We see rise and rise in digital campaigns, ads and content amongst Indian industry verticals. The paradigm shift in Indian Consumer behaviour has a deep inclination towards digital media. Whereas the traditional media like Tv, Print, Radio continues to rule the Ad spends sector, Digital media is an added beneficiary for the market growth.
Majorly the flexibility in targeting and using more interactive content has given a great boost to Digital marketing. More initiatives have been taken for internet literacy.
According to a study by eMarketer India amounts only 1.1% of total ad spends worldwide. The figure is expected to grow by significant chunk due to heavy consideration in digital media. Although the digital penetration is low in Indian markets approximately US$ 1bn is expected to be spent on digital ads amongst 350 million steady internet users.
Let’s talk about practical figures.
The total digital ad spends in the year 2013 was INR2520Cr which grew by 35% in 2014 and achieved a steady growth curve by 37% till Jul’15 amounting to INR4661Cr. If we compare it with traditional media; the total ad spends for traditional and online media is US$6400Mn in the year 2015 (till Jul). Digital Media spends managed to grab a share of US$940Mn. Remember Digital media is still considered to be a new entrant in the ad market. We also see Mobile as another platform to be extremely promising. Study says 81% of India population holds a mobile phone but only 10% of the total mobile users owns a smart phone with internet facility. Despite of this low share Mobile ads managed to enter the spend pie with US$ 170Mn and expected to grow 2x by the year 2016.
The Digital Ad spends is projected as US$ 940Mn by Mar’2016. Global MNC giants like Facebook, Google are being much supportive towards DigitalIndia. More interestingly the Mobile ads sector is likely to overcome the estimated figure of US$1Bn (for 2015) for the whole of Digital ad spends.
Digital Ads sector is again a huge pie of Display Ads, Social Media Ads, Search Ads and miscellaneous. In India Display ads managed to grab the larger chunk of the pie with US$5.7Mn till Jul’15. Whereas Search, Social Media and others accounts to US$3.3Mn, US$2.1Mn and US$0.3Mn respectively till Jul’15.
What is more eye dropping over here is the projected growth in these divisions. Display Ads continues to rule the projection with US$720Mn till Mar’2016. Search, Social Media and others follow up with US$410Mn, US$360Mn and US$40Mn respectively. Surely the Digital Media is going better over the months. It’s also a boon for Digital Marketing Agencies in India who are performance driven.
Here’s another interesting insight on Ad spends by Industries in India (FY14-15).
Internet literacy has given urban targeting a whole new meaning. At a glance products which are targeted to Urban market are doing much better than products targeted to rural mass.
Let’s have a look sector wise.
Most of us are now-a-days are familiar with online shopping which has become the synonym for internet. Digital ad spends by e-commerce retailers grab a market share of 20%. The next big industry to try out digital marketing is travel sector amounting to 13% of the pie. Digital media emerges to be communicating directly and wisely with the targeted consumers. The slip over is comparatively less due to availability of various channel based targeting. Most of the sales driven campaigns get instant clicks as the limited period offers are easy to channelize by real time marketing. Similarly Banks and Financial services, FMCG sectors fall in a bracket of 12% of the pie and expected to come in the 2nd position by 2016 with more rural penetration. Telecom is another industry which targets mass consumers and sitting at 11% of the pie and ready to experiment more for their up-end services.
Then comes the sectors like Auto, Education who are still in the first phase of life cycle to spend in Digital ads. Although these sectors focus largely in the digital/web contents for brand building exercises. Last but not the least is IT and others who are hesitant entrants in the digital market as their total ad spends is very restricted and customized due to B2B services. Still digital media managed to grab a share of approximately 8% of the total pie for these industries.
Digital media is just not a broadcasting media to communicate your message. All the advancements have led this media to believe in ROI, customer loyalty, long lasting relationships, building brands and credibility. Traditional ads, the only form of communication has emerged much from an image or video to innovations of graphics and designs. More particularly the ad channels in digital media has established a new era for marketers.
Digital ad spends wherever its standing now is only to grow bigger in coming years despite all glitches in consumer mind-set and established platforms. Digital marketing is believed to create an optimistic approach to establish a new paradigm and an internet era we have never seen before.
