Digital media surpassed TV with 32 pc of media revenue: Report

NEW DELHI: Digital media has surpassed traditional media such as television, capturing 32 per cent of India’s media revenues of Rs 802 billion in the calendar year 2024, according to a report by Elara Capital.

The reason behind the shift is that Indians spend five hours a day, or 29 per cent of the day, on mobile, which is attracting advertisers to digital mediums. The report added that digital ads are highly effective; 69 per cent of mobile users spend time on media (entertainment and social).

It adds that brands are tracking the success of digital ads, as 67 per cent of digital ad revenue comes from ‘Search and Social’. Conversation, which is the core purpose of mobile phones, has reduced to merely 22 per cent of the total time spent.

The increased share of total media revenue is fueled by the growth of OTT platforms, regional market expansion, and connected TV. Advertisers on TV have declined by 2 per cent (YoY). “All these indicate a newer ad regime, dominated by digital media — this is intensifying the pressure on traditional mediums, thus lacking any meaningful revival in ad players”, the report added.

It adds that digital dominance is reshaping the ad landscape, pressuring traditional mediums like Zee Entertainment and Sun TV, and benefiting digital ad players such as Affle, Zomato, and Nykaa. The key growth verticals included e-commerce advertising (+65 per cent YoY to Rs 147 billion) and rising viewership for regional OTT content.

Key growth drivers include a 65 per cent yearly increase in e-commerce advertising, which reached Rs 147 billion, and higher regional OTT viewership. AI-led localization has reduced costs by 25-35 per cent and accelerated growth. Digital media revenue is expected to reach Rs 1.1 trillion by CY27E, growing at an 11.2 per cent CAGR, driven by rising internet penetration, CTV’s active network, and hyperlocal ad strategies.

Advertising-based Video on Demand (AVOD) platforms account for 82 per cent of streaming hours, while YouTube’s CTV views have doubled over the last three years due to the spread of connectivity. The wired broadband has reached 46 million homes. (ANI)