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India digital adspend surges

News, 08 July 2016

NEW DELHI: India's fast-expanding digital advertising market now accounts for 12% of all adspend and is forecast to grow a further 35% in 2016.

According to a new report – Digital Advertising in India – from the Internet and Mobile Association of India, a trade organisation, and IMRB International, a research group, the digital ad market was worth Rs 5,200 crore ($810.6m) in 2015.

And it projected this would increase to Rs 7,044 crore by the end of 2016, the Economic Times reported.

Spending on video ads in particular has increased significantly to the point where these now account for 17% of digital expenditure, or Rs 900 crore.

The report noted that this trend was being driven by the faster internet speeds now available to consumers and an increase in mobile advertisements. "As these trends continue, video advertising is expected to gain further in 2016," it said.

Spending on search, meanwhile, accounted for more than one quarter of the total (28.6%) at Rs 1,488 crore, while social media spending took up almost one fifth (18%) at Rs 940 crore.

In terms of individual categories, e-commerce had invested most in digital advertising in 2015, with a total outlay of Rs 1,040 crore.

That was a third more than telecoms, the next biggest sector, which spent Rs 780 crore, just ahead of banking, financial services and insurance which paid out Rs 728 crore; FMCG spending stood at Rs 676 crore.

Among other verticals, travel and auto spent Rs 572 crore and Rs 540 crore respectively on digital ads while education came in at Rs 312 crore.

The study also broke out each sector's digital spending as a proportion of its total adspend. On this measure, banking, financial services and insurance sector was most committed to digital, with 40% of its budget allocated there.

That was far higher than the other major spenders: e-commerce put 26% of its budget into digital, telecoms 25% and travel 25%

Data sourced from Economic Times; additional content by Warc staff