Online display set for growth in India

21 December 2009

NEW DELHI: The online display advertising market will grow by more than 30% in India next year, with brands in the FMCG and automotive sectors helping to drive this trend.

According to a study produced for the Internet & Mobile Association of India by IMRB and eTech,online display was worth a total of 3,250 million rupees ($69.9m; €48.8m; £43.3m) at the end of the 2008–09 fiscal year, up by 38% on an annual basis.

The pace of expansion will moderate to 32% over the proceeding financial year, taking expenditure through this channel to 4,300 million rupees, equating to just 68 rupees per person in the rapidly-developing economy.

By product category, online publishers deliver 26% of revenues at present, with financial services on 17%, IT and telecoms on 15%, fast-moving consumer goods on 10%, and automotive on 9%.

Looking forward, it is predicted that FMCG advertisers will post an uptick in outlay of 46% in 2010, to 473 million rupees, with IT and telecoms improving by 41%, to 688 million rupees, and automotive by 40%, to 387 million rupees.

In terms of the segments with the highest clickthrough rates, some 58% of active web users had selected an execution for a mobile phone or related product, falling to 50% for loans from banks or other financial specialists.

Entertainment sites scored 42% on this measure, followed by recruitment portals on 40%, and investment services on 39%, with everything from computing equipment to matrimonial services also proving popular.

Conversion rates, however, were highest for investment options like mutual funds, on 38%, with air tickets on 18%, and educational and training courses on 15%, making up the top three.

Data sourced from IAMAI; additional content by Warc staff