Print and TV continue to dominate company ad-spend but 87% of total marketing budgets will be invested online by 2022, says Criteoâs new trends report âAcquire, Convert and Re-engageâ.
The Criteo-commissioned study conducted by Euromonitor surveyed Indian CMOs and marketers and analysed local data to reveal the current state of play in Indiaâs marketing and advertising landscape. This report also takes a deep dive into the commerce marketing world to provide important insight for brands, retailers and marketers.
Based on the reportâs findings, Criteo predicts that 87% of total marketing budgets would be invested in the online space by 2022, with more than 23% of users having two or more connected devices.
The report reveals that print and TV continue to dominate company ad-spend. The investment in traditional print advertising has gone up by 13.2% annually since 2014 while that of TV has gone up by 11.7%. Among all these channels, online is one of the fastest growing ad-spend channel in India. It showed a persistent growth from 2014 to 2017, with investment almost doubling in the given period.
For marketing spend, paid display advertising is occupying a prime spot in the budgets with 19.1% of total marketing budget allocated last year, followed closely by traditional marketing at 13.2%. The report also states that retargeting accounts for 42% of Paid Display Advertising spend and Search Engine Marketing is the next major digital marketing focus in India. Marketers have started scaling up their spends on this medium by leveraging its potential to reach newer shoppers.
âWeâre seeing interesting trends in the marketing landscape that are shaping India marketers reach their audience. The way we shop is changing, and so is the way marketers need to work for acquisition, conversion and retention,â said Siddharth Dabhade, General Manager, India, Criteo.
He added, âWe have witnessed a constant rise in the number of active mobile users in India. As a result, the shopping behaviour has become very sporadic and content is getting consumed constantly on 24/7. And so, marketers are also adapting to this change and redirecting their budgets to digital channels. As indicated by these trends, itâs the perfect time for marketers to acquire, convert and reengage with their customers constantly by leveraging the retargeting technology.â
Some of the key findings from the âAcquire, Convert and Re-engageâ report:
Online is the fastest growing ad-spend channel in India: Online ad-spend has gone up by 24.5% annually since 2014. The channel ad-spend is still at its early growth stage with ample room for growth, as more Indian consumers will go online in the future.
India is an app-first market: India has the highest app re-engagement rate compared to other countries, including UK, USA, Japan and Australia. Also, India has witnessed more number of repeat purchases.
Retargeting on the rise: Major part of marketerâs budget was allocated to Paid Display Advertising in 2017 and retargeting accounted for 42% of Paid Display Advertising spend.
Going Digital by 2022: 87% of total marketing budgets are going to digital with Indian internet users reaching 678 million.