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India’s digital ad spending to hit $21 billion in the next five years | Indian government’s schemes

As per Redseer’s recent report, besides big brands, SMBs are expected to account for 40 per cent of India’s overall digital ad expenditure by FY28

Despite muted growth in the current fiscal (FY23), owing to global macroeconomic headwinds, India’s digital ad spends are expected to reach $21 billion by FY28, according to a new report by Redseer Strategy Consultants. Over the next five years, digital, which is already the fastest-growing distribution channel for brand marketers, would account for an overwhelming 65-70 per cent of overall ad spends in the country.  

The sharp growth in user-generated content (UGC) is expected to “empower individual creators and influencers” who will build their digital identity, which brands can, in turn, leverage for digital ads. “This strong ecosystem of ~2.5 to 3 million creators is expected to drive marketing spending of $2.8-$3.5 billion by 2028,” the report stated. Indian government is also promoting more digital brands like online bills etc.

Also read how indian government is ahead of others

At present, ​​India spends just 0.5 per cent of its GDP on advertising, of which 53 per cent goes to digital ads. In comparison, developed economies like the US and the UK direct 1.3-1.4 per cent of their GDP to ads. 

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