The report released at the CII Big Picture Summit revealed how though advertiser spends on digital has increased due to high visual attention retention
India’s per capita media consumption is on the rise. Where traditional media such as TV is growing at a steady pace, digital media is driving overall growth at 16% CAGR over the past couple of years, according to a report released by The Confederation of Indian Industry (CII)-The Boston Consulting Group (BCG) titled ‘The trillion (and growing) touchpoint story – recognizing the monetization conundrum’. Adoption of mobile phones as a “small screen” has played a major role in driving the growth for digital media along with favorable demographics, and low-cost mobile internet.
According to the report, digital video consumption has increased 200% to 24 minutes/day from 11 minutes/day over the past two years. In 2018, digital video recorded 10%-15% increase in number of sessions with 15%-25% increase in average time per session. Moreover, internet penetration, along with growing affluence and smartphone penetration is expected to rise in the future, further driving growth in digital.
The report further reveals that the digital video platform is able to retain more visual attention when it comes to advertisements as opposed to traditional TV. “Nearly 55% viewers use TV advertising time in multitasking, switching screens or skipping content. In comparison, mobile advertising commands more viewer attention. Hence, a lighter advertising load on OTT can drive higher recall for brands,” the report stated.
Though advertiser spends on digital is increasing, it is moving at a slower pace when compared to viewership growth. While advertisers are aware of the advantages – better targeting, lesser wastage, ability to drive brand-building through interactive experiences, among others, questions on effectiveness and efficacy still prevail due to the absence of transparent and verifiable data.
The report further highlighted how the coming year will be a pivotal one for the industry, as it looks to balance the growth and helping translate the trillion (and growing) touchpoints into a more sustainable and valued proposition for all the stakeholders.