Online ad market in India to reach Rs 7,044 cr by Dec 2016: IAMAI-IMRB

The digital advertising market in India is projected to reach Rs 7,044 crore by December 2016 at a CAGR of 35 per cent. The digital advertising market was pegged at Rs 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 IMRB International.

Indian Digital Advertising Market Growth (in INR crore)

The report finds that the digital advertising spend is about 12 per cent of the total advertisement spends in the country. In terms of volume, e-commerce lead the digital ad spends with Rs 1,040 crore, followed by Telecom 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 advertisement spends. 40 per cent of their overall advertising spends was 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 spend was 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. As these trends continue, video advertisement is expected to gain further in 2016.