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India’s digital ad spend to reach $21 billion by 2028: Redseer report

• ByStartupStory     |    December 27, 2022

According to a recent analysis by Redseer Strategy Consultants, digital ad spend in India is predicted to increase 2.5X over the next five years to $21 billion, expanding at a CAGR of 19-21%. Mukesh Kumar, Engagement Manager, Redseer Strategy Consultants said, “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.” 

According to Redseer, SMBs spent between 30 and 35 percent of the $8 billion in total on digital ads in FY22, and by FY28, they’re projected to account for about 40 percent of all digital ad spending. An increase in user-generated content will enable individual producers and influencers to establish their online personas, which brands may exploit to market their products. According to the research, this robust ecosystem of 2.5 to 3 million producers would support marketing expenditures of $2.8 to 3.5 billion by 2028. 

Empowerment of emerging Content Creators

Micro, Macro, Mega, and Elite creators are the four main archetypes of the content creation economy, the paper claims. Smaller D2C brands have been helped by micro/macro influencers, who have improved ROI for larger brands. According to Redseer, marketing expenditures on influencers would increase to $3.5 billion by 2028 and influencer-led live commerce in India will reach $8 billion by 2030.

A centralised platform, such as a creator marketplace, is necessary to close the gap between businesses and influencers as the creator economy expands. Such a market place might turn into a hub for brands to find and interact with creators. According to the report, influencer ecosystems and user-generated content can produce highly targeted advertising.

Scenario of global advertising 

Strong consumer spending economies can spend a lot on advertising. For instance, the UK spends 1.3% and the US spends 1.4% of its GDP on advertising, of which 64% is spent on digital commercials. A developing country like India spends 0.5% of its GDP, of which 53% is allocated to digital advertising. But with India’s PCFE set to increase by 6-7% over the following five years, advertising spending will undoubtedly increase. 

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