Yahoo hopes for 40% growth in India

30 March 2009

BANGALORE: Yahoo, the online search portal, is hoping to increase its ad revenues by over 40% in India this year, a prediction made in anticipation of advertisers in the country increasingly transferring their budgets onto the web from TV and print.

The internet advertising industry in India is currently valued at $100 million (€75.3m; £69.9m), with a market share of around 2.5%.

Yahoo expects the online ad market to grow by between 25% and 30% this year – with display spending set to rise by 40% to 50% – and the sector's share to grow by 7% in the next three years.

In particular, Pearl Uppal, Yahoo's Indian sales director, argues that while spending by sectors like retail and real estate will slow, fmcg, telecoms, automotive and entertainment outlay "are growing", which "has more than compensated for the loss."

While Uppal expects advertisers to shift their spending from TV and print to online, he also argued that ad rates in the two more mainstream media have fallen by around 50% in the last 12 months.

By contrast, online advertising charges "have neither gone up nor gone down," meaning the medium is "competitively priced," but also "can't raise prices for the next eight to ten months."

Data sourced from DNA India; additional content by WARC staff