Digital advertising spend in India to touch Rs 9,700cr by end-2017

The digital advertising spend in India is expected to continue at a compound annual growth rate (CAGR) of 33 per cent to touch Rs 9,700 crore by December 2017, a recent study said here on Monday.

The digital advertising spend was estimated to be around Rs 7,300 crore at the end of 2016, growing at a rate of 40 per cent over 2015.

The report - Digital Advertising in India - jointly done by Internet and Mobile Association of India (IAMAI) and IMRB Kantar said that the digital advertising spend is about 14 percent of the total advertising spend in the country.

In terms of volume, e-commerce leads the digital advertising spends with around Rs 1,361 crore, followed by fast moving consumer goods, consumer durables and banking, financial services and insurance (BFSI), it said.

"However, a comparison of these verticals in terms of share of spends on traditional versus digital show that BFSI organisations incurred the highest share on digital advertising spends. Around 40 percent of their overall advertising spend was on digital followed by e-commerce, telecom and travel," the statement said.

In 2016, it is estimated that search ads (close to Rs 2,044 crore) constituted 28 percent of the overall ad spends followed by video (close to Rs 1,387 crore) which contributes to around 19 percent; mobile and social media (close to Rs 1,314 crore) each are at around 18 percent and display ads (close to Rs 1,168 crore) at 16 percent, the report said.

It added that spends on video ads have shown a significant increase and accounted for 19 percent of the overall spends in digital advertising.

Consumer confidence in India declines: survey

Meanwhile, another survey revealed that the overall consumer confidence in India has declined during the last six months.

According to Mastercard Index of Consumer Confidence, despite the deterioration in confidence levels, India remained "in very optimistic territory".

The study was conducted between April and June 2017, when 9,153 respondents, aged 18 to 64 in 18 Asia Pacific markets, were asked to give a six-month outlook on five economic factors -- economy, employment prospects, regular income prospects, stock market and quality of life.

The index was calculated on a scale of zero to 100, with zero as the most pessimistic, 100 as the most optimistic and between 40 and 60 as neutral.

"India (86-9.3) has shown the largest deterioration in confidence levels in the region, but still remains in very optimistic territory. While all five components saw declines, consumer outlook on the economy (-11.0) and quality of life (-11.6) registered particularly large drops," the survey report read.

"India continues to stay in very optimistic territory at 86 points, despite posting the region's largest decline of 9.3 points... Pessimism towards quality of life was the key driver of decline for both India and Myanmar."

However, across Asia Pacific, overall consumer confidence stayed buoyed "in optimistic territory" at 66.9 points. The increase in confidence was driven mainly by a bullish outlook on the stock market and employment.