Dentsu Aegis Network India in the fourth edition of its digital report said the digital advertising industry will double in size in next three years from Rs 13,683 crore in 2019 to Rs 28,249 crore in 2022. It will become Rs 58,550 crore by the end of 2025.
1. The Indian advertising industry has grown at a rate of 9.4% over 2018 to reach Rs 68,475 crore by the end of 2019. The industry will grow by 10.9% to reach Rs 75,952 crore by the end of 2020. It is expected to grow at 11.83% CAGR to reach a market size of Rs 1,33,921 crore by 2025.
2. By the end of 2019 the digital advertising industry stands at Rs 13,683 crore, up at a rate of 26% from Rs 10,859 crore in 2018. It is expected to grow at 27% to reach Rs 17,377 crore by the end of 2020.
3. Advertising spends on Digital media is expected to grow at a CAGR of 27.42% to cross the Rs 50,000 crore mark and reach an industry size of Rs 58,550 crore by the end of 2025. This sustained growth can be attributed to the technological advancements, improvements in data science & analytics, introduction of policies & regulations among others.
4. Television takes the largest share of media spends at 39% (Rs. 26,869 Crore) followed by print media (29%, Rs. 20,110 Crore) and Digital Media (20%, Rs. 13,683 Crore). In the year 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%.
5. Across various industry verticals, FMCG sector spends the highest by contributing 30% (Rs. 20,182 Crore) to the advertising industry. Next to FMCG stands with 10% contribution by E-commerce (Rs. 6,915 Crore) followed by Automotive sector (8%, Rs. 5,797 Crore).
6. Among the various industry segments, FMCG has the highest expenditure on advertising i.e. 30% (Rs. 20,182 Crore) followed by E-commerce (10%) and Automotive segment. FMCG spends a large majority of their advertising budget on television (61%) while Retail, Automotive and Retail spend a large share of their advertising budget on Print. The biggest spenders on digital media are BFSI (42%), Consumer Durables (38%) and E-commerce (37%).
7. Advertising spends on Digital Media is led by Social media with the highest share of 28%, contributing Rs. 3,835 Crore to the Indian digital advertising pie. This is followed by spends on Paid search (23%), Online Video (22%) and Display media (21%). Display media, online video and social media are expected to have the fastest growth in 2020. The share of paid search is expected to reduce from 25% to 23% by the end of 2020.
8. FMCG segment spends a large share of their digital media budget on online video (36%), while E-commerce, consumer durables spend a mostly on paid search and social media.
9. By 2020, advertising spends on Mobile devices is expected to grow by 41% to have a share of 52% to the digital advertising market, overtaking spends share on Desktop. Furthermore, the expected spends on mobile devices will reach a share of 64% by 2022.
10. Advancements in marketing technologies and subsequent fusion with marketing creativity, along with 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 by the year 2025.
Anand Bhadkamkar, CEO, Dentsu Aegis Network India, said, “2019 was a challenging year for the Indian advertising industry as well. With the economic slowdown, advertisers decided to cut back on spends, consumers decided to wait-and-watch, market sentiments reached a new low and India’s Ad Expenditure (AdEx) witnessed a consequential fall. But even in the midst of it all, digital continued to grow. Digital is a masterstroke in advertising and Dentsu Aegis Network recognizes this strength. We also recognize the need for an industry level report that can give directions toward which this industry is moving. While with every new edition, the DAN Digital report has been upping its rank in quality, range and comprehensiveness, we welcome sincere feedback and inputs from the entire industry to help establish a robust eco-system for this fast growing and increasingly important industry channel, so that all of us can progress together!”
Ashish Bhasin, CEO, APAC and Chairman, India - Dentsu Aegis Network, said, “The Media and Advertising industry is shifting at a rapid speed and Digital is certainly taking charge. Consumers are leaving behind huge digital footprints and there is a lot more emphasis on managing data and developing martech capabilities, now. 2020 is expected to witness a major change in advertising in India, with digital becoming a bigger medium. In fact, by 2021, it’s 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. The report has now become the most credible source of information when it comes to digital in India.”