Voice, vernacular and video to drive growth of digital media in India

Voice, vernacular and video to drive growth of digital media in India

Digital advertising has seen a rapid growth in India in last few years and will continue to rise in the country on the back of growing popularity of digital media, which is fuelled by voice, vernacular and video trend, says a recent report by digital advertising company Dentsu Aegis. The report says that the digital advertising market size currently is around Rs 10,819 crore and the estimated CAGR growth will be 31.96 per cent and the market will expand to Rs 24,920 crore by 2021.

“Digital transformation is being adopted at a substantial scale, which in turn, is increasing the adoption of digital media at a rapid pace,” the report says. While the main drivers of growth, according to the report, would be voice, vernacular and video, engaging mobile experiences based on augmented reality (AR) and virtual reality (VR) would drive the growth going ahead.

The report also reveals that the advertising expenditure on the digital advertising formats is led by social media (29 per cent) followed by search (25 per cent), display (21 per cent) and video (20 per cent).As per the report, BFSI is the biggest spender on digital media with a contribution of 38 per cent of all their marketing budgets. This is followed by consumer durables (36 per cent), e-commerce (34 per cent) and telecom (31 per cent). FMCG spends heavily on the television (63 per cent) and the retail sector spends largely on print (54 per cent) medium of advertising.

Programmatic advertising, an automated way of buying advertisements online has also seen a growth in the country, the report reveals. “Currently, 18 per cent of all digital media is bought programmatically and has grown from 15 per cent last year. The major reason for the growth are technological advancements,  improvements in data science and analytics, implementation of algorithm to automate various procedures, better ad fraud detection and improved data policies and regulations, it adds.

The report also says that rapid increase in the penetration of mobile devices and internet has led to 47 per cent of digital media spends on mobile devices and is expected to grow at CAGR of 49 per cent to reach spends share of 67 per cent by 2021.

It pegs the overall Indian advertising market at Rs 61,878 crore and estimates that it would grow with a CAGR of 10.62 per cent till 2021 to reach a market size of Rs 85,250 crore.

[“source-“businesstoday”]