The amount of money Indian companies spend on online advertising is on the rise for the last five years or so. Digital advertising has evolved so fast in the last decade that it has emerged as a secret weapon for businesses to capture the attention and engage the users directly, which traditional advertising lacked. Quite rightly so, there is a divide that has been created between online advertising and traditional advertising.
The whole advertising market in India is anticipated to grow at a compounded annual growth rate of nearly 10% in which it is believed that the online advertising market in India will command a huge market share. In its nascent stage, online advertising was limited to building a website with search engine optimization and running couple of banners on publisher platforms. Then came Facebook and Twitter and stamp ads as well as collaboration with trending content became the highlight of online advertising market in India. Then came the rise of video-based marketing as well as influencer push which brought about an era of deep user engagement and perception change communication through content.
Today the online advertising market In India is a mix bag of content marketing through videos, cine-graphs, GIFs, memes and celebrity influencer tie-ups with device innovation and interactive story telling. This will lead to a heightened engagement which brands have understood and hence the online spends have also increased. As per a report from market intelligence provider Research on Global Market, “the online advertising market in India is expected to expand at a compound annual growth rate (CAGR) of nearly 34.43% during the 2018-2023 period, to reach a value of INR 457.34 Bn by 2023.”
This rise in the revenue of the digital advertising market in India can be attributed to the e-commerce boom and implementation of technology to make online selling and buying a seamless experience. Coupled with that, the fact that low-cost smartphones with 4G data have proliferated to tier 1, tier 2 and even tier 3 cities in rural areas, have also brought about a change in the way consumers engage with content and shop online.
Brands have understood this very well that the return on investment on Digital advertising is high in terms of driving recall and engaging with their customers all through the year. Hence, they are reaping in the benefits of online advertising as compared to traditional advertising by increasing their digital budget.
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Research On Global Markets 