The Rise & Future of Indian AdTech Industry

Anagha S Anagha S
Jul 18, 2021 6 min read
The Rise & Future of Indian AdTech Industry

The industry of advertising technology that delivers, controls and targets online ads have been flourishing in the era of digital India. In the marketing language, ad tech refers to the digital methodology that is used to interact and engage with the customers.

The emergence of media has without any doubt revolutionised the marketing strategies of businesses. It has led to significant transformation across the ad tech industry.

The pandemic had its share out of the glory of the ad tech industry. Apart from pushing the industry to its breaking point, the pandemic has made the industry look for better technological and activations. One must also mention the advantages that the pandemic bought into the industry.

According to reports, there has been a rise of over 44 percent in the overall online spending in the United States of America to reach $861.12 billion in 2020 from $598.02 billion in 2019. This article will explore the rise and future of the ad tech industry.

The Beginning of Indian AdTech Industry
The Present of the Indian AdTech Industry
Effect of The Pandemic on the Indian AdTech Industry
The Future of the Indian AdTech Industry
FAQ

The Beginning of Indian AdTech Industry

Indian advertising industry like most of the others began as a small scale business. From there, its growth to being a full-fledged marketing industry in its self was very quick.

In fact, the ad tech industry in India has grown simultaneously with the digital revolution in India which has made it the second-fastest-growing market in the whole of Asia only after China. Its contribution to the Indian GDP is expected to cross more than 0.5%.

The rise of e-commerce platforms, popularity of television channels, its large scale privatisation, increasing traffic into websites et cetera has significantly contributed to their increasing demand and growth of the advertising technology industry in India.

Initially, personalised advertisements were delivered vehemently using cookies and personal identifiers. With an incessant compilation of data and other personal information, there was large-scale supervision over people's online activities. Over time these ad-tech industries have been looking for ways to provide the most seamless experience without breaching their privacy.

The Present of the Indian AdTech Industry

From being an industry that caters to a specific and narrow group of people, the ad tech industry has grown out of its box to reach almost every person in the country. Today there is no market players that do not make use of the advancements in the ad tech industry for their benefit.

Unlike before rural regions in the prime focus after their potential as a profitable target was recognised. The ad tech industry has also played a significant role in understanding the pulse of the people and their desires. For example, the industry was careful to serve ads that were pertaining to 2 wheelers more in the rural region than the urban.

They used emerging technologies to understand the needs of the population and delivered ads in a customised manner. In this way, it has efficiently exploited the potential it had in Indian society.

One can also observe an increase in the number of media agencies and a tug of war for a greater market share. It has become beneficial as far as the publishers are concerned due to their competitive rates.

They have also effectively used the technologies of industry 4.0. Artificial intelligence and data analytics are employed in full swing to understand and deliver to the expectations of people.

The last few years also saw a tremendous increase in the number of mobile internet users which further gives a bright future to the industry. With continuous improvements, innovations and adaptations in their technology, the ad-tech industries are constantly striving to retain its relevancy for a long period of time. This has also opened up opportunities for web-based advertising.

Ad Spend in India
Ad Spend in India

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Effect of The Pandemic on the Indian AdTech Industry

Disruptions are not new to the ad tech industry. Over the years it has overcome political distress, economic regression and even natural disasters. However, the pandemic was entirely different from what they have experienced before.

While most of the other obstacles were short-termed, it is not the same with the pandemic. It had to battle with newer challenges and adapt to different and new technologies in a quick fashion.

Lockdown travel restrictions have severely affected the revenue of Ad tech industry. The amount of money it used to make during mega sports events like IPL, world cup etc and other entertainment events are well known. This humongous stream of income was completely cut off in its knees during the pandemic. However many agencies are trying to take their events online.

Web-based advertisements became more prominent now than ever before. However, the inability to take works such as production and pitching of products which are largely influenced by the direct engagement between the Industries and the client in fact weakens the industry.

The pandemic also altered consumer behaviour significantly. With big media events being cancelled, production of movies and series coming to a halt and people being confined into their homes the industry saw that film advertisements shrank while television advertisements increased significantly.

Amidst the distress, the industry has significantly contributed to creating worldwide awareness regarding the etiquette that one needs to follow on the face of COVID-19. Both private and public players were seriously dependent on the ad tech industry to localise the messages of social distancing, masking, hand washing and vaccination.


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The Future of the Indian AdTech Industry

The future seems really bright to the Indian ad tech industry. It is expected to grow 10.8% by the end of 2021 to reach Rs.62,577 crore. After suffering from degrowth in 2020 due to the pandemic the industry is setting up its self to embrace the new changes.

Growing further it's expected to reach Rs.70,343 crore by 2020 according to the reports of Dentsu 2021. It is also to grow with a compound annual growth rate of 11.59% by the end of 2021.

As technology advances in the digital media industry, the volume of investments is also increasing. We can observe far fledged automation of the AdTech industry in future wherein generating content and programmatic buying of media will be the new normal.

The usage of artificial intelligence and machine learning to improve speed, performance and accuracy will be increased. Customer-centric and performance-based marketing strategies will take a central stage.

One challenge that the AdTech Industry will have to face is that of the uncertainty that prevails in the face of altering Digital strategies, brand requirements and consumer behaviours. It is important to be responsive to emerging trends which will be faster from now on.

Reinvention is going to be the key term that guides the future of the Indian ad tech industry. They will be focusing on better ways to make use of the existing reliable data to make the best out of it. As tech giants become the protectors of privacy, media agencies need to shift their attention to better options that will give them the necessary resources in the absence of cookies.

With the rise of the virtual population and digital technology, the potential of India in the ad tech industry to improve and flourish is unlimited in the future.

FAQ

What is the ad tech industry?

AdTech is the term used to refer to technological infrastructure involved in tracking and analyzing digital ads and campaigns.

How big is the ad tech industry?

According to Research, The Global AdTech Software Market was valued at USD 16.27 Billion in 2018 and is projected to reach USD 29.85 Billion by 2026.

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