Digital Media Spending in India

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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%).

Digital Media Spending in India (USD Million)

CAGR (200914): 25 %

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.

Total Media Spending in India - Share of Digital Media

42%

2012

42%

6%

6%

4%

2013

44%
39%
7%

38%
8%

Digital

Print

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.

Digital Media Spending in India By Sector, 2013

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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