Digital ad spend in regional media set to grow to US$3 billion by 2023 as internet user base swells

Fuelled by a developing base of online users, digital advertising spend in the local media is set to develop from US$ 300 million in 2018 to US$ 3 billion by 2023, Facebook and Google presently represent 80 per cent of Indian digital advertising spend.

As indicated by the report that depends on a quarter of a year of research including 3,000 individuals across over 121 urban communities and towns in India, the country has 530 million clients who have access to the internet, of which 260 million users are monetisable, which incorporates 210 million vernacular users. Curiously, in spite of the fact that these 210 million users with a yearly spending intensity of US$ 300 billion incline toward vernacular content they are compelled to get to Facebook in English due to the low quality of online vernacular content.

India has included internet users at 8X speed in the past 10 years, driven by small communities and towns and not by huge urban communities where users are entering the digital ecosystem because of access, affordability and aspiration. The top 50 cities today represent under 20 per cent of the internet user base, which will keep on diminishing as a level of generally internet user base in the following five years.

A few new age businesses have effectively ventured towards incorporating vernacular users and tap into this high potential digital ad market. Ola provides help in 12 languages that spreads larger part of its level 2 or more users and 25 per cent of Paytm users collaborate in regional languages as the application supports 11 language.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.