Digital advertising to touch Rs7,044 crore by December 2016: report

A report by the IAMAI and IMRB International says digital ad spending will account for 12% of the total advertising spend in India


A larger number of those who view online advertisements felt that digital ads helped them in finding the right product. Photo: Bloomberg
A larger number of those who view online advertisements felt that digital ads helped them in finding the right product. Photo: Bloomberg

New Delhi: The digital advertising market in India is estimated to reach Rs.7,044 crore by December 2016, an increase of 35% from Rs.5,200 crore at the end of December 2015.

This is a finding of the ‘Digital Advertising in India’ report, jointly published by the Internet and Mobile Association of India (IAMAI) and research agency IMRB International on Wednesday.

The report says that digital advertising spending will account for 12% of the total advertising spend in the country.

Among advertisers, e-commerce brands like Flipkart and Amazon lead the digital ad spend with Rs.1,040 crore, followed by brands in the telecom sector and banking and financial services.

In 2015, search-related ads contributed 30% of the total digital ad pie with Rs.1,488 crore, followed by ads on social media platforms like Facebook, Twitter and LinkedIn at 18%, or Rs.940 crore.

Spending on video ads such as YouTube stood at Rs.900 crore in 2015 and accounted for 17% of the overall ad spending in the digital space. This has been driven by higher Internet speeds available to consumers coupled with an increase in mobile advertisements. As these trends continue, video advertising is expected to gain further in 2016.

“From the perspective of the consumers, ability to filter content, freedom to view what one wishes to view and having access to relevant ads and communication, makes digital advertisements extremely relevant to the consumer segment,” stated the report.

A larger number of those who view online advertisements felt that these ads helped them in finding the right product. There has been a substantial increase in the number of consumers who feel that the relevance of these ads has increased. In addition, viewers also said that online ads were informative.

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