Online Advertising Market in India is Expected to Cross $219 Million By 2011


Bubble of ‘Dot Com’ seems to be blowing again and, this time, in a much comprehensive manner. Social Media, E-commerce, Cloud computing and Dot Com acquisitions are surging like never before. Online Advertising Market is no exception and holding promising business scenarios for amid marketers who are yet to freeze the future initiatives on online advertising.

Online Advertising Market is expected to reach $220 Million by the 2011 in India as advertisers and marketers both are gaining filtered and significant ROI from such marketing mix. As per the latest report, published by “Internet And Mobile Association of India”, some of the biggest industry veterans like BFSI, Retail and FMGC are biggest online spenders ( in India) and going to remain so.

Though, FMGC is relatively new to online marketing industry but with the phenomenal growth in 2010 this industry is expected to increase its charm towards online spending in next couple of years. Education industry can be another valuable contributor as it’s witnessing major transformation from last couple of years in India.

Interestingly, while segregating Online Advertising Market in Display & Text ads, a constant decline has been recorded in market share of Display Ads against Text as biggest advertisers like BFSI continue to repel from Display Ads ( from 25% in 2008 to 17% in 2009 and 13% in 2010). However, such trend may not continue by next year. As new advertisers like FMCG and Education sectors are banking big on Display ads, 2011 is going to witness 28% growth in display ads compare to 26% growth of text ads.

Report also showcases the comparison & future of Social media marketing, email marketing and other marketing ( Search engine, Banners, SEM, SEO). Apparently Social media is going to be the biggest gainer of Online marketing in 2011 with estimated 17% market share compare to 11% last year. Others and Email Marketing are subsidizing the growth of social media as they may witness decline in market share to 77% and 6% subsequently compare to 82% and 7% last year.

The major contributor and investor in Online Advertising is going to remain long standing BFSI Industry. Though BFSI is leaning towards text ads compare to display, still the major chunk- 39% of online advertising market share- is going to come from BFSI.

Travel, Auto, online publishing, IT Industry, Telecom, FMCG, consumer durable and Education Industries are few other major contributors of 2011 online advertising market share. However, apparently all of them are having more confidence in Display Ads than Text Ads.

Overall with, with the micro level situation in India also upbeat, companies are much more confidence and committed towards online advertisement spending in next year. With the phenomenal growth of social media, internet and education exposure in India, business advertisers are gearing up to next version of their business marketing module with the help of online advertisement. Certainly this will boost up the confidence of publishers and marketers in India.

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