Industry projections that digital advertising would overtake TV in the next few quarters are on the verge of becoming a reality this year. This is backed up by figures in the current PMAR research, which predicts that digital ad revenue would overtake TV by 30 per cent in 2022, adding Rs 33,070 crore to the total ad revenue of Rs 90,000 crore.
TV AdEx, on the other hand, is only expected to grow by 14%, amounting to only Rs 32,100 crore, roughly Rs 1,000 crore less than digital.
Digital advertising expenditure increased by 50% in 2021, to Rs 25,438 crore, accounting for 34% of overall AdEx. Digital was only four percentage points behind television, the most popular media.
While TV AdEx had a bigger spend of Rs 28,151 crore than digital, the segment’s overall increase in 2021 was just 25%, less than half the rate of digital.
Surprisingly, the report estimates that digital will expand by 50% by 2021. In 2012, the percentage remained the same, but the revenue added was significantly lower. While the AdEx kitty was around Rs 8,500 crore in 2021, it was only Rs 750 crore in 2012.
Digital has increased at a compound annual growth rate of 27% during the last ten years. Even though ad expenditure was cut across the board during the pandemic, digital has grown by 10%, while the rest has declined.
A vertical breakdown shows that video contributed the most, with a total share of 29 per cent, followed by social media and display, which each contributed over 20 per cent. E-commerce and search each account for 16 per cent of the total digital pie. In India, mobile accounts for nearly all digital spending, with the latter accounting for 96 per cent.
In 2021, eCommerce advertising will surpass Rs 4,100 crore, owing primarily to Amazon and Flipkart. Traditional businesses that are adopting ECommerce and building their own online (D2C) platforms are credited with this increase, according to the survey.
According to the report, Sam Balsara, Chairman of Madison Group, would urge marketers to take advantage of the evolving digital infrastructure for distribution and advertising to plan for future growth and invest in building their D2C channels.
During the epidemic, print, outdoor, and radio have become the most important forms of advertising. Most advertisers and agencies are already investing in top-funnel (branding), middle-funnel (engagement), and bottom-funnel (revenue) digital media strategies (performance).
Industry experts suggest that if the situation changes, they may rethink their overall media strategy to capitalise on digital development.
For the past three to four years, FMCG clients have been focusing a lot on videos that are suitable for both TV and digital, according to Vengalil. Influencer marketing has also increased. As a result, ad firms’ media strategies are unlikely to change significantly
Advertisers will have to present a bouquet of digital ads frequently since digital advertising involves various layers of campaigns to attract and retain customers.
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