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Social Media To Help Indian Digital Ads Market Reach INR 59K Cr By 2025

Increased penetration of smartphones, coupled with cheaper tariff plans, has spurred not only the growth of internet users in India but has only flooded the world wide web with advertisements. According to the report ‘Digital Advertising In India 2020’ by Dentsu Aegis Network, the digital ads market is expected to stand at INR 17,377 Cr in 2020, a 27% increase from the current number of INR 13,683 Cr. It also predicts that the digital advertising market will reach at INR 58,550 Cr in 2025.

The report, which is published in collaboration with media portal exchange4media, estimated that the major part of this advertising is spent on social media platforms such as Facebook, Instagram, TikTok, and Snapchat. Other advertising mediums in which these advertisers will be spending the most include paid search, online video and display media.

In comparison to the overall advertising industry, which will be growing at an annual rate of 11.83%, the report predicts that online advertising will boom at a compound annual growth rate of 27.42% in the next five years.

One of the key highlights of this report is that it predicts that mobile advertising will surpass the amount of money spent on desktop or laptop advertisements. From 41% share in 2019, mobile ads will gain a 52% share in the overall digital advertising market in 2020.

Digital Ads Driving Biz Of BFSI, Ecommerce

According to the report, the banking, financial services and insurance (BFSI) sector spend 41% of its advertising spends on digital ads, which is the highest among all categories. BFSI is followed by consumer durable and ecommerce which invests around 38% and 37% of their overall advertising budget on digital ads.

Interestingly, the telecom sector is also not behind when it comes to investing money on digital ads as it invests around 35% of the advertising budget to gain more consumers through online channels.

The report states that brands are currently focussing on strengthening their search engine optimisation (SEO) and search engine marketing (SEM) practices and integration of new tools such as click-to-call to get a better online presence.


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