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Digital media spending in India is witnessing a
double-digit growth owing to strong internet
penetration (as of November 2014, India ranks third
globally with 243 million internet users and a
penetration rate of nearly 20%).
254
180
2009
2010
431
361
321
2011
558
2012
2013
2014E
In addition to high internet penetration, India also had 67 million smartphone users in 2013. This
number is forecast to reach 156 million by 2017.
42%
2012
42%
6%
6%
4%
2013
44%
39%
7%
38%
8%
Digital
4%
2014E
44%
TV
6%
Out of home
6%
4%
Radio
Increased competition between e-commerce giants Flipkart and Amazon is likely to further boost
digital media spending.
29%
FMCG
22%
Consumer Durables
12%
Retail
USD 431
Million
37%
Others
Although the FMCG sector currently dominates digital media spending, e-commerce is forecast to
break into the top five sectors soon.
Source: GroupM, Business Standard
Arancas Views
Digital media will increase its share in total media spending and is forecast to account for over
10% in the near future. Within the digital media landscape, advertising spending for mobile ads
and social media is likely to grow at a higher rate. However, search ads are projected to continue
to dominate the market and grow at steady pace. With the increase in mobile and internet users,
the influence of digital advertising over online media is estimated to increase manifold through
online videos, web-based advertising, search ads and social media. Large companies are likely
to opt for integrated campaigns simultaneously over multiple platforms in future.
Compiled by: Payal Talreja
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