Digital advertising growth to be high
A report by Prabhudas Lilladher suggests that digital advertising firms are likely to grow rapidly going forward. This growth is attributed to the emergence of mobile advertising as the default channel of consumption. From 45% in FY19 to 76% in FY21, the share of mobile in India’s digital media grew at a CAGR of 45%. The share of mobile in India’s digital media now amounts to US$ 1.9 billion. Social media with 29% (Rs 4,600 crore) and online video (28%, Rs 4,400 crore) were the main drivers of digital advertising growth. The study notes that online video has seen the fastest YOY growth, from a share of 22% in 2019 to 28% in 2020.
The report states that mobile marketing firm like Affle are likely to grow rapidly. Mobile advertising constitutes 95% of Affle’s revenue currently. E-commerce, food-tech, fintech and travel tech are the main verticals which will drive digital ad spends in India. This is because the primary mode through which companies engage with their end consumers is via mobile apps.
The study observed that the COVID-19 pandemic accelerated the shift towards digital advertising. It expects this trend to continue given the low data costs and declining smartphone prices. “We believe that digital advertising is here to stay because connected digital devices/experiences have become an inseparable part of a consumer’s life,” as per the report.