Rising penetration of Internet and data usage is expected to assist grow digital ad investments at a compounded rate of 30.8% in India from 2016 to 2021, as per the latest report. In addition to this, mobile ad investment and social media related digital video ad investment is anticipated to develop at 50.9% and 40% yearly from 2016 to 2021 respectively, claimed the report.
Authorities such as “Digital India” proposal by the government, rising utilization of reasonably priced smartphones, growing penetration of Internet in rural India, and quick development of digital transactions have additionally reinforced the digital infrastructure. This has led to video dominating data usage, which is anticipated to carry on to develop in the coming future, it added.
“There are almost 200 Million online video users currently in India, which is set to go beyond 400 Million in the camping few years. Even though the booster for boom of online video was Reliance Jio, the trend has now drivers of its own. With data claimed to be the ruling source of income for the telecom companies, and probably home broadband witnessing traction in the coming time, the video usage development is here to remain,” claimed chief operating officer of the report, Gaurav Gandhi, to the media in an interview.
The report also claimed that the OTT (over the top) content usage is developing to mass-based content from niche and long-form content is collecting grip, with spending in big screens and creation of original content. It further added that while AVOD (Advertisement Video on Demand) stays the main source of monetization in the country for the OTT companies, the Freemium models and SVOD (Subscription Video on Demand) are witnessing grip owing to the compelling content, comprising sports.
Supported content has also come out as a significant monetization tool, the report further added. The development in monetization though, is partly held back owing to difficulties around rampant content piracy and digital viewership measurement, the report claimed. Media organizations are presently making an attempt to bridge the gap between economic viability and market share acquisition, since they try to make sustainable long-term digital video commerce, it further added.