Big Spending Jump in Digital Advertising

Advertisements through the digital space are growing rapidly, with newspaper and magazine advertisements falling. The new age, is using the internet more than ever, with this in mind companies prefer advertising in the digital world.

India’s Growth of Digital Ads
India’s Growth of Digital Ads

Internet penetration and data consumption have increased rapidly, with estimation of a compounded rate of 30.8 per cent for digital advertisement in India to grow between 2016 and 2021.

Digital advertisements come in many forms, such as mobile advertisements, social media, website banners, online press releases and YouTube videos.

India’s Digital India, with higher use of smartphones, rising internet penetration and digital payments being encouraged the digital world amongst India’s population is on the rise.

“There are about 200 million online video viewers in India currently, which is set to exceed 400 million in the next couple of years. Although the catalyst for online video boom was Reliance Jio, the trend now has wings of its own. With data set to be the dominant source of revenue for the telcos, and possibly home broadband seeing traction in the future, the video consumption growth is here to stay,” said Gaurav Gandhi, chief operating officer, Viacom 18 Digital Ventures.

Overall with more than 235 million people in India having access to Internet, mostly through mobile devices customers are stretched to remote areas where magazines and newspapers don’t even have access to.

 The FMCG consumption is ever increasing in a country like India, and it is seen that online purchases have also increased as a result of digital.

“India’s 28 million affluent and elite households will contribute to 40 per cent of overall online FMCG consumption by 2020, of which 60–65 per cent will be digitally influenced,” Google India reported.

India according to reports will occupy the fourth spot in the top 10 contributors to global ad spend growth between 2017 and 2020. Other countries leading in this field are US, China, Indonesia, the UK, and Japan