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Digital ad spends to cross 50,000 crore mark by 2025: Report

Although digital continues to be the fastest growing platform, its share in the overall advertising pie is yet to overtake television and printPremium
Although digital continues to be the fastest growing platform, its share in the overall advertising pie is yet to overtake television and print

  • The report said mobile ad spend is expected to grow 41% to reach a share of 52% in the overall digital advertising market
  • Digital ad spends currently stand at 13,683 crore and are expected to grow at 27% to touch 17,377 crore in 2020

Digital advertising industry is expected to cross 50,000 crore mark by 2025 and touch 58,550 crore in five years, led by smartphones and cheap data penetration, said a report by Dentsu Aegis Network (DAN).

Digital ad spends currently stand at 13,683 crore and are expected to grow at 27% to touch 17,377 crore in 2020, said the digital ad spend forecast report published by DAN in association with trade portal exchange4media. The majority of these spends will go on social media platforms, followed by paid search, online video and display media.

The report said mobile ad spend is expected to grow 41% to reach a share of 52% in the overall digital advertising market, overtaking spends on desktop this year. Spends on mobile devices are projected to reach a share of 64% of digital ad spends by 2022.

The Indian ad industry currently stands at Rs. 68,475 crore and is expected to touch Rs. 75,952 crore by 2020, growing at a compound annual growth rate (CAGR) of 10.9%. A cricket-heavy calendar along with the upcoming state elections will aid this growth. The overall ad industry is expected to grow at 11.83% CAGR to reach a market size of Rs. 1,33,921 crore by 2025.

“2020 is expected to witness a major change in advertising in India, with digital becoming a bigger medium. In fact, by 2021, its growth should surpass that of print. Yet, despite this progressive swing, the industry has failed to come together to agree upon a common measurement metric for digital. As leaders in digital, Dentsu Aegis Network today stands at the forefront of this evolution and understands the need to have more information on digital. The DAN Digital report, now in its fourth edition, is exhaustive, systematic, thorough and meets this need gap brilliantly," said Ashish Bhasin, chief executive, Asia Pacific (APAC) and chairman, India - Dentsu Aegis Network.

Although digital continues to be the fastest growing platform, its share in the overall advertising pie is yet to overtake television and print. Television takes the largest share of media spends at 39%, followed by print media at 29% and digital media at 20%. In 2020, spends on television media is expected to grow at 10% and its share will remain steady while that on print media is expected to grow at 3% with this share declining to 27%.

In terms of categories, fast moving consumer goods (FMCG) spends the highest by contributing 30% to the overall ad spends followed by e-commerce (10%) and automotive sector (8%). FMCG spends a large majority of their advertising budget on television while retail, automotive and retail spend a large share of their advertising budget on print. The biggest spenders on digital media are banking, financial services, and insurance (42%), consumer durables (38%) and e-commerce (37%).

Content will also play a dominant role in advertising and marketing. The advancement in marketing technologies, the advent of 5G technology and increased adoption of e-commerce advertising will lead to the evolution of content for the next 500 million internet users, thereby catapulting the digital media industry towards the Rs. 50,000 crore milestone.

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