New Delhi - Riding on growing demand for smartphones and falling data prices, digital advertising spend in the country is likely to rise to Rs 13,000 crore ($2 billion) by December 2018 at annual growth rate of 35%, a survey said.
According to the Assocham-KPMG joint study, the digital ad spending is expected to witness an exponential increase from the current level of Rs 9,800 crore due to widespread availability of 3G/4G services and the on-going surge in internet penetration in the country.
"The digital advertising spend was estimated to be around Rs 7,500 crore at the end of 2016," the survey noted.
"Around 50% of their overall advertising spend was on digital followed by e-commerce, telecom, technology, banking and financial services and insurance companies," it added.
The survey highlighted that the digital advertisement industry is growing rapidly as there is a growth in digital communication devices around the world, and the increase in smartphones, tablets is enabling advertisers to reach a wider audience.
"The digital advertisements are flexible and can be adapted for any kind of device like television, laptop, tablet or smartphone," the report said.
The two-way interactive capability and the ability to customise the ad for target audience also made digital advertisements more effective, it added.