₹435,681 K), Andhra Pradesh (₹403,911 K), and Maharashtra (₹331,980 K) also exhibit high spending, particularly in election years or when significant political changes are expected.

Fig: 5

Emerging Focus Areas

Odisha sees a massive jump in spending in 2024 (₹375,000 K), possibly due to emerging political competition or increased focus by national parties in the region. This is a significant increase from previous years. Gujarat also shows a steep rise in 2024, with spending projected at ₹131,000 K, up from ₹24,600 K in 2023.

Smaller States and Union Territories:

Regions like Andaman and Nicobar Islands (₹1,189.8 K) and Lakshadweep (₹471 K) have relatively low spending, reflecting their smaller populations and political influence. Delhi stands out among the Union Territories with substantial spending, especially in 2020 (₹41,800 K) and a significant increase projected for 2024 (₹142,000 K), underscoring its importance in national politics.

Northeastern States:

The northeastern states, although smaller in size and population, show varying levels of political ad spending. For example, Assam has a total of ₹79,857 K, with a sharp increase in 2023 (₹15,300 K), indicating targeted political efforts in this region.

In 2019, Spending is relatively modest across most regions, likely because this was the starting point of increased digital political campaigning. States like Tamil Nadu (₹43,800 K) and Andhra Pradesh (₹47,700 K) already show significant spending, indicating early adoption of digital ads.

In 2020, Delhi, Bihar and Tamil Nadu continue to lead in spending. Delhi’s spending (₹41,800 K) could be linked to local elections, while Tamil Nadu (₹13,700 K) likely reflects ongoing preparations for upcoming elections.

In 2021, A massive spike is seen in Tamil Nadu (₹284,000 K), marking a year of intense political activity, likely corresponding with state elections.

In 2022, Several states see increases in ad spending, with Uttar Pradesh (₹96,400 K) standing out, likely due to state elections. Other states like Himachal Pradesh (₹21,800 K) also show notable increases.

In 2023, Significant spikes are observed in Odisha (₹10,500 K), Telangana (₹278,000 K), and Uttar Pradesh (₹45,800 K), indicating the strategic importance of these regions as elections approach.

In 2024, The data suggests a massive increase in digital ad spending, with several states seeing unprecedented figures, such as Odisha (₹375,000 K), Andhra Pradesh (₹299,000 K) and Tamil Nadu (₹287,000 K). This reflects the anticipated intensity of the 2024 general elections.

This pattern highlights key regions of focus, with southern states and Uttar Pradesh receiving the most attention. The projected figures for 2024 suggest that digital campaigning will play an even more critical role in upcoming elections, potentially reshaping the political landscape of the country.

Political Party-wise Political advertising on Google in India

Dominance of Major Political Parties

Bharatiya Janata Party (BJP) leads with a grand total of ₹1,660,000 K, reflecting a significant investment in digital advertising across multiple years. The party’s spending peaks in 2024, reached at ₹1,160,000 by June 2024. Indian National Congress (INC) follows with a total of ₹728,000 K, with a significant spike in 2024 (₹454,000 K). Dravida Munnetra Kazhagam (DMK) and Biju Janata Dal (BJD) also show substantial spending, especially in years aligning with state or national elections.

Fig: 6

Significant Spending by Consulting Firms and Media Companies

PRAMANYA STRATEGY CONSULTING PRIVATE LIMITED, INDIAN PAC CONSULTING PRIVATE LIMITED, and POPULUS EMPOWERMENT NETWORK PRIVATE LIMITED are notable consulting firms with substantial expenditures, indicating their involvement in strategizing and executing digital campaigns for political entities. Media companies like TV TODAY NETWORK LIMITED and ZEE Entertainment Enterprise Limited also contribute significantly, reflecting the role of media in shaping political narratives.

Strategic Use of Advertising by Smaller Entities

Several smaller firms and organizations like Way2News Private Limited and GIBBOUS FILMS PRIVATE LIMITED have also invested heavily in political ads, suggesting a diverse ecosystem of players in the political advertising space.

Emergence of Regional Parties and Specific Campaigns

Regional parties like Yuvajana Sramika Rythu Congress Party (YSRCP) and BHARAT RASHTRA SAMITHI (BRS) show targeted spending, particularly in 2024, which may correspond to state-specific elections or campaigns. Telugu Desam Party (TDP) also reflects significant spending, especially in 2024, indicating competitive regional politics in states like Andhra Pradesh and Telangana.

In 2019, the BJP dominated with ₹123,000 K, followed by DMK and INC, reflecting general election spending, with considerable investments from major parties and their regional counterparts.

In 2020, spending was lower across the board, with the BJP still leading but with reduced expenditure compared to 2019. This might reflect the post-election year and preparation for upcoming state elections.

In 2021, significant spending by DMK (₹201,000) and All India Anna Dravida Munnetra Kazhagam (AIADMK) (₹73,100) reflected the intense political competition in Tamil Nadu during the state elections.

In 2022, BJP again took the lead with ₹125,000, followed by significant spending from consulting firms and media companies, reflecting ongoing political campaigns and regional elections.

In 2023, INC surpassed BJP with ₹232,000, indicating strategic investments leading up to the 2024 general elections. This year, substantial spending was also seen by the Bharat Rashtra Samithi (BRS) and various media outlets.

Massive spending is anticipated in 2024, with BJP leading at ₹1,160,000 and INC at ₹454,000. The data suggests that 2024 will be a crucial year for digital political advertising, with several entities ramping up their campaigns.

This pattern illustrates the increasing reliance on digital advertising by political parties, media companies, and consulting firms in India. The growth in spending from 2019 to 2024 highlights the importance of digital platforms like Google Ads in shaping political campaigns and influencing voter behaviour. The data also reveals the strategic allocation of resources by major political parties, regional parties, and other stakeholders as they prepare for significant elections, particularly the general elections in 2024.

References

About Author: Pankaj Chowdhury is a former Research Assistant at the International Economic Association. He holds a Master’s degree in Demography & Biostatistics from the International Institute for Population Sciences and a Bachelor’s degree in Statistics from Visva-Bharati University. His primary research interests focus on exploring new dimensions of in computational social science and digital demography.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of 360 Analytika.

Acknowledgement: The author extends his gratitude to the Google Ads Transparency Center for providing data support.

This article is posted by Sahil Shekh, Editor-in-Chief at 360 Analytika.