Mobile to account for 62% of India’s digital advertising expenditure in 2021

Mobile advertising is gaining in popularity in India and ad expenditure for the format is expected to increase by 85%, according to a new forecast by eMarketer. Overall digital ad spend is likely to increase to $1.21 billion.

At the same time, mobile is forecast to grow by double-digits and will account for around 62% of digital ad expenditure’s $2.80 billion by 2021.

Advertisers have increased their ad budgets on mobile driven by growing demand for smartphones in India as well as continued social network usage. This year, smartphones are expected to represent 36.6% of all mobile phones used in the country. By 2021, 47.4% of mobile phones are expected to be smartphones.

In addition, mobile social networking has seen a rapid gain in popularity. In 2017, social networking on mobile devices is expected to increase 24.3% reaching more than 26.8% of all mobile phone users and three-quarters of social network users.

Shelleen Shum, Senior Forecasting Analyst at eMarketer, says:

“While television continues to be the most popular advertising medium, digital is the fastest growing, with ad spending recording double-digit growth rates up to 2021.”

Traditional media is still going strong in India. TV takes a majority of all advertising budgets. The research firm forecasts that TV will take $3.13 billion of media advertising dollars in 2017, which equates to 39.3% of all media ad spend. Shum adds:

“Driven by increasing mobile internet penetration, falling data prices and the availability of low-cost handsets, mobile will be a major contributor to the growth of digital advertising in the years to come as marketers embrace this channel to reach a new generation of young and digitally savvy consumers.“