EXECUTIVE SUMMARYIndia offers huge business potential for online advertising industry with rising population,growing incom...
TABLE OF CONTENT1.     The Indian Online Advertising Market1.1.   An Overview1.2.   Value Chain Analysis1.3.   Market Size...
5.     India Macro Economic Factors5.1.   GDP Growth Makes the Market Lucrative5.2.   Rising Per capita Income5.3.   Infla...
LIST OF FIGURESFigure 1: Online Advertising Value chain AnalysisFigure 2: Indian Advertising Expenditures by Media in 2010...
LIST OF TABLESTable 1: Text Advertising break-up by Industry in 2010Table 2: Online Ad Networks by FundingTable 3: Leading...
India Online Advertising Industry Growth and Forecast 2016
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India Online Advertising Industry Growth and Forecast 2016

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India Online Advertising Industry Growth and Forecast 2016

  1. 1. EXECUTIVE SUMMARYIndia offers huge business potential for online advertising industry with rising population,growing income level and changing lifestyle. With increasing number of educated people andmigration to urban areas, increase adoption in internet and online advertising is beingwitnessed. Despite the growth, many challenges continue to plague the industry such asunderdeveloped infrastructure and lack of faith of both advertisers and audiences.Online advertising is developing rapidly in the country but decline in advertising revenues havebeen noticed during 2009 due to the global economic slowdown. However, in 2010, a recoveryin advertising spend was witnessed, due to an improvement in market sentiments. Moreover,sectors like finance, IT and education, which are the largest contributors to online advertising,reduced their advertising budget during 2009 and from the second quarter of 2010 onwardsagain started increasing their advertising spending. In 2010, online advertising surpassedgrowth rate of other advertising formats like TV, print and radio. The factors that helped theindustry growth were, increase in internet penetration, e-commerce, social networking andpopulation growth.Among the various online ad categories, display advertising has always been the leadingsegment. Sectors such as travel, Banking, Financial Services and Insurance (BFSI), telecom,auto and online publishers dominated the display advertising segment. Sector wise, textadvertising is dominated by BFSI, followed by travel and online publishers. Mobile advertisingis a relatively new concept in India and it includes banners, text, click to call, click to SMS, in-game among others. With increasing demand for smart phones and 3G networks, mobileinternet data usage is expected to be the growth driver, thereby leading to growth in mobileadvertising. The role of social media is also rising due to growing internet access and also onaccount of social media becoming a standard element of web use.Growth and new business opportunities exists for the online advertising industry in India, dueto a large youth population, popularity of social networking sites, growing e-commerce trade,increase in educated population and broadband connectivity, as well as decreasing internet andtelecom costs. Moreover, entry of foreign e-commerce companies is also expected to drive themarket for online advertising. Mobile advertising is also predicted to grow with the popularityof 3G services, which was recently introduced in the market, thereby driving the demand foronline advertising services.The report on “India Online Advertising Industry Growth and Forecast 2016” includes adetailed study of the Indian online advertising industry. We have also analyzed the industryand its various categories/ segments and trends prevailing in the market. The report alsoincludes the industry, present performance and forecast of its various segments. Additionally,we have discussed cause and effect relationship of macroeconomic and industry factors on theindustry providing the basis for the future outlook. 2
  2. 2. TABLE OF CONTENT1. The Indian Online Advertising Market1.1. An Overview1.2. Value Chain Analysis1.3. Market Size1.3.1. Total Advertising Spending1.3.2. Online Advertising Spending2. Online Advertising By Category2.1. Display Advertising2.2. Online Text Advertising Market2.3. Online Mobile Advertising2.4. Online ad-spend break up by industry2.4.1. Display Ad Spend by industry3. Industry TrendsImportance of On-line Advertising by DemographyRole of FMCG in Online AdvertisingAmazon in Indian MarketAdvertising Regulation in IndiaOpportunities for Social mediaOnline ad networks in India4. Major Driving FactorsInternet Users and broadband PenetrationGrowth Driven by Rising PopulationLiteracy RateGrowth of E-commerceCost EffectivenessIncreasing Userbase in Social Networking Sites 3
  3. 3. 5. India Macro Economic Factors5.1. GDP Growth Makes the Market Lucrative5.2. Rising Per capita Income5.3. Inflation5.4. Population6. Mergers & Acquisitions/Deals7. Future Outlook of Indian Online Advertising IndustryOnline Display Advertising8. Appendix8.1. Forecast MethodologyData Collection MethodsApproachMulti Factor Based Sensitivity ModelTargeting MethodsFinal Conclusion8.2. Definition8.3. Abbreviations8.4. Disclaimer 4
  4. 4. LIST OF FIGURESFigure 1: Online Advertising Value chain AnalysisFigure 2: Indian Advertising Expenditures by Media in 2010 (%)Figure 3: India Online Advertising Spending (2006-2010)Figure 4: Online Display Advertising Spending (2006-2010)Figure 5: Online Ad Spend Per User (2008 & 2009)Figure 6: Online Text Advertising Spending (2008-2010)Figure 7: Online Mobile Advertising Spending (2008-2010)Figure 8: Display Advertising break-up by Industry in 2010Figure 9: Online Display Advertisement Popularity by Demography 2010Figure 10: India Internet Users and Penetration (2006-2010)Figure 11: Literacy Rate in IndiaFigure 12: E-commerce Market in India (2006-2010)Figure 13: Facebook Users Segmentation by AgeFigure 14: India’s Gross Domestic Product (2006-2010)Figure 15: India Annual Population (2006-2010)Figure 16: Indian Online Advertising Spending Forecast (2010-2015)Figure 17: Display Advertising Spending Forecast (2010-2015) 5
  5. 5. LIST OF TABLESTable 1: Text Advertising break-up by Industry in 2010Table 2: Online Ad Networks by FundingTable 3: Leading Online ActivitiesTable 4: India Broadband Penetration (2006-2010)Table 5: Average CPM across Various MediaTable 6: India CPI Annual Inflation (%) (2006-2010)Table 7: Mergers and Acquisitions (Jan 2010 - Mar 2011)Table 8: Cause and Effect Relationship Analysis between Industry Factors and ExpectedOnline Advertising Market ProspectsTable 9: Cause and Effect Relationship Analysis between Macro-Economic Factors andExpected Online Advertising Market Prospects 6

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