Digital to garner ad spend of Rs 48,603 cr in 2022 overtaking TV: GroupM TYNY

GroupM futures report, ‘This Year, Next Year’ (TYNY) 2022, projects global ad spends to reach $850 billion in 2022, registering a growth of 11% over 2021 ($766 billion). At a projected $563 billion, Digital is expected to account for two-third or 66% of the total global ad spends in 2022. The incremental spend share of Digital globally is estimated to be 83%.

Among all the medium, Digital is seen as leading ad spend growth in 2022 at 14% vis-a-vis 2021.

India is expected to see its ad spend growth climb to cross the 1-lakh mark in 2022. As per the GroupM TYNY report, ad spend in India is estimated to reach Rs 107,987 crore this year, a growth of 22.2% over 2021. In India, Digital is expected to overtake TV to become the largest medium in 2022, garnering ad spend of Rs 48,603 crore, which is a tad ahead of TV ad spend at Rs 42,388 crore.

In India, too, Digital will lead the growth in 2022 at 33% and is estimated to reach 45% share of the ad spend in 2022, as compared to 41% share in 2021. Digital’s incremental share ad spend share is pegged at 61% in 2022.

According to the GroupM TYNY report, the Covid-led pivot to Digital is seen as a primary driver of growth. The booming start-up ecosystem, which saw as many as 44 Unicorns in 2021 is also contributing to the growth in Digital advertising. As per the report, India is expected to see 77 new Unicorns in 2022. The rising role of e-commerce, influencers and new platforms are also fuelling Digital advertising’s growth. Video and the SME segments are also driving growth in Digital.

The next generation of digital experience will be driven by decentralisation

Among the key trends in 2022, according to the GroupM TYNY report, Web3.0, Metaverse and NFTs are all making headlines with pundits and promoters using these terms to communicate visions of a decentralised and virtual-first future. Fundamentally, these emerging technologies are harbingers of a developing cultural shift that may unfold over the next decade as a generation of consumers who live primarily in virtual worlds comes of age.

Web 3.0 is the next stage of the web evolution that would make the internet more intelligent or process information with near-human-like intelligence.  In Web 3.0 - users won’t distinguish between physical & digital experiences. They will expect work, friends, goods, and experiences to be connected virtually. This interconnected, live, persistent virtual world is also popularly known as the Metaverse. Brands would start leveraging this virtual world as well as components powering the virtual worlds to build brand experience & assets, drive the consumer to connect, associate with the cause, build loyalty, own a moment or drive real or virtual sales.

The new virtual world will also come with its own challenges and learning curves for the ecosystem. GroupM helped three of its brands to participate recently in the first Metaverse wedding and integrate brand experience and narrative.

Advanced Intelligence to counter digital fragmentation

With the receding impact of cookies and rising data privacy laws, Advance Intelligence is the saviour in this digital marketing and advertising data explosion. Also, Humans are unable to process the huge amount of marketing and digital data points that are hitting them every second, in volume, variety and velocity.

The use of AI and ML will lead to advance data processing capabilities, bringing excellence in execution by automating, auditing, reporting and analysing digital campaigns. Marketers will accelerate the use of the algorithms to find numerous permutations and combinations to deliver performance/ ROAS. Customers demand relevance and resonance from the advertising they see. AI-ML will be used to predict personalisation.

Automated Content Recognition will be required to understand what content works for what audiences to what is trending in the marketplace on all types of public content.