With the significant surge in the use of smartphones and Internet, digital ad spending in India is likely to reach $21 billion by 2028, a report showed on Tuesday

Notedly, growth in user-generated content (UGC) will empower individual creators and influencers to build their digital identity, which brands can leverage for digital ads

This strong ecosystem of 2.5 to 3 million creators is expected to drive marketing spending of $2.8 billion- $3.5 billion by 2028, according to the report by Redseer Strategy Consultants

The digital ad spend in the country is set to observe a muted growth in FY23 due to macro factors, post which it would account for 65-70 per cent of overall ad spend in India growing at a CAGR of 19-21 per cent

“Upon mapping market sizing across media agencies, we observe a significant under-reporting of digital ad spend in India. However, our projection has considered enterprise spends, SMB spends, influencer marketing, affiliate marketing and gaming,” said Mukesh Kumar, engagement manager, Redseer

With users spending around seven hours daily on their smartphones, digital platforms have a good engagement rate

Some of the most popular performances driving digital advertising platforms include e-commerce, short videos, OTT, social media, long-form videos, and news outlets

Notedly, growth in user-generated content (UGC) will empower individual creators and influencers to build their digital identity, which brands can leverage for digital ads