Helped by a massive surge in the number of mobile phone users and growing Internet penetration, India’s digital ad spending is expected to touch $21 billion by 2028, according to a report by Redseer Strategy Consultants.
The report also said that growth in user-generated content (UGC) will empower individual creators and influencers to build their digital identity, which in return can be leveraged for digital ads.
A strong ecosystem of 2.5 to 3 million content creators is expected to drive marketing spending of $2.8 billion- $3.5 billion by 2028, according to the report.
The report, however, said that the digital ad spending in the country may see a muted growth in FY23 on account of various macro factors.
“Upon mapping market sizing across media agencies, we observe a significant under-reporting of digital ad spend in India. However, our projection has considered enterprise spends, SMB spends, influencer marketing, affiliate marketing and gaming,” said Mukesh Kumar, engagement manager, Redseer.
It said that users spend around seven hours daily on their smartphones and digital platforms, which shows a good engagement rate.
Some of the most popular performances driving digital advertising platforms include e-commerce, short videos, OTT, social media, long-form videos, and news outlets, it added.
Global slowdown due to increasing interest rates, energy crisis etc., has led to new-age companies focusing on profitability and controlling their spending on ad and hence slower growth is expected in FY23, the report noted.
Under the current economic headwinds, the ad market is estimated to grow by 6-8 per cent in FY23, said the report.
“We expect macroeconomic engines to pick up momentum again by FY24 since, after every economic downturn, eventually, consumer morale returns,” it added.
