Mumbai: Digital advertising is expected to equal if not surpass TV advertising by 2023, according to findings in dentsu digital advertising report 2022 unveiled on Tuesday. Digital media is expected to grow at 29.5 per cent CAGR to reach a market size of Rs 35,809 crore. It currently stands at Rs 21,353 crore registering a growth of 35.3 per cent over 2020.
The Indian advertising industry currently stands at Rs 70,715 crore and has grown by 18.6 per cent over 2020, according to dentsu digital advertising report 2022 released on Tuesday. It is estimated to reach Rs 93,119 crore by the end of 2023 at a growth rate of 14.75 per cent CAGR.
TV continues to claim the largest share of media spends at 42 per cent and a market size of Rs 29,279 crore. This is followed by digital at 30 per cent and print at 24 per cent with a market size of Rs 16,599 crore.
FMCG has the highest contribution of 34 per cent at Rs 23,736 crore towards the Indian advertising industry followed by e-commerce at 14 per cent and Rs 9619 crore and auto at seven per cent and Rs 4745 crore.
FMCG is also the biggest contributor to digital media spends with a 42 per cent share at Rs 8928 crore followed by e-commerce with a 17 per cent share at Rs 3607, consumer durables with six per cent and Rs 1368 crore and pharma at five per cent and Rs 1124 crore.
On digital media, social media spends account for the largest share with 29 per cent share and size of Rs 6218 crore. This is closely followed by online video with a share of 28 per cent and size of Rs 5907 crore and paid search with 23 per cent share and Rs 5039 crore.
The study found that FMCG, education and media and entertainment verticals spend the largest share of their digital media budget on online video, while pharma and e-commerce spend the most on paid search.
Mobile devices account for 75 per cent share of digital spends with a market size of Rs 16,015 crore attributed to increase in mobile usage and improved internet infrastructure. Most of the spending on mobile goes to social media platforms (30 per cent) and online video platforms (30 per cent).
“Notwithstanding the devastation caused by Covid-19’s second wave in 2021, we have seen a dramatic upsurge in digital in ways we have not seen before,” said dentsu India chief client officer Narayan Devanathan. “Digital advertising in India is expected to equal (if not surpass) the previously-impregnable fortress of TV advertising by 2023. With the requisite caution in the face of the varying strains of the pandemic notwithstanding, India will continue to rise in the global economy in the coming years, driven by digital.”