Digital Advertising to grow at 32% in India; worth Rs 14,281 cr in 2019: DAN- e4m Report

Third Dentsu Aegis Network- exchange4media Digital Report unveiled in Mumbai

e4m by exchange4media Staff
Updated: Jan 16, 2019 6:08 PM

The unprecedented growth of internet penetration and adoption is shaping India and its digital advertising industry. Driven by the cheap data and affordable smartphone revolution, the digital advertising industry in India is expected to grow at a rate of 32% to reach Rs.14,281 cr in 2019.

The industry which is now worth Rs. 10,819 crore is expected to grow with a CAGR of 31.96% to reach Rs. 24,920 crore by 2021. These findings are part of the third Dentsu Aegis Network exchange4media Digital Report which was unveiled on Wednesday in Mumbai. The report offers a deep dive into the growth drivers, challenges, and trendsetting work executed by brands in the digital space.

As per the report, the FMCG sector, which prefers to spend on traditional media has doubled its digital spend in the last year. The BFSI and Consumer Durables sectors have been found to have the highest share of ad spending on digital (38% and 36% respectively). And these sectors have also seen the highest growth in the proportion of digital spending in the recent past, the report pointed out. The e-commerce sector which has been increasing its spends on television has witnessed a 4 per cent increase in digital spends over the last year going from 30 per cent to 34 per cent.

The report states that the biggest driver on mobile-first social platforms will be video content. Spending on mobile videos has seen the highest growth, followed by display and social media. A major chunk of spending on mobile are made on social media (29%), followed by search and display.

Commenting on the report, Ashish Bhasin, Chairman and CEO, South Asia, Dentsu Aegis Network said, “Today, you no longer have to sell ‘digital’ to a client. This is the only medium which gives you a very measurable ROI, and almost an immediate impact. We have about 500 million people on the internet today and in the next three to four years, another 300-400 million people will join in. Concurrently, the next phase of internet users will speak regional languages and as a result, you will probably see a lot more advertising in regional languages on digital in the years to come.”

He further added, “Dentsu Aegis Network understands this scope. Consequently, we are over-weight on digital. Of our 3500 people, more than 1600 are in our digital agencies. Nearly 48% of our revenues come from digital at a time when the market average in India is still 15-17%. As leaders in digital, we recognize the need for an industry level research report which not only covers the market size but also gives a direction towards which this industry is moving.”

He said, “The lack of detailed and accurate Digital Advertising spends is surprising for a medium that lends itself to measurement.”

“It is to fulfil this gap that all the eight digital agencies of the Dentsu Aegis Network i.e. Isobar, iProspect, Merkle Sokrati, WatConsult, Dentsu Webchutney, SVG Media/Columbus, Fractal and Amnet collaborated again for the 3rd edition of our Digital Report that extensively covers Digital trends, spends and insights across all sectors. The report has now become the industry standard for Digital Marketing and this year the report summary will also be available on Alexa,” Bhasin said.

Highlighting some of the findings of the report Nawal Ahuja, co-founder and Director, exchange4media group, said “Video, voice and vernacular will define the internet ecosystem of tomorrow. Digital transformation will be adopted at a substantial scale, which in turn, will increase the adoption of digital media at a rapid pace.”

He further added, “the meteoric increase in the penetration of mobile devices and internet has led to 47% of digital media spends on mobile devices and is expected to grow at CAGR of 49% to reach spends share of 67% by 2021.”

Launching the 3rd DAN e4m report Virginia Sharma, Director – Marketing Solutions, India at LinkedIn said, “We are excited to be part of the 3rd annual DAN Digital Report that highlights the challenges and opportunities faced by marketers across the spectrum. As technology pervades all facets of marketing today, it is crucial for a digital marketer to understand what drives action for consumers and results for the business. Now, more than ever, brands and businesses will thrive best if they pursue a genuine content marketing strategy revolving around the creation and exchange of valuable content for valuable engagement.”

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