E-commerce platforms are currently the fastest growing medium for digital ads in India, with a US$ 6-8 billion opportunity by 2030. With 300-350 million new online buyers from tier 2 economies expected by 2030, the growth in product e-commerce is expected to be faster than search and social media platforms.
According to Redseer, a homegrown strategy consulting firm, India’s digital ad market is expected to reach US$ 35 billion in the same period, with e-commerce platforms being one of the key drivers supporting this upward spiral.
In the last two years, the contribution of e-commerce platforms to the ad tech industry has risen rapidly from 15% to 20% and is expected to contribute between 20- 25% of the market share.
The overall advertising market, including traditional and digital ads, is poised to touch US$ 45-50 billion by 2030, out of which a staggering 70-75% will comprise digital ads.
A drastic increase in digital consumption and digital penetration in Tier-2 cities are the primary growth drivers responsible for the spike in India’s digital advertising ecosystem.