The share of digital in India’s advertising space expanded last year, with spending on this media type rising about a quarter, even as revenue for the broader industry climbed a shade below 10%, albeit on a much larger base.
Data from Dentsu Aegis Network (DAN) showed that digital ad spend climbed 26% last year to reach Rs 13,683 crore. A DAN report also maintained that digital advertising will likely maintain a 27% rate of growth in 2020.
“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. “This year is expected to witness a major change in advertising in India, with digital becoming a bigger medium.”
Bhasin, however, added that the industry has failed to arrive at a common measurement metric for digital.
Advertising spends on digital media are led by social networking platforms, with the highest share of 28%. 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 should expand faster in 2020, while the share of paid search could 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 ecommerce (37%).
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