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Last Updated : Feb 06, 2020 12:04 PM IST | Source: Moneycontrol.com

The online rummy industry is spending big bucks on digital advertising

There are approxiamately over six crore players in India.


In its latest report on advertising forecast for 2020, GroupM expects digital media to pocket 30 percent of ad spends this year. And in this growth, online Rummy is a big contributor.

If the question is how and why then let’s take a look at the growth of the online rummy industry as well as its spends on digital advertising.

"The online rummy industry has seen tremendous growth in the past few years. Because of the extensive demographic and geographic reach of mobile gaming, the industry currently is at Rs 2,000 crore and is expected to grow by 34 percent annually," said Hardik Parekh, Director, Sachar Gaming

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There are approximately over six crore players in India, he said.

What is more interesting is the fact that this industry is expected to reach the size of Rs 4,500 crore by 2020.

"In the next two to three years, the industry will grow with the growth of smartphone users in the country. If smartphone base is increasing at probably 3x then online rummy players will increase at least 10x in the next five years," said Ashish Bhakuni, Head of Marketing Adda52Rummy.

More rummy players will mean more education about the game for which online rummy operators will have to shell out for advertising.

Last year, the rummy fraternity invested over Rs 500 crore on digital advertising and in 2020 this number will further go up, said Parekh.

Adda52Rummy that spends close to 70 percent of its overall budget on digital advertising does this for two reasons.

One is in markets where users express the intent to play Rummy and this comes from developed markets like south India. For such users, the ad spend is about driving consumption, said Bhakuni.

He added that in other markets like Punjab, Bihar, Gujarat, which are not mature markets, online Rummy brands spend on advertising for market analysis and for education.

Online rummy operators advertise on platforms like Facebook and OTT platforms. But the players are also experimenting with other channels like Instagram and TikTok.

There is no denying that with the growth in the size of the online Rummy industry which takes more than 60 percent of the pie in terms of revenue across skill-based game, the advertising spend will also grow.

This is why industry experts say that advertising spend in the digital medium could see around 30 percent to 40 percent increase.

So, if you see more stars like Rana Daggubati or Prakash Raj advertising an online Rummy portal don’t be surprised as the industry is gearing up for a bigger marketing push.

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First Published on Feb 5, 2020 07:30 pm
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