IAMAI Report: Digital Advertising In India To Reach $477M By March 2014

Internet and Mobile Association of India (IAMAI) believes that 2013 was the year of internet and that internet has reached an inflection point



The Internet And Mobile Association of India (IAMAI) has put together a report of 2013 and it rightly believes that this was the year that Internet was eagerly adopted by the Indian sub–continent.

IAMAI, an association that regularly offers insights about the Internet and its associated industries and businesses, is of the firm opinion that Internet as an activity as well as market found its takers in the largest quantum in the last year. From eCommerce to digital advertising, Internet usage flew even from the mobile domain as users were treated with reductions in usage charges (owing to the ongoing tariff wars).

Where did IAMAI find ascension patterns?

Internet users grew by about 39% in 2013 on a Year on Year (YoY) basis. As compared to last year’s 28%, this is certainly a good growth pattern. Surprisingly, going against common assumption that the mobile ecosystem will drive the next growth spurt in Internet adoption, it actually dropped!

In the year 2012, there was a surge of 111% in Internet usage from mobile users. But the year 2013, saw about half of that at just 63%. Though it is certainly a worrisome revelation in terms of percentage, there are more than 63 million mobile Internet users.

IAMAI Internet 2013 report

Online eCommerce to benefit: Multiple online shopping portals like Amazon, SnapDeal, eBay and others are scaling up their mobile apps that are optimized to shop on the go. With such a high quantum of users, these portals should certainly do brisk business. As per the report, by December 2013, Digital Commerce in India grew to an astonishing Rs. 62,967 crores (US$ 10 billion). In 2012, the figure was Rs. 47,349 crores (US$ 7 billion).

Government helped too: Moreover, even the Government has been scaling up its eGovernance and mGovernance initiatives. With a dedicated mGov App Store, equipped with apps like the mPassport Seva that allows executing all major tasks of applying for a passport, the mobile ecosystem is surely maturing.

Hence it is the usage that will matter, more than the actual count. Surprisingly, IAMAI doesn’t appear to have offered the duration that the Internet is accessed. This should have surely proven that though the growth rate has slowed down in case of mobile Internet, the actual usage continues to climb up.

Perhaps the most promising segment that is set to draw in big numbers and bigger bucks is the Digital Advertising segment. The online advertising market in India is expected to reach Rs. 3000 crores (US$ 477 million) by end of this fiscal year, registering a YoY growth of 30%.

IAMAI Internet 2013 report

The villages get online: 70% of India’s population resides in small towns and villages and this is where the digital revolution is clearly needed the most. Fortunately with multiple Government as well as private initiatives, the rural segment is rapidly getting online. Thanks to mobile internet and cheap tablets, there are more than 32 million Internet users in the villages. Though this is still 1/5th of the urban internet accessing population (155 million), the growth patterns are reassuring.

IAMAI Internet 2013 report

Image credit: Mashable