Digital Boom: Digital Economy Will Touch Rs 2.2 Lakh Cr By Year End; India Will Becomes World’s 10th Biggest Digital Ad Market
It is digital boom, all across India right now. Digital commerce is now growing at a breakneck speed, and is expected to cross Rs 2.2 lakh crore mark, by the time December ends. This has been predicted by IAMAI, via their internal report.
At the same time, as per another report by IPG Mediabrands-owned Magna, India will soon become World’s 10th largest digital advertisement market.
IAMAI Report: Digital Commerce To Touch Rs 2.2 Lakh Crore
IAMAI, in association with IMRB Kantar has prepared a report on the scope and expansion of digital commerce in India, and the findings are pretty optimistic.
As per the report, the industry is right now growing at a pace of 30% per year; and by the time 2017 ends, the industry will touch Rs 2.2 lakh crore mark.
At the end of December, 2016, the market was worth Rs 1.68 lakh crore.
The report observed that online travel is the largest segment within digital commerce right now, grabbing 50% market share. By December, this segment would be touching Rs 1,18,598 crore, which is more than 24% growth compared to Rs 95,198 right now.
However, the fastest growth would be witnessed by ecommerce industry, which will cross Rs 94,964 crore by the end of this year. This means that ecommerce industry is growing at 59 % annual rate, as it was worth Rs 59,876 crore in December 2016.
At the same time, online utility payment segment (DTH, phone bills etc) would reach Rs 7,532 crore up from Rs 6,277 last year, meanwhile online bookings (movies, sports events) segment is expected to reach Rs 4,587 crore by 2017 end.
India Will Become World’s 10th Largest Digital Ad Market
Meanwhile, findings by IPG Mediabrands-owned Magna report states that digital advertisement market in India is about to touch Rs 56,400 crore, by the end of 2017. This means an annual growth of 11.5%.
Once this happens, India will become World’s 10th largest digital advertisement market.
As of now, Italy is world’s 10th largest digital ad market.
In terms of annual growth, we are about to beat countries like China (7% annual growth), Spain (7% annual growth) and even Russia (10% annual growth)
As per the report, the industries which will drive maximum digital spendings include: social, fintech, payment banks, telecom, content distribution platforms along with FMCG, automobile and e-commerce.
Interestingly, the report had initially pegged 13.5% annual growth, but have reduced it by 2%, due to short-term obstacles due to GST this year. However, once this phase is over, digital ad industry will grow by 12.8% in 2018, and then 14% in 2019.