27 September 2022 17:21


Online Ad Market To Reach INR 7,044 Cr By Dec’ 2016

e-Commerce, BFSI and Telecom are the top 3 verticals

The digital advertising market in India is projected to reach INR 7,044 crores by December 2016 at a CAGR of 35%. The digital advertising market was pegged at INR 5200 crores by the end of December 2015. These are the latest findings of the ‘Digital Advertising in India’ report, jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International, today.

The report finds that the digital Advertising spend is about 12% of the total advertisement spends in the country. In terms of volume, e-Commerce lead the digital ad spends with INR 1040 crores, followed by Telecom and BFSI. However, a comparison of these verticals in terms of share of spends on Traditional Vs Digital show that BFSI organizations incurred the highest share on digital advertisement spends. 40% of their overall advertising spends was on Digital followed by e-Commerce, Telecom and Travel.

In 2014, search ads constituted 30% of the overall ad spends followed by Display ads at 23% and Social Media at 18%. The report finds that Search continue to lead in 2015 with spends close to INR 1488 crores. Social Media spend was close to INR 940 crores. Spend on video ads such as YouTube also showed huge gains in 2015 and accounted for 17% of the overall ad spends in the digital space. This has been driven by higher Internet speeds available to the consumers coupled with an increase in mobile advertisements. As these trends continue, video advertisement is expected to gain further in 2016.


Digital advertisement has curved a substantial space in the overall advertising space.

While currently it acquires 12% of the advertising pie, this is expected to grow in 2016. From this perspective, 2016 is expected to be to be the watershed year for digital advertisement.

E-Commerce lead the digital space on online spends in terms of volume of spends, followed by Telecom and BFSI.
Search continues to lead the digital ad avenue spends. Social Media and Video are among other key digital avenues with high share of spend. Video is expected to further strengthen its presence in digital space in 2016. Mobile & email avenues are among other avenues that have gained and will continue to gain further.

Avenues that seem to be losing steam is Display. Display seems to be having a direct relation with online viewer’s discomfort, wherein, a growing number of viewers indicated online ad to be distracting.

With an expected CAGR growth of 35% in 2016, digital advertisement is expected to become the key investment gainer and reach INR 7044 crores. The benefits of digital advertisements and the convenience of the avenue with the consumer will ensure that this segment continue its growth.

Industry players in India are optimistic about the growth of digital in advertisement space, as use of mobile phone as a key device for internet access will continue to grow across town class and the in rural areas. Therefore, in order to gain wider reach, players will continue to move their investment to Digital & mobile space.

Globally, the internet remains the fastest growing medium for advertising and it is predicted to surpass traditional television by 2020 on overall advertising spends.

Read 1285 times Last modified on Thursday, 07 July 2016 03:46
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