Pitch Madison Advertising Report 2020: Digital continues to buck the trend
Despite a year of slowdown in 2019, the digital medium continued to post healthy growth and was seen holding up the overall sentiment
The Pitch Madison Report underlines the phenomenal growth that the digital medium has witnessed over the past decade. Not only has the medium been growing at a steady rate but has bucked the overall sentiment for the media and advertising sector.
Even in a year of slowdown, the advertising industry did manage to add Rs 6,695 crore to its kitty despite only growing at 11 per cent in 2019 and digital had a significant role to play in it.
The report points out: “In absolute terms, Adex has grown from Rs 60,908 crore to Rs 67,603 crore, an addition of Rs 6,695 crore, which one could argue is not so bad, considering it is the second highest addition to Adex in a single year in the entire last decade. It is significant to note that 56 per cent of this growth has been contributed by Digital, which has expectedly grown by as much as 32 per cent. In absolute terms, Digital has grown in the last decade from Rs 1,030 crore to Rs 15,467 crore, and now accounts for 23% of Adex.”
The digital advertising in India has grown on the back of cheap data plans and the rise of smartphone users in the country. The number of internet users are only growing and with it is growing the digital ecosystem that comprises of social, OTT, search and e-commerce. Smartphone has become the preferred destination for everything digital. Clearly, the Indian consumer is now digitally-savy and the digital advertising medium is reaping the benefits.
In 2020, Digital is expected to grow by 28% to reach Rs 19,854 crore, says the report, and possibly dethrone Print to claim the second place next only to Television in the Indian Adex. Which is why the report also defines the medium as the ‘The big growth engine of Adex’.
Last year too, the digital adex grew by 32.1% and the report specifically points out that this impressive growth was the highest by any medium in 2019 which saw total spends on digital advertising to the tune of Rs 15,467 crore. In 2011 its contribution to the Adex was a mere 6 per cent, fast forward to 2019 when it contributed 23%.
The contributions to the digital advertising pie come from four major segments, Search, Social, Video and Display. According to the report, each contributes 20% to 30% to the total.
Most experts maintain that video will continue to see growth year after year and the Pitch Madison report too reiterates this trend. In 2019, says the report - video ad spends grew by as much as 59%, beating the Digital Adex growth rate of 32%. Further, and very significantly, the report highlights that – ‘The video vertical is now the highest contributor to Digital Adex at 30%, and almost all of Digital Adex (94%) is on mobile.”
YouTube takes the lion’s share within online video. It is the OTT industry that is making significant strides, the report points out on how the OTT share is now 20% of the pie and is growing faster than YouTube. Even e-commerce advertising platforms are claiming their share at 10%.
Another interesting trend is emerging within Social. The report says TikTok and LinkedIn are starting to chip away at Facebook’s absolute dominance. Search continues to be dominated by Google.
In 2020, FMCG will be seen fuelling growth for the digital platform followed by Telecom, Real Estate, BFSI, OTT and e-commerce. Programmatic is expected to achieve scale this year. Voice remains a trend to watch out for this year too.
The report also expects to see consolidation in the overcrowded OTT space in India this year.
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