Average Online Advertising Rates in the world – India 66th!

In last few years, Online advertising has been growing at much better pace than any other traditional advertising medium – According to recent report put together by Magna Global, online advertising spends will touch 71 Billion dollars this year globally.

In India, online advertising is picking up pace as well, thanks to growth of Internet users in India, which has now crossed 100 million user mark. Currently, advertising spends in India are pegged at 200 Million USD, less than 0.5 percent of global market share. But over next 3 years, it is expected that Indian online advertising will touch close to USD 1 Billion.

While doing a comparison on average advertising rates in India, I came across an interesting chart published by Social Bakers giving average global advertising rates for Facebook. Although India is now one of the top 5 countries in the world in terms of internet users, average advertising rates (Cost per thousand impressions – CPM & Cost per Click -CPC) are abysmally low.

Average Online Advertising Rates Globally [Facebook Ads]

#	Country	avg. CPC	avg. CPM
1	Cayman Islands	$1.15	$0.49
2	Russia	$0.99	$0.43
3	Japan	$0.73	$0.31
4	Australia	$0.68	$0.29
5	Isle of Man	$0.65	$0.28
6	United Kingdom	$0.60	$0.26
7	South Africa	$0.59	$0.26
8	Sweden	$0.56	$0.24
9	Norway	$0.53	$0.23
10	Ireland	$0.51	$0.22
11	United States	$0.47	$0.20
12	Denmark	$0.46	$0.20
13	Netherlands	$0.46	$0.20
14	Canada	$0.44	$0.19
15	Nigeria	$0.44	$0.19
16	Jersey	$0.44	$0.19
17	New Zealand	$0.43	$0.19
18	Ukraine	$0.42	$0.18
19	Bermuda	$0.42	$0.18
20	Switzerland	$0.41	$0.18
21	South Korea	$0.41	$0.17
22	Germany	$0.40	$0.17
23	Spain	$0.38	$0.17
24	Italy	$0.38	$0.16
25	Luxembourg	$0.37	$0.16
26	US Virgin Islands	$0.37	$0.16
27	Uzbekistan	$0.36	$0.16
28	France	$0.35	$0.15
29	Guernsey	$0.35	$0.15
30	Kenya	$0.35	$0.15
31	Kazakhstan	$0.35	$0.15
32	Belgium	$0.33	$0.14
33	Netherlands Antilles	$0.33	$0.14
34	Belarus	$0.33	$0.14
35	Finland	$0.32	$0.14
36	Austria	$0.30	$0.13
37	Swaziland	$0.28	$0.12
38	Liechtenstein	$0.28	$0.12
39	Lesotho	$0.27	$0.12
40	Turks and Caicos Islands	$0.27	$0.12
41	Papua New Guinea	$0.27	$0.12
42	Saudi Arabia	$0.26	$0.11
43	Israel	$0.26	$0.11
44	Qatar	$0.26	$0.11
45	Bahrain	$0.25	$0.11
46	Vanuatu	$0.25	$0.11
47	Angola	$0.25	$0.11
48	Oman	$0.25	$0.11
49	Puerto Rico	$0.25	$0.11
50	Singapore	$0.25	$0.11
51	Malawi	$0.24	$0.10
52	Brazil	$0.24	$0.10
53	Réunion	$0.24	$0.10
54	Lebanon	$0.24	$0.10
55	United Arab Emirates	$0.24	$0.10
56	Zambia	$0.23	$0.10
57	Hong Kong	$0.23	$0.10
58	Faroe Islands	$0.23	$0.10
59	Greenland	$0.23	$0.10
60	Iceland	$0.23	$0.10
61	Kuwait	$0.23	$0.10
62	Czech Republic	$0.23	$0.10
63	Martinique	$0.22	$0.09
64	Guadeloupe	$0.22	$0.09
65	Vatican City	$0.21	$0.09
66	India	$0.21	$0.09
67	Nauru	$0.21	$0.09
68	American Samoa	$0.21	$0.09
69	Malta	$0.21	$0.09
70	Namibia	$0.21	$0.09
71	Aland Islands	$0.21	$0.09
72	Slovakia	$0.20	$0.09
73	Portugal	$0.20	$0.09
74	Mozambique	$0.20	$0.09
75	Kyrgyzstan	$0.20	$0.09
76	Poland	$0.20	$0.09
77	Latvia	$0.20	$0.09
78	French Guiana	$0.20	$0.08
79	Haiti	$0.20	$0.08
80	Moldova	$0.19	$0.08
81	French Polynesia	$0.19	$0.08
82	Monaco	$0.19	$0.08
83	The Gambia	$0.19	$0.08
84	Botswana	$0.19	$0.08
85	Macau	$0.19	$0.08
86	Aruba	$0.19	$0.08
87	Andorra	$0.18	$0.08
88	Gabon	$0.18	$0.08
89	Slovenia	$0.18	$0.08
90	Hungary	$0.18	$0.08
91	Costa Rica	$0.18	$0.08
92	British Virgin Islands	$0.18	$0.08
93	Tanzania	$0.18	$0.08
94	Romania	$0.18	$0.08
95	Estonia	$0.18	$0.08
96	Antigua and Barbuda	$0.18	$0.08
97	Uganda	$0.18	$0.08
98	Gibraltar	$0.18	$0.08
99	The Bahamas	$0.18	$0.08
100	Jordan	$0.18	$0.08
101	China	$0.17	$0.08

[Source]

Although, these rates are for Facebook Ads only, it gives you a general idea about the prevalent advertising rates across the globe. We use Google AdSense network on trak.in and we see very similar trend. Ad Clicks received from countries like US, UK and Japan fetch nearly 3 to 4 times as compared to Indian clicks.

However, with individual online spends increasing and ecommerce market in India growing fiercely, these CPM & CPC rates are bound to go north. Infact, just about 12 to 18 months back, average CPC rates in India were in the range of 10 cents, which have now gone up to around 20 cents!

What is your take on growth of online advertising in India?