Online ads to touch Rs 9,700 cr by Dec 2017

22 Aug,2017

 

By A Correspondent

 

The digital advertising spend in India was estimated to be around INR 7,300 crore at the end of 2016, growing at a rate of 40% over 2015. The growth in spends on digital advertising is expected to continue at a CAGR of 33% to touch INR 9,700 crore by December 2017. The digital advertising market was pegged at INR 5,200 crore 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 Kantar IMRB Kantar.

 

The report finds that the digital advertising spend is about 14% of the total advertising spends in the country. In terms of volume, E-commerce leads the digital advertising spends with around INR 1,361 crore, followed by FMCG, Consumer Durables and BFSI. However, a comparison of these verticals in terms of share of spends on Traditional vs Digital show that BFSI organisations incurred the highest share on digital advertising spends. 40% of their overall advertising spend was on Digital followed by E-commerce, Telecom and Travel.

 

Share: Traditional vs Digital Advertising Spends by Verticals

Source IMRB Estimate Dec 2016

In 2016, it is estimated that Search ads (close to INR 2,044 crore) constituted 28% of the overall ad spends followed by Video (close to INR 1,387 crore) which contributes to around 19%; Mobile and Social Media (close to INR 1,314 crore) each are at around 18% and Display ads (close to INR 1,168 crore) at 16%. Spends on Video ads have shown a significant increase and accounted for 19% of the overall spends in digital advertising. In all likelihood, this has been driven by new online entertainment (movie, TV series) channel launches, by enhanced monetisation across various platforms and high CPMs on premium content. This category is estimated to witness significant growth till 2020. Spend on mobile advertising (SMS/in-app ads) also recorded high YoY growth of 58% from INR 832 crore in 2015 to around INR 1,313 crore in 2016. Spending on email ads has reduced substantially (-53% YoY) and is now estimated at only INR 73 crore.

 

Spend by Ad Avenues & CAGR (INR crore)

Source IMRB Estimate Dec 2016

 

 

 

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