After the Covid-19 pandemic restrictions forced people to spend long hours online, digital players have seen high engagement rates forcing advertisers to follow the users.
Advertisers are attracted to digital platforms due to their large user bases and ability to target ads to specific demographics and interests. The ad revenues of the top six players in FY21 totaled up to Rs 28,177 crore.
Just Google and Facebook ad mop up from India amounted to Rs 41,115 crore in FY22. Twitter India does not provide a separate India advertising split, so it has not been included in the sample.
Star India-backed Novi Digital Entertainment, which houses Disney+ Hotstar, has doubled its ad revenue in FY22 to Rs 1,684.31 crore from Rs 829.74 crore in FY21. Experts say that Indian marketers are now using various platforms to target a specific part of the consumer journey.
“These multiple brands seem to be very neatly stacked at different places in the marketing funnel. If Facebook comes at the top of the funnel (building a recall and getting into the consideration set of the buyer), Google comes in the middle (Intent phase) while the likes of Amazon come at the bottom of the funnel (conversion phase), ” said Hareesh Tibrewala, Joint CEO, Mirum India.
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According to experts, the digital trend is amplified for Gen Z, millennials, and customers with greater incomes in general. In India, social commerce is also on the increase. A media buyer who works closely with all digital companies said on conditions of anonymity that a lion’s share of Facebook India’s gross ad revenue came from SMB advertisers and Google India’s ad revenue split would be more even between SMB and corporate advertisers. “Ad revenue earnings of e-commerce platforms will accelerate further as the overall gross merchandise value (GMV) expands,” he said.
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