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Indian Online Ad Spend to Reach INR 3575 Crores by 2015.

A recent study conducted by IAMAI-IMRB says that the rising marketing spend in e-Commerce, telecom, FMCG and consumer durables sectors in India will help the online ad market to grow Y-o-Y at 30% to reach INR 3575 Crores by March 2015.Multi user heads many people

The online advertising market was INR 1140 Crores in 2010-11, INR 2260 Crores in 2012-13 and has reached an estimated INR 2750 Crores in 2013-14. Online ad spend has grown at a CAGR of 25% between during 2011 to 2013.

The total ad spend across all mediums in India in the year 2013 was INR 38598 crores. This shows a year on year growth of 12%. 44% of the total ad spend was through television. With the increasing adoption of internet in the country, online advertising has seen a boost and is said to increase even further through the mobile platform.

Noticing the trend, it is estimated that online digital spend will overtake traditional mediums in 5-10 years. This increase is accounted to quick and effective advertisement measurability. Also increasing mobile connectivity, high speed broadbands and growing infrastructure has led to rich media content in advertisements.

While the total online ad spend on mobile devices accounted only to 14%, the rest 86% were to laptops and desktops. With a 243 million strong internet user base of which 192 million are active users, the numbers are expected to go up significantly.

With eCommerce booming in India, 20% of the digital ad spend was attributed to eCommerce followed by telecom and FMCG+consumer durables. Online spend on eCommerce was estimated at INR 495 Crores as of march 2014 while telecom stood at INR 413 Crores.  FMCG+consumer durables stood at INR 385 Crores. Banking, Financial services and Insurance (BFSI) and travel spend was INR 303 Crores.

Ad spends on Mobile Devices are growing at a CAGR of 43% and touched INR 385 Crores while Social Media grew at a CAGR of 41% y-o-y and reached INR 440 Crores in March 2014. Spend on video grew at CAGR of 51% and reached INR 303 Crores. Spends on Email Ads grew at a CAGR 16% to reach INR 88 Crores estimating that spends on search and display ads will go down while email, video and mobile spends is to increase soon.

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