Digital media to reach market size of Rs 27,759 crore by end of 2022: dentu-e4m report


The ‘Dentsu-e4m Digital Advertising in India 2022’ report unveiled today reveals that aided by the rapid shift of businesses and consumers to digital media, India’s digital advertising industry has surged 35% to reach Rs 21,353 crore by the end of 2021 from Rs 15,782 crore in 2020.

The highest proportion of digital media spending was claimed by social media (29%, Rs 6,218 crore), followed closely by online video (28%, Rs 5,907 crore). While paid search accounts for 23% (Rs 5,039 crore), display banners claim 16% of spend (Rs 3,420 crore). Digital media, the report says, is expected to witness a growth rate of 30% to reach a market size of Rs 27,759 crore by the end of 2022.

The report also notes that ad spend on e-commerce platforms stood at Rs 6,300 crore in 2021 and is expected to grow at a rate of 36% in 2022. With e-commerce becoming the digital backbone of the retail industry In retail, many big and small players, especially smaller cities and towns, have realized the immense potential of advertising on e-commerce platforms, he added.

According to the report, social media and online video remain the strongest platforms on digital media, recording consistent growth over the years. With new social and video commerce offerings, consumers are spending more time on these platforms, leading to strong growth in digital media ad spend.

He added that social media and the presence of online videos were imperative for brands because these command the highest levels of consumption and therefore offer the greatest consumer engagement. With the rapid pace at which internet infrastructure has improved with the advent of 5G technologies, online video spending will see the greatest growth over the next few years, the report notes.

Digital media has become the white knight of the overall advertising industry which grew 18.6% over 2020. While traditional media grew 12.6%, digital media led the growth rally of the Indian advertising industry, growing at almost twice the rate of the entire industry.

AdEx Overall Growth in 2021

In 2021, the advertising industry grew to Rs 70,715 crore and is expected to reach Rs 93,119 crore by the end of 2023, growing at a CAGR of 14.75%. Television claimed the largest share of media spend (42%, Rs 29,279 crore), followed by digital (30%, Rs 21,353 crore) and print media (24%, Rs 16,599 crore).

Currently, FMCG makes the highest contribution of 34% (Rs 23,736 crore) to the Indian advertising industry, followed by e-commerce (14%, Rs 9,619 crore) and automotive (7%, Rs 4,745 crore). The top contributors to the digital media industry are FMCG (42%, Rs 8,928 crore), e-commerce (17%, Rs 3,607 crore), consumer durables (6%, Rs 1 368 crore) and pharmaceuticals (5%, Rs 1,124 crore).

Size of the digital advertising market in 2023

The report projected that India’s digital industry is expected to grow by 29% to reach a market size of Rs 35,809 crore by the end of 2023. Digital is expected to contribute 38% to the overall industry of advertising in India, on a par with television. . Online video ad spend is projected to grow with a CAGR of 34.86% to reach a 30% (Rs 10,474 crore) spend share of the digital ad market by the end of 2023. should grow with a CAGR of 29.79% to have a spending share of 29%. Paid search will have a 22% spend share while display banners will have a 16% share by the end of 2023.

According to the report, India’s short video ecosystem, which is occupied by a mix of short video apps like Reels, Josh, MX TakaTak, Roposo, Moj, Zili and YouTube Shorts, offers greater opportunities for brands to leverage gone on a greater commitment. In the near future, Indian short video has the potential to be a trendsetter with the availability of cheap internet data, easy-to-use platforms and vernacular language. The short video content market is expected to be boosted in India.

Digital media spending across industry verticals

The FMCG category makes the highest contribution of 42% (Rs 8,928 crore) to the digital media industry. This contribution has increased significantly since the start of the pandemic which has led to a fundamental change in the way consumers buy their basic necessities and groceries. The e-commerce sector contributes 17% (Rs 3,607 crore) to India’s digital media industry. This is followed by categories such as consumer durables (6%, Rs 1,368 crore), pharmaceuticals (5%, Rs 1,124 crore) and automobiles (5%, Rs 970 crore).

The FMCG category devotes the maximum share of its digital media budget to online video (41%), followed by social media (31%). It devotes 16% of its digital media budget to display banners and 9% to paid search. The e-commerce segment spends the largest share of its digital media budget on paid search (47%), followed by 25% on social media and 14% on online video.

The consumer durables segment devotes the maximum share of its digital media spend to paid search (30%) and social media (26%). This is followed by a 20% spend share on display banners. The pharmaceutical sector spends 48% of its digital media budget on paid search, followed by 24% on online video and 22% on social media.

The report also indicates that the automotive segment spends its digital media budget on paid search (26%), online video (24%) and social media (22%). The telecom category spends 33% of its digital media budget on social media, followed by 27% on online video. The education sector spends 34% of its digital media budget on online video and 29% on social media.

The BFSI segment devotes 37% of its digital media spend to paid search, followed by display banners (27%) and social media (23%). The Media & Entertainment category spends 34% of its digital media budget on online video, followed by 30% on social media. The retail segment spends 44% of its budget on social media, followed by 24% on paid search and 19% on display banners.

Digital media spend across devices

By the end of 2021, 75% (Rs 16,015 crore) of digital media revenue came from spending on mobile devices, while spending on desktop computers stood at 25% (Rs 5,338 crore). On the consumer side, almost all of the adoption of Internet technology is on mobile devices.

The largest proportion of spending on mobile devices is claimed by social media (30%, Rs 4,734 crore) and online video (30%, Rs 4,728 crore) as the majority of consumer content consumption is made around these two formats. The highest share of desktop spending is claimed by social media (28%, Rs 1,484 crore) and paid search (28%, Rs 1,463 crore).

By the end of 2022, the report estimates that the share of ad spend on mobile devices will reach 77% (Rs 21,374 crore). Moreover, with the advent of new applications and the availability of better connectivity technologies and affordable devices, the share of ad spend on mobile devices is expected to increase at a CAGR of 32.06% to reach 78% (Rs 27 931 crore) by the end of 2023. .

Spending on programmatic digital media buys contributed 40% (Rs 8,541 crore) by the end of 2021 as the pandemic led to an increase in digital media inventory buys through programmatic. Direct purchase of digital media inventory currently contributes 60% (Rs 12,812 crore). Programmatic buying of digital media is expected to reach a share of 42% (Rs 11,659 crore) by 2022. We expect it to grow with a CAGR of 37.35% to reach a share of expenditure of 45% (Rs 16,114 crore) by the end of 2023.

The dentu-e4m report was sponsored by HT Media Group and ABP Live, Voot, Yahoo! and Josh are co-powered by sponsors. mFilterIt, Truecaller and Trell are Co-Gold Partners while Xapads is the Innovation Partner.

To read the full report, click the link below.

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