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Digital consumption - The second screen soars

Year 2015 in review

Music - The market size of the music industry is likely to be INR 10.8 billion in 2015 and is expected to grow to INR 20.06 billion by 2020. Digital Music now generates revenue of over 55 Per cent of the overall size of the music industry in India.
Digital Ad Spend - The digital media spending in 2015 was likely to be INR 60.1 billion and is expected to cross INR 255.2 billion in 2020 driven by growth across digital platforms. Mobile Ad Spends is currently at INR 9 billion and expected to cross INR 100 billion by 2020.
Social Media - Active social media user’s numbers jumped to 143 million in 2014-15, a marked increase of 100 per cent in rural areas.
Gaming - The Indian Digital gaming market is expected to grow at a CAGR of 13.8 Per cent during the period of 2015-2020, respectively with mobile gaming being the largest reason for growth.

Key Trends

  - Freemium model on OTT platforms is gaining prominence
  - Subscription schemes on the freemium model are trying to add more value added services to extend reach and lure the customer
  - Regional music on the rise - As per Gaana, regional music witnessed significant growth in 2015 – 99 Per cent in Bengali, 142 Per cent in Punjabi and 867 Per cent in Telugu.
Digital Ad Spend
  - Native advertising is becoming more popular
  - Second Screen phenomena is gaining traction & cross platform advertising is becoming more popular
Social Media
  - Social media will become the new CRM tool
  - Visually dominated sites shall continue to rise in popularity
  - Users will warm up to social commerce
  - Instant articles and Live streaming will be the new ways content is published
  - Indian market is mainly driven by mobile gaming
  - The industry will benefit from Google Play’s introduction of carrier billing

Industry challenges

  - Digital piracy is still a major problem in India
  - Monetizing the freemium customer is also a major hurdle
Digital Ad Spend
  - Ad blocking is a serious problem and installations of ad blocking software on browsers has increased by nearly tenfold to 181 million between 2010 and 2015
  - The media landscape is becoming increasingly complex for the marketers to continuously innovate their marketing campaigns to increase effectiveness of campaigns.
  - Print magazines witnessed a decline in the growth rate owing to increasing implementation of other media for ad spending.
Social Media
  - Lack of awareness because of the urban rural divide
  - Threat to privacy and security is still a challenge
  - Internet penetration is still low
  - While downloads for mobile games are booming, the Indian market is yet to make a shift to monetization of their products
  - There continues to be a challenge to retain loyal users

Future Outlook

  - Regional content is growing at a fast pace
  - Music companies will have to increase their robustness of their internal digital infrastructure. Investments in the right digital technologies will be key.
  - Music companies will also have to continue to invest in skills and educate users for a greater adoption rate and superior customer experience.
Digital Ad Spend
  - While TV continues to be the dominant medium of digital ad spend, cross-platform advertisers seek to make the most out of second screen viewership or multi-screen viewership.
  - Mobile advertising to increase, especially on mobile
Social Media
  - Long form social content will gain traction
  - Audiences will continue to be engaged through social media by celebrities and brands
  - Social media is likely to become an avenue for recruitment
  - Social commerce will see an uptick
  - Emphasis on content and regional geographies will be the key
  - 2016 is expected to see the entry of the three big virtual headsets - Playstation VR, Oculus Rift and HTC Vive
  - Soft monetizing techniques will be increased by advertisers on gaming platforms


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