The second edition of the DAN-E4M Digital Report has arrived and it projects the volume of the Indian Digital Ad industry to grow from INR 8,202 Crores to reach INR 18,986 Crores by 2020 with a CAGR of 32%.
The Ecommerce sector leads the way with 19% in terms of digital ad spends according to the DAN-E4M Digital Report followed by the FMCG, telecom and BFSI sectors. Social media dominates the digital ad spends share at 28%, followed by display at 21% and video at 19%.
Among other forms of media, Television continues to lead the way when it comes to media spends with a share of 40% (INR 22,526 Crores), followed by Print at 34% (INR 18,981 Crores) with Digital Media coming in third at 15% (INR 8202 Crores).
Television’s dominance has been on a decline, whereas Digital Media will continue to rise, estimated to accumulate a share of 24% of the total ad spends in India.
Owing to the growing number of the digital population in India, Digital penetration has increased drastically with TRAI estimates the digital population in the country to hit 738 Mn by 2020. Currently India’s Internet subscriber count stands at around 430 million. As per TRAI’s performance indicator report for July-September 2017, a total of 129 million rural subscribers and 300 million urban subscribers are connected via Internet or broadband services.
Upto 21% of the total Indian digital population accesses the internet daily, which is a significant increase from 6% in 2013, owing to the enhanced digital penetration in the country.
Over 42% of the Indian digital population spends at least 1 to 2 hours of their daily time on the internet with a small percentage of users going as high as 7 hours or more as per the DAN-E4M Digital Report.
The FMCG Sector spends the highest on TV (70%) followed by print (17%). It must be mentioned that the Advertising expenditure in India will increase by 11% this year to touch INR 55,960 Crores, with television retaining its leadership status in this industry.
Automotive sector spends the most on print (42%) followed by TV (32%). The auto industry is also second largest advertiser commanding about 10% of the country’s overall advertising capex. E-commerce spends the maximum on TV (37%) closely followed by spends on Digital (30%).
The Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second largest e-commerce market in the world by 2034. In terms of proportion of ad spends on Digital, e-commerce spends the highest followed by Telecom, BFSI and Media & Entertainment. Backed by growth of the Indian e-commerce industry, the Internet economy is expected to double from by 2020.