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Online ad market to reach Rs 3,575 cr by March 2015: IAMAI-IMRB report

04-September-2014
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Online ad market to reach Rs 3,575 cr by March 2015: IAMAI-IMRB report

The online advertising market in India is projected to reach Rs 3,575 crore by March 2015, with a Y-o-Y growth rate of 30 per cent. The online advertising market was pegged at Rs 2,750 crore in March 2014. These are the latest findings of the ‘Digital Advertising in India’ report, jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International.

Indian Digital Advertising Market Growth


Source: IAMAI & IMRB International

The report finds that currently, Search and Display are the top two contributors to the total digital advertisement spends in India. Of the Rs 2,750 crore digital advertisement market, Search ads constitute 38 per cent of the overall ad spends, followed by Display ads, which contribute 29 per cent and Social Media contributing 13 per cent of overall digital advertisement spends.

It is estimated that the proportion of spends on Search advertisements will reduce and spends will increase on Email, Video and Mobile advertisements. By 2015, spends on Video ads will grow at a CAGR of 56 per cent and contribute 12 per cent to the overall market share of digital advertisements. In the financial year ending March 2014, the contribution of Search spends reduced to 30 per cent of the overall digital advertisement spends, that is, contributing Rs 825 crore to the Rs 2,750 crore digital advertisement market.

Total Online Ad Spends


Source: IAMAI & IMRB International

According to the report, ad spends on mobile devices are growing at a CAGR of 43 per cent and Social Media is growing at a CAGR of 41 per cent y-o-y and touched Rs 385 crore and Rs 440 crore, respectively, in March 2014. Spend on video grew at a CAGR of 51 per cent and reach Rs 303 crore by 2014. Spends on Email Ads grew at a CAGR of 16 per cent to reach Rs 88 crore.

Further, on industry wise spends, the report finds that e-Commerce, Telecom, and FMCG & Consumer Durables are the top 3 verticals driving the digital advertisement spends in India.

Industry Wise Ad Spends


Source: IAMAI & IMRB International

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