2023: Digital advertising's substantial growth redefines the marketing landscape
2023 witnessed a 50% surge in Digital Ad impressions, doubling since 2021, showcasing brands' amplified reliance on tech platforms amidst economic downturns, as per TAM data
sociapanews Staff
The country's digital advertising market surged by 54% compared to 2022 and doubled since 2021, per TAM statistics. Media, entertainment, social media, and ecommerce brands expanded their digital footprint, while online gaming and edtech sectors witnessed declines due to tax issues and funding difficulties. Ecom-media/entertainment/social media took an 11% slice of ad impressions, with ecommerce, IT, software, and online services dominating over half of the ad impressions. The automotive and smartphone sectors entered the top 10 list, collectively constituting 48% of ad impressions.
Despite offering insights into the advertising landscape, ad impressions don't wholly reflect ad spends. Meanwhile, major digital ad platforms displayed varying growth. Meta India reported a 13% increase in ad revenue, and Amazon's ad earnings grew by 28%. However, the growth rates were lower compared to the previous fiscal year.
The surge in digital advertising in 2023 can be attributed to several factors:
Data-driven Strategies: Advertisers are employing Google Marketing Platform and AI tools to personalize ads and optimize campaigns for enhanced effectiveness.
Surging Social Media Consumption: Comscore reported a twofold surge in India's social media usage since January 2020. The platform popularity translates to increased social media marketing spends by brands.
Mobile and Internet Penetration: Affordable data plans and smartphone proliferation are driving mobile internet usage, favoring mobile-first ad formats like video and in-app ads.
Retail Media Platform Expansion: E-commerce giants like Amazon and Flipkart are relying on retail media ads to bolster traffic and conversions, redirecting ad dollars from search to these platforms.
OTT's Growing Influence: Over-The-Top (OTT) platforms, driven by sports and Ad-supported Video on Demand (AVoD), are gaining traction among advertisers due to their wide engagement spectrum.
The robust growth in digital advertising hints at a dynamic landscape, where social media, mobile, retail media platforms, and OTT are playing pivotal roles in reshaping the marketing domain.
