Brands are increasingly recognising the reach and appeal of digital advertising. A clear testimony to the fact is GroupM’s latest advertising expenditure report, titled ‘This Year, Next Year (TYNY) 2014’, which pegs digital media spends with the highest rate of growth at 35 per cent. Ad spends in TV follow next with 12 per cent, a drop from 13.6 per cent in 2013. Cinema remains consistent at 12 per cent for this year as well. The report estimated an overall growth of 11.6 per cent in advertising expenditure in India in 2014.
As of now, marketers are spending the least from their budgets on the digital platform and thus, exponential growth is predicted. “It is pertinent to see the way mobile devices have taken off in the past few years,” noted Prashanth Mohanachandran, former Executive Director - Digital Services, Ogilvy Worldwide. He is now the CEO of his entrepreneurial venture, AgencyDigi. Mohanachandran added that with the advent of mobile phones as the medium for marketing a new breed of advertisers have also cropped up. “E-commerce players who were not on the horizon few years back are now driving the spends in digital advertising,” he said. Political advertising will be the second category to leverage digital media in a big way, he added.
Agreeing with Mohanachandran, CVL Srinivas, CEO, GroupM South Asia said, “Advertising by political parties is expected to give a boost to the AdEx by up to +2.5 per cent.”
Atul Hegde, CEO, Ignitee Digital commented that just by sheer user base numbers digital leads well ahead of others. He said, “We are already talking about 200 million-plus users on the internet and counting. But in the larger scheme of things, digital doesn’t get a huge share in the total marketing spend. It’s still in single digits that is why in terms of percentage growth you will always see it growing the most, it has been happening for the last 3-4 years.”
Video is the space that will see the most action-packed year. “Video consumption will drive digital advertising, with more investment in buying and creating content for the medium. This will also include a lot of traditional players now taking digital far more seriously. Video is going to be the single most determining factor this year in the digital medium,” Hegde remarked.
While Mohanachandran opined that e-commerce and political advertising will lead the digital advertising this year, Hegde stated that the industry has evolved to a point where it is not dependent on any particular categories. “Some years back, BFSI was driving the digital medium, but not anymore. Though e-commerce is the largest spending category, spends are increasing across all categories,” he added.