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Amazon's Alexa did the honours last evening spelling out key highlights of the third edition of Dentsu Aegis' DAN digital report, almost as a harbinger of the digital leap that has come to be a mainstay of most advertising agencies, and showcasing the fact that digital technologies are a major driver of business strategy.
Digital advertising is set to grow at 31.96 per cent CAGR, with the market set to expand to Rs 24,920 crore ($3.52 billion), according to the Dentsu Aegis Network Digital Report 2019. As of 2018, the size of the digital advertising market was around ₹10,819 crore ($1.3 billion).
Pegged at ₹61,878 crore ($8.76 billion) in 2018, the Indian advertising market is estimated to grow with a CAGR of 10.62 per cent till 2021, to reach a market size of ₹85,250 crore ($12.06 billion).
Television and print media would continue to corner the largest share of media spends at 70 per cent aggregated followed by digital media at 17 per cent. Digital will contribute 29 per cent of the ad market size by 2021.
Detailing certain aspects of the report, Ashish Bhasin, Chairman & Chief Executive Officer, South Asia, Dentsu Aegis Network said, "There are two things that are going to happen in advertising this year in India. This is the first year when Indian advertising will reach the $10 billion mark, which now makes us a major advertising market, growing at roughly 11 per cent."
The shift of ad spending from traditional to digital media is happening at a rapid pace. While digital media currently contributes 17 per cent to total ad spends, it is expected to zoom to 21 per cent by the next year and 29 per cent by 2021.
"What has also become evident," he continued, "is digital is set to grow at 32 per cent, almost three times the rate of other media, galloping ahead compared to the rest of the advertising market."
The CEO added, "Tomorrow has already arrived. This year, digital advertising will cross the $2 billion mark in India, in actual money spent by clients."
Advertising and technological advancements have resulted in the crafting of better personalised experiences, it was pointed out, enabling clutter-cutting ads with hyper-personalised messages that resonate with the target customer.
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