Unlike the advertising in traditional media, which forms such as television, newspapers and radio command majority of the Indian advertising pie, digital advertising can be started with a very small budget and it can be used to target to very specific group like target group in a small town, or age specific.
With a very small budget, one can start advertising on the strong and popular digital platforms like Facebook, Instagram, YouTube, Twitter etc. to reach their prospective customers or clients. The advertising in the digital space is highly measurable to understand the return on the investment of the business enterprises.
The digital advertising industry across India had a market size of around 199 billion Indian rupees in the financial year 2020, up from just 47 billion Indian rupees in financial year 2015. This was projected to go up to around 539 billion rupees by financial year 2024, indicating a big growth in the industry segment.
In 2018, the share of traditional media in Indian advertising was about 83 percent, while digital media had a share of 17 percent only. This was estimated to change to 71 percent of traditional media’s share and 29 percent of digital media by the end of 2021.
The Indian advertising industry is expected to grow with a CAGR of 11.59% to reach Rs 70,343 crore by 2022, according to Dentsu India and exchange4media.com report ‘Digital Advertising in India 2021’. The advertising industry is expected to make a comeback and will grow by 10.8% to reach Rs 62,577 crore by the end of the year 2021.
Digital’s share of advertising is expected to jump from 28% in 2020 to 30% in 2021 and 34% in 2022. The digital advertising industry has witnessed growth in market size from Rs. 13,683 crore by 2019 to Rs. 15,782 crore by 2020, growing by 15.3% from the previous year. Digital media will grow at 20% to reach a market size of Rs. 18,938 crore by 2021 and with a CAGR of 22.47% to reach Rs. 23,673 crore by 2022.
The Indian advertising industry currently stands at Rs 56,490 crore and it has witnessed a de-growth of 17.5% over 2019 due to the pandemic. Television contributes the largest share (41%, Rs. 23,201 crore) to the Indian advertising market. This is followed by digital (28%, Rs 15,782 crore) and print (25%, Rs 13,970 crore).