9 Things Marketers Should Know About The State Of Digital Advertising In India 2014

9 primary findings of the ‘Digital Advertising in India 2014’ report, jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International

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Digital penetration is growing and so are the advertising budgets in the country. In the latest findings of the ‘Digital Advertising in India’ report, jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International, it is stated that the online advertising market in India is projected to reach INR 3,575 Crore by March 2015 with a Y-o-Y growth rate of 30%.

The online advertising market was pegged at INR 2,750 Crore in March 2014. The extensive report focuses on areas like digital advertisement industry spends, ad avenues, spends and growth, ad effectiveness, among other areas. Click here to buy the detailed report.

Additionally, we have pulled out 9 important data points that digital marketers should be aware of on the Indian digital advertising industry:

1. As of June 2014, there were 243 M claimed Internet users where contribution of urban users is 65% and rural is only 35%. Out of these 192 M are active Internet users who access Internet at least once a month.

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2. Digital advertising spend in India was INR 2,260 Cr by the end of FY’13 and it reached INR 2,750 Cr by the end of FY’14 with a CAGR of 25% y-o-y since 2011.

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3. E-Commerce, Telecom and FMCG & Consumer durables are the top 3 verticals in terms of spending in digital advertisements till the end of FY’2014. Of these verticals, ad spends by E-Commerce companies constitute nearly 18%.

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4. Of the INR 2,750 Cr, Search ads constitute 30% of the overall ad spends followed by Display ads which contributes 23% and Social Media contributing 18% of overall Digital Advertisement spends.

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5. The total social media spend in India is close to INR 495 Cr by the end of FY’ 2014. Sponsored/promoted tweets & Posts contribute the lion share of 40% followed by Displays and Text links.

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6. The size of the overall Video spends market has reached Rs 330 Cr. and Standard In-Stream Ads constitute the maximum proportion. The contribution of standard In-stream (Pre, mid and Post Rolls) is 75% followed by True view Ads (15%) and In-video Ads (10%).

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7. Mobile ads constitute INR 385 Crores, In-App Advertisements form nearly 40% of the total spend on Mobile ads followed by Mobile Video, TV, SMS and MMS ads and Mobile Web Advertisements.

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8. 86% of digital advertisement spend happens for Personal computers which primarily includes Desktop PCs, Laptops, Netbooks; spends on mobile are increasing too.

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9. Close to 60% of the Internet users find online ads being relevant for a particular product search.

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