Digital Advertising in India Will Grow By 54% in the Next 12 Months


With the official reports indicating a positive outlook, the Digital Advertising sector is no longer an underdog. It’s roaring and the sector is professed to be going for a boom. The Indian online advertising market, including classifieds, will grow by a whopping 54% in the next 12 months, a report by the Internet and Mobile Association of India (IAMAI) and IMRB said.

Stastics indicate that Digital Advertising, as of March 2012, was worth Rs 2,851 crores in annual revenue and will further grow to Rs 4,391 crores by March 2013. It is expected to reach INR 3,535 crores by the end of this calendar year. This data obtained from IAMAI includes classifieds, something which is usually not considered while defining Online Ad Market. Exempting classifieds from this analysis the value of the Indian Advertising is pegged at Rs 1,561 crore for the next 12 months, a stupendous increase of 25% from Rs 1250 crore achieved last month. Segments that comprise the digital advertising sector have been displayed graphically:



Although the conventional media: TV, print, radio and out-of-home are pegged at a mammoth figure of INR 26,501 crores in the year 2012, the innovation introduced in the Digital Advertising domain is noteworthy. Currently, the digital market at INR 2851 crores is nearly 11% of the conventional medium.

As can be observed from the graph above, travel, auto, telecom and banking, financial services and insurance (BFSI) industries continued to be the major spenders in the display ads’segment, accounting for 18%, 14%, 13% and 11% of the space respectively.

"It is heartening to note the growth in the space and the entertainment industry, in particular, has taken to the medium and used it in interesting ways,"says digital marketing and communication expert V. Ramani. With this, one can credibly estimate the bright future of this market, bullish and highly profitable.

- Shyamal Dave


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