Market Insights Advertising & Media Advertising

Social Media Advertising - India

India

In India, ad spending in the Social Media Advertising market is projected to reach US$1.47bn in 2024.
The ad spending in this market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.89%, leading to a projected market volume of US$2.25bn by 2029.
When compared globally, the majority of ad spending will be generated China, with an estimated US$84,650.00m in 2024.
In the Social Media Advertising market withIndia, 83% of total ad spending is anticipated to be generated through mobile by 2029.
Furthermore, it is expected that the number of users in the Social Media Advertising market in India will amount to 933.5m users by 2029.
In India, the rapid growth of internet penetration is significantly enhancing the effectiveness and reach of social media advertising strategies among brands.

Key regions: United States, France, Japan, Europe, Germany

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Analyst Opinion

The Social Media Advertising market in India has been experiencing significant growth in recent years.

Customer preferences: Indian consumers have shown a strong preference for digital media and social networking platforms. With the increasing penetration of smartphones and internet connectivity, more and more people in India are accessing social media platforms on a daily basis. This has led to a rise in the demand for social media advertising as companies seek to reach their target audience through these popular channels.

Trends in the market: One of the key trends in the Social Media Advertising market in India is the shift towards video content. Video advertising has gained traction in recent years as it offers a more engaging and interactive way to connect with consumers. Platforms like YouTube, Facebook, and Instagram have seen a surge in video content consumption, and advertisers are capitalizing on this trend by creating compelling video ads to capture the attention of their target audience. Another trend in the market is the increasing use of influencer marketing. Influencers, who have a large following on social media platforms, are being leveraged by brands to promote their products or services. This form of advertising is seen as more authentic and relatable to consumers, leading to higher engagement and conversion rates.

Local special circumstances: India has a diverse population with multiple languages and cultural nuances. This poses a challenge for advertisers as they need to create content that resonates with different segments of the population. Advertisers need to understand the local preferences and cultural sensitivities in order to create effective social media campaigns.

Underlying macroeconomic factors: India is experiencing rapid urbanization and a growing middle class, which has led to an increase in consumer spending power. This has created a favorable environment for advertisers to invest in social media advertising as they seek to capture the attention of the growing consumer base. Additionally, the government's initiatives such as Digital India and Make in India have further fueled the growth of the digital economy, making social media advertising an attractive option for businesses. In conclusion, the Social Media Advertising market in India is witnessing significant growth due to the increasing preference for digital media, the rise of video content, and the use of influencer marketing. Advertisers need to understand the local preferences and cultural nuances in order to create effective campaigns that resonate with the diverse population. The underlying macroeconomic factors, such as urbanization and the growing middle class, are also contributing to the growth of the market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, social media users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.