Internet advertising to beat magazine advertising?

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ZenithOptiMedia’s latest report on future of Internet advertising has some interesting findings:

  • By 2010, the Internet ad market (globally) will be worth almost $61bn, compared with the magazine market at around $60.5bn (29.3bn)
  • By 2010 the internet will account for 11.5% of global ad spend, trailing just TV, at a 37.5% share, and newspapers with 25.4% of an estimated $530bn (£257bn) total spend
  • Internet ad spend as a share of all media will break the 15% mark in 10 regional markets around the world [source]

Overview of online advertising market in India:

As far as the Indian market is concerned, digital advertising has not yet taken off in a big way

  • Internet advertising contributes only 1.8 % of the country’s total advertising spend (which stands at $75 million, ~ Rs 300 crore).
  • Online advertising is slated to rise by 3.1 per cent in the financial year 2008-09 and by 7.1 per cent in the financial year 2010-11 [source]

In India, what really works is Word of Mouth advertising (and not search engine advertising)

87% of those who use the Internet trust others’ advice rather than any kind of advertising

On the other hand, Mobile advertising is slated to be the next big bet for Indian advertisers.

The current online mobile advertising market in India is estimated to be just $1.5 million (including broadcast SMS,CRBT, banner ads), but given the penetration and affordability, India will see more of opt-in services (i.e. permission marketing, SMS2.0) in the mobile space.

As far as magazine advertising in India is concerned, niche magazines (publications related to women and current affairs) are attracting good advertising moolahs compared to generic ones.

Women and current affairs magazines had the maximum advertising share, while advertising grew the fastest in the fashion and lifestyle segment between January and September 2007. Monthly magazines attracted most of the advertisements, with an ad ratio of 70:30 for English and regional magazines respectively.

What do Internet startups have to say about this? Is mobile offering an important aspect of generating revenues?

Recommended Read: Bluetooth advertising in India, | Report on online newspaper readership in India

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