Indian online ads to grow 40 pc, to Rs 2,938 cr in 2013-'14

Online advertising in India is expected to grow at 40 per cent in FY 2013-'14 to reach Rs 2,938crore, according to the Digital Advertising in India report released by IAMAI and IMRB International.

It says in 2011-'12 and in 2012-'13, the online ad market stood at Rs 1,750 crore and Rs 2,260 crore respectively. On a year-on-year basis it saw a growth of 46 per cent and 29 per cent respectively.

In 2011-'12, search advertising accounted for Rs 718 crores and display advertising contributed another Rs 595 cr.

The top four big spending sectors on online advertising for FY 2011-'12 were BFSI, auto, telecom and travel, says the report. E-commerce players spent significant amounts of money on customer acquisition in FY 2012-'13, the report reveals. It says the share of advertising on mobile and social media is expected to go up whereas spending on display and e-mail will decline due to this shift.

Advertisements on mobile phones and tablets grew from a 7 per cent share in FY 2011-'12 to 10 per cent of the Indian online ad market in 2012-'13, totaling to spends of around Rs 230 crore.

Social media, e-mail and video advertising constitute 13 per cent (Rs 300 crore), 3 per cent (Rs 68 crore) and 7 per cent (Rs 150 crore) of the online advertising market, respectively.

Spends on mobile advertising have doubled from Rs 115 crore in 2011-'12 to Rs 230 crore in 2012-'13. The report cites proliferation of mobile phones in India, enhanced mobile internet connectivity and increased need for customer engagement as the reasons for this growth.