Internet ad spend bears fruit

Our Bureau Chennai | Updated on January 09, 2018 Published on December 05, 2017

India fourth among top 10 contributors to global ad spend growth in 2017-2020

Rising spends on digital marketing stand vindicated. A press release by media planning and ROI agency Zenith Optimedia says the spending is finally bearing fruit – by 2016, 34 per cent of internet advertising accounted for 35 per cent of ‘brand experience’, which it describes as a combination of reach and influence.

India is fourth among the top 10 contributors to global ad spend growth in 2017-2020, preceded by the US, China and Indonesia. Between 2017 and 2020, global ad spend will go up by $72 billion. The US and China will contribute 27 per cent and 20 per cent of this spending, and Indonesia, India, the UK and Japan, 4 per cent each. Global ad expenditure will grow 4.1 per cent in 2018, reaching $578 billion by the year-end.

Internet advertising

In India, internet ad spend will capture 11.6 per cent of the market in 2017. Zenith says in 2018, advertising as a whole, will grow 8.4 per cent, and internet spending 20.4 per cent. Growth in television advertising is pegged at 9 per cent, while newspaper ads will grow at 5 per cent. By 2020, internet will account for 15.4 per cent of total ad spend in India.

Year 2017, will close at ₹53,918 crore , at a slower pace of growth due to demonetisation of November 2016.

Bigger picture

In 2017, internet advertising overtook TV advertising to become the world’s biggest advertising medium, accounting for 37.3 per cent of total ad expenditure. Zenith estimates it will stand at 44.3 per cent of global ad spend in 2020.

Mobile advertising will grow at an annual average rate of 18 per cent up to 2020, after growing 48 per cent in 2016 and 33 per cent in 2017. It will account for 28.8 per cent of all expenditure in 2020.

Published on December 05, 2017
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