Digital to command nearly 30% of ad pie by 2021: DAN-e4m Report
Key highlights of the report released on Wednesday
Published - 17-January-2019
The unprecedented growth of internet penetration & adoption is shaping India and its digital advertising industry. Driven by 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 crore 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.
Key Highlights from the Report:
- As of 2018, the Indian advertising market stands at Rs. 61,878 crore ($8.76 billion) and is estimated to grow with a CAGR of 10.62% till 2021 to reach a market size of Rs. 85,250 crore ($12.06 billion).
- The digital advertising market size is around Rs. 10,819 crore ($1.3 billion) and the estimated CAGR growth will be 31.96% and the market will expand to Rs. 24,920 crore ($3.52 billion).
- Television and print take the largest share of media spends at 70% aggregated followed by digital media at 17%. Digital will contribute 29% of the ad market size by 2021.
- Currently, BFSI is the biggest spender on digital media with a contribution of 38% of all their marketing budgets. This is followed by consumer durables (36%), e-commerce (34%) and telecom (31%). FMCG spends heavily on the television (63%) and the retail sector spends largely on print (54%) medium of advertising.
- The advertising expenditure on the digital advertising formats is led by social media (29%) followed by search (25%), display (21%) and video (20%).
- The main drivers of the growth of digital media will be voice, vernacular and video. Apart from this, some of the other drivers of digital media growth will be engaging mobile experiences based on augmented reality (AR) and virtual reality (VR).
Industry leaders share their key takeaways from the report: