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Digital advertising spend in India to touch Rs 9,700 crore by end-2017

Author: IANS/Monday, August 21, 2017/Categories: Technology

Digital advertising spend in India to touch Rs 9,700 crore by end-2017

New Delhi, Aug 21 - The digital advertising spend in India is expected to continue at a compound annual growth rate (CAGR) of 33% to touch Rs 9,700 crore by December 2017, a recent study said.

The digital advertising spend was estimated to be around Rs 7,300 crore at the end of 2016, growing at a rate of 40% over 2015.

The report - Digital Advertising in India - jointly done by Internet and Mobile Association of India (IAMAI) and IMRB Kantar said that the digital advertising spend is about 14% of the total advertising spend in the country.

In terms of volume, e-commerce leads the digital advertising spends with around Rs 1,361 crore, followed by fast moving consumer goods, consumer durables and banking, financial services and insurance (BFSI), it said.

"However, a comparison of these verticals in terms of share of spends on traditional versus digital show that BFSI organisations incurred the highest share on digital advertising spends. Around 40% of their overall advertising spend was on digital followed by e-commerce, telecom and travel," the statement said.

In 2016, it is estimated that search ads (close to Rs 2,044 crore) constituted 28% of the overall ad spends followed by video (close to Rs 1,387 crore) which contributes to around 19%; mobile and social media (close to Rs 1,314 crore) each are at around 18% and display ads (close to Rs 1,168 crore) at 16%, the report said.

It added that spends on video ads have shown a significant increase and accounted for 19% of the overall spends in digital advertising.

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S Vijaykrishnan
S Vijaykrishnan

IANS

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