Internet usage vs ad spend in india
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While internet usage in India has grown significantly to over 121 million users, internet advertising spending has not increased at the same rate and remains low compared to traditional media like print and television. Internet advertising in India is projected to reach $530 million in 2015, but will still only account for 5% of total ad spending, similar to its 3% current share. Most Indian internet users currently use it for activities like music, video, and email rather than for online advertising. Print media ad spending in India is projected to hit $4.38 billion in 2015 and will continue to dominate the advertising market along with television.
Internet usage vs ad spend in india
- 1. Internet Usage vs. Ad Spend
- 2. Internet Usage in India • According to the IAMAI report India currently has over 100M active internet users; to be more specific about 121 million internet users as on Dec’2011. • This is a 20% YoY growth of the Internet subscribers in India and there is a lot more to come.
- 3. Internet Usage in India
- 5. But how is this changing the advertising money spent in different media? The answer is, it is NOT.
- 6. • While Internet penetration grew in India and while USA witnessed -12% growth of the print media industry, India still recorded double digit growth of the conventional media industry and projects the same trend to continue in foreseeable future (source PwC).
- 7. • Interestingly, in India 73% users are using Internet for just music, video and email communication and are not a good target for any kind of advertising online.
- 8. • PwC reports that the current Internet advertising spend in India is at $170M and projects that it will reach $530M in 2015. There is a lot of hope fueled by possibility of affordable 3G in near future. Still compared to those figure, Indian print media advertising stands at $2.52B today and will hit $4.38B in 2015!
- 9. Ad Spend as per PwC report
- 10. At 85% share of combined ad spend, print and TV advertising together will still dominate over all other media and Internet advertising at 5% share (or $530M mark) in 2015 does not look any better than its 3% share today!