India’s digital ad market to touch $35 bn by 2030: Redseer
- India’s digital ad spends have been growing in double digits since 2016. However, it is remains lower than countries like China and the US where digital adoption higher than in India
NEW DELHI: India’s digital ad expenditure is expected to grow 10 times over the next decade and will likely account for 70-85% of the total ad market which currently stands at 33%, according to estimates by management consultancy Redseer. The digital advertising market is expected to touch $25-35 billion by 2030 from $3 billion in 2020.
The main growth drivers for this trend include rise in GDP/ capita, increasing digital consumption in time spent and shift in eye-balls, rise of direct-to-consumer (D2C)/challenger brands which will drive the next phase of growth for digital ads and increasing digital penetration in tier II cities, creating new market and opportunities.
Abhishek Gupta, engagement manager, RedSeer Consulting, noted that while new age companies have been spending significantly on digital ads in recent years, older companies are also increasingly spending on digital media.
“A key factor for this growing trend is the cohort of millennials and Gen Z who spend most of their time on digital platforms. The trend is only expected to amplify as more people especially in tier II cities engage more digitally through websites, apps, social media among others,” he added.
The report noted that India has crossed that point where mobile has successfully taken over all the other mediums and is the device which witnesses maximum consumption. This means that apps become the most popular destination for consumers to engage with and spend most of their time on, a key factor for companies while deciding their advertisements.
Without divulging exact data, RedSeer said there has been a significant jump in monthly active users (MAUs) from 2005 to 2020 across app categories such as chat messengers, OTT, e-commerce and social media among others. This includes popular apps such as Instagram, Facebook, WhatsApp, Swiggy, Zomato, Netflix, Amazon and Paytm among others. This growth also reflects in user time spent, engagement and other factors across digital platforms.
As overall ad spends increase, digital media platforms are strongly positioned to capture this. Currently, the eyeballs (or time spent) vs ad spend by channel is not in sync.
“Digital platforms, for instance, reach much larger audiences now compared to traditional channels (radio, print etc.) We have seen globally this shift happen in other countries where digital has grown and taken share of print, radio and TV. Reach of digital platforms is reaching an inflexion point and we expect the ad spend on digital to benefit from this,” said Gupta.
Since 2016, India’s digital ad spends have been growing in double digits. However, it is lower than in countries like China and the US where digital adoption higher than in India. But the growth of digital ads is likely to continue and become stronger as covid-19 pandemic drives adoption of digital services.
This is bound to have a positive impact on advertisement spent by companies and brands as users start spending more additional time on these platforms.
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First Published:19 Jul 2021, 04:03 PM IST
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