X dominates digital advertising with 33% of total ad impressions in 2024: Report

Digital advertising in 2024 experienced remarkable expansion, with ad impressions surging by 12.7 times compared to 2020. This growth underscores the medium’s increasing dominance, driven by advancements in programmatic advertising, a surge in e-commerce, and the strategic use of social media platforms. The second quarter of the year saw a 9% increase in impressions over the first, with X and YouTube emerging as leading platforms. Services remained the most advertised sector, while e-commerce categories continued to thrive.

Surge in ad impressions

The digital advertising landscape witnessed an exceptional rise in ad impressions, growing 12.7 times in 2024 compared to 2020. This exponential increase was fuelled by rapid adoption of digital media, particularly in sectors such as e-commerce and financial services. Compared to 2023, ad impressions grew by 7%, marking a steady annual increase.

The second quarter of 2024 recorded a 9% increase in ad impressions over the first quarter. However, the highest quarterly surge was observed in the April-June period, with a 45% rise in impressions compared to the October-December quarter of 2023. These trends indicate a growing reliance on digital advertising during key business periods.

Services lead the way

The services sector retained its top position, contributing 49% of total digital ad impressions. Banking, finance, and investment advertising followed with a 6% share, while computers and education sectors secured 6% and 5% respectively. Notably, personal healthcare and telecom products emerged as new entrants in the top 10 sectors, reflecting growing interest in health and connectivity.

E-commerce dominance

E-commerce remained the most advertised category in 2024, with ‘Ecom-Other Services’ leading at 12% of total impressions. Online shopping, media and entertainment, and financial services closely followed. Cellular phones and smartphones made their debut in the top categories, signifying an increased focus on mobile technology.

Amazon leads the race

Amazon Online India led the list of top advertisers, followed by Karma Shopping and Flipkart. Notably, Google dropped from fourth to ninth place in 2024. More than 155,000 advertisers actively engaged in digital campaigns throughout the year, demonstrating the medium’s expansive reach.

E-commerce companies at the forefront

Among the top 10 brands, Amazon.in dominated digital ad impressions, accounting for 3% of total share. E-commerce brands represented a significant portion of the top advertisers, with Flipkart, Livspace, and Nykaa among key players. Interestingly, political advertising saw a presence with the Bharatiya Janata Party securing a spot among the top brands.

Corporate and retail drive expansion

Retail outlets for home and interior décor experienced the highest increase in ad impressions, with a 100% rise. Corporate sectors in pharma and auto also saw significant growth, with auto advertisements increasing nearly threefold. The surge in fast-food advertising (86%) and healthcare-related ads (30%) further highlights shifting consumer priorities.

Exclusive advertisers

A significant number of new advertisers entered the digital space in 2024. Coroot Inc emerged as the leading exclusive advertiser, followed by Immuni Software and Clerk SMS. Over 100,000 advertisers exclusively utilised digital platforms in 2024, emphasising the shift from traditional advertising channels.

X and YouTube lead

X dominated digital advertising, capturing 33% of total ad impressions, while YouTube followed closely with a 28% share. In-app display advertising secured 18% of impressions, reflecting the growing importance of mobile-first strategies.

Programmatic takes centre stage

Programmatic advertising continued to be the preferred method, accounting for 88% of all digital ad transactions. Ad networks followed with a mere 4% share, while direct transactions contributed only 2%, showcasing the efficiency and scale of automated ad placements.

Single image ads reign supreme

Single image ads secured the highest number of impressions, capturing 50% of total ad views, while video ads followed with a 23% share. Other formats, including HTML5 and carousels, contributed to the remaining digital ad traffic.

The digital advertising landscape in 2024 reinforced its position as the primary medium for brand engagement. With programmatic advertising driving efficiency, social media platforms capturing a growing share, and e-commerce maintaining its stronghold, the future of digital marketing remains promising. As advertisers refine their strategies, the industry is poised for further expansion in the coming years.

Access the report here.