Analysis of the digital advertising market in India
The relevance of research
The main drivers of growth and development of the digital advertising segment in the coming years will be an increase in the number of Internet users, an increase in the time spent by users online, and an increase in the penetration of mobile users. Mobile advertising will continue to be one of the factors for the growth and development of the segment
Purpose of the study
Analysis of the state of the digital advertising market in India, assessment of the market size, analysis of competitors, as well as identification of factors affecting the digital advertising market
Content
Part 1. Overview of the Indian advertising market (advertising market as a whole)
1.1. Definition and Characteristics of the Indian Advertising Market
1.2. Dynamics of the volume of the Indian advertising market 2016-2020
1.3. Market structure by type of advertising provided in India
1.4. Assessment of current trends and development prospects of the studied market
1.5. Assessment of factors affecting the market
1.6. Analysis of sectoral indicators of financial and economic activity
Part 2. Analysis of competitors in the TOP-5 digital advertising market
2.1. The level of competition in the market
2.2. Major players in the market
2.3. Revenue of the largest competitors
2.4. Analysis of the range of services
2.5. Strengths and weaknesses of competitors
Part 3. Analysis of consumption (advertisers)
3.1. Market saturation
3.2. Key consumer trends in India
3.3. Assessment of the market structure by consumption sectors
3.4. Top Consumers in 2020
Part 4. Forecasts and conclusions
4.1. Market development forecast up to 2025
4.2. Key findings from the study
Research excerpt
Part 1. Overview of the Indian advertising market (advertising market as a whole)
1.1. Definition and Characteristics of the Indian Advertising Market
The advertising market in India exists relatively recently, it began to form in the mid-90s. However, during its short history, it managed to go through numerous and significant stages of development. At the first stage of development...
The following situation was observed in the advertising market: ...
Over time, the situation began to change. A market economy is unimaginable without...
Today it is worth paying attention to the stabilization ...
...
An analysis of the state of the Indian advertising market, its structure, trends and development prospects is important both for its participants and for ...
The advertising market includes four main states that are in constant interaction with each other: ...
The advertising market, especially in recent years, is changing under the influence of qualitatively new ways, means ...
Assessing the state of the Indian advertising market, it is important to consider that it is closely integrated into …
1.2. Dynamics of the volume of the Indian advertising market 2016-2020
Consider the volume dynamics of the Indian advertising market.
According to the data of … India, the Indian advertising market showed … in 2020 by 2019 by …%, in monetary terms, the market volume in 2020 amounted to … billion Rs. For the period 2016-2019 market volume …%, excluding …, which resulted from ... The negative impact of the crisis was most strongly reflected in such segments as ... In previous periods of crisis, the Indian advertising market also showed …
The volume of the Indian advertising market during the study period has … and the average annual growth is …%, with the exception of … The maximum value of the market volume was reached in … and amounts to … billion Rs. … billion Rs. The main growth driver of the advertising market in India, according to market experts, over the past few years has been advertising …
1.3. Market structure by type of advertising provided in India
Diagram 2. Market structure by type of advertising provided, %
The advertising market in India can be divided into several segments according to advertising channels: ...
The largest share, as in previous years, in 2020 is occupied by …%. The dynamics of the market volume in this segment repeats ... In the context of the 2020 crisis, this segment retained …
Advertising on TV occupies …%. The dynamics of the market volume in this segment repeats … the market trend. …
Segments … occupy the smallest shares, by …% each. The dynamics of market volumes for each of the indicated segments differs from ... The segment ... showed a slight increase in 2016-2017, in 2018 the growth compared to 2017 was ... Such dynamics in ... is due not only to the crisis of 2020. , but also an increase in the number of ...
The Internet advertising segment can be segmented in more detail by types of advertising on the Internet.
According to the classification of ... the Indian digital advertising market consists of the following segments: ...
1.4. Assessment of current trends and development prospects of the studied market
The Indian advertising market in recent years is characterized by deep ... processes, which are due to the following processes: ...
As for the digital advertising segment, the main drivers of its growth and development in the coming years will be an increase in …
In …, the most popular are … advertising in … These tools have the greatest growth potential.
…, according to experts, is growing faster than other segments of digital advertising and will have a positive impact on the development of the market in the near future.
In general, the digital advertising segment is the only segment of the Indian advertising market that showed … In the opinion of …: “such indicators are associated, first of all, with the wide possibilities of tools and the high level of …”
According to forecasts ... in the coming years, the use and use of ...
One of the factors that set the trend for further development and transformation of the industry, of course, is the influence of …
The restrictions introduced due to the pandemic have affected, among other things, the labor market: the remote work format has opened up …
Another factor that ensures the prospect of sustainable development of the online advertising market is the stimulation of …
1.5. Assessment of factors affecting the market
Let's consider the main factors influencing the advertising market and, accordingly, the demand for advertising in India.
The Indian advertising market is part of the economic system, functions in unity with other markets and develops within the framework of the general laws of a market economy.
Economic forces:
...;
decrease ...;
growing competition...
Political factors:
regulation…;
entry into force …;
support measures...
Technological factors:
...
Social factors:
...
Table 1. STEP analysis of factors affecting the advertising market
Based on the results of the analysis of factors influencing the Indian advertising market, there is a prevailing ... influence of the main number of factors on the market, and, accordingly, on demand.
Significant limiting factors include...
The following factors have a stimulating effect on the analyzed market…
1.6. Analysis of sectoral indicators of financial and economic activity
Gross margin is an economic indicator that characterizes the ratio of gross profit to revenue and allows you to evaluate the efficiency of an industry or enterprise.
Gross margin of the advertising industry in 2016-2018 rather …, the deviation from the analogous indicator for all branches of the Indian economy during this period …, the maximum value of the indicator is in … years – …%, which is by …% … of the indicator for all branches of the Indian economy. In 2019-2020 indicator values ...
Diagram 3. Profitability before tax (profit of the reporting period) in the field of advertising in comparison with all sectors of the Indian economy, 2016-2020, %
Profitability before tax is an economic indicator that characterizes the ratio of gross profit to revenue, in other words, how much profit is in each ruble from services sold.
Profitability before tax in the advertising industry … in 2016-2018, during this period, this figure is … the same indicator for all sectors of the Indian economy, which indicates …
In 2019-2020, the profitability indicator before tax is …, the minimum value of …% is observed in …. During this period, the profitability before tax in the advertising industry is …
The current (total) liquidity ratio is a financial ratio equal to the ratio of current (current) assets to short-term liabilities (current liabilities). This is the most common and commonly used measure of liquidity. The ratio reflects the company's ability to repay current (short-term) liabilities at the expense of current assets only. The higher the indicator, the better the solvency of the enterprise.
A ratio value of 2 or more is considered normal (this value is most commonly used in Indian regulations; globally, 1.5 to 2.5 is considered normal, depending on the industry).
Average current liquidity for the advertising industry in 2016-2020 - ..., the indicator changes ... annually, but quite ...
The absolute liquidity ratio is a financial ratio equal to the ratio of cash and short-term financial investments to short-term liabilities (current liabilities).
The source of data is the company's balance sheet in the same way as for current liquidity, but only cash and funds close to them in essence are taken into account as assets. It shows what part of the current liabilities of the companies in the industry are able to repay at their own expense and in the shortest possible time and is used to assess the financial position of the industry.
The financial position of the industry is recognized as good when the absolute liquidity ratio is 0,15 or more. In other words …
Since the absolute liquidity of the advertising industry is … in 2020, while its value becomes …, the financial position in the industry becomes … At the same time, in 2016-2019. this indicator in the advertising industry ...
Accounts receivable is accompanied by...
The turnover period of receivables reflects the number of days required for the transformation of receivables into the money supply. The economic meaning of this indicator is ...
In 2020, the average period of receivables turnover in the advertising industry increases sharply to … days (the average value for the study period is … days, excluding the indicator for 2020), which is due to …
The equity ratio characterizes the availability of own working capital of the enterprises of the industry, necessary for financial stability. Lack of own working capital, i.e. the negative value of the coefficient indicates that all the current assets of the organization and, possibly, part of the non-current assets are formed from borrowed sources.
Normative value of the indicator of financial stability ...
During the study period, the indicator of the financial stability of the advertising industry has ... value, in 2020. reaches …%. This suggests that the industry's enterprises have … The indicator for all sectors of the Indian economy shows …, in 2020 …%. The difference between the scores...
Part 2. Analysis of competitors in the TOP-5 digital advertising market
2.1. The level of competition in the market
The advertising market in India is characterized by …, in the country there are more than … thousand companies operating in the advertising industry. Experts and major market players evaluate competition and related trends across different segments…
Automation of processes, work with big data, artificial intelligence are the key areas on the basis of which …
Among the key technologies that determine competition, experts and operators of the Indian advertising market name ...
In recent years, so-called ...
...
There are large advertising groups in the online advertising market that unite individual companies under one brand … The share of such groups in total in the online advertising market is …%. The largest ones to date are:
...
Diagram 7. Revenue for all companies of the group … 2018-2020, thousand Rs.
...
The shares of advertising groups in the market are distributed as follows: the leader is advertising group … with a market share of …%, followed by …% with a share of … The share of advertising group … is …%, the share of other companies and advertising groups in aggregate is …%.
2.2. Major players in the market
...
2.3. Revenue of the largest competitors
Net revenue for the TOP-6 companies according to Rosstat in 2020 totaled … billion Rs., the increase compared to 2019 in revenue amounted to …%. As mentioned earlier in the study, the online advertising segment annually …
The revenue of TOP-6 companies increased by 2019 on average by …, compared to previous periods, this is … The leader in revenue in 2020, as in previous periods, is …, in second place is …
Diagram 22. Shares of the largest players in the digital advertising market in 2020
The leader of the online advertising segment is … with a share of …%, the second place is …
Today, more than … thousand digital marketing and advertising agencies operate in the Indian market, while the total number of advertising agencies in India is more than … thousand. Accordingly, when calculating market shares based on the volume of revenue of legal entities, the largest enterprises have …
2.4. Analysis of the range of services
...
Each company from the TOP-6 uses ... When building advertising campaigns for clients, ...
… is positioned as the largest independent performance agency in India and provides a full range of services in the field of …
LLC “…” is positioned as…
...
All companies, as professionals in their field, together with their customers develop ... When developing advertising campaigns, they always take into account ...
Table 6. Range of services of TOP-5 companies in 2020
Based on the table above, we can conclude that the largest players in the digital advertising market in India are ready to provide customers with …
The digital advertising market is quite mobile in terms of…
2.5. Strengths and weaknesses of competitors
All companies are participants in various ratings, have Runet awards in various categories and in different years. All companies work on…
Part 3. Analysis of consumption (advertisers)
3.1. Market saturation
The digital advertising market in India is characterized by the presence of businesses and individuals in the market, which can be classified into three groups…
The Indian market is...
...
3.2. Key consumer trends in India
According to… the Indian eCommerce market continues…
The Communications Group ... has published a global forecast of consumer behavior for the next decade - ...
About …% of respondents are concerned that …
Seven out of ten respondents expect...
...
The company … conducted a study among …
Most of the company's resources are planned to be invested in …;
The development of online channels is a priority ...;
Most of the companies surveyed plan to...
… Participants noted the following consumer trends in the advertising market:
Consumers are ready...
Consumers have become much...
Health Care…
Digital advertisers stepped up…
...
3.3. Assessment of the market structure by consumption sectors
In 2020, in the TOP-10 industries in terms of advertising on the Internet in the format of banners, according to ..., the leading industries are services ... - ...%, ... - ...% and ... services - ...%. The shares of other TOP-10 participants are less than …%. All industries are presented in Diagram 7.
Chart 23. Top 10 industries by online advertising volume – banners in 2020.
TOP 10 industries in terms of online advertising in video format in 2020, according to …, services in … are also leading
According to GidMarket, the TOP-5 industries in terms of Internet advertising volumes include … – …%, … services – …%, …
So he comments on the distribution of industries by advertising volume not only in the Internet segment and the situation on the market ...: ""In 2020, the advertising market ..."".
… as part of summarizing the results of the year on the Indian advertising market as a whole, gives the following comments regarding …: “Various categories of advertised goods and services, both under the influence of specific industry restrictions and due to a decrease in consumer activity of the population, have suffered …”.
3.4. Top Consumers in 2020
According to …, the TOP-10 advertisers in terms of advertising budgets in 2020 included companies … and others.
The TOP-5 advertisers in the online advertising segment among the leaders in terms of advertising budgets include …
...
Part 4. Forecasts and conclusions
4.1. Market development forecast up to 2025
...
4.2. Key findings from the study
...
Diagrams
Diagram 1. Dynamics of the volume of the Indian advertising market, 2016-2020
Diagram 2. Market structure by type of advertising provided, %
Diagram 3. Profitability before tax (profit of the reporting period) in the field of advertising in comparison with all sectors of the Indian economy, 2016-2020, %
Diagram 4. Current liquidity (total coverage) in the advertising industry for 2016-2020, times
Chart 5. Business activity (average receivables turnover period) in advertising, 2016-2020, days
Diagram 6. Financial stability (security of own working capital) in the field of advertising in comparison with all sectors of the Indian economy, 2016-2020, %
Diagram 7. Revenue for all companies of the group … 2018-2020, thousand Rs.
Diagram 8. Revenue for all companies of the group … 2018-2020, thousand Rs.
Diagram 9. Revenue for all companies of the group …2018-2020, thousand Rs.
Diagram 10. Revenue for all companies of the group … 2018-2020, thousand Rs.
Diagram 11. Revenue for all companies of the group … 2018-2020, thousand Rs.
Diagram 12. Revenue for all companies of the group … 2018-2020, thousand Rs.
Diagram 13. Revenue for all companies of the group … 2018-2020, thousand Rs.
Diagram 14. Revenue for all companies of the group … 2018-2020, thousand Rs.
Diagram 15. Shares of advertising groups in the online advertising market in 2020, %
Diagram 16. Dynamics of the company's revenue … 2016-2020
Diagram 17. Dynamics of the company's revenue … 2016-2020
Diagram 18. Dynamics of the company's revenue … 2016-2020
Diagram 19. Dynamics of the company's revenue … 2016-2020
Diagram 20. Dynamics of the company's revenue … 2018-2020
Diagram 21. Dynamics of the company's revenue … 2016-2020
Diagram 22. Shares of the largest players in the digital advertising market in 2020
Chart 23. Top 10 industries by online advertising volume – banners in 2020
Chart 24. Top 10 Industries by Online Advertising Volume – Video Advertising in 2020
Diagram 25. TOP-5 industries by online advertising volume in 2020
Chart 26. TOP 10 online video advertisers (% of impressions) in 2020
Diagram 27. Forecast of the volume of the advertising market as a whole in 2021-2025
Chart 28. Forecast of online advertising market size in 2021-2025
Tables
Table 1. STEP analysis of factors affecting the advertising market
Table 2. Gross margin of the advertising industry in comparison with all sectors of the Indian economy, 2016-2020, %
Table 3. Absolute liquidity of the advertising industry in comparison with all sectors of the Indian economy, 2016-2020, times
Table 4. Main companies participating in the market in 2020
Table 5. Revenue of the largest competitors in 2018-2020
Table 6. Range of services of TOP-5 companies in 2020
Table 7. Strengths and weaknesses of competitors
Table 8. TOP 10 advertisers in 2020 by advertising budgets
Table 9. TOP-5 advertisers in the online advertising segment in 2020
All reports