The country’s digital advertising market is projected to grow at a CAGR of 35 per cent to reach Rs7,044 crore by the end of this year, an IAMAI-IMRB report said on Wednesday.
The digital advertising market was pegged at Rs5,200 crore at the end of December 2015, accounting for about 12 per cent of the total advertisement spends in the country, the report titled ‘Digital Advertising in India’ said.
It has grown steadily from Rs1,140 crore in 2010-11 fiscal to Rs2,260 crore in 2012-2013 and further Rs5,200 crore in 2014-15, it added. In terms of volume, e-commerce led the digital advertisement spends with Rs1,040 crore followed by telecom (Rs780 crore), banking, financial services and insurance (Rs728 crore) and FMCG (Rs676 crore), the report by Internet and Mobile Association of India (IAMAI) and IMRB International said.
In 2015, the education sector spent Rs312 crore, while travel and auto verticals spent Rs572 crore and Rs540 crore, respectively, on digital advertising. However, banking, financial services and insurance sector spent a higher share of its advertisement expenditure on digital compared with other verticals with 40 per cent of its overall advertising spends going towards digital.
This was followed by e-commerce (26 per cent), telecom (25 per cent) and travel (25 per cent). Companies spent about Rs1,488 crore on search, while close to Rs940 crore was spent on social media in 2015. Expenditure on video ads such as on YouTube also showed huge gains in 2015, accounting for 17 per cent of the overall advertisement spends in the digital space, the report added.