Industry predictions over the last few quarters about digital advertising surpassing TV are close to coming true this year. This has been further substantiated by numbers in the latest PMAR report that says digital AdEx will surpass TV in 2022 with 30% growth, adding Rs 33,070 crore to the total AdEx kitty of Rs 90,000 crore. On the other hand, TV AdEx is set to grow by 14% only and thus likely to add up to only Rs 32,100 crore, nearly Rs 1,000 crore less than digital.
In 2021, digital grew by a phenomenal 50% taking the digital advertising expenditure to Rs 25,438 crore with a share of 34% in the total AdEx. Digital was just four percentage points lower than TV – the largest medium.
While TV AdEx registered a higher spend of Rs 28,151 crore compared to digital, the overall growth in the segment was 25% in 2021, just half the rate of digitalâs growth.
Interestingly, the report shows that digitalâs growth in 2021 stood at 50%. The percentage was the same for 2012 but the revenue added was considerably lower. While in 2021 almost Rs 8,500 crore was added to the AdEx kitty, in 2012 it was Rs 750 crore. In the last 10 years, digital has grown at a compounded annual growth rate of 27%. Although ad spends were slashed across mediums during the pandemic, digital has continued to grow by 10% contrary to the rest that saw a de-growth.
A vertical-wise break-up shows video has contributed highest with a total share of 29%, followed by social media and display at almost 20% each. E-commerce and search contribute 16% each to the overall digital pie. Almost all digital spends in India are on Mobile with the latter commanding a 96% share.
Ecommerce advertising has also crossed Rs 4,100 crore in 2021, mainly on the back of Amazon and Flipkart. The report credits this growth to traditional brands that are adopting ECommerce as well as establishing their own online (D2C) systems.
The report quotes…