Mobile to drive digital ad spend in India this year

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GroupM, the global media management investment company, recently released its biannual advertising expenditure futures report This Year Next Year (TYNY), highlighting India’s ad investment to grow 15.9% this year to Rs. 57,666 crores. According to the report, mobile advertising will make up the majority share of digital advertising in India this year.

Mobile ad spend is growing rapidly

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Source: nsdesign.co.uk

Lakshmi Narashimhan, Chief Growth Officer, GroupM South Asia, explains:

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“With significant number of users accessing internet primarily from a mobile device, ad-spend on mobile will become as large as the digital AdEx from two years ago. With digital media achieving audience reach numbers that are next only to Television, multiscreen planning is the order of the day. We have seen focused targeting of digital and native advertising with programmatic buying over the last 2 years, and this momentum will continue in 2016, as automation increases.”

Other experts would agree. With India as one of the world’s fastest growing smartphone markets, it is peaking marketers’ interest to target consumers on mobile devices. mCommerce and travel businesses have been fast adopters of mobile technologies in the country.

Vishal Rupani, Business Head, Affinity, adds:

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“The TNYN report echoes what we expect in 2016. We already have a substantial percentage of population accessing internet only from a mobile device and with the increasing penetration of 3G & 4G across the country, India will soon reach a mobile tipping point. The last few months of our research has revealed that CMOs are willing to invest more branding dollars on mobile if their customers are provided the right experience. In 2015 we witnessed mobile budgets multiplying very quickly across sectors, telcos, FMCG, finance and even entertainment , and expect this to continue this year.”

Whilst ad spend trends are changing so are the businesses themselves. The digitisation of industries is well underway, argue some.

Abhay Doshi, SVP (Product & Marketing), Flytxt, concludes:

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“They (GroupM) have captured trend for India market very well. 2016 will be the year where gap between mobile ad spend as a per cent of digital ad spend should decrease significantly Mobile may account for close to 25 per cent of the digital spend. We expect mobile to at least double from last year.”