Digital Advertising set to rise 3-folds in 3 years; To touch $860 million by 2013

Digital Advertising is expected to reach INR 4,391 crores by March 2013. It is expected to reach INR 3,535 crores by the end of this calendar year. Currently, (March’12), the market is pegged at INR 2,851 crores. These are the major findings of the annual Digital advertising report jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB.

The relative share of the major segments is explained in the following chart.

Source: IAMAI            (Figure 1 – Total Online Ad / Classifieds Spend)

According to publicly available sources, the total size of offline advertising market including Print, TV, OOH, Radio, Cinema is INR 26,501 crores in the year 2012. Compared to this, the digital market at INR 2851 crores is almost 11% of the conventional medium.

On an average, the digital ad spends have been growing at 25% year-on-year basis. This is reflected in the following chart.

 

Source: IAMAI                   (Figure 2: Online Ad Spends from 2010)

Travel and BFSI continued to be the main spenders as far as Display Ads are concerned.  The Display Ad spend by Automotive companies has appreciably increased.  Its overall share has risen from 9% in FY2010 to 13% in FY2011 to 14% in FY2012 as reflected in Figure 3.

(Figure 3: Share of Display Ad Type Spend - Industry wise)

The Internet and Mobile Association of India [IAMAI] was established in 2004 under the Societies Act and is a recognised charity in Maharashtra. The association has a membership of 120 odd Indian and MNC companies and has offices in Delhi and Mumbai.

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