With an understanding of the overall digital media spend, in this section, we would look into the specific numbers for advertising, their shares, forecasts, and classification in more detail.
Figure 10.13 depicts the total media, digital, and mobile internet ad spending numbers in India from 2013 till 2018. As we can see, total spending on advertising across all media is decreasing and expected to touch $ 7.93 Bn in FY2018. The share of digital advertising revenue as a percentage of total media spending is expected to increase to 22.4 per cent with a total value of $ 1.77 Bn in 2018. Also, the mobile internet ad spending is projected to grow rapidly to 11.9 per cent of the total media ad spending.
Figure 10.13 India Advertising Spending Forecast (eMarketer)
Figure 10.14 India’s Ad Revenues (Size and Growth)
In Fig. 10.14, we look at industry-wise classification of advertising revenues in terms of absolue and CAGR growth numbers. Print industry shows the highest revenues (in number terms) of ₹ 241 Bn in 2016, and less than average CAGR growth (11.5 per cent) of all categories combined (which is expected to be 14.3 per cent). On the other hand, with 57 Bn in 2016, digital advertising though has lesser revenues in absolute numbers, it is supposed to have the highest CAGR growth rate at 29.9 per cent which is more than double of Television CAGR at 14.7 per cent. These numbers showcase the strong growth digital advertising is expected to attain in the near future.
In Fig. 10.15, we can see percentage-wise division of key digital advertising categories through a comparative analysis between FY2012 to FY2014. The overall industry has seen tremendous growth with overall market size reaching to ₹ 2750 crore in FY2014.
Search and display have been the top two categories of online advertising spend but, as we can see, from a very high share of 34 per cent and 41 per cent each, they show a decline from FY2012 to FY2014, with display depicting a rapid decline to 23 per cent.
Mobile ad spend has almost doubled from 7 per cent to 14 per cent while social media has grown to 80 per cent in FY2014 from its base in FY2012. E-mail marketing remained stagnant at 3 per cent of the market.
The last category, Video, grew more than double from a 5 per cent share to an overall 12 per cent share in FY2014
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