The Dramatic Rise of Political Ad Spending on Google in India

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 how voters engage in political discussions. Traditionally, political campaigns in India have depended on mediums such as television, radio, and print. However, with the increasing internet usage and smartphones, digital platforms have become the new battleground for securing votes. Google, one of India’s most frequently used search engines, has actively shaped this digital shift, making it a significant player in Indian politics.

India has seen a sharp rise in political ad spending on Google over the past six years. The total expenditure up to June 2024 (₹2.95 billion) was almost 2.5 times that of 2023 (₹1.18 billion). This significant rise in 2024 coincides with India’s general elections conducted between April and May, as during election years, political parties typically increase their digital advertising expenditures. From 42,768 in 2023 to 2,17,210 in 2024, the quantity of advertisements has also grown rapidly, suggesting a far more comprehensive and forceful approach to digital marketing.

Fig: 1

Perhaps due to the COVID-19 pandemic and related restrictions on political activity, a discernible decline in the ad volume and spending amount was observed in 2020. However, both spending and the quantity of advertisements increased steadily after 2020, indicating a recovery and an increasing reliance on digital platforms for political messaging. On the other hand, the cost per ad has seen a sharp decline in the last couple of years, especially from 2020, despite the significant increase in overall spending, which suggests a move away from more costly, fewer ads and towards more targeted, more numerous ones.

The Lok Sabha election of 2019, which took place from April 11 to May 19, caused a notable increase in Google Ad spending (₹0.19 billion) in April of that year. In 2024, a similar unprecedented spending growth was observed between January and May, with expenditures rising from ₹0.11 billion in January to ₹1.1 billion in May. This massive increase indicates the intensity of digital campaigns in preparation for the 2024 General Elections.

Fig: 2

In 2019, Google ad spending was more concentrated in the first half of the year, particularly during the months of the Lok Sabha elections. In 2020, the overall Google Ad spending remained low due to the COVID-19 pandemic, with the largest expenditure in February (0.03 billion) prior to the start of widespread lockdowns. In 2021, two major spikes were noted in March and April due to the state elections in Assam, Kerala, Puducherry, Tamil Nadu, and West Bengal. In February and November of 2022, two significant spikes in Google ad spending were observed again, driven by state elections in Uttar Pradesh, Uttarakhand, Goa, and Punjab in February and Himachal Pradesh and Gujarat in November. In 2023, Google ad spending increased throughout the year, with major spikes in April-May and September-November, which can linked to state elections in Tripura, Meghalaya, and Nagaland in February; Karnataka in May; and Mizoram, Madhya Pradesh, Rajasthan, Telangana, and Chhattisgarh in November.

Overall, it is clearly evident that reactive advertising based on current political events or issues in the nation is the reason for the high month-to-month spending volatility, especially in non-election years. The analysis also highlights the dynamic character of digital political advertising in India, demonstrating a general trend towards higher digital campaign spending as well as distinct correlations with election cycles and the effects of outside events like the pandemic.

Fig: 3

Video ads have consistently accounted for the majority of ad spending in the last six 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.  The share of Image ads peaked at 40.4% in 2020, but since then, it declined. In 2023, it reached a low of 16.0%. Text ads have consistently represented the smallest portion of ad spend. However, the share has grown from 0.0613% in 2019 to 0.320% in 2024, indicating a slow but steady increase in its use. A different trend emerged in 2020 when image ads share peaked at 40.4%, and video ads hit the lowest point at 59.6% due to the COVID-19 pandemic and evolving political communication tactics at that time. Overall, total spending on videos has increased significantly from ₹216M in 2019 to ₹2.41B in 2024, indicating a growing investment in digital political advertising. 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.

Tamil Nadu ranked first on the list of regions with the highest Google Ad Spending, with ₹748,200 K. The state’s 2021 expenditure was incredibly high with ₹284,000 K, and its 2024 expenditure was even higher with ₹287,000 K. This points to a fiercely competitive digital political climate in the state. Uttar Pradesh ranked second with a total Ad spending of ₹416,260 K and notable increases of ₹96,400 K in 2022 and ₹235,000 K in 2024, indicating its importance in national elections because of its sizable population and numerous parliamentary seats. Telangana (₹435,681 K), Andhra Pradesh (₹403,911 K), and Maharashtra (₹331,980 K) have also seen high spending patterns in the last six years, especially during election years or when major political shifts were anticipated.

Fig: 4

In Odisha, a massive jump in Google Ad spending was observed in 2024 (₹375,000 K) due to emerging political competition and increased focus by national parties in the region. Similarly, Gujarat also showed a steep rise in 2024, with spending of ₹131,000 K, up from ₹24,600 K in 2023. Regions like Andaman and Nicobar Islands (₹1,189.8 K) and Lakshadweep (₹471 K) have recorded relatively low spending, reflecting their smaller populations and political influence. Delhi stood out among the Union Territories with substantial spending, especially in 2020 (₹41,800 K) and 2024 (₹142,000 K), underscoring its importance in national politics. Although smaller in size and population, the northeastern states showed varying levels of political ad spending. For example, Political parties spent a total of ₹79,857 K in Assam, with a sharp increase in 2023 (₹15,300 K), indicating targeted political efforts in this region.

The ruling party of India, Bharatiya Janata Party (BJP), topped the list of political parties and organisations with the highest Google Ads spending with a grand total of ₹1,660,000 K, reflecting a significant investment in digital advertising across multiple years. On the other hand, the largest opposition party, Indian National Congress (INC), closely followed the ruling party with a total spending of ₹728,000 K. Dravida Munnetra Kazhagam (DMK) and Biju Janata Dal (BJD), these regional parties also spent a substantial amount on Google Ads, especially in years aligning with state or national elections.

Fig: 5

PRAMANYA STRATEGY CONSULTING PRIVATE LIMITED, INDIAN PAC CONSULTING PRIVATE LIMITED, and POPULUS EMPOWERMENT NETWORK PRIVATE LIMITED have emerged as notable consulting firms with substantial expenditures, reflecting their involvement in strategizing and executing digital campaigns for political entities. Media companies like TV TODAY NETWORK LIMITED and ZEE Entertainment Enterprise Limited have also played a significant role, highlighting the media’s influence in shaping political narratives. Additionally, smaller firms and organizations like Way2News Private Limited and GIBBOUS FILMS PRIVATE LIMITED have invested heavily in political ads, suggesting a diverse ecosystem of players in the political advertising space. Regional parties like Telugu Desam Party (TDP), Yuvajana Sramika Rythu Congress Party (YSRCP) and Bharat Rashtra Samithi (BRS) have shown targeted spending, particularly in 2024, aligned with state-specific elections in Andhra Pradesh and Telangana.

In 2019, the BJP’s Google Ad spending was higher than any other political party, with ₹123,000 K, followed by DMK and INC, reflecting the intense spending patterns of the general elections. It shows how major political parties and their regional counterparts also had heavily invested during this period. All political parties dropped their overall spending in 2020 due to the impact of COVID-19; the BJP remained in the lead but spent less compared to 2019. In 2021, significant expenditures by the All India Anna Dravida Munnetra Kazhagam (AIADMK) (₹73,100 K) and DMK (₹201,000 K) demonstrated the intense political rivalry in Tamil Nadu during its state elections. With ₹125,000 K in 2022, the BJP took back the lead, supplemented by notable spending from consulting firms and media companies to support regional elections and ongoing campaigns. In 2023, the Indian National Congress (INC) surpassed the BJP with ₹232,000 K in ad spending, signalling strategic investments leading up to the 2024 general elections. Moreover, Bharat Rashtra Samithi (BRS) and various media outlets also spent a substantial amount on that year. In 2024, the BJP has spent around ₹1,160,000 K, followed by the INC with ₹454,000 K.

This trend underscores India’s growing reliance on digital advertising by political parties, media organizations, and consulting firms. The increasing ad spend from 2019 to 2024 illustrates the pivotal role of digital platforms like Google Ads in shaping political campaigns and influencing voter behaviour. The data has also revealed the strategic allocation of resources by major and regional political parties, media companies, and consulting firms as they prepare for significant elections, especially the 2024 general elections.

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.

Note: *Up to June 2024.

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.