Analysis: Internet advertising in India

Media and Entertainment has been heralded as one of hottest industries for some time now and some of major consulting firms have released re...

Media and Entertainment has been heralded as one of hottest industries for some time now and some of major consulting firms have released reports analyzing them in recent past and they have some interesting data on the internet part.
  • PWC 's report states that internet advertising will grow 32 per cent over the next five years and touch Rs 1,100 crore in 2012 from Rs 270 crore in 2007.
  • In 2007, the segment grew 69 per cent to Rs 270 crore from Rs 160 crore in the previous year. This was the highest growth compared with all other segments in the entertainment and media industry.
  • The share of Internet in the overall advertising pie is projected to grow to 2.4 per cent in 2012 from 1.4 per cent in 2007.
  • In the US for comparison the online advertising industry contributes around 10% to the total market size.
  • Globally it is estimated that market size is $45 billion for Internet advertising, which is 7.4 percent of the total $600 billion global advertising market.

Therefore it seems that size of online market relative to other countries is significantly less.but this is also due to the fact that Indian print and tv advertising is still growing at a very healthy rate and doesn't indicate a slow internet growth. This data is pretty near to other estimates of Indian market size. Other research has shown that that sectors like Automotive, Banking & Financial Services like insurance, Technology and online websites like Matrimonials, Jobs, Travels and Property sites are major spenders on online ads. In India the pie is pretty skewed with Display advertising dominated by likes of Rediff and Yahoo and Search marketing by Google. It will be interesting to see how this market develops
Related reads
Online Advertising in India 2008-09
GroupM India online advertising forecast
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5 comments

adite.chatterjee@gmail.com said...

Hi. Would anyone have some figures about the top ad revenue earners among internet sites/portals in India and their revenues.
Thanks.

Abhishek said...

Google yahoo and Rediff are three biggest earners in India market
Since international companies do not disclose their revenues from India separately we have to take revenues from Indian companies who are listed and Rediff last year declared revenues of $23.65 million from India advertising so that mite be the figure you are looking at

peter said...

Internet is increasingly a part of the media mix for advertisers as they realise its high potential in reach and penetration," said C.V.S. Sharma, chief of Tribal DDB India, which is linked with Tribal DDB Worldwide, a global digital marketing agency.The growth over the past three to four years has been good. Tushar Vyas of Group M, one of India's top media investment enterprises attached to global advertising agency Walter Thomson Associates (WTA), pegs it at 50 per cent a year for at least three years in a row.
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micheel

internet marketing

Experiential Marketing said...

Now Google is going to boost advertising revenue in India.

prince said...

hey can anyone tel what is the total market for crowdsourcing companies for Advertising purpose

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