'Digital advertising spends close to 12 per cent of total advertisement spends in India': IAMAI and IMRB International report

According to the 'Digital Advertising in India' report, jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International, the online ad market will reach INR 7,044 crore by December 2016. Top three verticals include e-commerce, BFSI, and Telecom.

According to the 'Digital Advertising in India' report, jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International, the digital advertising market in India that was pegged at INR 5,200 crore at the end of December 2015, is projected to reach INR 7,044 crore by the end of this year at a CAGR of 35 per cent.

The study shows that the digital advertising spends were about 12 per cent of the total advertisement spends in the country. In terms of volume, e-commerce leads digital ad spends with INR 1,040 crore, followed by telecom and BFSI. However, a comparison of these verticals in terms of share of spends on traditional v/s digital shows that BFSI organisations incurred the highest share on digital advertisement spends. Forty per cent of their overall spends were on digital, followed by e-commerce, telecom, and travel.

In 2014, 'search' ads constituted 30 per cent of the overall ad spends followed by display ads at 23 per cent, and social media at 18 per cent. According to the report, 'search' continued to lead in 2015 with spends close to INR 1,488 crore. Social media spends were close to INR 940 crore. Spends on video ads, such as YouTube, also showed huge gains in 2015 and accounted for 17 per cent of the overall ad spends in the digital space. This was largely driven by higher internet speeds available and an increase in mobile advertisements. As these trends continue, video advertisement is expected to gain further in 2016.

The Internet and Mobile Association of India is an association representing the gamut of digital businesses in India. It was established in 2004. In the last 12 years, IAMAI has come to address the challenges facing the digital and online industry including mobile content and services, online publishing, mobile advertising, online advertising, e-commerce, and mobile and digital payments.

The association is registered under the Societies Act and is a recognised charity in Maharashtra. With offices in Delhi, Mumbai, and Bengaluru, it claims to have a membership of over 200 Indian and MNC companies.