Internet advertising has become popular nowadays throughout the world including India. According to the Internet World Stats 2010, there were over 10 crores of Internet users in India. On an average, Indians were found to spend 16 hours a week on the Internet. 4 crores of the users accessed Internet from their homes and 3 crores of the people accessed from cyber cafes and workplaces. Many companies therefore were relying on Internet advertising to reach the consumers.
According to the Google India, the market size of the Indian Internet advertising which was at Rs. 10 billion is estimated to increase 50% in 2011. It is further estimated to reach up to $1 billion by 2014. However, this is estimated to be very small compared to the total advertising spend of Rs. 250 billions in the country. The billings are estimated to reach Rs. 1,500 crores by year end.
According to a report from the Internet and Mobile Association of India (IAMAI) of 2010, online advertising in India was an estimated Rs. 785 crores of which online text ads accounted for Rs. 368 crores and online display ads accounted for Rs. 417 crores. In India, the companies of sectors including automotive, BFSI, online publishers, travel, IT and telecom were found to be the biggest spenders on online ads.