Online Ad Market To Touch Rs 2938 By March 2014: Report

The  size of the online advertising market in India  is projected to reach  Rs 2,938 crores by the fiscal 2013-14, according to the findings of Digital Advertising in India report, by the Internet and Mobile Association of India (IAMAI) and IMRB International.

The total online advertising market in India, comprising search, display , mobile, social media, email and video advertising was valued at INR 1,750 Crores in the fiscal 2011-12 and has grown to INR 2,260 Crores in year 2012-12.

Though traditional media like television and newspapers still remain the preferred media for seeking information and entertainment and hog more than 80% of the advertising market in India, the Internet has been steadily increasing its share,  and spends on digital media have steadily increased from just over 1% of total Indian advertising spend in the year 2005 to nearly 7% in 2012.

Trends in Spends on various online ad types

Display and search ads are the dominant online ad types today in India but other ad types are showing explosive growth albeit on a lower base. The graph below highlights the growth in the various online ad types over the last three financial years:

 

Indian Digital Advertising Market Growth

 

 

Total Estimated Online Ad Spend (2012-13) Rs,2,260 crore

The report finds that by March 2013, search advertising constituted about 38% of the total online advertising spend, translating to about Rs 850 crore while display advertising form a sizeable 29% (Rs 662 crore).

Advertisements on mobile phones and tablets have grown from a 7% share in FY 2011-2012 to 10% of the Indian online ad market in FY 2012-2013, totaling to spends of around Rs 230 crore. Mobile web advertising through banners and in-app advertising constitute about 80% of the mobile advertising market.

 


Mobile Ad Spends(2012-13) Rs 230 crore

Social media, email and video advertising constitute 13% (Rs 300 crore), 3% (Rs 68 crore) and 7% (Rs150 crore) of the online advertising market, respectively.

The BFSI, travel and auto sectors continue to be the top 3 spenders in online advertising. Increased spending by ecommerce players has been one of the highlights of the online advertising industry in FY 2011-12. Their share of spends is estimated to decline in 2012-13.

Source: Digital Advertising in India, IAMAI

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