Digital transformation
In India, Digital Transformation has happened. According to dentsu’s latest report, the digital advertising industry has witnessed a growth in market size from Rs. 15,782 crore in 2020 to Rs. 21,353 crore in 2021, growing at 35.3%.
Narayan Devanathan, Chief Client Officer, dentsu India said, Digital media is expected to grow at 29.5% CAGR to reach a market size of Rs. 35,809 crore by 2023.
“Notwithstanding the devastation caused by Covid-19’s second wave in 2021, we have seen a dramatic upsurge in digital in ways we have not seen before,” Devanathan said.
The report said that digital advertising in India is expected to equal (if not surpass) the previously-impregnable fortress of TV advertising by 2023, clocking in at Rs. 35,809 crore out of an expected total advertising of Rs. 93,119 crore.
Accelerating this trend and underscoring it, has proved that even in 2021, 75% of digital advertising spends was recorded on mobile devices.
India will continue to rise in the global economy in the coming years, driven by digital amid the pandemic. In that context, the importance and utility of a comprehensive, authoritative and trustworthy census of the digital-driven advertising landscape cannot be underestimated.
“The 2022 edition of the ‘dentsu Digital Report’ has been put together to act as an enabler as well as expansive assimilation of all the action in the Indian advertising landscape so that we all have one vocabulary, one source of truth to turn to in harnessing its potential,” Devanathan said.
Advertising landscape
The Indian advertising industry currently stands at Rs. 70,715 crore, having grown at 18.6% over 2020. It is expected to reach Rs. 93,119 crore by the end of 2023, growing at a CAGR of 14.75%.
The digital advertising induhasas witnessed growth in market size from Rs. 15,782 crore in 2020 to Rs. 21,353 crore in 2021, growing at 35.3%. Digital media is expected to grow at 29.5% CAGR to reach a market size of Rs. 35,809 crore by 2023. In 2021, television claimed the largest share of media spending at 42% (Rs. 29,279 crore), followed by digital (30%, Rs. 21,353 crore) and print (24%, Rs. 16,599 crore).
Spending on digital media is led by social media. It has a crores share of 29% (Rs. 6,218 crore), followed by online video 28% and paid search (23%, Rs. 5,039 crore).
The rapid increase in mobile usage and improved internet infrastructure have led to 75% (Rs. 16,015 crore) of digital media spending on mobile devices. Most of the online expenditure on mobile devices goes to social media (30%) and online video (30%), the report said.
The changing consumer behaviour is paving the way for conversational commerce.
