In India, spending on digital advertising is expected to grow 2.5X to $21 billion over the course of the next five years, rising at a CAGR of 19-21%, according to a new report by Redseer Strategy Consultants.
“Upon mapping market sizing across media agencies, we observe a significant under-reporting of digital ad spend in India. However, the Redseer projection has considered enterprise spends, SMB spends, influencer marketing, affiliate marketing, and gaming,” said Mukesh Kumar, Engagement Manager, Redseer Strategy Consultants.
Redseer estimates that between 30 and 35 percent of the $8 billion in total digital advertising spending was made by SMBs in FY22, and by FY28, they are expected to make up around 40 percent of all digital advertising spending. With more user-generated content, individual creators and influencers will be able to develop their online personas, which brands may then utilise to advertise their goods. By 2028, this strong ecosystem of 2.5 to 3 million manufacturers will support marketing expenditures of $2.8 to 3.5 billion, according to the analysis.
The four basic archetypes of the content production economy are described in the study as Micro, Macro, Mega, and Elite creators. Micro/macro influencers have aided smaller D2C brands by increasing ROI for bigger brands.
As the creator economy grows, a centralised platform, such a creative marketplace, is required to bridge the gap between companies and influencers. Such a marketplace might develop into a centre for marketers to connect with and engage creators. The report claims that user-generated content and influencer ecosystems can deliver highly targeted advertising.
Advertising budgets can be substantial in countries with robust consumer spending. For instance, the UK and the US each spend 1.4% and 1.3% of their GDPs, respectively, on advertising, of which 64% is spent on digital advertisements. India, a developing nation, spends 0.5 percent of its GDP, 53 percent of which is devoted to digital advertising. However, given that India’s PCFE is anticipated to grow by 6-7% over the next five years, an increase in advertising spending is unavoidable.