Online advertising in India to touch $1.6 billion in 2019

As per McKinsey Global Institute (MGI), India’s consumer markets will witness exponential growth during the period 2005-2025. India is expected to be the 5th largest consumer market globally by 2025.

Advertising Spend in 2014

Advertising spends in 2014 grew by 10% (print, TV, online). The ad spend in 2014 (Jan-Dec) was dominated by political parties (Rs 600 crore / approx $100 million) & ecommerce portals (Rs 750 crore / $125 million).

Government of India spent Rs.251.9 crore ($42 million) on print advertising between April and November (2014), 20.3% lower than in the same period in 2013. Spending on television also declined by 8.43% to Rs.197.5 crore ($33 million) from Rs.215.7 crore ($36 million) between April and November 2013.

GroupM shared more information about advertising in India for 2013,

  • Overall ad spend: Rs 38,597 crore ($6.4 billion)
  • Television ad spend: Rs 16,860 crore ($2.81 billion), grew by 13.8% y-o-y.
  • Print ad spend: Rs 15,068 crore ($2.5 billion), grew by 4.6% y-o-y.
  • Digital ad spend: Rs 2,520 crore ($420 million), grew by 30% y-o-y.
  • Brands in India spent Rs.750-900 crore ($125-150 million) on online video ads.

Advertising Spend in 2015

GroupM predicts print ad market in 2014 will grow due to the contribution from regional language newspapers. Digital ad spend is expected to grow in the region of 30-35%.

The upcoming Cricket World Cup is expected to generate Rs 300 crore ($50 million) in advertising.

Online Advertising Market Size in India

India's heaviest rocket GSLV Mark III launched from Sriharikota. Source Oneindia.com

India’s online ad spend needs to take off in a big way! Image Source Oneindia.com

As per a joint study by the Internet and Mobile Association of India (IAMAI) and IMRB International the online advertising market size is as follows,

  • March 2019: Rs 10,000 crore ($1.6 billion)
  • March 2015: Rs 3,575 crore ($578.13 million)
  • March 2014: Rs 2,750 crore ($444.72 million), of which display advertisement contributes 29%, search 38%

Earlier estimates for 2015 were far higher but the predictions for 2019 look realistic. Prime Minister Narendra Modi‘s serious push to “Digital India” will have a positive impact on internet penetration in India.

While these numbers are much smaller when compared with TV and Print advertisement revenues, I think it is good to see the digital ad revenues increasing year by year.

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