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Tag: DAN Digital Report

  • Digital media is expected to cross the Rs 50k crore mark by end-2025

    10 Takeaways from DAN Digital Report 2020

     

    The headline was digital media is expected to cross the Rs 50k crore mark by end-2025. But, then, there was a lot more in the report. Here are key highlights and takeaways:

     

     

    Anand Bhadkamkar, CEO, Dentsu Aegis Network India: “2019 was a challenging year for the Indian advertising industry as well. With the economic slowdown, advertisers decided to cut back on spends, consumers decided to wait-and-watch, market sentiments reached a new low and India’s Ad Expenditure (AdEx) witnessed a consequential fall. But even in the midst of it all, digital continued to grow. Digital is a masterstroke in advertising and Dentsu Aegis Network recognizes this strength. We also recognize the need for an industry level report that can give directions toward which this industry is moving. While with every new edition, the DAN Digital report has been upping its rank in quality, range and comprehensiveness, we welcome sincere feedback and inputs from the entire industry to help establish a robust eco-system for this fast growing and increasingly important industry channel, so that all of us can progress together!”

    Ashish Bhasin, CEO, APAC and Chairman, India – Dentsu Aegis Network: “The Media and Advertising industry is shifting at a rapid speed and Digital is certainly taking charge. Consumers are leaving behind huge digital footprints and there is a lot more emphasis on managing data and developing martech capabilities, now. 2020 is expected to witness a major change in advertising in India, with digital becoming a bigger medium. In fact, by 2021, it’s growth should surpass that of print. Yet, despite this progressive swing, the industry has failed to come together to agree upon a common measurement metric for digital. As leaders in digital, Dentsu Aegis Network today stands at the forefront of this evolution and understands the need to have more information on Digital. The DAN Digital report, now in its fourth edition, is exhaustive, systematic, thorough and meets this need gap brilliantly. The report has now become the most credible source of information when it comes to digital in India.”

     

    1. The Indian advertising industry has grown at a rate of 9.4% over 2018 to reach Rs. 68,475 Crore by the end of 2019. The industry will grow by 10.9% to reach Rs. 75,952 Crore by the end of 2020. It is expected to grow at 11.83% CAGR to reach a market size of Rs. 1,33,921 Crore by 2025.

    2. By the end of 2019 the digital advertising industry stands at Rs. 13,683 Crore, up at a rate of 26% from Rs. 10,859 Crore in 2018. It is expected to grow at 27% to reach Rs. 17,377 Crore by the end of 2020.

    3. Advertising spends on Digital media is expected to grow at a CAGR of 27.42% to cross the Rs. 50,000 Crore mark and reach an industry size of Rs. 58,550 Crore by the end of 2025. This sustained growth can be attributed to the technological advancements, improvements in data science & analytics, introduction of policies & regulations among others.

    4. Television takes the largest share of media spends at 39% (Rs. 26,869 Crore) followed by print media (29%, Rs. 20,110 Crore) and Digital Media (20%, Rs. 13,683 Crore). In the year 2020, spends on Television media is expected to grow at 10% and its share will remain steady while that on Print media is expected to grow at 3% with this share declining to 27%.

    5. Across various industry verticals, FMCG sector spends the highest by contributing 30% (Rs. 20,182 Crore) to the advertising industry. Next to FMCG stands with 10% contribution by E-commerce (Rs. 6,915 Crore) followed by Automotive sector (8%, Rs. 5,797 Crore).

    6. Among the various industry segments, FMCG has the highest expenditure on advertising i.e. 30% (Rs. 20,182 Crore) followed by E-commerce (10%) and Automotive segment. FMCG spends a large majority of their advertising budget on television (61%) while Retail, Automotive and Retail spend a large share of their advertising budget on Print. The biggest spenders on digital media are BFSI (42%), Consumer Durables (38%) and E-commerce (37%).

    7. Advertising spends on Digital Media is led by Social media with the highest share of 28%, contributing Rs. 3,835 Crore to the Indian digital advertising pie. This is followed by spends on Paid search (23%), Online Video (22%) and Display media (21%). Display media, online video and social media are expected to have the fastest growth in 2020. The share of paid search is expected to reduce from 25% to 23% by the end of 2020.

    8. FMCG segment spends a large share of their digital media budget on online video (36%), while E-commerce, consumer durables spend a mostly on paid search and social media.

    9. By 2020, advertising spends on Mobile devices is expected to grow by 41% to have a share of 52% to the digital advertising market, overtaking spends share on Desktop. Furthermore, the expected spends on mobile devices will reach a share of 64% by 2022.

    10. Advancements in marketing technologies and subsequent fusion with marketing creativity, along with the advent of 5G technology and increased adoption of E-commerce advertising will lead to the evolution of content for the next 500 million Internet users, thereby catapulting the digital media industry towards the Rs. 50,000 Crore milestone by the year 2025.

     

     

  • BFSI is the biggest spender on digital media, notes Dentsu Aegis Network’s annual digital report unveiled yesterday

    Digital to contribute 29% of ad market by 2021

     

    On Wednesday, the Dentsu Aegis Network’s DAN Digital Report was released in the presence of a cross-section of the media and marketing professionals. Here are key highlights from the report and an executive summary:

     

    :: As of 2018, the Indian advertising market stands at Rs 61,878 crore ($8.76 billion) and is estimated to grow with a CAGR of 10.62% till 2021 to reach a market size of Rs 85,250 crore ($12.06 billion).

     

    :: “The digital advertising market size is around Rs 10,819 crore ($1.3 billion) and the estimated CAGR growth will be 31.96% and the market will expand to Rs 24,920 crore ($3.52 billion).

     

    :: Television and print take the largest share of media spends at 70% aggregated followed by digital media at 17%. Digital will contribute 29% of the ad market size by 2021.

     

    :: Currently, BFSI is the biggest spender on digital media with a contribution of 38% of all their marketing budgets. This is followed by consumer durables (36%), e-commerce (34%) and telecom (31%). FMCG spends heavily on the television (63%) and the retail sector spends largely on print (54%) medium of advertising.

     

    :: The advertising expenditure on the digital advertising formats is led by social media (29%) followed by search (25%), display (21%) and video (20%).

     

    :: The main drivers of the growth of digital media will be voice, vernacular and video. Apart from this, some of the other drivers of digital media growth will be engaging mobile experiences based on augmented reality (AR) and virtual reality (VR).

     

    Executive Summary:

    :: Internet penetration and adoption of digital media in India is growing at an unprecedented rate, which is creating huge opportunities to tap into the unchartered arena of digital space in newer ways. The ever-evolving digital industry and the advancement of technology opens various opportunities to interact with the audiences. Marketers can now choose innovative ways to reach out to their target audience and cater to the demand to create unforgettable experiences for them.

     

    :: As of 2018, the Indian advertising market stands at Rs 61,878 crore ($8.76 billion) and is estimated to grow with a CAGR of 10.62% till 2021 to reach a market size of Rs 85,250 crore ($12.06 billion). The digital advertising market size is around Rs 10,819 crore ($1.3 billion) and the estimated CAGR growth will be 31.96% and the market will expand to Rs 24,920 crore ($3.52 billion).

     

    :: Television and print take the largest share of media spends at 70% aggregated followed by digital media at 17%. Digital transformation is being adopted at a substantial scale, which in turn, is increasing the adoption of digital media at a rapid pace.

     

    :: Currently, BFSI is the biggest spender on digital media with a contribution of 38% of all their marketing budgets. This is followed by consumer durables (36%), e-commerce (34%) and telecom (31%). FMCG spends heavily on the television (63%) and the retail sector spends largely on print (54%) medium of advertising.

     

    :: The advertising expenditure on the digital advertising formats is led by social media (29%) followed by search (25%), display (21%) and video (20%). The BFSI vertical spends the largest share of its digital media budget on search (38%), while FMCG spends the largest share of its digital media budget on video (33%).

     

    :: Currently, 18% of all digital media is bought programmatically and has grown from 15% last year. The major reason for the growth are technological advancements,  improvements in data science & analytics, implementation of algorithm to automate various procedures, better ad fraud detection and improved data policies & regulations. The rapid increase in the penetration of mobile devices and internet has led to 47% of digital media spends on mobile devices and is expected to grow at CAGR of 49% to reach spends share of 67% by 2021.

     

    :: Machine Learning (ML) and artificial intelligence (AI) will see heavy adoption and implementation in various media in the near future. The main drivers of the growth of digital media will be voice, vernacular and video. Apart from this, some of the other drivers of digital media growth will be engaging mobile experiences based on augmented reality (AR) and virtual reality (VR). In the near future, data-driven decision-making and business strategies will be more transformative and will entail building and merging of different types of business models and its implementation.

     

    Commenting on the report, Ashish Bhasin, Chairman & CEO- South Asia, Dentsu Aegis Network said, “Today, you no longer have to sell ‘digital’ to a client. This is the only medium which gives you a very measurable ROI, and almost an immediate impact. We have about 500 million people on the internet today and in the next three to four years, another 300-400 million people will join in. Concurrently, the next phase of internet users will speak regional languages and as a result, you will probably see a lot more advertising in regional languages on digital in the years to come. Dentsu Aegis Network understands this scope. Consequently, we are over-weight on digital. Of our 3500 people, more than 1600 are in our digital agencies. Nearly 48% of our revenues comes from digital at a time when the market average in India is still 15-17%. As leaders in digital, we recognise the need for an industry level research report which not only covers the market size but also gives a direction towards which this industry is moving. The lack of detailed and accurate Digital Advertising Spends is surprising for a medium that lends itself to measurement. It is to fulfil this gap that all the 8 agencies of the Dentsu Aegis Network i.e. Isobar, iProspect, Merkle Sokrati, WatConsult, Dentsu Webchutney, SVG Media/Columbus, Fractal and Amnet collaborated again for the 3rd edition of our Digital Report that extensively covers digital trends, spends and insights across all sectoRs The report has now become the industry standard for digital marketing and this year the report summary will also be available on Alexa.”