Dentsu India unveiled its 7th edition of ‘Dentsu India Digital Report 2023’, today. The report highlights the significant trends of 2023 and real-time facts and figures pertaining to the entire digital domain. The report covers spends and insights across sectors.
According to the report, the Indian advertising industry grew at 18.1% over 2021 and is expected to witness a compounded growth of 15.07% by the end of 2024. Digital advertising in India continued to be at the tip of the iceberg with a substantial spike of 39.5% over 2021, putting TV advertising in a tight spot, the report said.
Speaking on the report, Simi Sabhaney, chief growth officer, dentsu India said, “As the digital economy paces up, the Indian consumers are poised to adopt the dynamically evolving technology. Thus, the 2023 edition of the Digital Report encapsulates advertising in today’s world, keeping in mind the many facets of today’s consumers. It offers a 360-degree view for brands to fruitfully plan their advertising budgets.”
The report also states that the Indian digital advertising industry stood at a market size of Rs 29,784 crore, growing at 39.5% over 2021, and is predicted to reach Rs 51,110 crore, with a compounded growth rate of 31%, by 2024.
Talking about the increasing digital appetite, the report mentions that digital media is expected to overtake the ad spends share of television in 2023, putting TV advertising in a tight spot. Digital media spends is driven by social media with a contribution of 30%, followed by 28% from online video and 23% from paid search, highlights the report.
The report also shed light on some interesting numbers:
- The spend on online video is expected to grow rapidly and be at par with social media spends by 2024
- The FMCG sector contributes 30% of total advertising spends, followed by the e-commerce category at 18%.
- FMCG and e-commerce are the largest contributors to the digital media industry, accounting for 38% and 20%, respectively, followed by consumer durables, pharmaceuticals, and automotive.
- Due to the rapid adoption of the next generation of Web3 technologies and the development of mass markets, Indian consumers’ expectations are set to evolve toward convenience, commerce, experiential media, and marketing in the new digital economy.
- The evolution of the new digital economy will lead to the emergence of new markets and pave the opportunity for creating value and increasing the worth of customers, ushering in a new dawn of marketing and creativity that will be more spatial, experiential, and immersive.