Digital ads slow down in July-Sep; e-commerce, entertainment top advertisers

  • Notably, the retail sector emerged as a new key player in the top 10 sectors, underscoring the growing focus on direct consumer engagement through online platforms.

Varuni Khosla
Published26 Dec 2023, 05:33 PM IST
Media, entertainment, and social media category within e-commerce climbed to the top spot in ad impressions during the July-September quarter, securing a 13% share. (Photo: iStock)
Media, entertainment, and social media category within e-commerce climbed to the top spot in ad impressions during the July-September quarter, securing a 13% share. (Photo: iStock)

New Delhi: India's digital advertising market witnessed a 10% sequential decline in the July-September quarter, even as it grew 30% year-on-year, according to a report by TAM Media’s AdEx unit.

In the three months to June 2023, there was a significant 60% quarter-on-quarter increase in ad impressions. However, this momentum did not sustain in the subsequent July-September period, which only witnessed a 43% growth over the initial three months of the year. 

Ad impressions, calculated based on digital media metrics, offer crucial insights into the advertising landscape. The report highlighted that services and computers remained at the forefront, commanding 51% and 11% of the ad impression shares, respectively. The automotive sector also gained prominence, securing the third spot with 5% of total ad impressions for the quarter under review. Collectively, the top 10 sectors accounted for an overwhelming 86% of ad impressions during this time, highlighting the concentration of advertising efforts in select industries.

Notably, the retail sector emerged as a new key player in the top 10 sectors, underscoring the growing focus on direct consumer engagement through online platforms.

In terms of platform preference, desktop display advertising remains predominant in India, accounting for 46% of impressions during July-September, while in-app display captured 16%. X, formerly Twitter, led the publishers with a 44% share, followed by YouTube with a 12% share.

Media, entertainment, and social media category within e-commerce climbed to the top spot in ad impressions during the July-September quarter, securing a 13% share. This category, which includes online entertainment and social media platforms, saw a 27% sequential increase in ad impressions. Cars and laptops also entered the top 10 ad categories, with the former recording a massive 133% growth from the April-June 2023 period.

Amazon India maintained its position as the leading advertiser throughout 2023, consistently topping the list in all three quarters. However, the top 10 advertisers collectively contributed only 18% of ad impressions in the July-September quarter. Amazon and Snapchat were the only two advertisers to consistently appear in the top 10 across the three quarters.

In the face of ongoing challenges pertaining to Goods and Services Tax (GST), gaming company PlayGames24X7, known for apps like My11Circle and RummyCircle, reduced its digital advertising spend, dropping out of the top advertiser list in the subsequent quarter. Five new brands emerged in the top 10 advertisers during the quarter. These 10 collectively accounted for 14% of ad impressions in July-September.

Retail outlets and departmental stores saw the highest growth rate among the top 10 sectors, with a 9.3-fold increase in ad impressions.

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First Published:26 Dec 2023, 05:33 PM IST
HomeIndustryAdvertisingDigital ads slow down in July-Sep; e-commerce, entertainment top advertisers

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