Online Advertising Market to Touch Rs. 3,575 Crore by March 2015: Report

With the rise in advertisement spending by the e-commerce, telecom, fast moving consumer goods and consumer durables sectors in India, the online advertising market is projected to touch Rs. 3,575 crore by March 2015, a report said in New Delhi on Wednesday.

The report 'Digital Advertising in India' was jointly done by the Internet and Mobile Association of India (IAMAI) and IMRB International. The online advertising market was pegged at Rs. 2,750 crore in March 2014 and it is growing at the rate of 30 percent year-on-year (y-o-y).

The report said currently, search and display are the top two contributors to the total digital advertisement spends in India. Of the Rs. 2,750 crore digital advertisement market, search advertisement constitute 38 percent of the overall ad spends followed by display advertisement which contribute 29 percent and social media contributing 13 percent of overall digital advertisement spends.

"By 2015, spends on video ads will grow by a CAGR (compound annual growth rate) of 56 percent and contribute 12 percent to the overall market share of digital advertisements. In financial year ending in March 2014, the contribution of search spends reduced to 30 percent of the overall digital advertisement spends, that is, contributing Rs. 825 crore to the Rs. 2,750 crore digital advertisement market," the report added.

According to the report, ad spends on mobile devices are growing at a CAGR of 43 percent and social media grew at a CAGR of 41 percent y-o-y and touched Rs.385 crore and Rs.440 crore in March 2014.

The overall ad spend in India across all media was Rs. 38,598 crore as of 2013 with a year-on-year growth rate of 12 percent. Advertisement spend in television is the highest with a proportion of 44 percent of the overall spend.