Digital Ad revenue grew 30% YoY in CY22: Motilal Oswal Report

Social Samosa
Updated On
New Update
Motilal Oswal Report

The Motilal Oswal Report also stated that FMCG and e-commerce together constituted 50% of the ad revenue on the digital platform.

Ernst & Young (EY) released its media industry report for CY22 titled -- Digital Media: A Blockbuster in the Making! The report highlights the growth prospects of the industry, with special attention to the well-established digital ecosystem, which has played a significant role in its advancement. While the traditional TV market has managed to maintain its position, the rising number of digital subscribers presents potential risks.

The report established that the Digital market has stayed well-established. The overall digital segment is witnessing strong growth, on the back of improved infrastructure. While the number of telecom subscribers remained stable at 1.2b, the Internet penetration improved by 4% to 866m subscriptions in Dec’22. Studies further indicated that Urban internet subscriptions, which comprise 60% of all internet subscriptions, grew by 4%, while rural internet subscriptions grew by 5% in 2022. The average monthly mobile data usage per smartphone at 25GB per month in CY22 is set to register a CAGR of 14% to reach 54GB by 2028. This would be mainly led by increased consumption of online video because of improved share of regional content along with increased original content hours (3,000 hours; +19% YoY).


Also Read: Understanding the importance of employer branding with Havas People


The report further pointed out that Digital advertising grew 30% YoY to reach INR499b in CY22, contributing to ~50% of overall ad spends in CY22 (from 31% in CY19). Studies indicate that ~600k to 800k SME and long tail advertisers spent INR180b on digital media, primarily on performance advertising on Google, Facebook, and e-commerce platforms. Of the total, new-gen segments such as e-commerce platforms increased their spends to over INR70b, crossing 14% of total digital advertising. FMCG and e-commerce together constituted ~50% of the ad revenue on the digital platform.


The report by Motilal Oswal also included statistics on subscription revenue, TV market linguistics, digital subscription, and film revenue among others.

You can access the entire report here.

digital media e-commerce fmcg ad revenue motilal oswal motilal report