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Pros and Cons of Ongoing Online Advertising Growth – Growing Online Ads in India and Potential Death of Traditional Media

Generally, the term advertisement brings the notion of a persuasive mode of targeting potential customers to buy products or services.  At the same time, it is a mode of discerning info about products or services.  There are multiple modes to advertise, and the evolution of the online media further broadened up the opportunities to advertise.   Television, newspaper, magazines, broachers, hoardings are considered the traditional mode of advertisements.  The explosion of the internet opened up digital mode of advertisements with the help of platforms like social media, search engines, web content, and more.  The penetration of the internet, Smartphone, and availability of cheap data further boosted up the opportunities to advertise digitally.

According to market data, digital advertising has rallied better overall in the recent past, and it expects to hit the market in higher volume by end of this year due to the prevailing pandemic.  There are chances that businesses are more likely to turn to digital channels to grab the attention of potential customers since online transactions have increased ever since the lockdown.  The online media ads is forecasted to grow by 10.9% to reach Rs.75,952 crore by the end of 2020 in India.   Once the trend has been set up the growth will be higher in the coming days, and the market is expected to grow at 11.83% CAGR to reach the size of Rs.1,33,921 crore by 2025.  The technological advancements, improvements in data science, and analytics are expected to bolster its growth in the coming years.  FMCG segment spends a large share of its digital media budget on online video (36%), while E-commerce, consumer durables spend mostly on paid search and social media.

A few of the prevailing online revenue models are pay for the view, pay for download, pay for your click, display ads, video ads.  PPC includes Google Ad Words, Facebook, and Twitter advertising among other social and digital platforms.  The remarketing part of PPC continuously targets to engage prospects who have shown an interest in their product or service.  By doing this, they can constantly in the back of the mind of their potential customers.

Though paid ads are fast and cost-effective, measurable, and required training resources to enhance the skills, sometimes it doesn’t lead to sales of products.  It does require efforts to optimistic and improves the setup to get the best results.  According to market data, most of the top companies are spending on digital ads.    There are digital advisory professionals work closely with industry experts to create the best plan of action while keeping the client’s objectives in mind.

The flip side of the growth of digital ads is that most of the market revenue will be cornered by a handful of internet biggies.   This is going to badly affect the traditional beneficiaries of ads like News Papers and TV channels.  Such traditional media is known to provide quality information and entertainment to all at a very subsidized price by benefiting out of advertisement revenue.  With the fall in revenue in their kitty, many such traditional enterprises will crumble down in the coming years.  Instead, the huge advertisement revenue is going to be cornered by a few internet giants.  This will potentially change the pattern of media influence in our society and we know, media ultimately forms a general opinion.

The question to us at this point is – Will it be good to contribute to the fall of our responsible media to a handful of internet companies to profit?  Will the flow of information is going to be controlled by the community as a whole without responsibility in the coming years?  We have already witnessed the growth of fake news as well as the hijacking of media by a handful of the interested lobby for spreading distorted news.

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