Businesses that confine themselves in small social shells hardly enthral their prospects with innovative products and services. Because people don’t like reserve and introvert brands, they respond to brands that communicate with them again and again. Marketers who are aware of this rationale make every possible effort to make their presence felt in the biosphere of their target audience. And, the smartest among are those who chose the communication medium as per the choice of their prospects. Today, even a naïve marketer is familiar with the fact that none of the conventional advertising format is as diffusive, disruptive, and decisive as the Digital Advertising. Indians are smart to emulate technological revolutions, and in Digital Advertising too, they are among the forerunners. Being the centre of mass in BRICS nations, India has to create successful examples in the field of trade and commerce, and no doubt, advertising is the most powerful catalyst for business growth.
The Arrival of Smart Age
After Independence, the Indian ad industry has progressed from being a miniature to full-fledged large scale industry, and now it is the second fastest in Asia after China. While small businesses are avid to transform their functionalities and working approaches through joining the current digital revolution, the pioneers are already celebrating the CHANGE. The duo of 0 and 1 has accelerated the pace of advertising to the newer heights, and this growth is not going to take any rest. According to a combined study of CII and KPMG, India’s digital advertising industry is growing at 33.5 percent (CAGR) and by 2020; its value will surpass the Rs. 255 billion marks. Soon, this transition phase will be over, and the industry will reach towards the growth stage. That will be the time when the impact of digitization would be rather noticeable in the country’s economy, but at this inception stage, experts believe that the share of this sector in India’s GDP will remain around 0.50 percent in the next two fiscals.
A Speedier Transition
It is not only the Internet or Social Media that is fuelling the growth of Digital Advertising; there are multitudes of transformers that are empowering the vertical. Though content has been always the prime force of advertising, after the advent of digital media, it has become the soul of advertising. Beyond jingles and copies, content plays a versatile role in social media channels, networking sites, blogs and mobile apps. Furthermore, the induction of programmatic advertising and digital wearables, developments in the world of advertising are quite unprecedented and thriving in the last couple of years. But, the most commendable factor in the growth of digital advertising is none other than the rising interaction between the marketer and its audience. Now, a brand can more easily anticipates the needs and wants of the potential customers and they too are quick to share their feedback on Facebook, Twitter, Whatsapp, Google Plus and thousands of other digital channels.
Factors of Influence
The demonetization has slowed down the country and digital ad industry, however, Mobile continued to excel and enhanced the game to a greater extent with good customer experiences and profitable results. The smart device, highly engaging content and the 4G Internet will further allure the consumers in the coming years. Despite automation, the digital marketer will be solely responsible to deliver better experiences to the consumer using multiple channels. The agencies, advertisers or publishers will be served if they’ll be able to ride on a nascent technology, predictive marketing, and data wave for creating the analytical model.
Presence of the Conventional Media
In the conventional advertising landscape of the country, newspapers and magazines are gradually losing the charm, but Television continues to acquire the top position with an annual growth rate of around 10 percent. Though Radio is far behind than Television in terms of revenue, but it is also growing at the same rate (10 percent), whereas, cinema ads are likely to grow at 20 percent or more. It is the financial sector that invests most on advertising in India, thanks to the lenient RBI policies which could leverage a favorable business environment in the sector.
The Rationale of Growth
Digital advertising in India has reached the $1 billion mark in FY 2016-17 and likely to grow at an average of 14 percent annually. TV and print media contribute to a large extent while digital media stand around 12 percent of the overall ad share, but it is expected to grow up to 24 percent by 2020. The reason for such immense growth will be a shift from man-made to automated mediums owing to greater efficiency, reliability, and benefits of precise targeting. There is a wide scope of growth, especially when one look at the rising smartphone penetration; projected to boost by up to 800 million over the next half decade. The Robotics and AI (artificial intelligence) would make things even better for the industry. The ad space has been evolved around tech giant based six verticals: social, desktop, video, mobile, native, and programmatic.
Recently, to get benefits from the present technological scenario, the BJP led NDA Government at the Centre has started the Digital India campaign with full of enthusiasm. Under the Digital India programme, the government proactively supports the digital advertising industry, and positive sentiments have been inculcated in the minds of young entrepreneurs to harness the digital technology for sustainable and inclusive growth.