Digital advertising is growing at a staggering pace in recent times. The entire industry has been abuzz with the new found relevance and convenience offered by digital platforms. This has caused a steady change in the advertising industry and key players are following suit to jump onto this lucrative bandwagon. As per industry estimates, the market for online advertising in India will cross INR 3, 575 crores and counting by March 2015 and advertising expenditure on mobile and digital platforms is increasing by a whopping 43%! This has set the cat amongst the pigeons in the industry and is supremely indicative of evolved consumer behaviour and preferences.
The overall growth rate of digital advertising is being pegged at 30 percent annually which is staggering by all means. As per industry estimates, the sector was worth around INR 2, 750 crores by March 2014 and this has been seconded by industry reports and statistics published by leading advertising associations and organizations. The biggest contributors to the entire digital advertisement spending pie are display and search which constitute 29 and 38 percent respectively as per reports. This has caused a rethink on strategies usually employed by top advertising and media agencies. Advertising trends are forever in a state of flux, something that is both chaotic and disruptive if not handled right.
Alongside, Search spends came down to about 30 percent soon after for total digital advertising expenditure. Search still provides a whopping INR 825 crores of overall revenue for the market. Alongside, it is being predicted that digital advertising spend will increase on videos, email and mobile advertisements which will eat into Search shares in turn. Social media accounts for about 13% of overall advertising spend digitally and this is growing rapidly to about INR 440 crores in March 2014.
Expenditure on video advertising has grown by a decent 51 percent to touch INR 303 crores while email advertising has now become an INR 88 crore market. This should be growing to the tune of 56% soon and will hold a decent 12% of all digital advertisements put out by brands. The biggest verticals driving the digital advertising boom are e-commerce, FMCG & consumer durables and telecom and this trend is set to continue in the near future.
