As we had predicted during the launch of Reliance Jio a couple of months ago, Digital Ad revenue is growing at an unprecedented rate. By 2020 Digital Ad revenue is going to reach an unprecedented level of Rs 19000 crores. That is a compounded annual growth rate of 32%. This is not only great news for Digital Marketing Agencies in India but Digital Marketing aspirants as well. We will look at how the increase in ad revenues is going to affect businesses as well as individuals who are looking to make their career in Digital Marketing.
The Impact On Businesses:
With the rollout of 4G speeds across India, availability of cheap smartphones, lower tariff on data plans and wide usage of mobile phones across all age groups it is becoming more and more necessary for businesses large or small to have an established digital presence.
Small business will have to capitalize on digital marketing techniques like geo-targeting and Local SEO to make the most of their customer’s online behavior.
Large conglomerates will have to work even harder to satisfy their audience because there is a need for instant gratification amongst the public and if one company doesn’t fulfill their need, they will find another to meet their demands.
Big businesses will also have to step up their game in order to stay competitive because digital marketing initiatives make it a level playing field and any company with the right attitude and zeal can come in and strike the right chord with the audience taking away a piece of the pie from the larger companies.
Digital Ad Spends Across Industries:
As per the report from Dentsu Aegis Network, e-commerce companies and the telecom sector were the industries to spend the most on Digital Marketing Ads. This should come as no surprise as both these sectors have seen massive disruption and stiff competition. Everyone is working hard to maintain the attention of their audience.
The ecommerce and telecom sectors also spent more on digital advertising than they did on traditional media.
FMCG and BFSI companies were also among the highest spenders in the Digital Ad spending category.
Digital Ad Spending Split Based On Social Platforms:
Social Media Advertising and Display Advertising (PPC, SEM) saw the highest spends with a combined total of 56% of all digital advertising spending going to these two formats. Companies spend 26% on search (SEO) and 19% on video advertising on popular platforms like Facebook and YouTube.
2018 is already being hailed as the year of video as more and more companies are investing in creating creative video ad formats to promote their businesses. The video will see the highest CAGR of 38% and will have a share of 22% by 2020.
Currently, Digital Ad Spends only account for 15% of the total advertising spends in India. This is going to increase to 24% by 2020 and see an even more incremental growth moving forward.
Mobile Advertising Digital Spends:
Even the casual observer will have noticed that the mobile is now the most predominant form of digital consumption across all ages. With that being the case, it is easy to see why mobile marketing is slated to grow at a CAGR of 49% and will overtake spends on desktops by 2020, by which time it will have a 60% share in the market.
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How Increase in Digital Ad Spends will affect individuals:
The increasing amount of digital spends will need trained professionals who can handle the increased workload. More and more businesses will opt for Digital Marketing as one of their strategic approaches.
Individuals who are looking to make a career in Digital Marketing will be hugely benefitted from the increased spending in the digital sphere.
Organizations could either opt to have an in-house team for their Digital Marketing efforts or hire a Digital Marketing Agency in India to handle their processes. In either case, the requirement for digital marketing professionals will increase significantly.
As per the LinkedIn Job Report, they published for 2018 SEO/SEM are still among the top 10 skills that companies are going to be looking for in 2018.
If you are already part of this growing industry, kudos. If you are looking for an entry into the world of Digital Marketing we suggest you take our top of the line, Integrated Digital Marketing Courses in Pune. It is still not too late to dive into the career of Digital as there will be an adjustment period before you see a significant disruption in the marketing methodologies of companies. Register for a free demo session today.
“Unleash Crazy, then guide it to creative genius“ – Jay Gaad
data source: Dentsu Aegis Network
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