How the “Digital India” initiative is providing a boost to online advertising in India?
As consumers are continuing to spend more and more time on their smartphones, investments towards digital are on the rise in India. Government initiatives like ‘Digital India’ is leading to an increase in digital consumption across the country. Through online advertising, the e-players can promote their products on social media, and search engines, thereby converting virtual media into a marketplace. The government’s Digital India initiative is expected to boost the size of India’s nascent online advertisement market to INR 457.34 Bn by 2023, according to Research On Global Markets. The policy initiative aims to make India a digitally empowered society by connecting every Indian on the Internet through affordable smart phones.
Digital India focuses on millennials
Millennials constitute 30 per cent of the Indian population and 72 per cent of the Facebook user base in India, and have emerged as the key target audience among most marketers today. It is not only that the millennials spend a major chunk of their time online, they are also very engaged as 72 per cent of Indian digital shoppers are millennials and consume more than 102 minutes of streaming entertainment (music and videos) every day, thereby making digital & mobile a very signiﬁcant part of an advertiser’s media mix.
4G networks, cost effective data plans, increased smartphone penetration has led to mobile becoming ubiquitous for driving online advertisement spend in India. The near future is not only expected to witness growth of mobile marketing in India, but mobile will facilitate growth of other mediums via Integrated Marketing owing to the emergence of newer technologies. Going forward, mobile video, audio, and gaming industries will power mobile advertising spends, with IoT, AR/VR and AI creating newer channels for the growth of mobile advertisements in India by providing marketers new platforms to experiment.
Analysts remain upbeat regarding the impact of Digital India
Industry analysts believe that with increasing focus on the digital media, enhancing visibility on various digital platforms is fast becoming a priority for every brand looking to reach out to their targeted customers. With India’s digital space growing bigger than ever, the online advertising market in India is expected to expand at a compound annual growth rate (CAGR) of almost 34.43% till 2023. Based on the amount spent by different market players operating across various industries in India, it is observed that all major sectors like e-commerce, telecom, consumer durables, media and entertainment, fast moving consumer goods (FMCG), banking, financial services and insurance (BFSI), automotive, and retail have invested significantly on online advertising.
As Indian brands continue to find their feet in the online advertisement space, it is expected that online advertisement would surpass the global levels in the coming years ahead. Analysts predict that the digital market is set to explode in India and the Digital India initiative is deemed to be the torchbearer for this expansion.