India's Digital Advertisers Shift Spending to Video - eMarketer

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India's Digital Advertisers Shift Spending to Video

More high-speed internet and mobile video investment contribute to increase

July 18, 2016

Digital ad spending in India is experiencing a rapid rise, with eMarketer predicting earlier this year that the country’s online ad market would surpass more than $1 billion in investment by 2017.

Digital Ad Spending Share in India, by Format, FY 2012-FY 2015 (% of total)

Now, data from the Internet & Mobile Association of India (IAMAI) and research firm IMRB International is adding further insight into where exactly those digital dollars are heading. IAMAI and IMRB’s analysis of digital ad spending by format share found that video spending grew from 12% in 2014 to 17% in 2015, an increase of five percentage points and higher than any other format studied.

The growth in advertiser spending on video is attributable to a number of factors. IAMAI and IMRB point to the increasing availability of high-speed internet among consumers in India, which is contributing to more consumption of bandwidth-heavy video content. Another factor is an increase in spending on mobile video advertising, which Indian advertisers are using to target the country’s smartphone-obsessed mobile users.

Mobile Users* in Select Countries in Asia-Pacific Who Are Receptive to Digital Video Ads, July 2015 (% of respondents)

An even more important factor for the increase in digital video spending may be its performance among mobile users. A July 2015 investigation by Millward Brown into the receptivity of mobile users in Asia-Pacific to digital video ads found that mobile users in India were among the most receptive of any in the region, with 34% indicating they were amenable to the format.

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