Economic Growth & Technology Driving Growth in Indian Advertising Space
In 2020, the Indian advertising market was valued to be close to INR 670 billion according to an Expert Market Research finding. In fact the industry is all set to become Asia's fastest growing market for adverting right after China. Going forward, the Indian advertising industry is slated to reach a valuation of INR 1253.2 billion by 2026, growing at a CAGR of 11 percent.
To look at it objectively, this growth is not surprising or unprecedented. India is witnessing an amalgamation of various strategic factors coming into play together to build the right Launchpad for the Indian advertising space.
The primary reason for this rise in numbers is constant economic growth. As the country undergoes rapid economic growth, both consumers and brands find incentives to purchase and sell simultaneously. Advertisers find it easier to reach a larger audience today since there is a deeper penetration of a plethora of media channels unlike before. This provides brands and companies with various growth opportunities that they are grabbing with both hands. Similarly, consumers also have larger spending power and spending willingness now as compared to a few years ago.
However, one of the key game changers for the Indian advertising industry has been technology and internet. Technology has truly disrupted the information that consumers are privy to. As distances between cities and even countries shrink owing to technology, consumers are becoming hyper aware about new products and brands. a local brand from a faraway country today has the power to create a dedicated consumer base in a location even across the globe.
Another major disrupter for the space has been cheaper internet, internet penetration and rise of smartphone usage across the country. While television and print were dubbed as the primary channels to reach consumers, today, the digital avenue has been gaining consistent traction. In a few years to come, digital advertising might even surpass traditional media channels in terms of reach and spend. Times ahead sure look interesting for the Indian advertising space.
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