India Online Advertising Industry Growth And Forecast 2016

Executive Summary

Online advertising is developing rapidly in the country but decline in advertising revenues have been noticed during 2009 due to the global economic slowdown. However, in 2010, a recovery in advertising spend was witnessed, due to an improvement in market sentiments. Moreover, sectors like finance, IT and education, which are the largest contributors to online advertising, reduced their advertising budget during 2009 and from the second quarter of 2010 onwards again started increasing their advertising spending. In 2010, online advertising surpassed growth rate of other advertising formats like TV, print and radio. The factors that helped the industry growth were, increase in internet penetration, e-commerce, social networking and population growth.

Among the various online ad categories, display advertising has always been the leading segment. Sectors such as travel, Banking, Financial Services and Insurance (BFSI), telecom, auto and online publishers dominated the display advertising segment. Sector wise, text advertising is dominated by BFSI, followed by travel and online publishers. Mobile advertising is a relatively new concept in India and it includes banners, text, click to call, click to SMS, in-game among others. With increasing demand for smart phones and 3G networks, mobile internet data usage is expected to be the growth driver, thereby leading to growth in mobile advertising. The role of social media is also rising due to growing internet access and also on account of social media becoming a standard element of web use.

Growth and new business opportunities exists for the online advertising industry in India, due to a large youth population, popularity of social networking sites, growing e-commerce trade, increase in educated population and broadband connectivity, as well as decreasing internet and telecom costs. Moreover, entry of foreign e-commerce companies is also expected to drive the market for online advertising. Mobile advertising is also predicted to grow with the popularity of 3G services, which was recently introduced in the market, thereby driving the demand for online advertising services.

The report on India Online Advertising Industry includes a detailed study of the Indian online advertising industry. We have also analyzed the industry and its various categories/ segments and trends prevailing in the market. The report also includes the industry, present performance and forecast of its various segments. Additionally, we have discussed cause and effect relationship of macroeconomic and industry factors on the industry providing the basis for the future outlook.

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