Growth of Online Display Ad Market in India

By | May 8, 2011

Online advertising is growing in different sectors in India. One of the advantages of online advertising is its capability to immediately publish information and content that is not limited by geography or time. Advertisers are focusing more on online display ads than text advertisements.

Text advertisements
Advertisements are made up in text form and displayed largely as sponsored links on search engines. When any one clicks on the link, it takes the potential customer to the advertiser’s website. It is lower cost than other ads like banner ads.

Display advertisements
Advertisements that are placed at various points on a web page that typically contain text, logos, photographs or other images. Banner ads are priced slightly higher than text ads and are known to have higher effectiveness.

Market size and growth of display ads
According to the Internet and Mobile Association of India (IAMAI), in the year of 2008, the market size of online display advertisements in India was Rs. 235 crores and it was increased to Rs. 325 crores in 2009. The display advertising market size in the year of 2009-10 was estimated at Rs. 417 crores and was expected to grow further by 28% to reach Rs. 534 crores in the year of 2010-11. Display ads are used by different sectors. They are mostly used by the travel industry when compared to many others.

In the year 2009-2010, out of total online display ads market size, the contribution of travel industry was in top with 14% followed by Banking, Finance, Services, Insurance (BFSI) with 13%, telecom with 12%, auto industry with 9%, online publishers with 9%, consumer durables with 8%, IT Sector with 8%, FMCG with 6%, education with 6%, electronic media with 5%, print media with 2%. Some others contribute about 8% of the market size. The market size of display ads is growing in these sectors more than other online ads.

Travel, BFSI, auto and telecom continue to remain the biggest display ad spenders in year 2009-10 and are expected to remain so for year 2010-11 as well.