Indian digital advertising on an all-time high?

It’s ringing cash registers for Indian digital advertising this financial year. The sector is expected to grow a whopping 54 per cent in the next 12 months according to a report released by the Internet And Mobile Association of India (IAMAI) and IMRB.


clip_image004As of March 2012, the industry was worth Rs 2,581 crores in annual revenue and is expected to grow to Rs 4391 crores by March 2013. IAMAI that typically represents the online and mobile VAS industry said that mobile advertising will grow from 105 crore, 17 per cent more than last year, to Rs 144 crore during the same period. Of these 75 per cent ads are on mobile browsers/ WAP’s and barely 5 per cent on SMS. While, Rs 21 crore were spent on In-App Advertising, about Rs 5 crore was spent on SMS.

When it comes to online classifieds it is frequently noticed that the vertical is not included as a part of the online ad market. Therefore, excluding online classifieds, online advertising is expected to grow about 25per cent from Rs 1,250 crore to Rs 1,561 crore in the next 12 months.

It is interesting to note that display has and will be slightly ahead of the search marketing in India. It has contributed about 55-60per cent of the total ‘pure’ online ad market and the ratio is expected to remain similar even after a year. This is contrary to the prediction across the world market which believes that search advertising is at the forefront of online advertising.


Travel and banking and financial sector 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 per cent in 2010 to 13 per cent in 2011 to 14per cent in 2012, the report said. On an average the digital ad spends have been growing at 25 per cent year-on-year basis and is about 11 per cent the size of the conventional or traditional media ad market, presently.

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