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Internet growth will pick up in 2011:

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Internet growth will pick up in 2011: has reported a 39 per cent growth in its advertising revenue for the third quarter ended December 31, 2010. In a release issued, has predicted that the recently announced government recommendations for publicly funded optical fibre networks and the rollout plans for 3G wireless services announced by multiple operators augurs well for the growth of the Internet industry in India, where the growth of users have been slow so far.

Meanwhile, Rediff’s revenues on fee-based services and online advertising from India grew by 31 per cent in Q3 FY11, while global revenues rose by 25 per cent. According to Rediff’s report, the company’s services like news, mail and video sharing have all showing good growth as per both comScore and internal metrics. According to comScore, the active user base from India has grown by 38 per cent year-on-year, which is higher than the market growth.

“We believe the revenue growth in the Indian Internet industry will come through adoption of Internet services by small and medium business broadly located in 200-odd towns across the country and our future success depends on how well we can design and deliver the services to these small businesses,” said Ajit Balakrishnan, Chairman and CEO,, in the release issued.

He added, “In our portfolio of products in this direction are our mobile mail service Rediffmail NG, local and affordable TV ads and social networking initiative MyPage. To each of these services we bring long years of experience a deep management team and robust platforms; and in addition, we are now deploying a CRM system. However, each presents different challenges in technology and customer acquisition and our efforts are focused in addressing the same.”

The company expects to continue to invest $1.0-1.5 million per quarter throughout the fiscal year in product development and brand building to continue the momentum in user growth and to enhance the user experience on

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