Introducing India

Introducing India

In this article, written by OnAds Communication, AMIN member in India, you will get to know this country deeply. Be prepared to learn a lot about the Advertising Industry, Media consumption, Digital Growth, Trends and curiosities about India.


India is on the cusp of a tremendous opportunity for both economic progress and improvement in the general wellbeing of its citizens. India is currently the world’s sixth largest economy and one of the fastest-growing large countries, with an annual gross domestic product (GDP) growth rate of 7.5%, before the onset of COVID19. 


Domestic consumption, which powers 60% of the GDP today, is expected to grow into a $6 trillion opportunity by 2030. This consumption growth will be supported by a 1.4 billion strong population that is younger than that of any other major economy. Household savings have historically been high as thrifty and cautious Indian families put away more   consumption in India is anchored in the growth of the upper-middle income and high income segments, which will grow from being one in four households today, to one in two households by 2030. At the same time, India will also lift nearly 25 million households out of poverty, to reduce the share of households below the poverty line to 5%, down from 15% today. Thus, India represents a relatively broad-based pattern of growth and benefit sharing, in contrast to the global scenario of increasing inequality wherein the richest 10% of the population is capturing an increasing share of national incomes and, consequently, wealth. 

Some highlights about the population: 

  • A working age majority: With a median age of 31 in 2030 (versus 42 in China, 40 in the US) India will remain one of the youngest nations in the world with one of the largest working-age populations. India will add more working-age citizens to the world than any other country. 
  • Young millennial households: India will add nearly 90 million new households headed by millennials who were born into liberalized India. Having grown up with better education/employment opportunities, and having higher incomes, they will likely break away from the frugal attitudes of their preceding generations.  
  • Rise of the digital natives: In 2030, India will have about 370 million Generation Z consumers aged 10-25, who would have grown up in an India with ubiquitous internet, smartphones, digital media and digital consumption platforms. As they start consuming, earning and spending, they will actively use technology enabled consumption models.

Advertising industry in India

The Indian Advertising Industry has grown at a rate of 9.4% over 2018 to reach Rs. 68,475 crore (USD 9.1 bn) by the end of 2019. The industry will grow by 10.9% to reach Rs. 75,952 crore (USD 10.1 bn)  by the end of 2020. It is expected to grow at 11.83% CAGR to reach a market size of Rs. 1,33,921 crore (USD 17.8 bn) by 2025. 


By the end of 2019, the digital advertising industry stands at Rs. 13,683 crore (USD 1.8 bn), up at a rate of 26% from Rs. 10,859 crore (USD 1.4 bn) in 2018. Advertising spends on Digital media is expected to grow at a CAGR of 27.42% to cross the Rs. 50,000 crore mark and reach industry size of Rs. 58,550 crore (USD 7.8 bn) by the end of 2025. This sustained growth can be attributed to the technological advancements, improvements in data science & analytics, introduction of policies & regulations among others. 


The largest share of media spends is taken by Television at 39% (Rs. 26,869 crore/ USD 3.6 bn). TV’s reach has increased to 96% of the total audience. However, its time spent has reduced by 21% leading to an average of 11 hours spent per week on TV. 

The FMCG sector spends the highest share on advertisements, contributing 30% (Rs. 20,182 crore / USD 2.6 bn) to the industry. Followed by E-Commerce, contributing 10% (Rs. 6,915 crore / USD USD 922 mn) and Automotive sector, making a contribution of 8% (Rs. 5,797 crore / USD 773 mn) to the advertising pie.


Analyzing Digital Behaviour, we are able to understand the importance of online videos and the increasing use of audio channels, like podcasts and music streaming services. 



Regarding Social Media behavior, we can notice some interesting findings:  86% of the users are actively engaged and contributed to social media in the past month;  the average amount of time per day spent using social media is 2h 24 m; the average number of social media accounts per internet user is 10.


All of this information is sourced from the DAN India Report 2020 and We Are Social India 2020 Report.

In the next article, we will talk about e-commerce, social commerce, Influencers in India. Keep following us!

[ this article was written by OnAds Communications