2017 in Review: Digital wraps up on an optimistic note, looks for next big surge

According to Manish Maheshwari, Chief Executive Officer, ‎Network18 Digital, two major evolutions are particularly profound – growth of the regional pie and increased consumption of video content. “There has been 10x growth in ‘local language’ searches over the past one and a half years due to increasing availability of Indic keyboards and keypads on smartphones. Estimates show that watch time for Tamil, Telugu, Kannada, and Malayalam content on YouTube has spiked steeply. Some 30 per cent of job portal users want to see content in local languages. Hindi content consumption on websites is growing 5x faster than English content. Over one-third of search queries are coming from outside top 20 metros in the country. At Network18 Digital, we launched the Hindi version of Firstpost. News18.com is already available in four other languages and the number will only increase. Thus, regional is clearly the way to go.” 

Similarly, there has been a significant growth in consumption of videos online, with improving handset capabilities and the lowering of broadband tariffs. Specific apps like Voot, Amazon Prime and Netflix have offered the opportunity to create and distribute original content, distinct from television. 

“Thus, we see that innovation is happening at a frantic pace given the size and diversity of audience. Content is getting re-imagined and publishers are getting into branded content and native ads to diversify revenues beyond display advertising sales,” Maheshwari added. 

The entire digital fraternity is optimistic about the growth of this medium in future. Share of digital in total advertising budget is expected to grow from around 12-15 per cent today to around 25 per cent by 2020. Growth of digital advertising until 2020 is expected in the range of 30-35 per cent CAGR. Maheshwari further said, “2018 will bring its own challenges and opportunities. But I have firm faith in technology driven digital consumption. At Network18 Digital, we will continue to create path breaking products and set new benchmarks.” 

Sounding equally optimistic about the growth of OTT and digital consumption, Uday Sodhi, Head - Digital Business at Sony Pictures Networks India, SonyLIV OTT, Digital Video, Digital Content, said that with the entry of global as well as local players, 2017 has been a year of excitement for the entire OTT space. “The number of smartphone users in India is expected to reach a whopping 530 million,” Sodhi said, adding, “The challenge for brands is to connect with customers through all these devices in real time and create campaigns that work across social media, display advertising and e-commerce. There is space for everyone and everyone will continue to grow with their unique offering.” 

According to Rajesh Ghatge, CEO, Indigo Consulting, following have been the major game-changing developments in the digital domain during 2017: 

OTT platforms – creating original content based on deep analytics of personas that are consuming content on these platforms. These platforms were, till not long ago, merely distributing content produced by publishers for on-demand viewing. The publishers now having unprecedented competition for the brands marketing dollars are scampering to create their own OTT platforms. 

Chatbots – especially the ones that can be deployed in a few lakhs. They are potentially replacing hundreds and thousands of call centre jobs. 

The invasion of AI in our daily lives – that too, without you realising it. You are subjected to content, product and experience recommendations and now even the most compatible dates (based on a mere right or left swipe). 

2017 – Annus horribilis or Annus mirabilis? 

“The digital sector witnessed a boom in 2017. Due to rollout of 4G services and exponential growth in usage of affordable smartphones, the OTT industry expanded widely last year. Many investments were made in the digital space. The Indian digital eco-system witnessed a growth in the number of B2C platforms. Along with entertainment, OTT platforms became a home for engaging content as well. With an increase in consumption, the year was surely annus mirabilis,” remarked Uday Sodhi. 

For Rajesh Ghatge, too, 2017 has been an Annus mirabillis year. “The phase has just started. One feels like a surfer who can sense the next big wave coming up and anticipates the high,” he concluded.