Digital Ad Spending Is Growing, But TV Still Is Biggest Media Spend: Report
NEW DELHI: Digital advertising in India is expected to match TV advertising and could even surpass it by 2023, according to a new report. Digital spending will account for a third of all advertising spending in India by that year, according to advertising agency Dentsu India’s report titled Digital Advertising in India 2022.
Of the planned total publicity of ₹93,119 crore, digital advertising will be worth Rs. 35,809 crore by 2023 at 14.75% CAGR. The report adds that it expects the advertising industry to reach ₹81,025 crores by the end of this year 2022, with a growth of 14.6%.
India’s advertising industry in 2021 stood at ₹70,715 crores, up 18.6% from 2020. The report adds that the digital advertising industry has witnessed growth in the market size of ₹15,782 crores in 2020 for ₹21,353 crore in 2021, growing at 35.3% CAGR. Digital media is expected to grow at a CAGR of 29.5% by 2023.
But TV still retains the largest share of media spend at around 42% or ₹29,279 crore, followed by digital at 30% or ₹21,353 crore and print at 24% or Rs16,599 crore.
Of these, fast moving consumer goods (FMCG) brands have the highest contribution of 34% of ₹23,736 crore to the entire advertising sector, followed by e-commerce at 14%, ₹9,619 crore and auto at 7% or ₹4,745 crores.
Advertising revenue has grown by 18.6% over the past year. This growth can be attributed mainly to the BCCI-backed Indian Premier League (IPL); ICC T20 World Cup, Asian Cup 2021 and upcoming assembly elections in five states.
Digital is growing
In digital too, the trend remains similar, the biggest contributor to the digital media industry is FMCG at 42%, ₹8,928 crore spend while e-commerce is a bit higher than TV at 17% or ₹3,607 crore while some other categories like consumer durables and pharmaceuticals are numerically larger contributors at 6%, ₹1,368 crore and 5%, ₹1,124 crores respectively.
In the digital space, in 2021, 75% of digital ad spend was on mobile devices. India will continue to advance in the global economy in the coming years, driven by digital, said Narayan Devanathan, chief customer officer at Dentsu India.
He added: “Despite the devastation caused by the second wave of Covid-19 in 2021, we have seen a dramatic digital upsurge in ways we have never seen before.”
Digital media spending is largely dominated by social media, which has the largest share at 29% or Rs. 6,218 crore, closely followed by online video at 28% or Rs. 5,907 crore and paid search at 23%, Rs. 5,039 crores. Additionally, most online spending on mobile devices goes to social media (30%) and online video (30%).
The FMCG, education, media and entertainment verticals spend the most of their digital media budget on online video, while pharmaceuticals and e-commerce spend the most on video. paid search.
The report, the company said, is compiled by conducting interviews with advertisers across all industry verticals, media agencies, online publishers and ad networks to understand their media advertising investments, as well as than other areas of interest in digital media. Secondary research was also conducted to identify the structure and dynamics of the digital advertising market in India.
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