A new type of ad on the internet has gone viral, says Ethos
Advertising costs for truck advertising have risen sharply in the last two years, according to research by the ad analytics firm Ethos.
The data also suggests that truck advertising is becoming increasingly relevant to India’s increasing digital consumer base.
The firm analysed the most recent data from trucking companies and found that their advertising costs had risen by an average of 18 per cent annually since 2012.
The firm used a range of metrics to analyse truck advertising costs, from average daily costs to the total number of hours spent in advertising.
Ethos found that the average daily advertising cost per tonne of vehicle in India was $12.90 in 2017, up from $10.70 in 2015.
In comparison, the average cost per kilometre travelled was $3.25 in 2017 from $2.00 in 2015, the firm said.
“This represents a significant increase in the average per-tonne cost of commercial truck advertising,” said the company’s executive vice president and head of research, Rahul Parekh.
“The average daily cost of a truck in India has been on an upward trajectory over the last year,” he said.
The company also found that truck ads are being used by more advertisers.
“The increase in advertising costs is primarily attributable to the growing popularity of digital marketing and the increasing reach of mobile-based ads on social media platforms,” Parek said.
Parekh said that the trends in advertising are a good sign.
“Advertisers need to be able to attract a bigger audience in the coming months and years,” he added.
“In the longer term, this trend will have a positive impact on the competitiveness of Indian brands, as the increase in digital ad revenues will help them compete in a global marketplace.”
While advertising costs are expected to increase, the company said that they could be offset by lower sales of vehicles and trucks.
“A decrease in the sale of vehicles would be a boon for India’s economy as the government has put a lot of effort in creating incentives to attract vehicles and boost their use,” Perek said, adding that the country’s economic growth could also be boosted by lower trucking costs.