Drivers of digital advertising
With the increasing use of smartphones and users being connected to the internet at all times, Indian advertisers' ability to reach targeted audiences has been amplified. Social media usage in the country has provided a key avenue for digital advertising, with the format accounting for almost a third of digital ad spends. The social media advertising spends in India amounted to over a billion U.S. dollars in 2022. YouTube followed by Meta platforms, Facebook and Instagram, had the widest ad reach as of 2023.The Indian consumer's unquenchable thirst for online video entertainment gave rise to other platforms for digital ads to branch out to, such as short-form video (SFV) apps, live commerce, and video commerce. The latter was a feature developed and introduced on e-commerce platforms, a sector that is a major contributor to digital ad spends. Yet another trend that is here to stay is influencer advertising and marketing. Brands increasingly rely on content creators to connect with diverse audiences, while the latter is dependent on brand deals to earn revenue.