The Indian advertising industry is expected to reach Rs 62,577 crore by the end of the year 2021
- dentsu in its Digital Report 2021 revealed that
digital mediawill grow at 20% to reach a market size of Rs 18,938 crore by 2021 and with a CAGR of 22.47% to reach Rs. 23,673 crore by 2022.
- The overall Indian
advertisingindustry is expected to make a come-back and grow by 10.8% to reach Rs 62,577 crore by the end of the year 2021. Furthermore, it is expected to grow with a CAGR of 11.59% to reach Rs. 70,343 crore by 2022.
- TV, Digital and
The digital advertising industry witnessed growth in market size from Rs 13,683 crore by 2019 to Rs 15,782 crore by 2020, growing by 15.3% from the previous year. Digital media will grow at 20% to reach a market size of Rs 18,938 crore by 2021 and with a CAGR of 22.47% to reach Rs. 23,673 crore by 2022.
Television has the unparalleled reach in the media market and contributes to the largest share of media spends at 41% (Rs. 23,201 crore) in 2020, followed by spends on digital (28%, Rs. 15,782 crore) and print (25%, Rs. 13,970 crore).
FMCG spends a large majority of their advertising budget on Television (64%) while Retail, Automotive and
Digital is growing rapidly and the pandemic has propelled the adoption. Advertising spend on digital media has increased from a share of 20% in 2019 to 28% in 2020. It is further expected to reach 34% by the end of 2022.
Spends on digital media is led by social media with the largest share of 29% (Rs. 4,596 crore) closely followed by online video (28%, Rs. 4,366 crore) and paid search (24%, Rs. 3,725 crore). Online video has seen the fastest growth from a share of 22% in 2019 to 28% in 2020.
The rapid increase in mobile usage and internet penetration has led to 75% (Rs. 11,836 crore) of digital media spends on mobile devices. Majority of the online expenditure on mobile devices goes to online video 29% (Rs. 3,458 crore) and social media accounts for 29% (Rs. 3,429 crore).
People belonging to Tier II and Tier III cities have contributed the most to the growth of the digital advertising market. The pandemic fostered the demand for e-commerce purchases in these cities. Consumers have preferred to purchase from online retailers offering delivery at flexible timings while being cautious about safety and health during the pandemic.
The shift in habits and behaviour is evolving as the elder consumers are preferring to use cashless digital payment methods instead of cash transactions. The pandemic fuelled the adoption rate of digital in India coupled with the high consumption of digital video and the growth of regional content.
Speakikng about the report,