close

Register your account

Already have an account? Login
Vender Agency
Create Account
close

Login Your Account

Login
Don't have an account?
Media

News | Digital disruption: How growth of digital media is reshaping industry dynamics

Home News News Story

Digital disruption: How growth of digital media is reshaping industry dynamics

391 Views / News Story by Advert On Click / 22 February 2024
Source: exchange4media
Digital disruption: How growth of digital media is reshaping industry dynamics

In the ever-evolving landscape of the Indian advertising industry, where dynamism is the norm and innovation is the driving force, it gives me great pleasure to present this digital report, a collaborative effort between exchange4media and dentsu. As we navigate through the intricacies of a sector that is not just growing but transforming, the insights encapsulated within these pages illuminate the contours of a modern media renaissance.

 

The Numbers Speak

The numbers tell a compelling story. The Indian advertising industry, resilient and vibrant, has surged to a market size of Rs 93,166 crore, registering an impressive 8.6% growth over the year 2022. The projections are equally promising, with an anticipated compounded growth rate of 9.86%, poised to reach Rs 1,12,453 crore by 2025. Notably, digital media has taken centre stage, surpassing television, comprising 44% of all advertising spends, marking a paradigm shift in the industry's dynamics.

 

Sectoral Insights

Delving deeper into the sectors, FMCG emerges as the frontrunner with a substantial 34% share, followed by e-commerce, consumer durables, and the automotive sector. Surprisingly, tourism, government, and real estate have witnessed significant growth in ad spends, underscoring the adaptability of the industry to changing narratives.

 

Digital Dominance

The digital advertising sector, valued at Rs 40,685 crore, has undergone a remarkable growth of 36.6% in 2022, with projections soaring to Rs 62,045 crore by 2025, exhibiting a compounded growth rate of 23.49%. FMCG spearheads this digital revolution, contributing 36% to the Indian digital media industry.

Social Media's Ascendance

Social media, online video, and paid search emerge as the driving forces behind digital media spends. Together, they shape the narrative, with social media leading at 30%, closely followed by online video at 29% and paid search at 23%. E-retail platform advertising constitutes a significant 22.49% of all digital media spends, reflecting the digital commerce boom.

Programmatic Precision

The rise of programmatic buying in digital media is undeniable, contributing 42% (Rs 17,088 crore) to the digital media industry by the end of 2023, marking a staggering 37% growth over the previous year.

The Modern Media Renaissance

This report also captures the essence of a modern media renaissance, where the convergence of technology and human creativity is the epicenter. Artificial intelligence (AI), extended reality (XR), and sustainable practices stand as the pillars of this renaissance. AI-powered solutions are not just reshaping business models but are also enhancing customer experiences across sectors.

Towards a Progressive Future

As we navigate this dynamic era, the synergy of creativity, technology, and sustainability presents an unprecedented opportunity for global collaboration and innovation. This collaborative effort by exchange4media and dentsu aims to contribute to this vision, offering insights that not only dissect the current trends but also envision a harmonious future where human connections are enhanced, storytelling is transformed, and technological innovation goes hand in hand with sustainability.

Tags industry Digital