 "Online ad market at Rs 2,940 cr by 2014: Report")
The online advertising market in India, comprising search, display, mobile, social media, email and video advertising, which was valued at Rs 1,750 crore in March, 2012 has grown by 29% over the previous year to reach Rs 2,260 crore by March, 2013.
As in 2012, search and display advertising continued to form a large portion of the overall pie in FY 2012-2013. However, their percentage share has declined somewhat owing to the rise in the mobile, social media and video advertising.
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Even though traditional media like television and newspapers still remain the preferred media for seeking information and entertainment and hog more than 80% of the advertising market in India, the Internet has been steadily increasing its share of the advertising pie. Spends on digital media have steadily increased from just over 1% of total Indian advertising spend in the year 2005 to nearly 7% in 2012.
The report finds that by March 2013, search advertising constituted about 38% of the total online advertising spend, translating to about Rs 850 crore while display advertising form a sizeable 29% (Rs 662 crore).
Advertisements on mobile phones and tablets have grown from a 7% share in FY 2011-2012 to 10% of the Indian online ad market in FY 2012-2013, totaling to spends of around Rs 230 crore. Social media, email and video advertising constitute 13% (Rs 300 crore), 3% (Rs 68 crore) and 7% (Rs150 crore) of the online advertising market, respectively.
The BFSI, travel and auto sectors continue to be the top 3 spenders in online advertising. Increased spending by ecommerce players has been one of the highlights of the online advertising industry in FY 2011-12. Their share of spends is estimated to decline in 2012-13.