Digital will contribute 29% of the ad market size by 2021.

Digital Ad Spends currently stand at ₹ 10,819 crore, contributing 17% to the total expenditure of the advertising industry. This is expected to touch ₹ 14,281 crores by 2019 growing at 31.9%, said the digital ad spend forecast report published by DAN in association with trade portal exchange4media

. The Indian ad industry stands at ₹ 61,878 crores and is expected to touch ₹ 85,250 crores by 2021 growing at a CAGR of 10.62%.

The report clearly stated that the surge in digital ad spends will be led by three main factors including voice-based search technology, vernacular as well as video content. This growth will be further enhanced by engaging mobile experiences based on augmented reality (AR) and virtual reality (VR) technologies.

“We have about 500 million people on the internet today and in the next three to four years, another 300-400 million people will join in. Concurrently, the next phase of internet users will speak regional languages and as a result, you will probably see a lot more advertising in regional languages on digital in the years to come,” said Ashish Bhasin, chairman, and chief executive – South Asia, Dentsu Aegis Network.

Currently, the advertising expenditure on digital advertising formats is led by social media (29%) followed by search (25%), display (21%), and video (20%). Digital Video is expected to have the fastest growth, with a CAGR of 37% that will touch ₹ 5,545 crores by 2021.

In terms of brand categories, the service industry has embraced digital media for scaling businesses. Industries such as banking, financial services, and insurance (BFSI) are experimenting with non-traditional media platforms such as YouTube and Instagram Stories to connect with users.

BFSI is the biggest spender on digital media with a contribution of 38% of all their marketing budgets. This is followed by consumer durables (36%), e-commerce (34%), and telecom (31%). Meanwhile, fast-moving consumer goods (FMCG) continue to spend heavily on television (63%) while the retail sector spends largely on print (54%).

With a user base second only to China, mobile is driving growth for content platforms as well as advertisers who are experimenting with different ad formats to connect with users. The market size of advertising spending on mobile is expected to grow from the current ₹ 5,102 crores to ₹ 16,718 crores by 2021. Currently, spending on mobile advertising is 47% of the total digital advertising budget which is predicted to be 67% by 2021.

Apart from the video content, engaging ads on mobile, voice-based interactions and emerging technologies such as virtual reality, artificial intelligence, and the internet of things will make storytelling engaging on digital media.

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