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Digital advertising will grow at a CAGR of 32 per cent till 2020 to reach INR 18,986 Cr: DAN e4m Digital Report 2018

17-January-2018
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Digital advertising will grow at a CAGR of 32 per cent till 2020 to reach INR 18,986 Cr: DAN e4m Digital Report 2018

The smartphone revolution is changing the media landscape globally. Numbers show that digital advertising will grow at a CAGR of 32 per cent till 2020 to reach INR 18,986 Cr by
2020, while traditional media will barely grow at 7 per cent, according to the Dentsu Aegis Network-exchange4media Digital Report 2018. The report owes this skewed growth to smartphone revolution. The report showed that digital ad spends on mobile are expected to grow at a CAGR of 49% to overtake spends on desktops and reach a spends share of 60% by 2020.
It also found that while spends on television will grow with a CAGR of 8 per cent till 2020, the contribution from TV to the advertising market has been on a decline. In addition, the report states that digital media spends that currently contribute to 15% of the total advertising industry are expected to reach 24% of the entire market by 2020. Currently, the biggest spenders on digital advertising are e-Commerce ( 19% share of all digital
spends), followed by FMCG, telecom, and BFSI. In fact, e-commerce and telecom spend the highest on digital as a percentage of their overall ad spends. 
Even as video is expected to see the highest growth with CAGR 38% and will have a spends share of 22% by 2020, spends on video are the least at the moment. Social media takes the lion’s share of digital ad spends (28%) followed by search (26%), display (21%) and video (19%).Even though advertisers and marketers have identified digital banner ads, and some other format of display ads on digital as blind spots, spends on display are expected to grow at CAGRof 36%, while social media is expected to grow at 34% CAGR till 2020. Search, which has been on a decline, will see a slower growth rate of 25%. Spends share on Search will reduce from current 26% to 22% by 2020.

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