Dentsu Digital Report 2021

05 Feb,2021

By Our Staff

 

The Dentsu Aegis Network unveiled its annual Digital Report for 2021.

 

Here are some takeaways:

 

The Indian advertising industry currently stands at Rs 56,490 crore and it has witnessed de-growth of 17.5% over 2019 due to the pandemic. The advertising industry is expected to make a come-back and will grow by 10.8% to reach Rs 62,577 crore by the end of the year 2021. Furthermore, it is expected to grow with a CAGR of 11.59% to reach Rs. 70,343 crore by 2022.

 

The digital advertising industry has witnessed growth in market size from Rs 13,683 crore by 2019 to Rs 15,782 crore by 2020, growing by 15.3% from the previous year. Digital media will grow at 20% to reach a market size of Rs 18,938 crore by 2021 and with a CAGR of 22.47% to reach Rs. 23,673 crore by 2022.

 

Television has the unparalleled reach in the media market and contributes to the largest share of media spends at 41% (Rs. 23,201 crore) in 2020. Followed by spends on digital (28%, Rs. 15,782 crore) and print (25%, Rs. 13,970 crore).

 

Currently, FMCG has the highest expenditure on advertising with a contribution of 20% (Rs. 11,554 crore) closely followed by e-commerce (17%, Rs 9,788 crore) and consumer durables (10%, Rs. 5,751 crore).

 

FMCG spends a large majority of their advertising budget on Television (64%) while Retail, Automotive and Media and Entertainment segments spend a large share of their advertising budget on Print. The biggest spenders on Digital media are BFSI (57%), Consumer Durables (45%), Telecommunications (40%) and E-Commerce (39%).

 

Digital is growing rapidly and the pandemic has propelled the adoption. Advertising spend on digital media has increased from a share of 20% in 2019 to 28% in 2020. It is further expected to reach 34% by the end of 2022.

 

Said Anand Bhadkamkar, CEO – India, Dentsu: “2020 presented a monumental challenge to us – as individuals, business and society. It made us witness time and space in ways that many generations had only read about in textbooks or had heard of from aging bystanders of yester-history. Yet, I must reiterate that despite all the aching that this hailstorm of a year introduced into our lives, 2020 was also maleficently unique. It forced us into depths of insights that we could never have comprehended otherwise. It also reminded us of what the human spirit could eventually endure and the magnificent resilience that it is capable of. Dentsu is over-invested in digital. Of our 3000 people, more than 1800 are in our digital companies. Additionally, more than 50% of our revenue comes from digital at a time when the market average in India is still 10-12 per cent. We, at dentsu, expect 2021 to witness a colossal rise in digital advertising. We also recognise the need for a business intelligence report that can give directions toward which this industry is moving with ever-changing client demands and market scenarios. We look forward to your thoughts and opinions to help sharpen our approach towards this fast-growing industry as we strive to expand, together.”

 

 

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