Key Drivers of Digital Advertising Growth in 2024 | Prism Adverto

Increasing Adoption of Digital Platforms and Technologies by Consumers

1. Rise of Internet Users:

India is witnessing a rapid increase in the number of Internet users, driven by various initiatives aimed at improving digital connectivity. As of 2023, the global Internet user base is estimated to be around 5.25 billion, representing approximately 65% of the total world population. In India, the number of Internet users has grown significantly, with an estimated 700 million users in FY 23, accounting for about 49% of the country's population. This surge in Internet usage has been fuelled by the "Jio Effect," where Reliance Jio's affordable high-speed Internet has revolutionized digital marketing in India. The average daily media consumption in India ranges from 6 to 7 hours, with activities such as social media engagement, entertainment, online browsing, shopping, and gaming dominating this time.

2. Rise of Smartphones, Social Media, and Online Shopping:

The proliferation of smartphones has been another crucial driver of digital advertising growth. Globally, smartphone ownership has risen to 55% of the population, up from 52% in 2022. In India, the number of smartphone users stands at 650 million, representing 46% of the total population. The competitive landscape among smartphone manufacturers has led to price wars and the introduction of feature-rich, budget-friendly models, making smartphones accessible to a broader consumer base.

Social media platforms have also seen a significant rise in user numbers. Globally, there are 4.95 billion social media users, which is around 62% of the population. In India, social media penetration stands at 32.8%, with approximately 470 million users. The diverse and dynamic social media landscape in India, driven by factors such as user interface, content formats, and evolving trends in digital communication, provides businesses with numerous opportunities to engage with their target audience.

3. Businesses Invest More in Digital Marketing:

With the increasing adoption of digital platforms and technologies, businesses are investing more in digital marketing to reach their target audience. Digital marketing allows for precise targeting and real-time optimization, enabling businesses to maximize their marketing efforts and achieve higher returns on investment. By leveraging digital channels, businesses can create more personalized and engaging marketing campaigns that resonate with their audience, driving brand awareness and customer loyalty.

Availability of Data for Analysis

1. Proliferation of Digital Channels:

The proliferation of digital channels has resulted in an abundance of data available for analysis. Businesses can now collect data from various sources, including social media, websites, mobile apps, and email campaigns, providing them with valuable insights into consumer behavior, preferences, and demographics. This wealth of data allows businesses to understand their audience better and tailor their marketing strategies accordingly.

2. Access to Large Amounts of Consumer Data:

Access to large amounts of consumer data is a significant advantage in the digital advertising landscape. Businesses can use data analytics tools to process and analyse this data, uncovering patterns and trends that can inform their marketing decisions. By understanding consumer behaviour and preferences, businesses can create more targeted and personalized marketing campaigns that are more likely to resonate with their audience.

3. Data-Driven Marketing Campaigns:

Data-driven marketing campaigns are becoming increasingly popular as businesses recognize the value of using data to inform their marketing strategies. By leveraging data analytics, businesses can optimize their campaigns for better performance, improving their chances of reaching their target audience and achieving their marketing goals. Data-driven marketing allows businesses to measure the effectiveness of their campaigns in real-time, making adjustments as needed to ensure maximum impact.

Advancements in Technology

1. Artificial Intelligence and Machine Learning:

Advancements in technology, particularly in artificial intelligence (AI) and machine learning (ML), are revolutionizing digital marketing. AI and ML algorithms can analyse vast amounts of data quickly and accurately, providing businesses with insights that were previously unattainable. These technologies enable businesses to automate processes, optimize campaigns, and deliver personalized experiences to their customers. By leveraging AI and ML, businesses can improve the efficiency and effectiveness of their marketing efforts, driving better results.

2. Automation and Optimization of Marketing Processes:

Automation is another key driver of digital advertising growth. Marketing automation tools allow businesses to streamline their marketing processes, reducing the time and effort required to manage campaigns. Automation can handle tasks such as email marketing, social media posting, and ad placement, freeing up valuable time for marketers to focus on strategy and creativity. By automating repetitive tasks, businesses can ensure consistency in their marketing efforts and improve overall efficiency.

3. Personalization of Consumer Experiences:

Personalization is a crucial aspect of modern digital marketing. Consumers expect personalized experiences that cater to their individual needs and preferences. By leveraging data and AI, businesses can create personalized marketing campaigns that resonate with their audience, driving engagement and loyalty. Personalization can take many forms, from tailored product recommendations to personalized email content, and it has been shown to improve customer satisfaction and drive higher conversion rates.

Key Statistics

1. Rise in Number of Internet Users:

The rise in the number of Internet users is a significant driver of digital advertising growth. As of 2023, the global Internet user base is estimated to be around 5.25 billion, representing approximately 65% of the total world population. In India, the number of Internet users has grown significantly, with an estimated 700 million users in FY 23, accounting for about 49% of the country's population. This surge in Internet usage has been fuelled by the "Jio Effect," where Reliance Jio's affordable high-speed Internet has revolutionized digital marketing in India. The average daily media consumption in India ranges from 6 to 7 hours, with activities such as social media engagement, entertainment, online browsing, shopping, and gaming dominating this time.

2. Rise in Smartphone Ownership:

Smartphone ownership has seen a significant rise globally, with 55% of the population now owning a smartphone, up from 52% in 2022. In India, the number of smartphone users stands at 650 million, representing 46% of the total population. The competitive landscape among smartphone manufacturers has led to price wars and the introduction of feature-rich, budget-friendly models, making smartphones accessible to a broader consumer base. The increase in smartphone ownership has driven more people to access the Internet and engage with digital content, further fueling the growth of digital advertising.

3. Rise in Number of Social Media Users:

Social media platforms have seen a significant rise in user numbers. Globally, there are 4.95 billion social media users, which is around 62% of the population. In India, social media penetration stands at 32.8%, with approximately 470 million users.

The diverse and dynamic social media landscape in India, driven by factors such as user interface, content formats, and evolving trends in digital communication, provides businesses with numerous opportunities to engage with their target audience. Social media platforms offer businesses the ability to create highly targeted advertising campaigns, reaching specific demographics and interests.

4. Increase in Quantum of Data:

The amount of data generated by digital activities has increased significantly. The average monthly data usage per person grew from 15 GB in 2022 to 17 GB in 2023, and it is estimated that by 2028, the average data traffic per smartphone in India will reach 62 GB per month. This increase in data consumption is driven by activities such as video streaming, online gaming, and social media usage, which require higher data bandwidth. The availability of large amounts of data provides businesses with valuable insights into consumer behaviour, allowing them to create more targeted and effective marketing campaigns.