India’s digital ad market to hit $35 billion by 2030: Redseer

E-commerce platforms are now the fastest growing digital advertising medium in the country

E-commerce platforms are now the fastest growing digital advertising medium in the country

bangalore

India’s digital advertising market will reach $35 billion by 2030 and e-commerce platforms will be a major contributor to this upward spiral, according to Redseer Strategy Consultants.

According to the report, e-commerce platforms are now the fastest growing medium for digital advertisements, with an opportunity of $6-8 billion by 2030. e-commerce products are expected to outpace search and social media platforms, with $300-350 million of new online shoppers in Tier 2 markets expected by CY30.

The contribution of these e-commerce platforms to the AdTech industry has rapidly increased from 15% to over 20% over the past 2 years and is believed to contribute between 20% and 25% market share, he added.

Sanjay Kothari, Associate Partner at Redseer Strategy Consultants, said, “The fact that Millennials and Gen Z spend so much time on digital platforms is helping the AdTech market grow. This is expected to continue as more and more people use websites, apps, and social media to interact with each other.

According to the report, another interesting trend observed is that advertisers are now spending more money on e-commerce platforms to build awareness rather than focusing on performance marketing that drives sales.

The total advertising market in India was $11 billion in CY21, of which 37% comprised the digital ads market. Currently, the major horizontal e-commerce marketplaces (Amazon and Flipkart) account for 75% of product e-commerce-focused ad market share.

The overall advertising market, which includes both traditional and digital ads, is poised to hit $45-50 billion by CY30, of which 70-75% will include digital ads, according to the study.