Online Banner Ads to grow by 40% in 2008-09: IAMAI study

The online banner ad market will grow at 40% to reach Rs 350 crores by 2008-09 from its current size of Rs 235 crores [2007-08]. That is according to a just released study titled “Online Banner Advertisement in India” by the Internet and Mobile Association [IAMAI] and IMRB.

The study has revealed that BFSI, the online industry and ITES with 25%, 25% and 13% share are the leading advertisers in the online banner space in 2007- 08. The share of BFSI is expected to rise marginally to 26% while the share of online companies is likely to come down to 23% in 2008-09. Auto, FMCG, consumer durables and education are some of the leading sectoral advertisers in the online banner space.

While the ad spends per user continue to be dismal vis-à-vis the US and Europe market, at 1.2 USD, it is likely to rise to 1.6 USD in 2008-09.

The report states that the most optimistic sign is that in 2007, 80% of the users surveyed clicked on an online advertisement. This was a substantial increase from 56% for the year 2006.

TABLE 1: Information Searched Subsequent to Seeing the Ads:

Job Sites: 41%

Education/Training related: 35%

Investment Options like Mutual Funds: 27%

Mobile Phone/Instruments: 24%

Personal Products: 22%

Entertainment Sites: 22%

Loans by Banks/Financial: 21%

Insurance Ads: 21%

Air Tickets Ads: 17%

Matrimonial advertisements: 17%

(Source: I-Cube: 2007)

Base: 12.3 Million Active Internet users  in 2007 who have clicked on an Online advertisement

TABLE 2: Products Bought After Seeing the Ad:

Hotels & Holiday Tours/Packages: 4.3%

Loans by Banks/ Financial: 3.8%

Computer/Laptop/Printer/Scanner: 1.4%

Mobile Phone/Instruments: 1.2%

Entertainment Sites: 1.0%

Matrimonial Advertisements: 1.0%

Air Tickets Ads: 0.8%

Ads for Job Sites: 0.8%

Automobile Ads: 0.7%

Personal Products: 0.7%

(Source: I-Cube: 2007)

Base: 12.3 Million Active Internet users in 2007 who have clicked on an Online advertisement