India's online ads market to touch Rs 3,575 crore by March; mobile ad spends growing at CAGR of 43%

India’s online advertising market is expected to reach Rs 3,575 crore by March 2015, growing at a Y-o-Y growth rate of 30 percent. The online advertising market was pegged at Rs 2,750 crore in March 2014, according to a ‘Digital Advertising in India’ report, jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International.

Search (38 percent) and display (29 percent) are the top two contributors to the total digital advertisement spends in India, the report said.
[caption id=“attachment_75221” align=“alignleft” width=“300”]  Media and advertising companies are getting disrupted, changing forever. Image:Sameer Pawar/Forbes India[/caption]

Interestingly, contribution of Search spends reduced to 30 percent of the overall digital ads spends i.e. contributing Rs 825 crore to the overall market revenue in FY ending March 2014.

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“It is estimated that the proportion of spends on Search advertisements will reduce and spends will increase on Email, Video and Mobile advertisements.”

While social media contributed 13 percent of overall digital advertisement spends. According to the report, ad spends on mobile devices are growing at a CAGR of 43 percent and social media grew at a CAGR of 41 percent y-o-y and touched Rs 385 crores and Rs 440 crores in March 2014.

Spend on video grew at CAGR of 51 percent and reached Rs 303 crores, and spends on Email ads grew at a CAGR 16 percent to reach Rs 88 crores.

By 2015, spends on Video ads will grow by a CAGR of 56 percent and contribute 12 percent to the overall market share of digital ads.

Further, on industry wise spends, the report finds that e-Commerce, Telecom and FMCG & Consumer durables are the top 3 verticals driving the digital advertisement spends in India.