Deloitte India launched 'TMT Predictions 2020'; Social Samosa highlights the factors that are estimated to affect social media marketing in 2020.
Deloitte India announced 'Technology, Media, and Telecommunications (TMT) Predictions 2020'.
Deloitte forecasts the digital advertising space to grow by 30% Year on Year in 2020, with Mobile advertising estimated to contribute 70% of the digital ad revenue. Currently, Digital holds an estimated share of 19% in the advertising space.
The forecast is also parallel with the 2019 DAN-e4m-Digital Report, which estimates Digital to contribute 29% of the ad market size by 2021. The digital advertising formats are led by social media followed by search, display, and video.
Online Video Audience
India currently has an audience base of 350 Million and is predicted to grow to 500 Million in 2020. The audience's growth is fueled by the supply chain, with major OTT players, both international and domestic increasing investments in content production & distribution.
Jeff Bezos, CEO & Founder, Amazon in his recent visit to India announced his plan to double investments on content in the country.
The growth in the number of viewers will give an expected rise to mobile data traffic at a CAGR of 40% to reach 5.5 exabytes per month in 2021 and video is likely to contribute to 75% of this data traffic.
Out of the 75% new video audience, rural India is expected to drive the growth of the digital content. Post-Jio data rates, the rise of vernacular, and inflation of regional content is propelling the number of viewers in rural India.
5G Private Networks
Reportedly, the Telecommunications industry is gearing up to deploy private 5G networks to relevant industries such as manufacturing, mining, healthcare, campuses and more.
A faster speed would provide more opportunities for innovation and new-technology integrated structures. The penetration is also touted to be most advantageous for Digital Content. And, if and when the digital advertising industry gets a slice of the pie, we would observe tectonic shifts in efficiency.
Hardware accessories, mobile advertising, and financial services are reckoned to be eminent elements of smartphone multipliers in India. Mobile advertising has already overtaken TV advertising as the world’s biggest advertising category in 2019. It is steadily growing in India too.
While smartphones are surmised to multiply at a substantial rate, more than 70% of the industry is estimated to be unorganized.
In a holistic view, multiplied smartphones, faster networks, vast online audience, and overall growth of digital advertising, would further boost social media marketing in 2020 and the coming years.
Dominating industries of the economy such as BFSI, E-Commerce, Consumer Durables have been the biggest spenders on digital advertising in recent years, increased spends and more contributors are speculated to leverage the penetration of mobile & internet.