Condition of Online Display Advertisement in India

Condition of Online Display Advertisement in India

Online display advertisement has shown a rapid rate of increase in all parts of the world. India has also seen a rapid increase in this type of advertisement especially after the introduction of Google dynamic marketing. A recent study conducted showed that India will soon reach more than Rs.3500 crore for advertisement projects. Let us have a look at the recent status of online display advertisement in India.

The primary research

Two kinds of researches were conducted to draw the final conclusion on status of online advertisement. Let us talk about the primary research. It included several interviews that were conducted with online users and several online advertisement officials. It gave more of a statistical view on the present data.

The secondary research

This research was done to make a prediction of future using present data. It included the structure and dynamics of online marketing and advertisements gathered from various sources including published sources.

The result

The researches found out several interesting facts, which are jotted down below:

  • Most of the contribution in total digital ads spends in India is done by two sources. One is search and the other is display.
  • Of last year’s Rs 2,500 crores, search advertisements constituted around 38 per cent.
  • Display ads came second in the race with around 29 per cent contribution in the total spends.
  • Social media grabbed the third position by accounting for around 13 per cent of the overall digital spends.

Future estimations

The researches (mainly the secondary research) came out with a future estimation that:

  1. Spends on search ads will reduce in the upcoming years.
  2. Spends on e-mails, videos and mobile ads will increase.
  3. According to the data, the spending on video advertisements will grow by a Compound Annual Growth Rate of 56 % and will contribute about 12 % to the total market share of the digital advertisements.

Major discussions

These researches also showed that last year, the contribution of searching spends fell to around 30 per cent of overall digital spending. The report further showed that advertisement spending on mobile devices is growing at a Compound Annual Growth Rate of around 43% and that of social-media by around 41 %.

Spending on video raised at a Compound Annual Growth Rate of around 51 % while spends on e-mail advertisements raised at around 16 per cent. On industry-wise spends, the research finds that e-commerce, telecoms and Fast-moving consumer goods and consumer durable are among the top three things driving digital advertisement spends in India.

You would be shocked to know that the overall advertisement spend in India is around Rs 38,598 crore (according to 2013 figures). It has risen by almost 12% in the last one year. Television continued to be the biggest beneficiary with a share of around 45% in the overall spends.

Conclusion

After reading the data, results and future estimations, you will be aware of the present state of online marketing and advertisements in India. It is still in growing phase and has a great future ahead.