Spending on digital advertising in India is expected to reach $21 billion by 2028.
This is likely due to the increase in mobile phone and internet usage. Notably, the growth of user-generated content (UGC) will allow individual creators and influencers to build their digital identities, which brands can leverage. for digital advertising.
“This strong ecosystem of 2.5 to 3 million creators is expected to drive marketing spending of $2.8 billion- $3.5 billion by 2028,” according to the report by Redseer Strategy Consultants.
Spending on digital advertising in the country is expected to witness moderate growth in the fiscal year 2023 due to macro factors, after which it will account for 65-70% of total spending. advertising in India at a CAGR of 19-21%.
“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 spending, SMB spending, influencer marketing, affiliate marketing, and gaming,” IANS quoted Mukesh Kumar, engagement manager, Redseer, as saying.
Digital platforms have good engagement as users spend around 7 hours a day on their smartphones.
Some of the most popular activities of digital advertising platforms include e-commerce firms, short video, OTT, social networking, long video, and media.
According to the report, “The global slowdown due to increasing interest rates, the energy crisis, etc, has led to new-age companies focusing on profitability and controlling their spending on ads, and hence slower growth is expected in FY23.”
According to the report, “Under current economic difficulties, the advertising market is expected to grow 68% in 2023.”
“We expect macroeconomic engines to pick up momentum again by FY24 since, after every economic downturn, eventually, consumer morale returns,” it added.
As the creator economy grows, the report notes the importance of bridging the gap between brands and influencers through a centralized platform like Creator Marketplace.