MUMBAI: Digital advertising in 2019 witnessed a 26% increase over 2018 to reach Rs 13,683 crore, even as overall advertising witnessed a sober 9.4% growth, as per the latest report by the Dentsu Aegis Network.
The report pointed out that digital continues to grow and will grow at 27% in the current year to reach Rs 17,377 crore by the end of 2020 and cross Rs 50,000 crore mark by the end of 2025, growing at a CAGR of 27.4%.
“The media and advertising industry is shifting at a rapid speed and digital is certainly taking charge,” said Ashish Bhasin, CEO, APAC and chairman, India – DAN. “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.”
Bhasin, however, added that despite this progressive swing, the industry has failed to come together to agree upon a common measurement metric for digital.
Advertising spends on digital media is led by social media with the highest share of 28%, 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 said that display media, online video and social media are expected to have a faster growth in 2020, while the share of paid search is expected to reduce from 25% to 23% by the end of the year.
“With the economic slowdown, advertisers decided to cut back on spends, consumers decided to wait-and-watch, market sentiments reached a new low and India’s Ad Expenditure (AdEx) witnessed a consequential fall. But even in the midst of it all, digital continued to grow,” said Anand Bhadkamkar, CEO, DAN India.
Incidentally, the biggest spenders on digital media are BFSI (42%), consumer durables (38%) and E-commerce (37%).
FMCG, which spend majority of their ad budgets on TV, spends a large share of their digital media budget on online video (36%), while E-commerce, consumer durables spend a mostly on paid search and social media.
The report forecast that spends on TV is expected to grow at 10% in 2020, and its share will remain steady while that on Print media is expected to grow at 3% with this share declining to 27% from current 29%.
Overall, the Indian advertising industry was at Rs 68,475 crore by the end of 2019, and is expected to grow by 10.9% to reach Rs 75,952 crore by the end of 2020. It is expected to grow at 11.83% CAGR to reach a market size of Rs 133,921 crore by 2025.
[“source=economictimes”]