The growing popularity of mobile advertising will allow digital advertising firms to grow rapidly going forward, according to a study by Prabhudas Lilladher.
As per the study, mobile accounted for 76 per cent of India’s digital media spend in FY21, up from 45 per cent in FY19, growing at a compounded annual growth rate of 45 per cent to $1.9 billion.
The overall share of digital advertising in emerging markets like India is relatively lower – at about 30 per cent – compared to the global average of 50 per cent. As a result, this market is expected to grow at about 25 per cent going forward as opposed to 9 per cent globally.
Mobile marketing firms such as Affle, one of the few listed firms in this space in the country, are likely to grow rapidly as a result.
Since companies engage with their end consumers primarily through mobile apps, digital advertising expenditures in India will remain high in certain verticals such as ecommerce, food-tech, fintech and travel tech. These are all areas where Affle operates with a significant presence, it said.
The study indicates, social media led digital media spending in India with 29 per cent (Rs 46 billion), followed by online video (28 per cent, Rs 44 billion). Online video has grown at the fastest rate, from 22 per cent share in 2019 to 28 per cent share in 2020.
By 2025, over 70 per cent of internet users will access the internet solely through their smartphones. App downloads in India increased by 29 per cent year-on-year in 2020, making it the fastest-growing country.
The Indian e-commerce industry spent $656 million on digital advertising in FY21.
Over FY21-FY25, e-commerce shoppers are projected to grow at a CAGR of 13.8 per cent, and digital ad spending by e-commerce businesses is predicted to grow at a CAGR of 33.7 per cent, according to the report.
