Growth of Digital Advertising and Tariff

Digital ad spends in India in 2018 stood at Rs. 11,630 crore, projected to reach Rs.15470 crore in 2019 and Rs.43,500 crore in 2023. (KPMG report). Overall digital advertising is estimated to grow at 30.9% CAGR till 2023. Revised rates of digital platforms are likely to contribute to this growth.

Masthead of YouTube is its most expensive property. It currently costs Rs. 75 lac ( and which was Rs.42 lac in 2018). In 2019, it is likely to cost Rs.1.4 crore. HotStar charges Rs.11 lac for a mast head banner on its home page. SonyLiv has priced its masthead at Rs.5.2 lac. Voot asks for Rs 6.5 lac. All these rates are negotiable, and regular advertisers get a discount.

Inventories are sold as per cost per thousand views, cost per thousand impressions (CPM) and cost per click (CPC).

YouTube charges Rs.400 per thousand views. HotStar’s CPM or per thousand views are Rs.235. During cricket matches the CPM goes up to Rs.600. Voot is priced at Rs. 280 per thousand views, but the rates go up during Big Boss. During IPL, there are sponsors, who are assured a certain number of impressions.

Digital is growing on two counts — more advertisers and more impressions. Digital allows more targeted advertising, reducing wastage.

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