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Social media has been the strongest digital ad platform and has constantly grown by leaps and bounds, resulting in higher spends by most brands on these platforms over the past few years. The ad spends on various digital verticals are decided to keep in mind the platform which has the maximum reach, affinity for the target audience along with the assets with which they are being promoted and for how much duration, Megha Ahuja, VP - Digital Media Planning, Carat India, tells e4m.
Carat India, a dentsu company, handles the world’s top tech giants like Intel and Microsoft. “Technology brands, for instance, that have mass appeal among young all-time connected consumers, are spending over 30% of the digital ad ex on social media platforms (Instagram, Snapchat and Facebook)", Ahuja added.
Tech brands' video ads (on YouTube, Hotstar, Sony Liv, etc) get around 28% share. “The rest of the digital ADEX is spent on paid search on Amazon and Google (14%), Display Banners on News and Business sites (10%), E-com platforms – Amazon, Flipkart, Reliance Digital (13%) and Influencers (6%),” says Ahuja.
Apart from tech brands, e-commerce, consumer durables, FMCG, BFSI, and Telecom are spending the highest on digital, she asserted.
Digital ADEX of India Inc reached a value of almost Rs. 17,000 crore with a share of ⅓ in the total ADEX in 2020, as per a Madison report. Over 95% of this spend is on mobile phones.
According to a dentsu-e4m report, the highest proportion of spending on digital is contributed by social media (29%, Rs. 4,596 crore). This is followed very closely by online video (28%, Rs. 4,366 crore), and paid search (24%, Rs. 3,725 crore). Meanwhile, spending on display banners stand at 16% (Rs. 2,528 crore).
E-commerce makes the highest contribution of 24% (Rs. 3,782 crore) to the digital media industry. This is followed by consumer durables (17%, Rs. 2,609 crore), FMCG (14%, Rs. 2,163 crore) and Telecom (13%, Rs. 2,046 crore), a GroupM report released early this year stated.