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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,

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 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,

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.