Digital ad industry to amount to Rs 17,000 crore by the end of 2020: DAN Digital Report 2020

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Published: January 24, 2020 7:10:28 PM

Meanwhile, FMCG sector emerged as the biggest spender, contributing 30% to Rs 20,182 crore to the advertising industry

the Indian advertising industry has grown at a rate of 9.4% to Rs 68,475 crore by the end of 2019. The Indian advertising industry has grown at a rate of 9.4% to Rs 68,475 crore by the end of 2019.

Digital advertising industry recorded a rise of 26% to Rs 13,683 crore in 2019 when compared to Rs 10,859 crore in 2018 as per the DAN Digital Report 2020. The report further claimed that digital advertising will touch Rs 17,000 crore by the end of 2020. As per Anand Bhadkamkar, CEO, Dentsu Aegis Network India, 2019 was a challenging year for the Indian advertising industry as 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. “Digital is a masterstroke in advertising and Dentsu Aegis Network recognises this strength. We also recognise the need for an industry level report that can give directions toward which this industry is moving,” he added.

According to the report, the Indian advertising industry has grown at a rate of 9.4% to Rs 68,475 crore by the end of 2019. The industry will further record a rise of 10.9% and touch Rs 75,952 crore by the end of 2020. By 2025, the industry will grow at 11.83% CAGR to reach a market size of Rs 1,33,921 crore. Meanwhile, FMCG sector emerged as the biggest spender, contributing 30% to Rs 20,182 crore to the advertising industry. FMCG was followed by ecommerce sector with 10% to Rs 6,915 crore and automotive sector with 8% to Rs 5,797 crore.

Though digital advertising is growing at a fast pace, television still reigns over the advertisement space with 39% to Rs 26,869 crore of media share. Following TV is print with 29% share amounting to Rs 20,110 crore and digital media with 20% to Rs 13,683 crore share. 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%.

Ad spends on mediaAd spends on media

In digital media, social media led the advertising spends with 28% share amounting to Rs 3,835 crore. Paid search stood second with 23% share and was followed by online video with 22% share. Lagging behind was display media at 21% share. However, display media, online video and social media are expected to have the fastest growth in 2020 while the share of paid search is expected to reduce from 25% to 23% by the end of 2020. It should be noted that the FMCG segment spends a large share of their digital media budget on online video, while ecommerce, consumer durables spend a mostly on paid search and social media.

As per the report, by 2020, advertising spends on mobile devices will grow by 41% to 52% share of the digital advertising market, overtaking spends share on desktop. Furthermore, the expected spends on mobile devices will reach a share of 64% by 2022.

Advancements in marketing technologies and subsequent fusion with marketing creativity, along with the advent of 5G technology and increased adoption of ecommerce 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.

For Ashish Bhasin, CEO, APAC and chairman, India – Dentsu Aegis Network, 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. 2020, he believes, is expected to witness a major change in advertising in India, with digital becoming a bigger medium.

Read Also: Facebook appoints Avinash Pant as marketing director

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