Google and Meta India's combined ad revenue alone has crossed Rs 41,000 crore in FY22, which is higher compared to the total digital ad revenue projections of Rs 33,000 crore, triggering speculations
India’s digital ad revenue may surpass all projections and predictions this year, if the recently announced annual results of Google India and Facebook India are any indications.
The two tech giants alone have earned a whopping Rs 41,115 crore in 2021-22 through online advertisements, compared to Rs 23,212 crore that they pocketed a year ago. Google and Meta dominate the Indian digital sector with nearly 80 per cent market share.
The cumulative revenue of Meta and Google is much higher than what the Pitch Madison Annual Report (PMAR) 2022 speculated for the entire digital segment. PMAR predicted digital AdEx of India to cross Rs 33,070 crore, nearly one third of the total advertising spend. GroupM’s ‘This Year Next Year’ 2022 report had projected digital ad spend to touch ₹48,603 crore in 2022, with nearly 50 per cent share in the total AdEx.
Amazon India and Flipkart posted nearly ₹4,170 crore and Rs 2,800 crore ad revenue in the fiscal 2022 respectively, clocking nearly Rs 7,000 crore together. The figures suggest that these four players pocket Adex worth Rs 48,000 crore.
Over the past few years, digital advertising has expanded to several new social media platforms like Snap, Twitter, Linkedin, Whatsapp Business. Besides, OTT, Connected TV and gaming, have also opened up new advertising streams. All these primarily are popular among young consumers with much spending power which is attracting advertisers.
Rajiv Dubey, Media head of Dabur India, says, “Tech and e-commerce giants’ results are a clear indication that digital advertising revenue will surpass the PMAR prediction. Digital has seen a phenomenal growth in 2022. The current festive season also had digital flavour as more and more advertisers are investing a large chunk of their ad money in digital marketing.”
Google and Facebook are expected to continue to dominate the digital advertising space in India, while other players like e-commerce, OTT and gaming platforms could dent their share going forward, Dubey added.
The latest TAM data procured by e4m shows a higher growth in the overall digital ad insertions in 2022 (till July), compared to 2020 and 2021. The growth though declined after July suggesting subdued festivals, according to TAM data.
Shashank Srivastava, Senior Executive Director, Sales and Marketing, Maruti Suzuki, says, “It is quite likely that the projections and predictions for this year will be exceeded. The growth figure for the Indian market will probably be 40% against the 30% projected earlier. The digital Adex though probably will be under Rs 33,000 crore.”
Srivastava also points out that Google and Meta India’s revenue of Rs 41k crore also includes ad spends across the world from India.
Rahul Vengalil, Executive Director of Everest, a Rediffusion Group, agrees with Srivastava. Vengalil however adds that the ad spends outside India is miniscule in comparison to what brands spend within the country.
Ahmed Aftab Naqvi, Global CEO & Co-founder, GOZOOP Group, opines that the PMAR 2022 prediction had a very high degree of upward risk and it is certain now with the results that have come out.
“Diwali has been fantastic for digital ad spends which indicates that digital ad revenue will increase and surpass the benchmarks set last year. This is the pattern we witnessed for brands across sectors, year on year basis,” says Naqvi.
Naqvi further adds, “The Meta’s FY22 financial result shows an upward trend in ad spends majorly calculating the variables we had to adapt to in the previous two years. Moreover, 2022 flagged off with lifting all restrictions and allowing establishments to open digital and retail stores in full capacity resulting in greater spends.”
With multiple global events that supplement the advertising capabilities of brands, the spending is only indicating better numbers, he opines.
Reasons
Even as leading corporates increased their digital ad spend and categories such as travel and hospitality which were not spending during the pandemic have also started advertising in FY22, it’s the small and medium size businesses (SMBs) that are supposed to have contributed a lot in boosting tech and ecommerce giants’ ad revenues.
“AdEx projections are often done by agencies who don’t map advertising by SMBs,” senior media executives point out. Many of these businesses quickly transformed into D2C brands during the pandemic and their growth trajectory largely relied on digital marketing, experts say.
Rahul Vengalil says, “Facebook and Meta are two platforms where anyone with a credit card or Paytm wallet and an online ad tutorial can start running ads. You don’t need too much intervention from a third party agency to run ads on these two platforms. On the other hand, the AdEx reports, while I am not entirely sure of the methodology, most likely cover the corporates and others who are advertising in a structured manner. Hence, a big chunk of digital advertisers are left out in the survey.”
Apart from SMBs, influencers who advertise on their own on Google and Facebook would never be covered in any AdEx report. Mom-and-pop stores who advertise online – they will also not be covered in any AdEx report, Vengalil explains.
Global scene
The global digital advertising market reached a value of nearly $486 billion in 2021, having grown at a compound annual growth rate (CAGR) of 18.5% since 2016, as per the “Digital Advertising Global Market Opportunities And Strategies To 2031” report released recently.
The share of digital advertising globally has grown up to 50 per cent. The Indian digital market is still unsaturated and hence bound to grow further, experts say.
India has nearly 6.3 crore (63 million) SMBs that are the cornerstone of the economy and vital job creators, contributing approximately 30% to India’s GDP and providing employment to over 114 million people in the country, according to India Brand Equity Foundation, Ministry of Commerce. The digital pie is surely set to grow.
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Guest Column: Gopa Menon, Digital Head – Mindshare South Asia, shares his list for all the big digital trends this year that will gain momentum in the year to come
By Gopa Menon | Dec 26, 2022 9:02 AM | 6 min read
We live in such a dynamic and ever-changing world, future gazing and predicting trends is a tough act. Nobody could have predicted how 2020 will forever change the face of marketing but over the years we know that a few things are kind of certain like brands and businesses needing to be connected to understand customer needs and their motivations. While tech advancement continues to gather pace, it will always be important to look at the human aspect of marketing, and the focus should always be on people and using technology as an enabler to make the journey or their interaction enjoyable, meaningful, and seamless.
Some of the trends we have seen continue from this year and will gain momentum next year is what I have attempted to highlight.
1. Omnipresent AI
Will 2023 be the year of AI? Maybe, we are already seeing this in the last half of this year with Chatgpt and AI powering Text to image creatives. We will continue to see huge advancements in AI & increase in the number of businesses using AI-powered technology and automation for their marketing campaigns. I also believe next year AI will become mainstream and at the centre of every marketing or business decision. These interfaces will help businesses create more intelligent products and services. AI is also the backbone of voice search and smart assistants.
3. Metaverse beyond the hype
The idea of Metaverse is that it enables an immersive internet where one is able to engage and enable multiple things. AR and VR will continue to advance, and I believe one will start to see more tangible creation on Metaverse beyond the hype that it got into in 2022. There are reports that Microsoft and other tech majors are developing a metaverse platform for co-creation and collaboration. As Tech evolves and advances, we will see the overall experience of consumers on these platforms getting even better, whether it’s an advancement in how your Avatar looks to how you are able to engage in a game with its characters in an immersive manner.
3. Blockchain of everything
I believe in 2023, we will see the adoption and advancement of blockchain technology in marketing. As companies create more and more products and services, there is a high probability of this becoming mainstream. I also foresee NFT usage or activations becoming more practical and mainstream. Decentralization of data storage is another way to make your data safer as well as easier to access than the cloud and this is a trend that I see becoming more mainstream.
4. Screen Agnostic Planning to become a norm
Gone are the days when digital and TV plans were built in silos, with advancements in digital technology, one is now able to drive more measurable impact for their marketing campaigns. One is also able to retarget the users who have been exposed to the TV commercial and with the advent of Connected TV and its rising popularity, it will become even more important to plan in an integrated manner. Since customer journeys are not at all linear today, it’s now possible to target consumers at different stages in the funnel with different communications. This will become important for brands as they are increasingly trying to integrate their offline and online efforts.
5. Personalisation at scale
Personalization will become increasingly important in marketing efforts as everyone is trying to cut through the clutter and get customers’ undivided attention. In keeping with the trend – one-size-fits-all campaign will no longer work, and the need of the hour will continue to create customized marketing campaigns. Marketers will also have to ensure that other than focusing on efficiency, they must ensure that their content is relevant. In order to do this, I foresee increased use of AI & ML in marketing to personalize content at scale. Artificial Intelligence and Machine Learning will be put to use to personalize the message, as these technologies are powering brands to create and personalize content at scale.
6. Influencer Relationships will grow even stronger
While over the year we have seen a rise in Influencer marketing, this trend will continue to grow in 2023. Influencer marketing now has become the go-to strategy for pretty much every business with an online presence. Every brand that is collaborating with influencers is seeing great returns on its investment through increased sales and brand awareness. One trend that I see gaining importance is the Influencer in the Commerce space. With the growing importance of influencers, their ability to influence and drive sales will become even more important. Brands can leverage influencer marketing by creating communication that fit seamlessly into social media feeds and integrating their eCommerce platforms with social media channels.
Instagram and other social platforms have helped accelerate the social commerce trend.
This space I feel will become interesting as technology has evolved and now one is able to attribute and measure the impact of an influencer on the brand specifically with respect to outcomes like Sales.
7. Use of Big Data and Data-Driven marketing will continue to grow
Dependence on big data for marketers is as unavoidable as it’s transformative for the business. That’s why I believe businesses will continue to invest in collecting first-party data and also analyzing information from all of the data sources and thus integrating it into their digital marketing campaigns i.e., increased reliance on data to drive decision-making purposes for their business. Businesses will also be preparing for the cookieless scenarios which will dawn upon us sooner than later and hence the importance of collecting, enriching, and activating the data in the right environment will increasingly become important.
8. Hyper-Local becomes the norm
Hyper-targeting across touchpoints will become important to drive efficiency. In the current environment, every brand will focus on maximizing its spending. Focused, micro-targeted segmentation will reduce wastage and eliminate people who are not responsive to communication. For this level of hyper-targeting, the use of customized data sets and cohorts will become a necessity. Action-oriented sequencing in omnichannel campaigns will emerge as another sub-trend.
(The views expressed here are solely those of the authors and do not in any way represent the views of exchange4media.com)
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The streaming giant spoke of such a step after it faced severe losses
By exchange4media Staff | Dec 23, 2022 3:51 PM | 1 min read
Netflix seems all set to stop subscribers from sharing passwords from early next year. The streaming giant has been talking about this step for some time now.
The password-sharing feature has led Netflix to suffer losses, forcing CEO Reed Hastings to put an end to the practice.
It gained 2.4 million subscribers in Q3 with Hastings saying that the platform will now focus on content, marketing and a lower-priced plan with advertising.
The company had also said during its financial that it was expecting to continue to add subscribers in coming months. It is also rolling out a number of changes, including launching a less expensive option with adverts next month, Netflix said.
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In an interview with a daily, Google’s Country Head has said he believes advertisement expenditure is set to grow in the country
By exchange4media Staff | Dec 23, 2022 2:26 PM | 1 min read
Google is expecting its advertisement revenue in India to grow at a strong rate, Country Head Sanjay Gupta said in an interview with a daily.
According to Gupta, the ad revenue growth is certain as the ad-to-GDP ratio in India is low. He said he believes advertisement expenditure is set to grow in the country.
Google India posted a 79.4% growth in gross advertisement revenue at Rs 24,926.5 crore for the fiscal ended 31st March 2022 compared to Rs 13,886.7 crore in the previous fiscal.
As reported earlier, India’s digital ad revenue is likely to surpass all projections and predictions this year.
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The parliamentary standing committee on finance presented a 70-page report highlighting how tech giants have certain advantages that tilt the market in their favour
By exchange4media Staff | Dec 23, 2022 9:34 AM | 1 min read
Concerned by Big Tech’s influence on competition, a parliamentary panel has called upon government intervention to act swiftly against anti-competitive practices.
The panel labelled the tech giants’ ad business a “monopolistic threat” that could harm digital markets. To ensure that the markets stay fair and transparent, the panel has asked the government to act early and swiftly.
The parliamentary standing committee on finance presented a 70-page report which said that the Big Tech ad business is a monopolistic threat since it owns every step in the system that connects ad sellers and buyers. This gives them an undue advantage over the competition, ensuring their monopoly in the market.
The panel presented a set of solutions which also includes an ex-ante evaluation of Big Tech’s competition behaviour instead of the ex-post evaluation that is carried out presently. It also proposed a separate Digital Competition Act.
It has to be noted that a month back in November, I&B Minister Anurag Thakur said that the government is working towards a bill to regulate digital media.
Thakur cited the communication of news becoming multidimensional due to a spurt in electronic and digital media to be the reason.
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Elon Musk has tweeted that the new feature will let users see how many times a tweet has been viewed
By exchange4media Staff | Dec 23, 2022 9:17 AM | 2 min read
Twitter owner Elon Musk has informed users that the platform has rolled out a “view count” feature, which will show how many times a tweet has been viewed. This move could be of particular interest to brands and marketers who want an accurate method to measure the ROI of sponsored tweets or ads.
Twitter is rolling out View Count, so you can see how many times a tweet has been seen! This is normal for video.
Shows how much more alive Twitter is than it may seem, as over 90% of Twitter users read, but don’t tweet, reply or like, as those are public actions.
The feature is quite commonly used on platforms like YouTube and Instagram to gauge the reach of videos.
It has to be noted that the feature is different from the Twitter Analytics tool, which lets users see the reach of only their own posts.
This week, Musk also teased the possibility of him stepping down as the head of Twitter. He had put up a poll, asking users to decide and that he would abide by the results. Interestingly, there were more votes against his favour than for him.
Previously, Musk had stuck to his word and brought back formerly banned Twitter users on the basis of poll results. This time around, he said he will quit the position only if he finds someone “foolish” enough to take on the responsibility.
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YouTube's dominant market position and enormous mind share have given it a dominant place in the creators' universe, share industry heads
By Shantanu David | Dec 23, 2022 9:01 AM | 4 min read
As India hurtles towards becoming a five trillion-dollar economy, digitalization continues to play a massive role in getting us there. And in the age of the internet, Google plays a huge role. For instance, YouTube, according to an Oxford Economics study, added Rs 10,000 crore to the GDP in 2021, thanks to 750,000 creators and their ancillary staff.
Vivek Kumar Anand, Director – Business and Innovation, DViO Digital points out that in today’s data-fuelled, reward-driven culture, YouTube has become a way of life. “When we need detailed information about any topic, we hit YouTube. For Reviews, Unboxing, Tutorials, Music videos, Gaming videos, Vlogs, Educational videos, Comedy and entertainment videos; everything from entertaining to informative. Apart from a wide range of content and searchability, its early adoption has allowed YouTube to build a large and loyal user base over the years.”
This brand loyalty has majorly driven the creator economy. As Mitesh Kothari, Co-founder and CCO, White Rivers Media, notes, “’Creator economy’ has become one of the buzzwords this year in India’s start-up ecosystem. Many people have come to appreciate content creators for their imaginative and captivating work. Many of them are making use of this popularity to monetise their passions and make a living. There are many ways for these creators to make money nowadays, from corporate sponsorships or brand promotions to participating in various challenges and campaigns organised by social media sites.”
Today, the creator economy contributes to more than simply platforms. In addition to fostering a community, it strengthens ties between businesses and consumers and enables them to focus on a difficult-to-reach demographic.
Kothari says that several reasons have led to the boom in the creator economy. “According to TRAI, India has 700 million internet users and 600 million smartphone users, placing it second in the world for user numbers. Digital media consumption, as opposed to more conventional forms like TV, has encouraged the expansion of the creative economy. Storytelling ultimately draws people, and India’s internet penetration has made it possible for residents of small towns and rural areas to join the creator wave.”
Divyansh Gala, Group Head – Outreach, SoCheers, says it is interesting to note that today the term creator isn’t limited to just influencers either; or just entertaining content, for that matter. “A teacher sharing their lectures online is a creator; so is a chef, amateur or professional, sharing their recipes and cooking secrets. This widening scope is one of the biggest reasons for the immense success of the creator economy,” he says.
Anand notes that YouTube undoubtedly has a dominant market position and enormous mind share and there are two key driving factors for it. “First is that it is the 2nd largest search engine next to Google. YouTube has a video for whatever you want in whatever language. A second factor is the consumption habits of the population, where videos are preferred over written text. The point to note here is that Instagram also has that critical mass, but the platform is mainly about short-format content and not search-driven, whereas, for long-format content, there is no competition.”
Samiksha Mehta Business Development Manager, Pollen (Zoo Media) observes that with the emergence of YT Shorts, they are slowly and steadily recruiting newer audiences. “YTS is definitely a format brands as well as creators need to be on especially because YouTube is going to start monetizing it starting January 2023 (already in beta testing),” she says noting that an interesting fact is that any page – be it brand or creator – must have at least 10 million views on their YTS to be eligible for the YouTube Partner Program. “This means that in order to reach this number – everyone will start jumping onto this format to start building a content bank.”
As of April 2022, India is the country with the most prominent YouTube audience by far, with approximately 467 million users engaging with the popular social video platform.
“YouTube is synonymous with the internet for many young Indians. They use it for entertainment, learning skills, and also education. In towns where education facilities are lacking at schools and colleges, students are turning to YouTube creators to fill that gap,” says Pranav Agarwal, Co-Founder of Sociowash, concluding, “No other platform has been able to garner the traction that YouTube has managed, that too across demographics. YouTube, as a platform, arguably has the best representation pan India. With engaging scripts, the ability to produce videos with little to no budgets, and entertainment, our Indian creators are making blockbusters or, now, even ‘shorts-busters’.”
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In 2022, 12 million monthly active creators created over 750 million videos on Moj, the platform said
By exchange4media Staff | Dec 22, 2022 1:16 PM | 2 min read
Moj has unveiled its year-end wrap-up with insights on creator growth, what trended in 2022, regional viewership trends, and the overall sentiment. Micro-influencers and content in regional languages are expected to become the next big thing on Moj, along with the use of lenses that encouraged creators in 2022 to flood the platform with fun content throughout the year.
Moj has close to 300 million monthly active users and witnesses 3 million content uploads every day that garner close to 6 billion views daily.
According to the platform, 45% of trending music was non-film. Moj creators are monetarily gratified through Moj’s in-house currency, Mints, for their creative and engaging content on Moj LIVE and short videos. Moj Mints can be redeemed as actual money by the creators.
In 2022, 104K creators across genres earned over 3.5 billion Mints, i.e., $25 million.
Virtual gifting, brand collaborations, and participating in challenges were the top avenues for creators to generate income on Moj.
The most popular genre that witnessed the highest number of Mints was Romance & Relationships, with 32% of the total Mints. It was followed by Comedy & Fun.
Viewership in Tamil increased the most, by almost 71%, followed by Telugu and Bhojpuri. Over 300 million videos were created in regional languages that garnered a total of 50 billion views, a trend that is expected to continue.
The year was all about quirky and fun lenses on Moj.
Music was also a crucial part of the entertainment on Moj that elevated the short video experience in 2022.
About 45% of trending music was non-film, out of which almost 40% were new releases.
Looking at the trends observed on Moj in the year gone by, Shashank Shekhar, Senior Director, Content Strategy and Operations Moj and ShareChat, says, “The year 2022 saw Moj, and our community, grow bigger and stronger. For us, it was a year of breaking out of the clutter through innovative features, creative collaborations, and creator monetization. We reached several milestones not just around the tremendous growth in our creator community but also with never-seen-before creative interventions, which provided our creators avenues for monetization and gave brands an opportunity to engage authentically and organically with their audiences. Moj is geared up for 2023, and we hope to continue our journey towards gaining further inroads to the heartland of India and, of course, holistically grow our creator community by helping them build a sustainable career as an Indian creator.”
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