Outlook for Indian Digital Advertising Industry in 2024

The Indian advertising landscape in 2024 is expected to evolve with innovation, technology, creativity, and sustainability. This evolution will bring diversity and foster cross-disciplinary collaborations. Our country is not only embracing this transformation by empowering individuals but also contributing to the global digital economy, creating a better connected and more prosperous world.?

Let's talk numbers.

The Indian digital advertising industry recorded an impressive market size of Rs. 40,685 Crore in 2023, as per the Dentsu India Digital Report 2024. It is anticipated to reach Rs. 50,857 Crore in 2024 and Rs. 62,045 Crore in 2025. This growth is expected at a rate of 23.49% CAGR, higher than the Indian advertising industry, which is expected to grow at 9.86% CAGR by 2025. Digital media is now the biggest contributor to spending in the Indian advertising industry.

The advertising spend in digital media is the largest, comprising 44% of the total, compared to 32% for television and 20% for print media. It is expected that the share of advertising spending on digital media will increase to 50% by the end of 2024. Industries heavily reliant on advertising for sales include telecom, e-commerce, consumer durables, tourism, education, pharmaceuticals, FMCG, BFSI, real estate, and automotive. Digital budgets are typically allocated across paid search, online video, and social media. Of the digital media spend, 30% is allocated to social media, 29% to online video, and 23% to search.

Outlook for 2024:

The impressive growth trajectory of digital media is expected to continue, driven by the shift in consumer preferences towards digital screens, particularly in the segment of OTT. A large number of consumers are accessing, utilising, and trusting digital media not only for entertainment but also for online payments, thanks to improved digital infrastructure, accessibility, affordability, and expansive internet connectivity. Advertising companies now find it easier to target their audience based on insights into audience demographics and consumption patterns. This allows advertisers to deliver highly relevant messages to specific audiences, targeted by their location.

Who benefits from improvements in digital infrastructure?

1. Start-ups, especially in innovation-driven categories such as fintech, health-tech, ed-tech, and agri-tech.

2. E-commerce businesses are witnessing a significant surge in e-commerce activities.

3. The Indian gaming industry

4. Social media influencers and content creators

Which strategy should marketers employ to grab attention?

The efforts of creators and advertisers are paid off when they are successfully able to grab human attention, their ultimate goal behind all marketing efforts. The best way to grab attention is to create and distribute content that is shareable and generates engagement. Not only captivating headlines and immersive storytelling are the keys, but also alluring visuals. Advertisers use pay-per-click or impression-based advertising models to monetize this human attention.

Other than compelling content, which strategic approaches do you think are crucial in advertising?

I think marketers should prioritise user experiences, embrace quality over quantity, leverage data-driven insights, explore several channels and formats, and build trust.?

What are the trends that will rule in 2024?

According to me, programmatic advertising will definitely command digital ad spend. With this advertising model, marketers are able to reach enormous audiences given the expansive marketplace, which includes plenty of websites and ad spaces.