Digital ad spends 2018 to cross INR 10,000 crore: Experts

As the impact of GST is slated to ease out in the first half of the coming year, digital ad spends 2018 look up according to projections.

According to a recent survey conducted by Assocham and KPMG, due to the increase in smartphones and tablets, advertisers are able to reach a huge variety of audience within a fraction of time. Communication today is not only engaging, but also highly interactive, keeping in mind the devices on which people consume most of their content. The ability to customize ads for the target audience, makes digital advertising effective and a favourite with brands these days.

Sumanta Ganguly, National Director - Digital Marketing & Transformation I EVP – LinTeractive says, "There are many data estimates published in the industry and one I recently read stated that 'Digital ad spends may touch Rs. 13,000 crore mark by Dec 2018 at a rate of 35 per cent, fueled by growing demand for smartphones and falling data tariffs’ this was according to the survey conducted by industry body Assocham and KPMG. This data estimation varies depending on the agency releasing the data – media agencies peg it a little higher, but it is safe to state that it will be in the range of Rs 10,000 crore to Rs 13,000 crore.

With the effects of GST expected to ease out by the first half of 2018, Debraj Tripathy, Managing Director, MediaCom India, feels, "There will be an increase in spends in the other medium, who were till now on a tight budget.

For 2018, the overall ad spends will be anywhere between 11-13 percent. Digital, will see an ad growth of 34 to 35 percent."

Nishant Raut, Director, Brand Communication, Gozoop explains that there are multiple numbers and forecasts floating around with the exact numbers varying from publication to publication.

Some industry experts benchmark the digital ad spend to be at 15 percent of the entire marketing budget while others estimate the overall spends to be closer to 19 percent or 20 percent.

"Looking at past trends & the boost that digital has received over the last 5 years, we can safely be drawn to the logical conclusion that the digital ad spends will be reaching closer to Rs 10,000 crores by the year 2018 and will only continue to rise in the coming years with the increase in digital generation in the rural parts of India given the rise in the telecom war," Raut explained.

In 2017 digital ad spends were slow and not in line with the projections. According to reports, India’s digital advertisement market is expected to grow at a compound annual growth rate (CAGR) of 33.5 per cent to cross the Rs 25,500 crore mark by 2020. The Internet's share in total advertising revenue is anticipated to grow twofold from eight per cent in 2013 to 16 per cent in 2018. Gopa Kumar, Executive Vice President, Isobar predicts that digital will grow by 27-32 percent over 2017.

Chetan Asher, Founder & CEO, Tonic Worldwide concludes, "As the digital landscape increases digital advertising will become lead medium for many brands in their marketing mix. We may see brands moving away from other mediums and experimenting with digital only advertising in 2018. I believe if data keeps getting cheaper we may see a huge upswing in latter half of 2018."