Indian Digital Marketing Market Report and Forecast 2024-2032

India Digital Marketing Market Size

The India digital marketing market size was around USD 5.15 billion in 2023. The market is estimated to grow at a CAGR of 30.2% during 2024-2032 to reach a value of USD 55.37 billion by 2032.

Key Takeaways

• India is the second largest online market on a global scale, with a presence of about 900 million internet users.

• About 55% of the mobile use by Indians is for the purpose of video viewing.

• In 2021, digital ad spending in India was recorded to be INR 88,334 crores.

Businesses make use of email, social media, web-based advertising, and text and multimedia messages, as different forms of digital marketing. India is considered a fast-paced market outgrowing China in terms of internet consumption. India’s large population is becoming more reliant on the Internet for a variety of purposes including online learning, paying bills, watching movies, etc., thereby increasing the amount of time spent online. Hence, businesses are employing digital marketing strategies to target customers online in an efficient manner, which is boosting the digital marketing market expansion in India.

Business owners are focusing on enhancing their presence on search engines like Google by increasing their expenditure on digital marketing campaigns and bringing about brand awareness to increase profits.

Figure: Digital Media Spends across Industry Verticals

Key Trends and Developments

Rapid technological advancements; rise of social media influencers; favourable government initiatives; and rising trend of personalised marketing strategies are impacting the India digital marketing market growth

Mar 14, 2023

Kinnect, India’s leading digital media service provider, won the digital media mandate for Blue Star. As part of the mandate, Kinnect will be handling the brand’s digital strategy globally, along with managing its social media presence in the country.

Feb 27, 2023

JioMart, a venture of Reliance Retail partnered with L&K Saatchi & Saatchi for its integrated creative mandate. L&K Saatchi & Saatchi will provide a full range of brand-building solutions and launch JioMart’s social media and content strategy.

Sep 14, 2022

The Times of India launched ‘The Times of a Better India’, a new digital OOH (DOOH) campaign across Delhi and NCR, Chennai, Pune, Hyderabad, and Bangalore for 15 days in partnership with Times OOH.

Aug 30, 2022

GroupM India, a leading global media investment company, and ShareChat, a social platform, joined hands in partnership to power a new era of modern marketing. The partnership is aimed at providing clients with both effectiveness and efficiencies across the pillars of the digital marketing ecosystem.

India Digital Marketing Market Trends

The digital marketing landscape in the country has evolved, with considerable growth anticipated for the sector amidst the constantly advancing technologies such as the artificial intelligence (AI) and their integration with e-commerce. In addition to AI, several other technologies such as voice searches, virtual reality, and others, are proving to be a game changer for brands trying to establish themselves in the market. Over the forecast period, influencer marketing is expected to be a key market trend owing to its cost-effectiveness and the increased social media penetration in the country.

The rising popularity of e-commerce websites such as Amazon, Flipkart, Myntra, Nykaa, among others, has been a major driver for the Indian digital marketing market. The expansion strategies set out by e-commerce websites primarily involved digital marketing solutions rather traditional, further leading to their steady establishment in the Indian scenario.

Rapid technological advancements

Artificial intelligence (AI) helps digital marketers to analyse customers’ data to create competitive marketing strategies and provide them with a customised experience. Further, AI can help businesses provide real-time customer support and improve social media marketing.

Rise of social media influencers

The rising popularity of social media influencers among consumers is positioning influencer marketing as a profitable opportunity for businesses to connect with their target audience, enhance product awareness, and increase consumers’ trust in their business.

Significant government support

The advancement of digital marketing in India is supported by ongoing initiatives set out by the Government of India such as the ‘Digital India’ initiative to improve the country’s online infrastructure and internet accessibility.

Personalised digital marketing strategies

Companies are investing in customising their digital marketing strategies to provide their customers with a personalised experience. Digital marketing tools help businesses set clear consumer targets based on gender, age, occupation, hobbies, or other interests. The personalisation of digital marketing advertisements reduces the search time for consumers to make purchases, consequently boosting the sales of businesses.

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Market Segmentation

“India Digital Marketing Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Social Media Marketing

• Search Engine Optimization (SEO)

• Digital OOH Media

• Influencer Marketing

• Affiliate Marketing

• Email Marketing

• Blogging and Podcasting

• Others

Market Breakup by End Use

• FMCG

• E-commerce

• Automotive

• Telecom

• BFSI

• Education

• Media and Entertainment

• Retail

• Others 

Market Breakup by Region

• West and Central India

• North India

• South India

• East India

Based on type, social media marketing dominates the India digital marketing market share

With the increasing number of social media users in the country, the interest in social media marketing to enhance brand recognition and visibility cost-effectively has grown. In India, startups such as Zomato (an online food delivery platform) have been engaging with audiences by posting on social media to drive customer engagement, thereby contributing to the India digital marketing market development.

Further, SEO is crucial in promoting brands by increasing their online visibility, driving customer engagement, and offering effective and credible user experiences. There is a growing integration of artificial intelligence (AI) and machine learning (ML) in SEO to propel the ranking of a web page or a website, automate tasks like keyword research and content creation, and support SEO experts to gain insight into SERP data.

Moreover, the growing listenership to audio content has pushed brands and advertisers to effectively use podcast features, including branded URLs, promo codes, and checkout surveys. Companies like Swiggy and Boat have partnered with popular podcasters to offer discounts to listeners and create branded content while promoting their services and products.

The FMCG sector is a significant contributor to the India digital marketing market revenue

FMCG companies leverage digital marketing techniques to build brand awareness and increase their visibility among potential customers. By adopting digital marketing, Britannia Cheese witnessed a 300% growth in online sales of its cheese products between April and August 2020.

Digital marketing strategies, such as cost-per-click, influencer marketing, and blogging, help retail businesses to get a hold of many potential customers that use social media. The expansion of the e-commerce sector has necessitated brick-and-mortar stores to adopt digital marketing strategies to boost their geographical reach, consequently driving the India digital marketing market.

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Competitive Landscape

The market players are developing a multi-channel, multi-device approach to effectively monitor consumers, further creating personalised marketing strategies

Oxedent Technologies Private Limited

Established in 2017, the company specialises in Google shopping management, google ads management, and social ads management.

The NineHertz

With headquarters in Rajasthan, India, the company provides digital marketing services and app development, web development, software development, on-demand app development, etc.

Kinnect Media Private Limited

Kinnect Media Private Limited is a digital marketing company established in 2011. The company offers digital marketing services such as creative strategy and social media, web and SEO, online reputation and management, influencer outreach, etc.

iProspect

Headquartered in Maharashtra, India, the company specialises in Marketing Activation, business intelligence, and strategy and planning.

Other notable players operating in the India digital marketing market include WATMedia Private Limited, FoxyMoron, Social Pulsar, Blusteak Media, QUBIX Integrated Media Services Pvt. Ltd, Creative Monkeys, and GH Digital Media Pvt Ltd, among others.

India Digital Marketing Market Analysis by Region

The ease of doing business in states like Maharashtra, Gujarat, and Madhya Pradesh is likely to create opportunities for the overall digital marketing market.

With the increasing smartphone and social media users, the use of digital marketing by retailers to reduce marketing costs, provide improved support to customers, and attract customers beyond their geographical points to enhance their profitability, is likely to rise.

Kolkata is emerging as a leading digital marketing hub in India. In February 2021, Digital Refresh Networks, an integrated creative and digital marketing solutions company, launched its full-scale operations in Kolkata. Through this, the company intended to support entrepreneurs to shift from traditional to digital marketing.

Key Highlights of the Report

Indian Digital Marketing Market Report Snapshots

Indian Digital Marketing Market Size

Indian Digital Marketing Market Trends

Indian Digital Marketing Market Regional Analysis

Indian Digital Marketing Companies