In a significant shift from traditional advertising to digital realms, India’s advertising landscape is undergoing a revolutionary transformation. The E4M – GroupM Programmatic Report, unveiled recently, sheds light on the dynamic evolution, highlighting digital advertising as a formidable force. According to the report, the programmatic advertising revenue in India is anticipated to soar to Rs 394 billion (US$5.42B) by 2024, signalling a profound impact on the advertising paradigm.
Programmatic’s Ascent in India:
Recent years have witnessed a discernible move towards programmatic advertising in India, with advertisers recognizing its efficacy in reaching target audiences. The report underscores this trend, noting a consistent increase in ad spending allocated to programmatic advertising. Projections indicate a progressive shift, with programmatic advertising expected to claim an estimated market share of 44% by 2024.
Media & Entertainment Industry’s Growth Trajectory:
According to the E4M – GroupM Programmatic Report, India’s Media and entertainment (M&E) industry secured the 8th position globally in 2023, affirming its position as one of the fastest-growing markets. The industry exhibited a remarkable 19.9% growth in 2022, surpassing the Rs 2 trillion (US$24 billion) annual revenue milestone for the first time. The report anticipates the industry’s revenue to reach Rs 2.83 trillion (US$35.4 billion) by 2025, driven by escalating consumer demand and improving advertising revenue.
Digital Advertising’s Dominance:
The report foresees a seismic shift towards a digital-centric advertising future in India. By the fiscal year 2024, digital ad revenue is projected to surge to nearly Rs 540 billion, outpacing traditional mediums. Marketers in India are expected to enhance their strategies with data-driven buying techniques, enabling precise targeting of desired audiences. Projections indicate that digital advertising will surpass television and print ad revenues.
Video Advertising’s Ascendancy:
By 2024, the report predicts that ad spends for video advertising formats will constitute a significant portion of the projected digital ad spend. Platforms like YouTube and Hotstar, with their substantial user bases, play a pivotal role in this surge. YouTube boasts over 2.70 billion monthly users globally, with India leading at 462 million users as of October 2023. Hotstar maintains 100 million average UVs, while MX Player, with its freemium model, boasts 120 million average UVs monthly.
Connected TV’s Rise:
The increasing availability of high-speed internet and affordable smart TVs has spurred the adoption of Connected TV (CTV) in India. The report projects CTV households to rise from 22 million to 30 million by 2023, indicating a growing preference for streaming services on larger screens. This trend aligns with the global surge in internet advertising, with India ranking 8th globally and poised to achieve a total revenue of $7.9 billion by 2027.
OTT’s Phenomenal Growth:
Over-the-top (OTT) revenue is anticipated to grow to Rs 21,032 crore (US$2.55B) by 2026, propelled by the increasing popularity of on-demand streaming services. The report highlights the transformative impact of OTT platforms in India’s digital landscape, with consumers embracing diverse content offerings.
Mobile Marketing’s Evolution:
The surge in smartphone usage in India has not only transformed mobile marketing but has also enabled real-time engagement and personalized connections. The report notes India’s status as the world’s second-largest internet population, projected to exceed 900 million by 2023, highlighting the vast opportunities for impactful advertising in the mobile space.
In conclusion, the E4M – GroupM Programmatic Report paints a vivid picture of India’s advertising landscape, where digital innovation is steering the industry towards unprecedented heights. As programmatic advertising takes centre stage, fueled by robust growth across various digital mediums, advertisers and marketers in India are poised to navigate this dynamic landscape with strategic insights and data-driven precision.