State of Digital Marketing in India: A Report Summary

As we thrive in the world of Digital Marketing, How many reels did you watch today?

It is difficult to get away from the endless spiral of online content, right?

How many times has it happened that you ended up purchasing products online because of the frequent ads on your social media pages?

Digital Marketing is a very powerful tool that can influence millions of people across the country. ET Brand Equity, in collaboration with Ipsos, delivered its annual report on the state of Digital Marketing in India. Don’t worry, you do not have to go through long, content and data-filled pages, this is our version of Digital Marketing ‘Wrapped’: 

How much Indian Advertisers spent this year:

Our country is home to roughly 1.4 billion people spread across the four directions. Our nation is considered one of the fastest developing economies and the advertising industry is experiencing tremendous growth with an 18.5% increase from FY22 to FY23. The expected growth of FY24 is 19.8%. Despite accounts reaching up to 86,825 crores, the contribution of advertising spending only accounts for>0.5% of Indian GDP. 

Which media got the most?

According to Ipsos Estimates, investment in digital media experienced an increase of 3.3% from FY22 to FY23. The television sector, which is reigning in the field, dipped to 38% in FY23 from 40% in FY22. It is also estimated that digital media is all set to surpass Television next year. 

Who have we seen the most this year?

FMCG!

You read that right, the FMCG industry holds a 34.9% share in digital spending amongst all the competitors. FMCG or Fast Moving Consumer Goods are basically every other product that we use in our day-to-day lives ranging from milk packets to toothpaste and soaps. 

Which format did they use the most?

The most common format used by advertisers to showcase their advertisements to consumers is through social media. This medium saw an increase of 0.5%. The medium of online video is not too far behind with a total of 29%.

Top Growth Drivers of Digital Advertising

In FY 23, India has 700 million Internet users, which accounts for up to 49% of its total population. Daily media consumption averages between 6 to 7 hours in the country. Activities such as social media engagement, entertainment, shopping, and much more are on predominant focus.

Furthermore, The ownership of smartphones has risen to 55% of the global population, an increase from 52% in 2022. 

Social Media is a majority stakeholder of digital media and in India, the penetration of social media stood at 32.8% of the total population. This comes up to 470 million social media users.

Facebook stands tall as to social media platform used by the majority of the people in the country. Standing behind by a significant margin is its sister platform – Instagram. 

With mobile network companies coming up with exciting offers at affordable prices, there has been a substantial increase in the data usage of the public. As of a survey by TRAI, Indians used up to 17 GB, on average, per month in 2023.

Misses of the Report

Ambuj Saxena, Co-founder of Social Buzz, believes that the 32-page report (Read Here) is short, compact, crisp and leaves nothing to the imagination. There were a few misses in the report that are contributing to the macro picture of the Digital Marketing sub-sector in India:

Web3/Metaverse- 

At Social Buzz, we wish to see an analysis of how Web3/Metaverse is set to engage communities. Our team has written a series of blogs on how global brands are adopting Web3 to build, engage, and transact with communities. The world of 3rd version of the Internet revolution finds little or no mention in the report. 

Augmented Reality, Virtual Reality, and Extended Reality-

The world is moving at a lightning pace to pick up global trends around another set of realities. Many tech companies are bringing brands into the Augmented reality world to showcase their prowess. Titan has set up its online store in the metaverse; BITS WILP‘s convocation was in metaverse. Apart from these, many companies are in talks to manufacture or import Haptic suits for an immersive brand experience. On the face of it, they may seem like technological innovations but brands will soon set apart budgets for AR, VR, and XR to connect and earn the loyalty of consumers. 

Conclusion

The Indian Market is a Gold mine for the advertising industry. The better internet infrastructure, rise in smartphone ownership, increasing usage of Generative AI indicate that India is on the cusp of a digital revolution. The report did not mention Augmented Reality, Virtual Reality, Extended Reality, or the Web3/Metaverse. These technologies shall shape the next decade in India and we should observe, evaluate, and execute the trends

About the Author:

Gopika Nair is a media student currently pursuing her postgraduate degree from GGSIPU. With a flair for poetry and a keen eye for photography, she aspires to harness the power of storytelling for positive impact.