Digital Advertising to Grow at 20% to Touch ₹18,938 cr by Year End
Digital advertising in 2020 witnessed a 15.3% increase over 2019 to reach ₹15,782 crores, much less than the earlier forecast of 27% growth to ₹17,377 crores, as per the latest report by advertising major, Dentus.
The report pointed out that at a time when the Covid-19 pandemic affected overall business sentiments and ad spends, it also accelerated the adoption of digital media as a key advertising vehicle.
The report, 'Digital Advertising in India 2021', forecast that digital ads will continue to grow at 20% in 2021 to reach ₹18,938 crores by the end of 2021 and cross ₹23,673 by 2022, growing at a CAGR of 22.47%.
"We expect 2021 to witness a colossal rise in digital advertising," said Anand Bhadkamkar, CEO, Dentus India. "We also recognize the need for a business intelligence report that can give directions towards which this industry is moving with ever-changing client demands and market scenarios. The lack of detailed and accurate Digital Advertising Spends is surprising for a medium that lends itself measurement."
The 5th edition of the digital report covers digital trends, spends, and insights across all sectors.
Digital Advertising Spendings Explained
Advertising spends on digital media is continued to be led by social media with the highest share of 29%, contributing ₹4,596 crores to the Indian digital advertising pie. This is followed by spends on online video (28%, ₹4,366 crores), paid search (24%, ₹3,725 crores), and display media (16%, ₹2,528 crores).
Social media remained the strongest digital ad platform as consumers spent close to 3 hours on these platforms per day due to lockdown. Unsurprisingly, online video spends have seen the highest growth rate of 46% in 2020 compared to the previous year.
Spends on online video have increased from 22% in 2019 to 28% in 2020 and will continue to grow steadily, the report predicts.
It said that digital media saw the quickest recovery and digital advertising spends returned to pre-lockdown levels by the end of 2020.
The report also highlighted that the year 2020 witnessed more people of all age groups embracing eCommerce platforms. As the consumers from tier II and tier III cities also started coming into these platforms, the advertising spends on eCommerce platforms have also gone up to ₹4,700 crores in 2020.
Based on the current trajectory, the advertising spends on these platforms is expected to grow at a CAGR of 40%, said the report.
Credit :- Economics Times 5th Feb 2021