Digital advertising to reach Rs 51,110 crore by 2024: Dentsu India Report
The Dentsu India report highlights the trends and media spends of the overall Indian Advertising and Digital Advertising Industry, while focusing on the opportunities to grow.
Dentsu India has recently released a digital trend report for the year 2023. The report attempts to capture the trends and media spends of the overall Indian Advertising Industry, with a special focus on the Digital Advertising Industry.
It also puts forth the opportunities to partake in for the growth of the Digital Economy by exploring the customer expectations in this new era.
The key highlights from the report show that the advertising industry currently has a market size of Rs. 85,769 crore, having grown at 18.1% over 2021 and is expected to further grow at a compounded rate of 15.07% to reach Rs. 1,13,575 crore by the end of 2024.
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However, the Indian digital advertising industry is growing at a faster rate. It is predicted to reach Rs. 51,110 crore, with a compounded growth rate of 31%, by 2024 while the current market size is Rs. 29,784 crore.
It notes that television has the largest advertising spends share of 40%, followed by digital media and print media with a share of 35% and 21%, respectively. Digital media is expected to overtake the ad spends share of television in 2023.
FMCG and e-commerce are the largest contributors to the digital media industry, accounting for 38% and 20%, respectively, followed by consumer durables, pharmaceuticals, and automotive with the ad spends contributing to 30% and 18% expenditure respectively.
The report noted that FMCG spends a large portion of its digital media budget on online video, whereas pharmaceutical and e-commerce spend the majority on paid search.
The spend on online video is expected to grow rapidly and be at par with social media spends by 2024. Digital media spends is driven by social media with a contribution of 30%, followed by 28% from online video and 23% from paid search.
Due to the rapid adoption of the next generation of Web3 technologies and the development of mass markets, Indian consumers’ expectations are set to evolve toward convenience, commerce, experiential media, and marketing in the new digital economy.
The evolution of the new digital economy will lead to the emergence of new markets and pave the opportunity for creating value and increasing the worth of customers, with a more spatial, experiential, and immersive approach.
Simi Sabhaney, Chief Growth Officer, Dentsu India commented, “The world witnessed a year of normalcy in 2022 after the Covid outbreak, however, the pandemic definitely accelerated digital growth in India. With brands going back to business as usual, the media budgets were seen to be flourishing across sectors. The Indian advertising industry grew at 18.1% over 2021 and is expected to witness a compounded growth of 15.07% by the end of 2024. Digital advertising in India continued to be at the tip of the iceberg with a substantial spike of 39.5% over 2021, putting TV advertising in a tight spot. The Indian government too helped pave a path towards digital success, through its initiatives and programs, business transformation drives, and focused efforts on propelling digital commerce. India is seeing a relentless push towards ‘Digital India’.
As the digital economy paces up, with a talent pool like ours that is fluent in English, and digitally literate, we are certainly up for growth in varied directions. This may indeed vary the stance that businesses have held for the many years. Indian consumers are poised to adopt the dynamically evolving technology. Thus, the 2023 edition of the Digital Report simply encapsulates advertising in today’s world, keeping in mind the many facets of today’s consumers. It offers a 360-degree view for brands to fruitfully plan their advertising budgets.”
The report is released in association with Exchange4Media.