Digital ad ind to grow 37% by 2020:DAN

01 Mar,2017

 

By A Correspondent

 

Had its media partner have its way, this report wouldn’t have appeared on MxMIndia today. Hmmm. Why restrain media organisations or associations from calling other publications which you perceive as competition? Shouldn’t the focus be on partnering the industry and spreading the message for the larger good? One can understand events that are your own (like the various awards and conclaves), but bullying media companies into not inviting select media is not on.

 

However, our commitment is to our readers, and we are hence bringing you this report which was shared with us eventually.

Here goes parts of the communique. The big story image is culled from the report, a soft copy that is with us. The primary message: The share of spends on digital media in India, which currently stand at 12%, is expected to reach a whopping 24% of the total advertising pie by the end of 2020,says the inaugural edition of the Digital Advertising Report 2017 from the Dentsu Aegis Network India stable.

 

Digital media has been the forerunner of growth for the advertising industry in India.Every year, an increasing proportion of marketing budget is spent on digital media due to the increasing affinity of the consumer towards digital experience.

 

Said Ashish Bhasin, Chairman and CEO, Dentsu Aegis Network South Asia: “The digital ecosystem in India today stands for innovation and growth. Yet, there is no consistent and rigorous research data to back up and push this growth forward. Not to forget, the several researches that are provided to us today through a variety of industry reports do not talk about the advertising categories within digital. Consequently, Dentsu Aegis Network, which today stands at the forefront of digital evolution, decided to come up with an extensive and comprehensive digital study that can further help understand the needs, the gaps and the challenges that this industry faces when it comes to digital. We recognise that there is a need for an industry level research report which not only covers the market size but also gives a direction towards which this industry is moving.  It will be an annual report and I strongly believe that it will eventually become the most credible source of information when it comes to digital in India.”

 

The digital advertising industry currently stands at Rs 6, 825 crore and is expected to grow at a CAGR of 37% to reach Rs 23,795 crore by 2020. Increase in consumer adoption of mobile phones as an important medium of communication along within creased Internet usage will act as the key catalysts in taking this growth forward, spurred by falling data prices.

 

According to the executive summary, the “Indian advertising industry currently stands at Rs 56,398 crore and is expected to grow at a rate of 14% to reach Rs 64,488crore by 2017”. The exec summary further adds: “TV and print contribute to the largest share while digital advertising contributes to 12% of the overall advertising share in India. Among industry verticals, the e-commerce sector contributes the highest proportion (25%) of its overall marketing budget towards digital media. The share of spends on digital media is expected to reach 24% by 2020 from the current 12%. The reason behind this growth will be a shift from traditional mediums to digital mediums due to greater effectivity and benefits of hyper-targeting. The digital advertising industry currently stands at Rs 6,825 cr and is expected to grow at a CAGR of 37% to reach Rs 23,795 due to an increase in consumer adoption of mobile phones as an important medium of communication along with increased internet usage.”

 

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