At Rs 23,213 crore combined ad revenues are higher than the combined ad revenues of the top 10 listed traditional media companies at Rs 8,396 crore. Indian Express showed.
Facebook India and Google India together account for 80 percent of local digital advertising revenues.
Consider: In the last financial year, Zee Entertainment Enterprises, which has the largest market capitalization among listed media outlets, reported total revenue of 7,729 crores. Of this, the revenue from advertisements was 48 percent, or roughly Rs 3,710. By comparison, Facebook India alone reported Rs 9,326 gross ad revenue for fiscal year 2020-21, while the same for Google was Rs 13,887.
Similarly, for Sun TV Network, which is among the largest broadcasters in India, total revenue from advertising and sales of broadcast spaces in the last financial year was Rs 998.5 crore, which is one-tenth of the gross advertising revenue reported by Facebook India alone. .
Bennett Coleman and Company Limited (BCCL), one of the largest and most diverse media companies, reported consolidated operating income of 5337.9 crore for the fiscal year ended March 31. That’s just over half of Facebook’s gross ad revenue. India.
However, both Facebook India and Google India lag behind traditional media companies in terms of net income and net profit. For example, Facebook India reports net income of Rs 1,481 Billion and Google India reports net income of Rs 6,386 Million, while Zee Entertainment Enterprises reports net income of Rs 7,729 Billion.
This is mainly because Facebook India and Google India are working on an ad seller model in India; this means they purchase inventory from a global subsidiary of the firm’s US headquarters and then resell that ad space to their customers in India. For this, they pay a share of the gross advertising revenues to the global subsidiary from which they purchased the advertising space.
Among the top ten traditional media companies listed are media houses such as TV18 Broadcast, DB Corp, Jagran Prakashan, Entertainment Network and TV Today Network, which reported advertising revenues of Rs 1083.18 crore, Rs 1008.4 crore, Rs 886 crore, Rs 52 crore. , and Rs 580 crore for final finances respectively.
Industry sources said Facebook India pays 90 percent of its gross ad revenues to the global subsidiary, while Google India pays up to 87 percent.
A Meta spokesperson said the growth in gross ad revenues can be attributed to India’s transition to digital, which is reflected not only in consumers using digital tools to buy everyday necessities, but also in deep digital engagement with businesses and brands.
A spokesperson said, “We are currently discovering that many of the changes in consumer behavior triggered by the pandemic are persistent and will continue to drive growth for digital advertising platforms, particularly as savvy marketers make digital a central part of their strategy.” the company said.
According to a report by Dentsu, the advertising industry in India is set to grow from Rs 62,577 at the end of 2021 to Rs 70,343 by the end of 2022, while the digital advertising industry will grow to Rs 23,673 by 2022 to Rs 18,938 crore by the end of 2021. Compared with.