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The Focus Is Shifting in India's Digital Ads Market
The Focus Is Shifting in India's Digital Ads Market
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By 2030, the product eCommerce digital ad market in India could be worth $6–8 billion
With the rapid adoption of eCommerce, India is likely to witness a huge surge in digital ads
investments. But having said that, advertisers who previously focused on driving sales have
shifted their focus to something else: they are investing in eCommerce platforms for
building awareness as well.
In this week’s newsletter, Saurav Chachan and his team shed light on everything that you
need to know about India’s digital ads industry.
https://redseer.com/newsletters/the-focus-is-shifting-in-indias-digital-ads-market/ 1/7
17/06/2022, 16:37 The Focus Is Shifting in India’s Digital Ads Market
Indian firms are embracing digitally enabled operational strategies to establish a robust,
future-ready organization in response to shifting customer opinion. This is expected to
drive demand for the eCommerce segment as they prepare to enable the technology
transition.
eCommerce platforms are gaining traction as a way of raising brand recognition among
digital buyers and are being utilized by brands and businesses across industries. These
include retail categories such as fashion, grocery, mobiles, electronics, as well as service
led industries such as, banking and financial services (BFSI), travel, and automobiles.
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17/06/2022, 16:37 The Focus Is Shifting in India’s Digital Ads Market
The growth in product eCommerce user base is expected to be faster than search and social
media platforms. We will see an additional 300 to 350 million new online shoppers, of
which 90% will come from Tier 2 and beyond cities. Not only will this redefine how
consumers purchase and sell, but it will create new opportunities for brands to reach out to
their target consumers in an effective way through e-commerce platforms.
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17/06/2022, 16:37 The Focus Is Shifting in India’s Digital Ads Market
The contribution of eCommerce platforms to the AdTech industry has rapidly increased
from 15% to 20%+ in the last 2 years and will contribute between 20% to 25% of total
digital advertising income by CY30 resulting in $6-8 Bn opportunity by CY30. The fact that
millennials and Gen Z spend so much time on digital platforms helps fuel this trend and it
is likely to continue as more people use websites, apps, and social media to engage with
each other.
In the future, emerging technologies will boost eCommerce sales. The growth of social
media will also support eCommerce. Millenials who make up the bulk of India’s population,
will continue to use social media platforms to make retail purchases. With the right
government policies, regulatory improvements, and the growing demand for digital
services, the future of digital advertising in India looks bright indeed.
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17/06/2022, 16:37 The Focus Is Shifting in India’s Digital Ads Market
In CY21, the total advertising market stood at $11Bn, out of which 37% comprised of the
digital ads market. However, by CY30, the overall advertising market will reach $45-50Bn,
out of which digital ads will comprise 70-75%. Thus, the digital ads market will reach a
staggering $30-35 Bn with an 8X growth from CY21.
The drastic increase in digital consumption as well as the increased digital penetration in
Tier-2+ cities are the primary growth drivers responsible for the spike in India’s digital
advertising ecosystem. Additionally, an increase in GDP per capita and the rise of D2C
(direct to consumer) challenger brands are the other key enablers of this growth. With
Indian advertisers are leaning more towards digital with each passing year, it is no wonder
that the market is one of the fastest growing in the world!
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