Guest Column: Opportunities for Ad Network start-ups in India

The advent of digital marketing and advertising has created more success opportunities for companies by bringing them closer to their targeted audience. From the year 2006, advertising is evolving drastically due to the arrival of social media and progression of digital media, this evolution is auspicious for everyone who has accepted the change.

India is more like a mine full of opportunities for digital advertisers and marketers. We may have been late in digital advertising but we are not lagging behind any advertising trend.  The persistent growth rate in digital media has made India a preferable place for digital advertisers. Here are few key factors unveiling the emerging possibilities and prospects of Digital Advertising in India. 

 

  1. India has one of the largest internet userbases

Country's population plays a key role in preparing the audience base for any business and due to its high population, there is a bustle between companies to tap the maximum number of audience. India's population is engendering many business opportunities and digital advertising is among those sectors which have a lot of scope in terms of new audience. In a country of 1.33 Billion people, companies see an ocean full of business opportunities, which has caused a tough competition among companies to allure their targeted audience. And this rising competition between companies is generating business for the digital advertising industry.

The population factor is leveraging the advertising industry on a huge scale and the factor that attributes the growth opportunity for advertisers is the increasing rate of internet users in the country. As per a recent survey, India will have around 600 million internet users by the end of this year, which will eventually create astonishing business possibilities for advertisers. India has one of the biggest internet user base making it the most profitable place for every Ad network firm. India is enriched with broad verticals of digital marketing, new techniques, and social media because of its large user base.

 

  1. Country holds an astonishing future for Digital Ad networks

As per a recent research conducted by IBEF (India Brand Equity Foundation), the Indian digital ad market is expected to grow at CAGR (Compound Annual Growth Rate) of 33.5% to cross the $3.8 billion mark by 2020. The expected growth rate appears to be extremely auspicious for digital ad network startups making India one of the most desirable places for digital advertising.

 

  1. Country is flooded with funding opportunities

With the increasing number of start-ups, India has been alluring many Indian as well as foreign investors, making India the second most funded country after the USA. Indian ad network companies and other start-ups have gained funding from companies like Softbank (Japanese company), Tencent (Chinese company) and Tata show us how Indian Start-ups are grabbing the eyeballs of foreign as well as Indian investors. Funding aids them to haste up the expansion and promotion rate for future growth.

  

  1. Indian government is the knight and shining armour for Indian Startups

PM Modi's Startup India initiative is so far one of the most remarkable decision in the startup industry.  Government's decision of allocating a corpus of Rs. 10,000 crores to the Startup India initiative is a huge support for emerging businesses in India. Also, the change in RBI policies on financial expenditure in advertising sector has also been a great sustenance from the government to advertising industry which will surely help it to become the rise and shining star of the startup industry.

Apart from Startup India, there are other initiatives by Indian government such as Digital India. Which is now the new pillar of the digital ad industry. These campaigns are creating a promising environment for every for digital startups and other foreign companies.

 

Government's tech-savvy attitude is also playing a major role in shaping the future of our country. The Indian government policy of looking forward to forming a comprehensive strategy to encourage and adopt emerging technologies such as Artificial Intelligence, Blockchain, and Bigdata Analytics is one of the reasons why we can surely say that Indian government is the Knight and shining armour for Startups.

 Government's tech-conscious attitude is forming India the most desirable place for business. 

 

  1. India is full of business opportunities because of it's a startup hub

Over the decade, the term start-up has emerged as one of the most influential business trends in our country. This movement has given birth to many small medium enterprises, and these companies are bootstrapped start-ups with limited funds. Small companies cannot invest money on promotional activities for public acceptance due to which they prefer digital advertising over traditional advertising as it costs a fortune whereas the digital advertising is a cost-effective solution and gives the conversion oriented solution to all the marketing problems.

This emerging startup trend has led to an increase in demand for digital advertising and marketing, which has generated a favourable environment for ad network start-ups.

 

  1. Every day thousands of people switch to smartphones

The modern-day India is converting from generic mobile phones to Android mobile phones due to cheaper call rates and good internet speed. This conversion is not only generating internet users but also increasing the opportunities for digital advertising whereas in developed countries there is no conversion because people are updated about the gadgets. This conversion ranges from youngsters to older people, which provides age-specific viewer base for advertisers. The adaptation is taking place gradually, because of the financial and geographical differences in the country.

Every day we take a step towards technology and people take a step ahead in the same direction, which means we are generating viewers with every coming day. This change is creating opportunities for brands to reach a maximum number of audience. In this era of technology, people are now taking a step ahead in the direction of digital evolution with smartphones. Mobile advertising is still a new term for most Indians, many people still prefer traditional media over digital media because of unawareness and with the help of smartphones they are now stepping towards digital ads.

This drift is generating prospects for advertisers as well as publishers. People who are taking a step ahead in the direction of technology are inviting the world of digital possibilities to tap them and this is generating a huge user and audience base for advertisers and publishers.

One other major factor behind this bulk move is cheap smartphones offer by telecom companies. When the telecom giant Reliance Jio announced that it will give smartphones at Rs 1500/-, millions of people booked their new smartphone and then another telecom giant announced that it will sell mobile phones at Rs 1400/-  pushing rest of the people to switch to technology. This easy and affordable access to technology is going to create a inundate of prospects for digital companies in India.

Cheap mobile internet

A year ago, mobile internet was considered as a major expense because of the high mobile internet prices but then Reliance Jio evolution happened and the mobile internet was as cheap as buying a bread. Within a year majority of people started using the mobile internet because of price fall in mobile internet. Which eventually created a huge market base for advertisers and publishers. The cheap internet price has boosted an audience segment that stayed away from the internet due to its pricing and slow speed, this segment includes people from all socio and economic background. This whole revolution has boosted the number of internet users generating business opportunities for advertisers to reach their target audience through digital modes like Facebook, Instagram, Snapchat & YouTube.

India is offering a huge business prospect for Ad Network start-ups because of its constantly growing economy. Country's huge user base and tech-savvy generation are on its way to forming a Silicon Valley in every metro city. This exponential growth in corporate sector holds a very leveraging future for the digital advertising industry.

 

(By Mr.Ashish Bahukhandi -Founder, Apps Discover Technologies)

 

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