Indian digital ads surge in world’s fastest growing online economy

India’s digital advertising sector is experiencing rapid expansion as marketers recognize the potential of video streaming, influencer marketing, and online shopping to capture the attention of its massive population. According to technology research company Omdia, online advertising is set to become one of the fastest-growing segments of India’s digital economy. Omdia forecasts that India will be the world’s fastest-growing digital economy between now and 2027, with a compound annual growth rate of 9.6 percent.

With more than half of India’s 1.4 billion population under the age of 30, the shift towards digital channels is a natural progression. Abhishek Mukherjee, chief business officer at media buying agency The Media Ant, declares that digital has surpassed television as the number one media in India. He foresees it accounting for more than 55 to 60 percent of advertising spend in the years to come.

While YouTube and Meta (formerly Facebook) are expected to see significant growth in video advertising revenue, other companies are also benefiting from the surge in digital advertising. Without considering YouTube, the total video streaming market in India is estimated to be around $1.5 billion, with approximately 40 percent attributed to advertising revenue. This trend is further illustrated by Network18, where Omdia predicts that online assets will witness advertising revenue growth of 40 percent next year, compared to a much lower rate for traditional TV assets.

To cater to the affordability of Indian consumers, some media companies have chosen to adopt an ad-supported model. Viacom18, for instance, streamed the Indian Premier League for free on its service JioCinema, monetizing through increased advertising. MX Player, another popular streaming platform, offers free content with ads as a viable option to reach a larger audience.In addition to video advertising and streaming, marketers are also turning to influencers and ecommerce sites to boost their digital ad campaigns.