CONSUMERS & BRANDS
Digital marketing in India
Table of Contents
01 Global outlook
Most effective digital marketing techniques 2020
03
Companies with a content marketing strategies worldwide 2019-2021
04
Leading digital marketing solutions SaaS companies 2020
05
Social media platforms used by marketers worldwide 2021
06
Social media platforms with highest ROI worldwide 2021
07
Digital ad spend in India 2021, by industry
09
Channels used to increase online sales India 2020-2021
10
Digital marketing channels with the highest ROI India 2021
11
Impediments to digitalizing marketing agencies India 2021
12
03 Key contributors
1
20
Main content marketing formats India 2021
21
Expenditure on display ads India 2017-2021
22
Expenditure on programmatic ads India 2017-2021
23
Influencer marketing industry distribution India 2021, by vertical
24
Social media's influence on email marketing India 2021
25
05 Emerging practices
02 Digital marketing overview
Distribution of FMCG digital advertising expenditure India 2021, by format
14
Distribution of e-commerce digital advertising expenditure in India 2021, by format
15
Distribution of retail digital advertising expenditure India 2020, by format
16
Distribution of BFSI digital advertising expenditure in India 2021, by format
17
Distribution of consumer durables digital ad expenditure in India 2020, by format
18
04 Marketing channels
Main online marketing channels India 2020
Most active platform for social media influencer marketing in India 2021
27
Breakdown of influencer marketing spending in India 2021
28
How AI and chatbots can improve online marketing India 2021
29
Purposes of content marketing India 2021
30
How email marketing campaigns are handled India 2021
31
CHAPTER 01
Global outlook
Most effective digital marketing techniques according to marketers
worldwide in 2020
Most effective digital marketing techniques 2020
Share of respondents
0%
2%
4%
6%
8%
10%
12%
14%
18%
Content marketing
17.4%
Marketing automation
17.4%
Big data
15.3%
Artificial intelligence and machine learning
12.9%
Social media marketing
7.8%
Conversion rate optimisation (CRO) and improving website experiences
4.8%
Communities
4.8%
Paid search marketing
3
16%
3.9%
Mobile marketing
3%
Search engine optimisation (SEO)
3%
Partnerships
2.7%
Display
2.7%
Online PR
2.1%
Other
2.1%
Description: Content marketing was believed to be the most effective digital technique based on the responses of global marketers in early 2020. When asked to identify the single activity they thought would make the largest commercial impact on their own or their
clients` businesses, 17 percent pointed to content marketing. Following that was marketing automation, big data, AI, as well as machine learning.Read more
Note(s): Worldwide; January 2020; among marketers
Source(s): Redfish Group; SmartInsights.com
20%
Share of organizations with a content marketing strategy in place worldwide
from 2019 to 2021
Companies with a content marketing strategies worldwide 2019-2021
120%
97%
100%
Share of respondents
84%
80%
77%
60%
40%
20%
0%
4
2019
2020
2021
Description: During a survey carried out in 2021 among marketers from across the globe, 97 percent of respondents indicated that content marketing was part of their overall marketing strategies. The share increased by 20 percentage points compared to the value
reported in 2019. Read more
Note(s): Worldwide; 2019 to 2021; 1,500 respondents
Source(s): Semrush
Leading business-to-business (B2B) digital marketing solutions software-as-a-service (SaaS)
companies worldwide as of January 2020, by annual recurring revenue (in million U.S. dollars)
Leading digital marketing solutions SaaS companies 2020
Revenue in million U.S. dollars
0
50
100
150
200
250
300
jobandtalent
323
DoubleVerify
244
DMA-Institute
136
MUBI
134
SpotOn
118
82
Gameforge
66
Marketo
AN Global
64
Insider
Metsys
5
350
61
42
Description: As of January 2020, jobandtalent was the leading digital marketing solutions software-as-a-service (SaaS) company, with 323 million U.S. dollars in annual recurring revenue. DoubleVerify ranked second, with a revenue of 244 million dollars.Read more
Note(s): Worldwide; as of January 2020
Source(s): The Latka Agency
Leading social media platforms used by marketers worldwide as of January
2021
Social media platforms used by marketers worldwide 2021
100%
93%
90%
78%
Share of respondents
80%
70%
61%
60%
55%
48%
50%
40%
30%
20%
9%
10%
0%
6
Facebook
Instagram
LinkedIn
YouTube
Twitter
TikTok
Description: As of January 2021, Facebook was the most commonly used social media platform among marketers worldwide. According to a global survey, 93 percent of responding social media marketers used the network to promote their business, while another 78
percent did so via Instagram. Read more
Note(s): Worldwide; January 2021; 4,394 respondents; marketers
Source(s): Social Media Examiner
4%
Snapchat
Social media platforms with the largest return on investment (ROI) according
to marketers worldwide as of November 2021
Social media platforms with highest ROI worldwide 2021
25%
21%
20%
Share of respondents
18%
14%
15%
12%
11%
10%
5%
0%
7
Facebook
Instagram
LinkedIn
TikTok
Description: According to a survey released in November 2021 and conducted among B2B and B2C marketers in the United States, Australia, Canada, Germany, United Kingdom, France, and Japan, 21 percent of respondents said that Facebook was the social media
platform with the highest return on investment (ROI) that year. Instagram ranked second with 18 percent of respondents, followed by LinkedIn with 14 percent. TikTok ranked fourth with 12 percent, while YouTube ranked fifth with 11 percent.Read more
Note(s): Worldwide; as of November 2021; 1,067 respondents; among global marketers from across B2B and B2C companies
Source(s): HubSpot
YouTube
CHAPTER 02
Digital marketing overview
Distribution of digital advertising spending in India in 2021, by industry
Digital ad spend in India 2021, by industry
Share of ad expenditure
0%
5%
10%
15%
20%
25%
30%
FMCG
34%
Others
15%
E-commerce
14%
Automotive
7%
Consumer durables
7%
Education
6%
Pharmaceutical
5%
BFSI
9
4%
Telecom
3%
Retail
3%
Media & entertainment
35%
2%
Description: As India`s content consumption moved increasingly to online platforms, advertisers also followed their audiences to the digital world. Among the various industry verticals in the country, the FMCG sector had a 34 percent share in the total digital ad
expenditure in 2021, making it the highest spending sector that year. Displaced by FMCG, the e-commerce sector followed with a 14 percent share of total digital ad spends.Read more
Note(s): India; 2021
Source(s): Dentsu Aegis Network
40%
Online platforms used by marketers to drive sales in India in 2020 and 2021
Channels used to increase online sales India 2020-2021
Facebook Marketplace
Company-owned and third party e-commerce platforms
Third party e-commerce platform only (eg.Amazon)
Company-owned e-commerce platform only
Leveraging online channels to drive footfalls online
120%
Share of respondents
100%
80%
60%
0%
8%
10.61%
13.64%
22.73%
33.33%
8%
20%
40%
20%
10
10.61%
42.42%
2020
30.67%
2021
Description: A report that surveyed marketing professionals in India indicated that a majority, roughly 42 percent of respondents, used Facebook Marketplace as a platform to drive online sales in the year 2020. However, when asked about the platform they planned
on using in 2021, about 33 percent planned to increasingly use their own company's e-commerce platform, making it the most popular choice to spur sales online.Read more
Note(s): India; 2020; 250+ respondents; Chief marketing officers (CMOs), CEOs, founders, directors
Source(s): Octane Research
Leading online marketing channels with high return on investment in India in
2021
Digital marketing channels with the highest ROI India 2021
70%
62%
60%
51%
Share of respondents
50%
43%
41%
40%
33%
30%
20%
10%
0%
11
Video
Branded pages
Email & newsletters
Live events & streaming
Influencer marketing
Description: Among the various communication channels employed for digital marketing purposes in India in 2021, video marketing was identified as the channel with the highest return on investment by CMOs. In contrast, influencer marketing ranked fifth with 33
percent of respondents reporting it to have a high return on investment impact. Read more
Note(s): India; 2021; 250+ respondents; Chief marketing officers (CMOs), CEOs, founders, directors
Source(s): Octane Research
Main challenges to the digital transformation of marketing companies in
India in 2021
Impediments to digitalizing marketing agencies India 2021
Not applicable 6.98%
Resistance to change by
suppliers and vendors 11.63%
Leadership perception on
returns from investment 32.00%
Organizational mindset 18.6%
Existing skills of workforce
30.23%
12
Description: When asked about the major hurdles to digitalizing their marketing companies, a majority of Indian CMOs, figuring over 32 percent attributed it to the perception of the return on investments by the organization's leadership. On the other hand, almost
seven percent of the respondents reported that the question did not apply to their organizations. Read more
Note(s): India; 2021; Over 250; Chief marketing officers (CMOs), CEOs, founders, directors
Source(s): Octane Research
CHAPTER 03
Key contributors
Distribution of digital advertising expenditure in the fast moving consumer
goods industry across India in 2021, by format
Distribution of FMCG digital advertising expenditure India 2021, by format
45%
41%
40%
35%
31%
Expenditure share
30%
25%
20%
16%
15%
9%
10%
5%
0%
14
3%
Social media
Online video
Display banners
Paid search
Others including classifieds
Description: Social media advertising accounted for over 40 percent of the digital advertising spends within the fast moving consumer goods industry across India in 2021. This was followed by a 31 percent ad expenditure on online video and only around three
percent on other formats including classifieds. The FMCG sector was also the leading contributor to the digital advertising industry that year.Read more
Note(s): India; 2020
Source(s): Dentsu Aegis Network
Distribution of digital advertising expenditure in the e-commerce industry
across India in 2021, by format
Distribution of e-commerce digital advertising expenditure in India 2021, by format
Expenditure share
0%
5%
10%
15%
20%
25%
30%
35%
40%
Paid search
25%
Social media
14%
Display banners
15
50%
47%
Online video
Others incl classifieds
45%
11%
3%
Description: In 2021, the e-commerce industry across India continued to spend a considerable portion of its digital advertising budget on paid search ads. Meanwhile, online video surpassed social media with a 25 percent share while the latter dropped to 14 percent.
Amongst other verticals, e-commerce was the second largest contributor to the digital advertising industry. Read more
Note(s): India; 2021
Source(s): Dentsu Aegis Network
Distribution of digital advertising expenditure in the retail industry across
India in 2020, by format
Distribution of retail digital advertising expenditure India 2020, by format
Expenditure share
0%
5%
10%
15%
20%
25%
30%
35%
40%
Social media
45%
Paid search
19%
Display banners
18%
Online video
Others incl. classifieds
16
45%
16%
2%
Description: In 2020, the retail sector in India spent 45 percent of its digital advertising budgets on social media, followed by 19 percent on paid search. Overall, advertising expenditure was the highest on social media and search across industry verticals in the country
that year. Read more
Note(s): India; 2020
Source(s): Dentsu Aegis Network; Various sources (Exchange4Media, Carat India, Isobar India, iProspect, Fractal Ink, WebChutney, SVG Media, Merkle Sokrati, Amnet, Amplifi India, WATConsult, ABP Live, Voot, Linkedin Marketing Solutions, TikTokAds)
50%
Distribution of digital advertising expenditure in the banking, financial
services and insurance industry across India in 2021, by format
Distribution of BFSI digital advertising expenditure in India 2021, by format
40%
37%
35%
30%
Expenditure share
27%
25%
23%
20%
15%
13%
10%
5%
0%
17
0%
Paid search
Display banners
Online video
Social media
Others incl. classifieds
Description: The banking, financial services and insurance industry spent the highest share of its digital advertising budgets on paid search, that increased to 37 percent in 2021. This was followed by 27 percent spends on display banners and 23 percent expenditure
on online video advertising. Read more
Note(s): India; 2021
Source(s): Dentsu Aegis Network
Distribution of digital advertising expenditure in the consumer durables
industry across India in 2020, by format
Distribution of consumer durables digital ad expenditure in India 2020, by format
Expenditure share
0%
5%
10%
15%
20%
25%
Social media
27%
Paid search
24%
Display banners
19%
Online video
Others incl. classifieds
18
30%
17%
13%
Description: In 2020, the social media channels in digital advertising expenditure by the consumer durables industry across India accounted for around 27 percent of the ad spends. This was followed by paid search expenditure of 24 percent.Read more
Note(s): India; 2020
Source(s): Dentsu Aegis Network; Various sources (Exchange4Media, Carat India, Isobar India, iProspect, Fractal Ink, WebChutney, SVG Media, Merkle Sokrati, Amnet, Amplifi India, WATConsult, ABP Live, Voot, Linkedin Marketing Solutions, TikTokAds)
CHAPTER 04
Marketing channels
Online marketing channels primarily used by marketers in India in 2020
Main online marketing channels India 2020
Share of respondents
0%
10%
20%
30%
40%
50%
60%
70%
80%
Social media
85%
Search
80%
Display
60%
Influencer marketing
52.5%
Email
47.5%
37.5%
Affiliates
22.5%
Programmatic
TV or radio
12.5%
Others
SMS
20
90%
7.5%
0.11%
Description: A survey sampling marketing professionals in India indicated that the leading marketing channel used in 2020 was social media, as reported by 85 percent of the respondents. This was followed by search and display marketing channels. Simultaneously,
the growing popularity of influencer marketing as a digital marketing strategy was made evident by approximately 53 percent of the respondents.Read more
Note(s): India; 2020; 250+ respondents; Chief marketing officers (CMOs), CEOs, founders, directors
Source(s): Octane Research
Commonly used content marketing formats in India in 2021
Main content marketing formats India 2021
25%
22%
20%
19%
18%
Share of respondents
20%
14%
15%
10%
7%
5%
0%
21
Social media
Blogs & newsletters
Videos & webinars
Testimonials & case
studies
Images & infographics
Research report & white
paper
Description: A survey conducted on digital marketing in India in 2021, indicated that social media was the most commonly used format of content marketing as reported by 22 percent of the respondents. Blogs and newsletters were the next most popular content
marketing format. Contrariwise, only 7 percent of marketers reported using research reports and white papers for their content marketing strategies during this period. Read more
Note(s): India; 2021; 250+ respondents; Chief marketing officers (CMOs), CEOs, founders, directors
Source(s): Octane Research
Value of overall digital display ad spends in India from 2017 to 2021 (in
million U.S. dollars)
Expenditure on display ads India 2017-2021
1,800
1,633
1,600
1,378
Ad spend in million U.S. dollars
1,400
1,164
1,200
1,000
800
881
680
600
400
200
0
22
2017
2018
2019
2020
Description: As of 2021, the expenditure on display advertising in India peaked to about 1.6 billion U.S. dollars. This was an 18 percent increase from the display ad spending recorded in the previous year. Display ads or digital display advertising refers to online
graphic advertising carried out on websites, social media and apps in the form of banners or other platforms made of text, image, video, flash and audio.Read more
Note(s): India; 2017 to 2021
Source(s): OnAudience
2021
Value of overall programmatic ad spends in India from 2017 to 2021 (in
million U.S. dollars)
Expenditure on programmatic ads India 2017-2021
500
473.3
450
Ad spend in million U.S. dollars
400
350
303
300
250
185.2
200
150
100
121.4
87.1
50
0
23
2017
2018
2019
2020
Description: In 2021, the amount spent on programmatic advertising in India amounted to round about 473 million U.S. dollars. This was the highest programmatic ad spend recorded in the Indian market since 2017 when the ad spend totaled over 85 million U.S.
dollars. Programmatic advertising involves the use of software to buy digital advertising and programmatic marketing refers to the automatized distribution of digital ads, that is, without any human interaction occurring during the process.Read more
Note(s): India; 2017 to 2021
Source(s): OnAudience
2021
Distribution of influencer marketing industry in India in 2021, by vertical
Influencer marketing industry distribution India 2021, by vertical
30%
25%
25%
20%
Market share
20%
15%
15%
10%
10%
5%
0%
24
Personal care
Food and beverage
Fashion and jewelry
Mobile and electronics
Description: Among the various sectors invested in the influencer marketing industry in India, the personal care vertical held the largest market share at 25 percent, as of 2021. Other prominent sectors that were heavy on influencer marketing included the food and
beverage, fashion and jewelry, and mobile and electronics industries. Digital marketing in India has been lent a new degree of authenticity by social media as users create their own relatable brands and communities.Read more
Note(s): India; 2021
Source(s): GroupM; The Financial Express (India)
Impact of social media on email marketing in India in 2021
Social media's influence on email marketing India 2021
Share of respondents
0%
5%
10%
15%
20%
25%
Accelerates the growth of subscribers
27%
Increases brand reputation and awareness
23%
Generates more qualified leads
23%
15%
Extends the reach of email content to new markets
Increases ROI of email programs
Other
25
30%
8%
4%
Description: More than 25 percent of marketing executives who were surveyed in India in 2021, responded that social media helped catalyze the growth of subscribers in email marketing. Another 23 percent agreed that social media increased their brand's reputation
and spread awareness, followed by those who reported more qualified leads being generated through social media. Read more
Note(s): India; 2021; 250+ respondents; Chief marketing officers (CMOs), CEOs, founders, directors
Source(s): Octane Research
CHAPTER 05
Emerging practices
Leading social media platforms for influencer marketing across India in 2021
Most active platform for social media influencer marketing in India 2021
Share of respondents
0%
10%
20%
30%
40%
50%
60%
70%
Instagram
65%
YouTube
35%
Twitter
28.2%
Snapchat
19.9%
16.1%
LinkedIn
14.33%
Pinterest
Roposo
8.5%
Trell
27
90%
84.9%
Facebook
ShareChat
80%
7.4%
1.7%
Description: According to a survey on social media influencers across India in 2021, the majority of the respondents were most active on Instagram in the country. Facebook followed at 60 percent, with YouTube ranking third during the survey period. Influencers
surveyed preferred to create video and static content using apps such as Inshot, Instagram, and Lightroom. Read more
Note(s): India; 2021; 475 respondents; 18 to 50 years; Influencers from across metro, tier 1, 2 and 3 cities of India.
Source(s): Website (influencer.in)
Distribution of influencer marketing expenditure in India as of 2021
Breakdown of influencer marketing spending in India 2021
Celebrities 27%
Influencers 73%
28
Description: Reports about India's influencer marketing sector in 2021, indicated that the lion's share, accounting for 73 percent of marketing expenditure, was on influencers. Meanwhile only 27 percent was spent on celebrities. Marketing leaders admitted that they
expected to raise their marketing spending on influencers, some almost by over 25 percent in the following years.Read more
Note(s): India; 2021
Source(s): GroupM; The Financial Express (India)
Ways in which AI and chatbots can enhance online marketing in India in 2021
How AI and chatbots can improve online marketing India 2021
Better customer service like
payment collection 11%
Others 1%
Increase sales conversion on ecommerce sites 21%
Better product search &
configuration 12%
Better consumer research and
understanding of audiences
13%
Increase brand engagement
through personalised
experience 21%
Generate qualified leads 21%
29
Description: In response to a survey conducted in India in 2021, about 21 percent of chief marketing officers and other such executives reported that the chief ways in which artificial intelligence could be employed to boost online marketing was by increasing sales
conversion on e-commerce sites, improving brand engagement through personalized experience, and generating qualified leads.Read more
Note(s): India; 2021; 250+ respondents; Chief marketing officers (CMOs), CEOs, founders, directors
Source(s): Octane Research
Reasons why marketers employ content marketing as a strategy in India in
2021
Purposes of content marketing India 2021
Lead generation 14%
Engage newer audiences 27%
Attract and retain existing
customers 16%
Builds reputation through
thought leadership 17%
30
Increase in brand awareness
26%
Description: Among marketers who were surveyed in India in 2021, 27 percent stated that using content marketing as a strategy helped them engage newer audiences, with this being the highest share of responses. An increase in brand awareness was the second
most popular benefit of content marketing reported by another 26 percent of respondents during the survey.Read more
Note(s): India; 2021; 250+ respondents; Chief marketing officers (CMOs), CEOs, founders, directors
Source(s): Octane Research
Handling of email marketing campaigns by marketers in India in 2021
How email marketing campaigns are handled India 2021
80%
73%
70%
Share of respondents
60%
50%
40%
30%
18%
20%
9%
10%
0%
31
Inhouse
Combination
Externally
Description: A majority, that is 73 percent, of marketing executives surveyed in India in 2021 reported that they handled email marketing campaigns internally. Among them, 18 percent admitted that their companies combined outsourcing and inhouse management
to handle email marketing campaigns. Another nine percent of respondents claimed to produce these campaigns externally.Read more
Note(s): India; 2021; 250+ respondents; Chief marketing officers (CMOs), CEOs, founders, directors
Source(s): Octane Research
Sources
Dentsu Aegis Network
GroupM
HubSpot
Octane Research
OnAudience
Redfish Group
Semrush
SmartInsights.com
Social Media Examiner
The Financial Express (India)
The Latka Agency
Various sources (Exchange4Media, Carat India, Isobar India, iProspect, Fractal Ink, WebChutney, SVG
Media, Merkle Sokrati, Amnet, Amplifi India, WATConsult, ABP Live, Voot, Linkedin Marketing
Solutions, TikTokAds)
Website (influencer.in)
32