Overall adspend in India fell by 17.5%, to ₹56,490 crore (US$7.74 billion), in 2020 because of the pandemic, but digital spending grew strongly, by 15.3%, as brands responded to the practicalities of lockdown, according to a report from dentsu.
Why it matters
The stay-at-home economy, for all practical purposes, is here to stay, and all eyes will be on digital and where it is headed from here.
By the numbers
- The digital advertising industry grew 15.3% in 2020 to reach ₹15,782 crore (US$2.16 billion) and is forecast to increase by a further 20% in 2021.
- Digital’s share of ad expenditure is rising fast, from 20% in 2019 to 28% in 2020 – still well behind TV (41%) but ahead of print (25%) – and a predicted 34% in 2022.
- Digital media was most favoured by the BFSI sector (57%), consumer durables (45%), telecommunications (40%) and e-commerce (39%) sectors. FMCG spending went on television (64%), while retail, automotive, and media and entertainment preferred print.
- Social media bagged the lion’s share of digital spend at 29%, closely followed by online video at 28% and paid search at 24%.
- Three-quarters of digital media spend went on mobile devices, with online video and social media each taking a 29% share.
“More than 50% of our revenue comes from digital at a time when the market average in India is still 10-12%. We expect 2021 to witness a colossal rise in digital advertising” – Anand Bhadkamkar, CEO, dentsu India.
Sourced from dentsu