India’s digital ads market will touch $35 billion by 2030 and e-commerce platforms will be one of the biggest contributors enabling this upward spiral, according to Redseer Strategy Consultants.
As per the report, e-commerce platforms are now the fastest growing medium for digital ads, with a $6-8 billion opportunity by 2030. The growth in product e-commerce user base is expected to be faster than search and social media platforms, with $300 to $350 million new online shoppers from tier 2 markets expected by CY30.
The contribution of these e-commerce platforms to the AdTech industry has rapidly increased from 15% to more than 20% in the last 2 years and would contribute between 20% and 25% of the market share, it further said.
Sanjay Kothari, Associate Partner, Redseer Strategy Consultants said, “The fact that millennials and Gen Z spend so much time on digital platforms is helping in the growth of the AdTech market. This is likely to continue as more people use websites, apps, and social media to engage with each other.”
Another interesting trend being observed is that advertisers are now spending more dollars on e-commerce platforms for building awareness rather than focusing on performance marketing driving sales, according to the report.
The total advertising market in India stood at $11 billion in CY21, out of which 37% comprised the digital ads market. Currently, leading horizontal e-commerce marketplaces (Amazon & Flipkart) constitute 75% share in the Product e-commerce-led ads market.
The overall advertising market, which includes traditional and digital ads, is poised to touch $45 to $50 billion by CY30, out of which a staggering 70-75% will comprise digital ads, as per the study. The Hindu