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Indian online advertising market to grow about 32 percent
By siliconindia
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Tuesday, 15 December 2009, 22:31 IST |
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430 crore, which is lower than the 38 percent it showed last year, as per a study conducted by the Internet and Mobile Association of India (IAMAI) and research agency IMRB.
As reported by the Economic Times, the online display ads from the BFSI sector witnessed a sharp decline from 25 percent last year to 17 percent this year. "With recession in the U.S. economy and its global effect, there is a sharp decline in advertising by companies from the BFSI sector. This decline pertains to foreign banks that have operations in India and extensively use the online medium for targeting HNIs and businessmen," Subho Ray, IAMAI President said.
The decline in online advertising by banks and financial companies was largely responsible for the dip, even as auto, FMCG, telecom and education sectors increased spends on online advertising. Online display advertising constitutes about 28 percent of overall online advertising, the remaining being classified and search-based advertising that forms approximately 48 percent and 24 percent respectively.
Also, the real estate companies were seen adopting the cheaper way of advertising to attract eyeballs, even as real estate prices fell due to a decline in the stock market. Online display advertisements comprise banner ads, rich media, digital video and sponsored links. The online advertisements related to the job sites as well as mobile phones or instruments were seen to have high rate of persuasiveness. In contrast, online ads for products like matrimonial and tour packages were seen to have the least influencing power leading to the lowest information search.
India has an active internet user base of about 3.3 million, according to the IAMAI. The report is based on primary survey covering 20,000 households, 90,000 individuals, 1000 SMEs and 500 cyber cafes countrywide.
