Social media leads digital ad spends with 30% share: dentsu-e4m report

Online video and social media have been experiencing the fastest growth among all digital media formats, driven by significant consumption demand from users. This trend is encouraging brands to prioritise content and quality, creating relevant and responsible messaging that resonates with the audience.

dentsu in collaboration with exchange4media launched Digital Advertising Report 2024 on Thursday. It revealed some compelling AdEx numbers about the social media landscape.

According to the report, social media dominates digital media spends, contributing with a 30 per cent share, which is about Rs 11,962 crore. This was followed by online video with 28 per cent (Rs 11,363 crore), paid search with 23 per cent (Rs 9419 crore) and display banners contributing 16 per cent to the digital advertising market in India.

But why do brands and marketers use social media marketing so actively?

Social media platforms offer advanced targeting options based on demographics, interests, behaviours, and more. This allows advertisers to reach highly specific audiences with their ads, improving effectiveness and ROI.

In 2024, the growth of digital spending will be mainly driven by significant events such as Assembly and General Elections in the country. The Dentsu report revealed, this will facilitate an increase in spending on social media.

Moreover, with the vast accessibility and reach of social media, the category of influencer marketing is witnessing a sharp growth and evolution. Businesses are increasingly collaborating with social media influencers and content creators and have been very effective in reaching the younger demographics.

Social media users tend to spend a significant amount of time on these platforms, engaging with content, sharing posts, and interacting with ads. This high level of engagement makes social media advertising particularly valuable for brands looking to connect with their target audience.

Even the retail segment spends the majority of their digital media budget on social media and paid search, the dentsu report said. Government sector spends the majority of their digital media budget on social media and online video as well.

In the coming times, social media will continue to have the largest spending share among the digital advertising formats. With a compounded growth rate of 24.01 per cent, dentsu expects social media to account for 30 percent by the end of 2025.

The report stated, “We expect paid search to grow at a compounded rate of 21.22 per cent, reaching a spending share of 22 per cent by the end of 2025. The search category is undergoing a major change as search behaviour evolves from traditional search engines to social media and commerce platforms, incorporating voice and image search powered by innovations in Al.”

The future of digital media ad spends on social media will be shaped by advancements in technology, changes in user behaviour, and evolving regulatory landscapes. Advertisers who stay ahead of these trends and embrace innovation will be well-positioned to succeed in the ever-changing world of social media.