Digital advertising in India to cross Rs25,500 crore mark in 2020
Mumbai: Digital advertising in the country is expected to cross the Rs25,500 crore mark in 2020, growing at a compound annual growth rate (CAGR) of 33.5%, a CII-KPMG report said.
According to industry estimates, digital advertising in the country is projected to be at Rs7,044 crore by end of 2016. “India is one of the fastest growing advertising markets globally with an estimated growth of 15.5% in 2016, driven by a large consumer base and a burgeoning e-commerce industry.
“Although the share of digital advertising spend remains low at 12.7% in 2016, it is one of the fastest growing mediums at an expected CAGR of 33.5% (2015- 2020) to cross Rs25,500 crore in 2020,” said the Digitisation to Drive Marketing Strategies: CII-KPMG report.
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It noted that of the total digital advertisement spends, search and display commands the largest share even though it is a relatively maturing segment. Observing that there is a significant increase in content consumption on social media platforms, it said advertisers are accepting the influential power of digital and social on the customer’s mindset.
“The post-demonetisation days have clearly showed how the country is set to leapfrog a few stages to embrace the power of digital. Mobile is being rapidly adopted and marketers have an incredible opportunity to enhance the game of digital communication and deliver great customer experiences at each point of the journey,” said Thomas Varghese, chairman, CII National Committee on Marketing and CEO-Textile Business, Aditya Birla Group.
As per the report, connected devices, smarter devices and hyper relevant rich content will drive consumption for the consumer. The report noted that the digital consumer’s attention span has now come down to 8 seconds, down from 12 seconds in 2007.
“Marketers are expected to direct their content strategists to curate short videos that create a greater impact on the consumer’s mind while holding their attention till the end. Live streaming videos are interactive and cost- effective,” it said.