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Online ad market to reach Rs 7,044 crore by Dec 2016, predicts IAMAI

Total digital advertising spends reach 12% of total advertising spends in the country. Among top spenders are e-commerce, BFSI, telecom and travel

BestMediaInfo Bureau | Mumbai | July 8, 2016


The digital advertising market in India is projected to reach Rs 7,044 crore by December 2016 at a compound annual growth rate (CAGR) of 35 per cent, says a recent report. Last year, by the end of December 2015, it was pegged at Rs 5,200 crore.

A recent report of the ‘Digital Advertising in India,’ jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International, shows that the digital advertising spend is about 12 per cent of the total advertisement spends in the country.

Volume-wise, e-commerce led the digital ad spends with Rs 1,040 crore, followed by Telecom and Banking, Financial services and Insurance (BFSI). However, a comparison of these verticals in terms of share of spends on traditional v digital show that BFSI organisations incurred the highest share on digital advertisement spends. 40 per cent of the total advertising spends in BFSI were on digital, followed by e-commerce, telecom and travel.

In 2014, search ads constituted 30 per cent of the overall ad spends followed by display ads at 23 per cent and social media at 18 per cent. The report finds that search continue to lead in 2015 with spends close to Rs 1,488 crore. Social media spends were close to Rs 940 crore. Spend on video ads such as YouTube also showed huge gains in 2015 and accounted for 17 per cent 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. While these trends continue, video advertisement is expected to gain further in 2016.

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