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E – ADVERTISING : GAINING MOMENTUM

 The online shopping market in India has tremendous potential because of growing numbers of consumers. Advertising and Technological advancements provided personalized services and experience to target market. Criteo, the advertising platform for the open internet published a report “why we buy”. The report says 90% of Indian consumers are willing to consider a new brand across all theproductCategories. More than 25% consumer says they don’t want a brand whose value is not aligned with their personal benefits. This changing preferences and behaviour of new age Indian urban consumers, particularly Netizens and Women pose a challenge to existing brands to keep their foot strong on the ground. The customer experience is new buzz word,which leads to satisfaction and builds loyalty for the brand. Therefore, aggressive advertisement in online platform has become a warfare among competitors across all segments and all shopping categories in recent days.

Further, the COVID – 19 pandemic has forced for adoption of e-advertising and accelerated the spending as well as the frequencies of the advertisement. Densu, a leading advertising group has recently released a report which says the advertisement through Digital Medium grew by 15.3 percent in calendar year 2020 and reached 15,782 Crore Rupees in size.

The report forecasts the spending in total advertising cost in India will increase by 20% by 2022 whereas the digital advertising spending will increase by 33% during same period.

Share of Digital Advertising to Total Advertising Cost.

(Rupees in Crore)

Year TAE* DAE* Percentage
2020 56490 15782 28
2021 62577 18938 30
2022 70313 23673 33

 

* TAE – Total Advertising Expenditure

* DAE – Digital Advertising Expenditure

 

 

 

Digital Advertising Expenditure (DAE) is evident in all shopping categories during financial year 2020. Details are as below :

 

Category DAE (in Crore Rupees)
FMCG 11544
E-commerce 9,788
Consumer Durable 5,751
Telecom 5,121
Auto 4,092
BFSI 2,836
M&E 2,542
Retail 1,662
Others 13,144
Total : 56,144

 

There are various forms of popular digital Advertisements. Some of them are cited below :

  • Display Advertisement – These are online exhibits using images and text (Landing Pages and popups).
  • Social media advertisement – This includes online advertisement posts and sponsored stories through powerful social media like Facebook and Twitter.
  • Pay per click (PPC) Advertisement – Here the promoter pay every time a user clicks on an advertisement. This is also said as Display Ad or paid search Ad. This is a popular form of digital Ad.
  • Video Ad. : This is also a popular form of online Ad and mainly targeted to Millennial and Gen Z market who loves to play video. Brands or promoter pays when someone engaged with such an advertisements.

 

There are also other forms of online advertisements like search Engine Optimization, Native Ad, Remarketing Ads and Affiliate Marketing Ad. Break up of various types of  digital advertisement size in India in 2020 is given below :

(In Crore Rupees)

Social Media 4596
Online video 4366
Paid search 3725
Display banner 2528
Others 526

(Source – Dentsu)

With rising number of netizens and evolution in e-commerce, the future of online advertisement is bright and the share of it’sexpenditure will increase in future.

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About Prof. (Dr.) P.K. Tripathy,

Principal, BIITM, Bhubaneswar

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