Recent years witnessed a dramatic change in the digital advertising market in India, with programmatic advertising emerging as an important component. What was considered a specialised technology is now a vital component of digital marketing strategies for companies of all sizes, from popular multinational enterprises to emerging start-ups.
"Approximately 58% of the advertising budget in India's digital advertising sector was allocated to direct media purchases in 2023, with the remaining portion going towards programmatic advertising. Overall, forecasts show that programmatic advertising will become a growing force in the sector over the next few years, accounting for 45% of the market by 2025. Industry insiders claim that programmatic media buying would give marketers more flexibility and creative control."
There are a few reasons why programmatic advertising is becoming so popular in India quickly:
Digital Transformation: Programmatic advertising is growing rapidly in India due to the country's strong drive towards digitalisation, which has been fuelled by the pandemic.
Mobile-First Market: India has over 659 million smartphone users, making it a highly effective market for programmatic advertising due to its mobile-first internet landscape.
Better Ad Tech Infrastructure: Programmatic campaigns are now more efficient and effective because of substantial investments in ad tech platforms and data management tools.
Mindset Shift among Advertisers: Real-time bidding strategies that are data-driven are becoming more and more valuable to Indian marketers than traditional media buying techniques.
Rise of Domestic Programmatic Platforms: This technology has become more relevant and accessible for local marketers with the advent of programmatic platforms with an emphasis on India, such as Adzylytics.
Programmatic advertising is expected to develop much more in the future; estimates indicate that by 2025, it may hold a 45% market share. For marketing executives and CMOs, this trajectory offers both an opportunity and challenges, demanding a strategic reassessment of digital advertising strategies.
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