Digital Media Dawn: The New Ad Powerhouse in India

Digital media has overtaken traditional media, capturing 32% of India's 2024 media revenues, as per Elara Capital. Indians' mobile usage and rising OTT platform growth are key factors. E-commerce advertising leads gain at 65% YoY. Digital media's dominance pressures traditional channels, reshaping the ad landscape.

In a significant shift, digital media has eclipsed traditional media outlets like television, accounting for 32% of India's media revenues, reaching Rs 802 billion in 2024, as per a report by Elara Capital. This change underscores the increasing time Indians spend on mobile devices, averaging five hours a day, which makes digital platforms alluring to advertisers.

The report highlights the efficacy of digital advertising, with 69% of mobile users consuming content on media such as entertainment and social networks. Brands are keenly observing the success of digital ads, particularly with 67% of digital ad revenue stemming from 'Search and Social' platforms.

Mobile conversations now only constitute 22% of total usage time. The growth of OTT platforms, regional market expansion, and the ascent of connected TV contribute significantly to digital media's escalating share, even as TV advertisers decline by 2% year-on-year.

Commenting on these trends, the report suggests a transformative shift towards a digital-centric advertising ecosystem. Traditional mediums such as Zee Entertainment and Sun TV feel the pressure, while digital platforms like Affle, Zomato, and Nykaa emerge as beneficiaries of this evolving landscape.

E-commerce advertising has skyrocketed 65% year-on-year to reach Rs 147 billion, driven by surging viewership of regional OTT content. AI-powered localization has slashed costs by 25-35%, further propelling growth. Digital media revenue is projected to soar to Rs 1.1 trillion by 2027, growing at an 11.2% CAGR, fueled by rising internet penetration and hyperlocal strategies. Advertiser-based Video on Demand (AVOD) dominates streaming hours at 82%, with YouTube's connected TV views doubling over three years amid widespread connectivity expansion.

(With inputs from agencies.)