India’s digital advertising spending is likely to reach $21 billion by 2028 as smartphone and internet usage soars, a report showed Tuesday.
The growth of user-generated content (UGC) enables individual creators and influencers to build digital identities that brands can leverage in their digital advertising.
This powerful ecosystem of 2.5 to 3 million creators is expected to drive $2.8 billion to $3.5 billion in marketing spend by 2028, according to a report by Redseer Strategy Consultants.
Digital advertising spending in India is expected to slow down in FY2023 due to macro factors, after which it is expected to account for 65-70% of total advertising spending in India, growing at a CAGR of 19-21%.
“When mapping the market size across media agencies, we find that digital advertising spend in India is significantly underreported. Affiliate marketing, games are taken into consideration,” says Engagement Manager Mukesh Kumar. , Red Seer.
Digital platforms have good engagement rates, as users spend about seven hours on their smartphones each day.
Some of the most popular performances driving digital advertising platforms include e-commerce, short video, OTT, social media, long-form video and press.
Growth is expected to slow in FY2023 as new-age companies focus on profitability and curb advertising spending amid a global slowdown, including rising interest rates and the energy crisis, according to the report.
Under current economic headwinds, the advertising market is estimated to grow by 6-8% in FY23, says the report.
“Macroeconomic drivers are expected to gain momentum again by FY2024, as every recession ultimately lifts consumer morale,” it added.
As the creator economy grows, bridging the gap between brands and influencers through centralized platforms such as the Creator Marketplace is essential, the report said.
–IANS
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