Digital advertising to grow 35% by Dec

That is a 35% increase over Rs 5,200 crore achieved in the same month last year

The share of digital advertising in India is 12 per cent of the total advertisement spends in the country. In terms of volume, e-commerce leads the digital ad spends with Rs 1,040 crore, followed by the telecom and banking, financial services & insurance (BFSI) verticals, says a new report.

According to Digital Advertising in India, jointly published by the Internet and Mobile Association of India  and IMRB International, the digital advertising market in India is set to reach Rs 7,044 crore by December 2016 at a compounded annual growth rate of 35 per cent. The digital ad market was pegged at Rs 5,200 crore in December 2015.
 
In 2014, search ads constituted 30 per cent of the overall ad spend, followed by display ads at 23 per cent and social media at 18 per cent. The report finds that search continued to lead in 2015 with spends close to Rs 1,488 crore, while social media spend was close to Rs 940 crore.

Video ads such as YouTube also showed huge gains in 2015, accounting for 17 per cent of the overall spends in the digital space.

This has been driven by higher Internet speeds available to consumers coupled with an increase in mobile advertisements. As these trends continue, video advertisement is expected to gain further in 2016.