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Advertisement Trends

It’s no secret that the ad tech industry has been changing at an increasingly rapid rate over the last few years. As marketers look to the year ahead and consider all the tools in their arsenal, change will be coming faster than ever. India’s purchasing power has improved significantly since the turn of the millennium. People are more aware of the products they buy, and marketers are constantly trying to provide the best deals to their current and potential clients. The advertising market is expected to grow to Rs 37,000 crore in 2014 from Rs 31,877 crore. The industry notched its first double-digit growth in three years in 2013 at 11.1 per cent.

  • In 2013, print emerged as the biggest contributor to the total advertising pie at 41.3 percent.
  • Magazines are projected to remain laggards, growing 5 per cent this year
  • TV trailing behind the print at 39 per cent, Advertising on television is projected to grow 15 per cent this year despite the introduction of a regulatory cap on the maximum advertising time on channels
  • Almost 75 per cent of the total TV advertising is concentrated over just threecategories – FMCG, Telecom and Auto
  • Radio had a good year in 2013, ringing in 18 per cent growth on the back of higher inventory sales across stations. It is expected to grow 15 per cent this year, helped by phase three FM radio rollout that will attract new local advertisers.
  • The digital medium is projected to remain the fastest growing segment, although the rate of growth may slip slightly to 29.5 per cent this year from 32.4 per cent last year. Outdoor advertising is projected to grow 8.2 per cent this year with transit media.4

The country’s consumer markets are projected to increase exponentially during 2005–2025, and in this period the total consumption in India is expected to grow fourfold, making it the world’s fifth largest consumer market by 2025. MGI expects India’s real gross domestic product (GDP) to increase at 7.3 per cent per annum through to 2025.

The biggest beneficiary of advertising spends in 2014 will be digital advertising which is expected to grow by 35 per cent over the Rs 3,042 crore spent in 2013, as per a report named ‘This Year, Next Year 2014’ by Group M, WPP group’s media planning and media buying division. The report states that TV advertising will also see a growth of 12.8 per cent in 2014, with print witnessing eight per cent growth as compared to four per cent in 2013. (ibef.org, Advertising and Marketing Industry in India, June, 2014)

It’s 2016; media consumption in India has gone through many disruptive changes. We now have over 350 million internet users in India and about 80 per cent of the population is active through their smartphone devices. Online advertising in India is expected to grow at 40 per cent in FY 2013-’14 to reach Rs 2,938crore, according to the Digital Advertising in India report released by IAMAI and IMRB International. (campaignindia.in ,Article – Indian online ads )

India by the Numbers

  • 130 million: that’s the current estimate of mobile internet users in India
  • 250 million: expected number of Indian mobile internet users by 2015
  • 30% : ad inventory growth on the BuzzCity Network in India over the past year
  • 861 million: total number of mobile phones in India (second highest in the world, behind China)
  • 10% : the percentage of Indian mobile users who now have smartphones

It is expected that there will be more smartphones than humans around the world, and with consumers becoming constantly connected via mobile it has a great offering for marketers.(indiadigitalreview.com, Future of Mobile Marketing and Advertising in India).

FMCG sector accounted for 29% of the spends in 2013, followed by consumer durables which accounted for 22% of the spends in 2013 and retail which accounted for 12% of the spends in 2013.(medianama.com, GroupM Says Digital Advertising In India Up 30% In 2013; Rs 3402 Cr Expected In 2014, Feb 12th, 2014)

Digital Investments

Amazon.com, the world’s largest online retailer, has launched an advertising campaign in India. The company plans to spend about Rs 100–150 crore (US$ 16.68–25.02 million) on advertising in FY 2014–15

-Flipkart is planning a major push in its fashion lifestyle category that has brought with it a new demographic of online shoppers, including younger buyers in the age group of 20–27 years and those in tier II and III cities. (org, Advertising and Marketing Industry in India, June, 2014)


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Carrer in Digital Advertising

The total online advertising market in India, comprising search, display, mobile, social media, email and video advertising was valued at INR 1,750 Crores in FY 2011-12 and has grown to INR 2,260 Crores in year 2012-13.

It is projected that by the end of 2014, the size of the online advertising market in India will be INR 2,938 Crores. On an average, the online ad market have been growing at 40% year-on-year basis from FY 2010-2011 to FY 2013-2014.The graph below showcases the growth trend in the online advertising market in India.


Money spent on Digital Media:

The online advertising market in India is projected to reach Rs 2,938 crore by 2014, according to the findings of Digital Advertising in India report, by the Internet and Mobile Association of India (IAMAI) and IMRB International.

  • As in 2012, search and display advertising continued to form a large portion of the overall pie in FY 2012-2013. However, their percentage share has declined somewhat owing to the rise in the mobile, social media and video advertising.
  • Even though traditional media like television and newspapers still remain the preferred media for seeking information and entertainment and hog more than 80% of the advertising market in India, the Internet has been steadily increasing its share of the advertising pie.
  •  Spends on digital media have steadily increased from just over 1% of total Indian advertising spend in the year 2005 to nearly 7% in 2012.
  • Advertisements on mobile phones and tablets have grown from a 7% share in FY 2011-2012 to 10% of the Indian online ad market in FY 2012-2013, totaling to spend of around Rs 230 crore.
  • Social media, email and video advertising constitute 13% (Rs 300 crore), 3% (Rs 68 crore) and 7% (Rs150 crore) of the online advertising market, respectively.
  • The BFSI, travel and automobile sectors continue to be the top 3 spenders in online advertising. Increased spending by e-commerce players has been one of the highlights of the online advertising industry in FY 2011-12. Their share of spends is estimated to decline in 2012-13.

OLX was the top advertiser in India in terms of Display Ad impressions; according to a report published by com Score on India’s online advertising landscape using data from its Ad Metrix service. OLX had 1.38 billion display ad impressions, followed by Amazon with 493 million, Google with 431 million, Jabong with 427 million, Microsoft with 350 million, Myntra with 302 million and Dell with 299 million.

According to the report, 96 billion ad impressions were delivered across Indian websites in this quarter alone. More than 3,900 advertisers ran online ad campaign campaigns in September and on an average, each online Indian was exposed to more than 395 ads in the that month alone.

Bigst categories: As far as Indian advertisers are concerned, online media firms was the biggest category with 23%, followed by multi-category (19%), retail (18%), computers and tech (8%), telecom (5%), finance (5%), travel (3%), automotive (3%) and other categories formed only 2% or less. These companies got a total of Rs 380 crore worth ad impressions in September alone, from 30.2 billion ad views.


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