DAN-e4m Report unveiled: Digital advertising set to cross Rs 50,000-crore mark by 2025
The 4th edition of the DAN-e4m Digital Advertising Report unveiled on Thursday says digital advertising is set to grow at 27% in 2020
“Digital is the hero of the report,” said Anand Bhadkamkar, CEO, Dentsu Aegis Network, at the unveiling of the 4th edition of the Dentsu Aegis Network exchange4media Digital Advertising Report on Thursday. And rightly so. As the fastest growing medium, digital advertising is set to cross the Rs 50,000 crore mark by 2025 as per the findings of the most anticipated digital advertising report of the year.
An overall growth assessment of the Indian advertising industry shows that it grew at a rate of 9.4 per cent over 2018 to reach Rs 68,475 crore by the end of 2019. In 2020, the industry is expected to grow by 10.9 per cent to reach Rs 75,952 crore. It is expected to grow at 11.83 per cent CAGR to reach a market size of Rs 1,33,921 crore by 2025.
The growth predictions specifically for the digital advertising industry remain strong, the medium is expected to grow at 27 per cent to reach Rs 17,377 crore by the end of 2020. Despite the economic slowdown which hurt the overall market sentiment, digital advertising managed to put up an impressive show in the year gone by. The reports says that by the end of 2019 the digital advertising industry stood at Rs 13,683 crore, up 26 per cent from Rs 10,859 crore in 2018. With consumer sentiment expected to spring back in 2020, the optimistic outlook is reflected in their ad spends forecast.
Speaking about the report, Ashish Bhasin, CEO, APAC and Chairman, India - Dentsu Aegis Network said: “The Media and Advertising industry is shifting at a rapid speed and Digital is certainly taking charge. Consumers are leaving behind huge digital footprints and there is a lot more emphasis on managing data and developing Martech capabilities now. 2020 is expected to witness a major change in advertising in India, with digital becoming a bigger medium. In fact, by 2021, its growth should surpass that of print. Yet, despite this progressive swing, the industry has failed to come together to agree upon a common measurement metric for digital. As leaders in digital, Dentsu Aegis Network today stands at the forefront of this evolution and understands the need to have more information on Digital. The DAN Digital Report, now in its fourth edition, is exhaustive, systematic, thorough and meets this need gap brilliantly. The report has now become the most credible source of information when it comes to digital in India.”
At the pace that it is growing, digital advertising is expected to overtake print in a few years. For now, television continues to attract the largest share of media spends at 39 per cent (Rs 26,869 crore) followed by print media (29 per cent, Rs 20,110 crore) and Digital Media (20 per cent, Rs 13,683 crore). What is interesting to note, as per the report, is that while spends on TV in 2020 are expected to grow at 10 per cent with its share remaining steady, print media is expected to grow at 3 per cent but sees its share declining to 27 per cent.
Speaking at the event, on the report findings and the need for such a report, Bhadkamkar said, “Digital is the youngest medium amongst all the mediums in the country; television and print have been there for a long time. Though it started late it has become the fastest growing medium, as you will see in the report that it will soon become the number two medium in the country. Globally, it is already the number one medium in many of the large markets surpassing TV. So, for a medium, which has grown so fast and become so important in our day to day life, unfortunately the market doesn’t have a robust mechanism of saying, what are the industry standards? What are the set rules? Other mediums already have it. We as the leaders felt there is this huge gap and we need to set those industry standards or at least get some reports to clients, so that advertisers and consumers may get to see what exactly is the industry standard and where we are moving.”
This year too social media grabbed the highest advertising spends on Digital Media with a share of 28 per cent, contributing Rs 3,835 crore to the Indian digital advertising pie. This is followed by spends on Paid Search (23%), Online Video (22%) and Display Media (21%). The report points out that display media, online video and social media are expected to have the fastest growth in 2020.
Brands have been seen shifting a significant part of the marketing budgets to digital advertising. However, big spenders like FMCG giants still prefer advertising on television (61 per cent), while print remains the favourite destination for Retail and Automotive. The biggest spenders on digital media are BFSI (42 per cent), Consumer Durables (38 per cent) and e-commerce (37 per cent).
Today, marketers, advertisers and agencies equate digital advertising with the mobile phone. The availability of cheap data plans and smartphones across the country has made the consumer extremely digitally savvy. With average time spent on mobile devices increasing, it was only a matter of time that the mobile would become the centre of attention for digital advertisers. The report clearly reflects this trend. By 2020, advertising spends on mobile devices is expected to grow by 41% to have a share of 52% in the digital advertising market, overtaking spends share on Desktop. Furthermore, the expected spends on mobile devices will reach a share of 64% by 2022.
If mobile is increasingly becoming the destination of choice then programmatic is becoming the buzzword for media buying. Programmatic buying is expected to grow at a CAGR of 56 per cent to overtake direct media buying by 2020 and reach a market share of 74 per cent by 2022.
Besides growth predictions, the report provides invaluable insights into trends that define or can mould the future of the digital advertising industry. Experts from across the digital landscape have also shared their views on the current trends in the report.
Some crystal ball gazing for future opportunities in the report states that, “Advancements in marketing technologies and subsequent fusion with marketing creativity, along with the advent of 5G technology and increased adoption of e-commerce advertising will lead to the evolution of content for the next 500 million Internet users, thereby catapulting the digital media industry towards the Rs 50,000 crore milestone by the year 2025.”
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook & Youtube