6 min Read
Year on year digital ad spend has been on the rise, and 2023 is no exception. Meanwhile TV, Print, Radio & Outdoor media continue to shrink / maintain the status.
India’s digital advertising sector continues to undergo significant expansion & is projected to touch INR 31,500 crore in FY 2023, marking a substantial 30% growth. Digital expenditure will soon constitute 36.3% of the total ad expenditure. From available indications, this upward trend will persist, and digital spending will touch INR 41,000 crore in FY2024. At this point, digital will finally overtake television ad spend.
Some key trends shaping the landscape of digital marketing include:
*Emergence of generative AI for creating compelling content.
*Increasing prominence of short-form video and live streaming.
*Role of influencer marketing in enhancing brand relationships.
*Prevalence of personalized marketing powered by AI / ML.
The driving force behind this growth primarily stems from social media and online video platforms. The FMCG and e-commerce sectors contribute significantly, accounting for over 60% of digital ad spending. Other notable contributors include consumer durables, BFSI, auto, and ed-tech, with FMCG, e-commerce, retail, and ed-tech sectors experiencing over 30% growth in ad spending.
A substantial shift toward mobile platforms is evident in the digital media spending landscape, with mobile and tablet commanding an impressive 77% share of total digital media spend in FY 23, while desktop’s contribution has declined to 23%.
The surge in mobile advertising can be attributed to the widespread adoption of smartphones and increased reliance on mobile devices in daily life, fueled by factors such as Jio’s affordable Internet, which has significantly increased internet usage, providing access to nearly half of India’s population.
Despite the overall growth, it’s notable that digital media spending growth is not uniform across all major industries such as Auto, BFSI, Retail, and Consumer Durables, with notable exceptions being FMCG and e-commerce.
Unlike traditional media spends, which are often controlled by large ad agencies, the digital media spend landscape is diverse, presenting opportunities for small and medium-sized digital agencies. The rising digital media spend is poised to be a game-changer for agencies with 2 to 200 professionals
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Acknowledgement: The above is based on a 2023 research paper by ET Brand Equity/Ipsos.
It’s been 3 decades since we established Mediaware as a software service for ad agencies. And here we are, still relevant after 3 decades!
In the fast-paced world of agency conglomerates, where every second counts and accuracy is paramount, billing for TV advertisements poses a significant challenge.
Since the past decade or more, digital agencies have been increasingly offering full services, with added focus on creative strategy
The complex ecosystem of ad agency operations involves constant balancing of financial management with creative endeavors.
Adintelle’s mission is to provide cutting-edge technology that empowers agencies to consolidate their resources, track their profitability, and have complete commercial control. Guided by data and transparent reporting, Adintelle is built to help agencies scale.
Our sights are set on providing smoother operations and solutions across global markets. As an ever-evolving platform, we endeavour to usher in a data-back decision-making culture across the industry.
©2023 Mediaware Infotech Pvt. Ltd. All Rights Reserved.
Adintelle’s mission is to provide cutting-edge technology that empowers agencies to consolidate their resources, track their profitability, and have complete commercial control. Guided by data and transparent reporting, Adintelle is built to help agencies scale.
Our sights are set on providing smoother operations and solutions across global markets. As an ever-evolving platform, we endeavour to usher in a data-back decision-making culture across the industry.
©2023 Mediaware Infotech Pvt. Ltd. All Rights Reserved.
