India online adspend up one third

5 September 2014

NEW DELHI: The online advertising market in India is on course to grow by 30% by the end of the financial year, according to a new industry forecast.

Driven by increasing demand for quick and effective ad measurability, the country's digital ad market is expected to be worth Rs.3,575 crore by the end of March 2015, up from Rs.2,750 crore in the previous year, Live Mint reported.

This is the latest projection from the Digital Advertising in India report, which is a joint study by the Internet and Mobile Association of India (IAMAI), a trade body, and market research firm IMRB International.

In addition, the report expects further investment in rich-media formats like video and social media on the back of greater adoption of mobile devices in India and improvements to its broadband infrastructure and connectivity.

Adspend on mobile devices is currently growing at an annual average rate of 46%, the report said, social media adspend at an annual rate of 41%, while video adspend is expected to increase at an annual rate of 56%.

Meanwhile, adspend on both search and display – which account for 30% and 23% respectively of the total online ad market in India – is expected to reduce as video and other newer forms of digital ads increase in popularity.

The effectiveness of digital marketing and its facility to provide accurate metrics received endorsement from a leading brand advertiser.

Sandeep Komaravelly, svp of marketing at Snapdeal, the country's largest online marketplace, said: "Digital marketing is effective for a few reasons. Most important being that it is measurable and you can granularly measure every penny that you have invested. Your efficiency goes up dramatically.

"It also gives flexibility to scale up and down according to the campaign performance. Fashion and lifestyle works well through social media advertising while the electronics category does well through search related advertising."

Data sourced from Live Mint; additional content by Warc staff