By 2025, the digital advertising industry in India is estimated to cross the Rs 50,000 crore (US$ 7.15 billion) mark supported by faster internet adoption, proliferation of smartphones on the back of cheap data plans and technology advancement, according to a report by Dentsu Aegis Network (DAN), a global ad and marketing services group.
The growth in the digital advertising industry in 2019 was at a faster clip of 26 per cent to reach the Rs 13,683 crore (US$ 1.96 billion) mark. It said, “Digital ad industry is expected to grow at 27 per cent to reach Rs 17,377 crore (US$ 2.49 billion) by the end of 2020,” adding that by the end of 2025 the growth will reach to Rs 58,550 crore (US$ 8.38 billion), clocking a CAGR of 27.42 per cent.
“Advancements in marketing technologies and subsequent fusion with marketing creativity, along with the advent of 5G technology and increased adoption of E-commerce advertising will lead to the evolution of content for the next 500 million internet users, thereby catapulting the digital media industry towards the Rs 50,000 crore (US$ 7.15 billion) milestone by 2025,” stated the DAN Digital Report 2020.
Mr Ashish Bhasin, CEO, APAC and Chairman, India, Dentsu Aegis Network, said, “The media and advertising industry is shifting at a rapid speed and digital is certainly taking charge. Consumers are leaving behind huge digital footprints and there is a lot more emphasis on managing data and developing martech capabilities, now. 2020 is expected to witness a major change in advertising in India, with digital becoming a bigger medium.”
“In fact, by 2021, it should surpass that of print. Yet, despite this progressive swing, the industry has failed to come together to agree upon a common measurement metric for digital. As leaders in digital, Dentsu Aegis Network today stands at the forefront of this evolution and understands the need to have more information on digital,” he added.
Though, the overall ad industry market size increased by 9.4 per cent to Rs 68,457 crore (US$ 9.79 billion) by the end of last year. The largest share of media spends was by television segment (39 per cent), followed by print media (29 per cent) and digital media. The DAN Digital report added that the Indian advertising industry is expected to grow by 10.9 per cent to Rs 75,952 crore (US$ 10.87 billion) by end of 2020 and will achieve a market size of Rs 1,33,921 crore (US$ 19.16 billion) by 2025, at a CAGR of 11.83 per cent.