BFSI spends most of marketing moolah on digital: IAMAI and Kantar IMRB Report

A joint report published by the Internet and Mobile Association of India (IAMAI) and Kantar IMRB – ‘Digital Advertising in India 2017’ – says the banking, financial services and insurance (BFSI) segment is the biggest spender on digital platform, followed by e-commerce, travel and then FMCG+FMCD.

While BFSi spends close to Rs 2,022 crore, it is around 46% of the category’s total ad budget. On the similar lines, e-commerce spends about Rs 1,711 crore on digital advertising; comprising 29% of its total ad spends. Travel spends Rs 1,280 crore. FMCG and FMCD are the biggest advertisers on traditional media, together spending close to Rs 18,447 crore on traditional platforms and about Rs 1,255 crore on digital, which is a mere 6% of their total marketing spends.

The digital advertising spends in India was estimated to be around Rs 9,266 crore at the end of 2017, growing at a rate of 27% over 2016, as per the report. The growth in spends on digital advertising is expected to continue at a CAGR of 30% to touch Rs 12,046 crore by December 2018. According to the report, digital advertising spend is about 16% of the total ad spends in the country (estimated to be Rs 59,000 crore).

The report finds that ‘search’ takes the lion’s share of digital ad spending. 27% of total digital ad spends (Rs 2,502 crore) is made on search. This is followed closely by spends on video and mobile, which is around 19%, with ad spend being Rs 1,779 crore and 1,761 crore, respectively. Spends on social media stand at 18% with ad spend around Rs 1,668 crore and least being display ads with only 16% with total ad spend being only Rs 1,483 crore. Spend on mobile advertising (SMS/ in-app ads) also recorded high YoY growth of 34% from Rs 1,314 crore in 2016 to around 1,761 crore in 2017.

This is because advertising on mobile is considered to be innovative and conveys the message clearly. Also, in-app advertising avenue is currently being explored and used across various industry sectors since it is believed to fetch better monetisation.

Another interesting trend is the growth of ‘native ads’ as a popular option. These ads operate as a connector between advertisers and publishers. It solves a problem for them by providing consumers with content that does not disrupt their online experience and is more likely to be seen by them.

Moreover, from a consumer’s perspective, the proportion of internet users who believe that online ads are informative and that they help them in finding the right product/service they were searching for is greater than 2016. More important, there has been an increase in the number of consumers who felt that the relevance of digital advertising has increased.

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