Digital Advertising in India

If you’ve bumped into this article, chances are you are reading this on your mobile. You get your daily dose of news on your mobile with a news app, or maybe you’ve just made a purchase on your favorit e-commerce portal, at a touch of a button on your phone. Whatever your consumer needs be, mobile is no longer a mere device to make and receive calls.

It comes as no surprise then that India is considered as the world’s second largest market in Asia Pacific for smartphone users. A research says that by 2020, the number of Indians accessing the Internet over mobile devices is expected to touch a whopping 600 million. Increased penetration and falling data prices, along with the coming in of 4G, have fuelled growth opportunities for marketers in the Indian mobile advertising segment. As mobile becomes the preferred medium of consumption

E-Marketer’s Latest estimates shows that the total media ad spending in Asia-Pacific ‘s second largest country is set to grow at double digit rates through at least 2020 – and those growth rates are even set to rise in the coming years.


 M -Commerce :

While E-commerce continues to be the driving force in Ad spends. Now we can see shift in the consumer behavior patterns. Consumers who are now spending more time in shopping on their mobiles on the go, are encouraging the rise in e-commerce companies which are now turning into M-commerce entities.

According to the Internet and Mobile Association of India, out of 354 million internet users in India, 213 million are mobile-only. This has led e-commerce companies to focus on a mobile-only strategy .Companies such as Flipkart , Amazon are now realizing that reach is more wider for consumers by going mobile only as medium of purchase.

 The Future is streaming:

Recently Video streaming started moving up the charts, which are driven by new launches like Hotstar, Netflix, You tube. These have much better monetization across the platforms and high CPMs on premium content. This category is expected to see a huge growth by 2020 as more and more premium contents is monetized in the platforms.

With growing smart phone penetration , content consumption behavior is now being driven by smart phones. This has led to increase in mobile ad spends which has reflected a significant growth . In 2015 mobile ad spends where estimated to be at INR 9 billion, is now expected to grow at CAGR of 62.5 % to reach INR 102.1 billion by 2020













Another strong factor for the growth of digital advertising market is driven by the new found love for OTT video services. While it is a true fact that 90% of households in India have a television set, still watching other content on laptops and smartphones based on individual choices has been a key trigger for increasing adoption and usage of OTT services. Besides Improvement in mobile broadband infrastructure, gradual reduction in the cost of internet and increase in smartphone screen sizes are driving consumers to shift their viewing preferences to mobile.



The video on-demand market in India is at a cusp of a meteoric take-off, thinks Gaurav Gandhi, Chief Operating Officer, Viacom18 Digital Ventures which joined the bandwagon of growing number of video on demand services in India with the launch of VOOT. He further adds that the numbers already are substantial, the next 2 years will drive this up manifold driven by much improved mobile data speeds, reduced data prices, fixed line broadband growth and large OTT services investing heavily on marketing and content.




Its interesting to see this growth is happening at a time when the country has the slowest average Internet speeds in Asia Pacific. According to a third quarter report by Akamai, India had an average of 2.5 Mbps Internet speeds whereas South Korea has the highest speeds at 20.5 Mbps in the region. Globally, India ranks at the 116th position.


Mobile data traffic grew 50% in 2015 and increase of 85% in 3G data traffic. And Video and audio consumption of data accounts to 40% of the mobile data traffic.


While these new platforms continue to grow and stabilize, YouTube is taking the lion’s share of video advertising in India. YouTube continues to lead with maximum share of the online video viewership and online video advertising revenues, while other OTT platforms currently occupy only a small portion of this pie.




According to Google:

YouTube’s total viewing duration has grown 80 percent over the past year in India with 55 percent of YouTube’s watch time coming from mobile devices and hours of content uploaded from India growing by 90 percent. On YouTube, entertainment-related content (film, TV and music videos) continue to take the lions share, contributing 90 percent of viewership on the Top 100 YouTube channels. Education and health-related videos are growing and likely to be the future growth drivers on YouTube.



With such positive growth Digital advertisement spend per capita in India still continues to significantly lag behind global economies. U.S., China, Japan, Germany and U.K. are the top five spenders on advertising. According to the current growth assumptions, India is expected to be about 0.6 percent of global digital spend in 2015 indicating significant headroom for growth.


Challenges such as ad blocking have increased by nearly tenfold to 181 million between 2010 and 2015. While active advertisement blockers account for merely 7 percent of the total internet population, it is becoming a widely adopted practice by consumers to avoid watching unwanted content while carrying out their daily activities on the web.


Nevertheless the report states that the future is digital – currently, in India, digital advertising constitutes about 12.6 percent of the total advertising market in 2015 and is expected to grow to 26 percent of the total advertising market by 2020.







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