The Indian Entertainment and Media (E&M) sector is expected to reach Rs 4,30,401 crore by 2026, an 8.8% compound annual growth rate (CAGR), the e4m-Xaxis Report 2023 stated. The report further stated that programmatic advertising in a select group of countries like India is expected to reach $18.42 billion in 2026, a 25.67% CAGR since 2021.
The e4m-Xaxis report was unveiled today by e4m co-founder Nawal Ahuja and Dimpy Yadav, General Manager, Xaxis India.
According to the report, social commerce is set to drive the future of buying in India and is predicted to grow at a CAGR of 62.4% through 2028, with millennials playing a major role in its expansion. It further says that 44.8% of internet users use social media to look up brand-related information and more than half of them between the age of 16 and 24 use social media to research brands.
As digitisation continues to define consumer habits in India, programmatic advertising has surged like never before. The e4m-Xaxis report states that 75% of Indian consumers today are still concerned about how their data is being collected and used. Meanwhile, 61% of consumers have said that they were comfortable releasing their data, if they had control over it.
The report highlights that e-retail in India is still concentrated in its top eight metropolitan areas, with one in three shoppers in those regions using online shopping through last year. The e-retail market is expected to grow to $120-140 Billion by 2026, increasing at approximately 25-30% per year.
With the emergence of AI, the programmatic ad space is evolving quickly. Ads are becoming smarter and more immersive and more engaging than ever. Dimpy Yadav, General Manager at Xaxis India says: “AI helps in structuring media plan strategies and efforts more strategically. When instructed correctly, AI can help optimise marketing plans toward better sales metrics. It empowers digital media strategies to identify and locate prospects without biases or assumptions to find audiences and determine bidding strategies to achieve specific outcomes that are beyond standard selections of demographics or buying metrics such as CPC, CPM, etc.”
The e4m-Xaxis report also states that television remains the leading source of ad revenue in India with people spending an average of 4 hours daily this year to watch TV content. In the post-pandemic era, consumers have gravitated towards connected TV (CTV), with 50% of consumers who watch TV saying they prefer it over other forms of television. Also, 40 million household subscripted to OTT (which includes consumption on mobile and on CTV) this year and 390 million Indians gamed online.
Programmatic advertising gives marketers the ability to target consumers precisely, at scale, and to measure the outcomes, resulting in a clear indication of return on ad spend (ROAS). The omnichannel approach to programmatic advertising allows businesses to target a unified audience, increasing media efficacy.
The landscape for digital media has radically changed in the past few years and consumer habits have shifted as smartphone ownership has increased. The efforts towards a cookie-less world and increased scrutiny from regulators have spurred advertisers and ad-tech companies to shift their focus from cookies to first-party data. To remain relevant and reach consumers, brands need to reconsider the way they manage and use that data. With an aim to future-proof digital advertising for tomorrow, businesses need to invest in the right technology. They need to refine advertising and marketing strategies and align them with their business goals.
Internet penetration is growing with advancements in technology and e-commerce is on the rise. The digital media space is evolving at a rapid pace as technology has changed the way industries operate, including advertising. Consumers are no longer content with traditional methods of engaging with brands. They expect more, especially from their favourite brands, and brands that will become their favourites. Marketers need to be agile and redefine the way their customers consume content. At the very least, they should implement new strategies that move alongside changing user habits.
To download the full report click here.