Internet advertising sees slower growth in US, faster growth in India

Internet advertising in the US has always been an envy for folks in India. Online advertising in the US clocked an average of $2.83 billion a month for Jan-June 2012! Few highlights from a study by PricewaterhouseCoopers,

  • Internet advertising reached $17 billion in the first half of the year, but the rate of growth declined from 23 percent between 2010 to 2011 to 14 percent between 2011 and 2012
  • The economy was slow in 2010 which makes the growth in 2011 look strong.
  • As your base gets bigger, your dollar growth can be higher but as a percentage it looks smaller.
  • Mobile continues to be a big gainer, with spending nearly doubling from $636 million in the first half of 2011 to $1.2 billion in the same period this year.
  • Spending by pharma and healthcare was up 81 percent to $1.1 billion in 2012 and automotive climbed 29 percent.
  • AdWords accounted for is still in the lead, accounting for 48% of all online ad sales.
  • Movie dollars are going online – the increase in the entertainment category, which includes advertising for film, music and video games.
  • The advertising industry has proved quietly resilient despite ongoing economic hurdles worldwide. advertising will rise from $538.75 billion in 2012 to $676.17 billion in 2016
  • China is set to become the world’s second-largest advertising market in 2013, and the second-largest digital advertising market the following year, behind the US.

Where does Online Advertising stand in India?

  •  Online advertising in India is currently at about $ 410 mn and is about 7 % of the total advertising spend. It is expected to reach $ 1.5 bn by 2015.
  • Mobile advertising was at $ 56.5 mn in 2011 and is forecast to reach $ 247 mn by 2015.
  • Digital Advertising is expected to reach Rs 4,391 crore by March 2013 and Rs 3,535 crore by the end of 2012 calendar year.
  • Currently India has about 140 million internet users, expected to grow to 220 million by 2015.
  • Broadband connections: 15 million (August 2012), 175 million by 2015 and 600 million by 2020.
What do we need to improve internet usage in India?

References

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