Online advertising is steadily seeing growth in India. Though broadband Internet penetration is growing at snail’s pace, Mobile internet figures are rising at breakneck speed, which augurs well for online advertising growth in India.
Internet & Mobile Association in India (IAMAI), recently released a report which pegs text and display advertising growth at Rs 993 crores in the financial year 2010-2011 from Rs 785 crores in the financial year 2009-2010. Online Display advertising grew at about 28 percent, while online text advertising registered 26 percent growth.
BFSI segment witnessed maximum ad spends at 24 percent in text ads and 13 percent in display Ads. While Travel category registered 20 percent ad spend on text and 14 percent growth in Display advertising.
[Note: the IAMAI report jumbles gives contradicting numbers..where the chart shows different numbers and the actual contents puts it out differently, I have taken the chart numbers, as they look correct]
Display Ad spend by Category
Text Ad spend by Category
Indian Online Advertising Trend in Future
It is interesting to note that display advertising is currently at growth stage in India, while globally display advertising growth is on a decline after hitting a peak few years earlier. It is quite surprising that pop-up and pop-unders are still doing very well in India, whereas globally one rarely sees them.
Mature Internet markets like U.S and UK are relying more on Video Ads and Social interactive kind of advertising models where ROI is more robust and leads are far more qualified.
India on the other is still at a nascent stage in online advertising, we are still few years behind western markets.