Know About the Factors Influencing Indian Internet Advertising

By | May 25, 2011

Internet is one of the best channels for promoting brands, products and services. Nowadays, most of the businesses realized the importance of Internet advertising and most of the business people are showing more interest to spend on Internet than other traditional media for marketing.

In India also, most of the businesses are shifting from traditional advertising channels to online in order to increase the business efficiency. Some of the major factors influencing the Internet advertising in India given by Biztech are:

a) Growth of Internet
According to the Indian Revenue Service (IRS), the Internet was found to grow rapidly with the highest growth rate than other diverse media channels like TV, print media etc. The compound annual growth rate (CAGR) of Internet reached up to 37.3% whereas for other channels such as television and print media, it was at 7.1% and 3.7% respectively. This clearly indicates the growth of the Internet in India.

b) Growth of Internet Penetration
Out of about 1.17 billions of Indian population, there were about 100 million people using Internet as of 2010. As per the Internet World States of 2010, the Internet penetration in India was found to be 6.9%. A substantial growth of penetration level was found in the country. People in India were found to use Internet by using English as well as other local language websites which helped the advertisers to focus in marketing to targeted audiences with ads and Internet campaigns specially designed for Indian consumers.

c) Increasing Broadband Subscribers
There has also been an increase in broadband subscribers in India. Nearly 60% of the users were found to access Internet regularly. Dial-up connections or cybercafes were used by most of the Internet users. As per the Press Information Bureau Govt. Of India, there were around 1 crore broadband subscribers in India as of 2010.

d) Cost Efficiency
Internet marketing is more cost-efficient when compared to other traditional means. The methods of pay-per-click, pay-per-action and pay-per-play advertising can solicit response only from targeted audiences giving advertisers more cost-effective advertising displays to market their products.

These factors were found to be helpful for Internet advertising in the country with expectation of further growth.

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