Online Advertising Market Growth in India

By | May 8, 2011

Today, Internet became one of the best channels for promoting brands and selling products or services in India. Internet has evolved into one of the adservermost explored new media available today. In India, it is growing faster than other media like TV and print. According to the Indian Revenue Service, the Compound Annual Growth Rate (CAGR) of Internet is 37.3% whereas the CAGR for TV and print media is 7.1% and 3.7% respectively.

In India, the popularity of social media will also play a major role in the growth of online advertising. Social media is getting 17% of the share. The other online marketing tools include e-mail marketing, SEO, SEM, website banner ads and so on. However, advertisers will also be focusing more on online display ads than text advertisements.

Online advertising market size in India
In India, the number of online users has been growing steadily. According to the Internet World Stats-July 2010, there are 81 million Internet users in India. The internet penetration rate is 6.9%.

The Indian total online advertising market size was estimated at Rs. 785 crores for the year 2009-2010 by the IMRB International. It was expected to grow to Rs. 993 crores in year 2010-2011. In the year of 2008, the online display advertisement market size was Rs. 235 crores and it was grown to Rs. 325 crores in 2009. In 2010 it was expected to reach Rs. 417 crores. The growth of the online advertisement market can be much enhanced in the coming years.