• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

BG Mahesh | mahesh.com

Internet in India

  • Home
  • Indian-Languages
  • Karnataka.com
  • Links
  • Gallery
  • About Mahesh
  • Contact Me
  • Show Search
Hide Search

Digital Outlook 2009: How is the digital ad spend pie divided in India?

July 2, 2009 by BG Mahesh 2 Comments

Few days ago Juxt+WebChutney released the Digital Outlook 2009 report.  I must thank and congratulate Juxt and Webchutney folks in compiling a lot of data and presenting it in a very professional way. It gives us publishers a lot of insight. Thank you folks!

I have extracted the parts which I found relevant for my work  (Oneindia)

  • Total ad spend in India: $4 billion (Rs 19,400 crore)
  • Penetration: Internet penetration 4.2%, TV 50%, Print 20%
  • Allocation of online expenditure was about 5.4% in 2008-09, expected to increase to 10% in 2009-10
  • Ultimate aim of online communication should be to stay ‘top of mind’
  • Online spend by consumer goods companies to increase by 300% from Rs 16 crore in 2008-09
  • Thru online advertising you can reach 4% of Indians or 11% of urban consumers (this should be seen as good news as there is a lot of room for growth)

2008-09 / 2009-10 ad spend pie,

  • TV – Rs 2,652.5 crore (51.4%) / Rs 2,273.44 crore (48.9%)
  • Print – Rs 1,415.44 crore (27.4%) / Rs 1,194.68 crore (25.7%)
  • Internet Rs 278.15 crore (5.4%) / Rs 399.38 (8.6%)
  • Radio – Rs 48.81 crore (0.9%) / Rs 111.57 crore (2.4%)
  • Others – Rs 768.35 crore (14.9%) / Rs 673.91 crore (14.5%)

Digital Ad Spend Pie

Most of us assume revenues from portals are from banner ads (other than ecommerce). Page 17 explains this in detail. The digital ad spend pie is divided into,

  1. Ad networks – 15%
  2. Display Ads – 14%
  3. Social media initiatives – 13%
  4. Develop/maintain promotional websites – 13%
  5. Electronic direct mailers – 12%
  6. Viral ads  – 5%
  7. Mobile & others – 2%

About 34% is spent on advertising through pure display ads, viral ads and ad networks. Assuming the same split applies for 2009 the revenues from advertising would be Rs 94.5 crore (2008) and Rs 135.78 crore (2009).

For us at Oneindia.in #1, #2 and #5 are relevant.

Will the Online Ad Revenue Grow? Yes, of course!

There are two ways to see these numbers – oh my god! the ad revenue is way too small in India. Time to get out of this business . Or, there seems to be a lot of room for growth, let us push for it. Which one would you choose?

Yes, we seem to have an internet penetration problem. Unfortunately only the telcos and the govt can fix it. Not the publishers. We publishers can only try to keep improving the quality of the content/product.

Will we see an increase in internet users in India? According to CII India will have 695 million internet users by 2014. Jai Ho!

Irrespective of what the report says each publisher (like Oneindia.in) has to continue to work hard. We cannot bank on positive and negative reports. We got to excel in what we do, we cannot do much about what is not in our control (penetration, PC cost)

Related

Filed Under: Online Advertising Tagged With: india online advertising, online advertising forecast

Reader Interactions

Comments

  1. nishant says

    November 13, 2009 at 1:07 am

    good data..!

  2. Consumer Daddy says

    April 10, 2010 at 8:55 am

    Excellent article. Thank you for the concise extracts of data. Helps me from reading the whole Digital Outlook 2009 report. I have been looking for this information for quite sometime before I came across your article. Keep up the good work!

Leave a ReplyCancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Connect

  • LinkedIn
  • Twitter

Top Posts

  • Food courts in India, the revenue numbers
    Food courts in India, the revenue numbers
  • Column: Contribute to Kannada Wikipedia to strengthen namma Kannada
    Column: Contribute to Kannada Wikipedia to strengthen namma Kannada
  • Is Podcasting gaining traction in India, finally?
    Is Podcasting gaining traction in India, finally?
  • Is it safe for a woman to travel overnight in our buses?
    Is it safe for a woman to travel overnight in our buses?
  • Is Indian Language on the net really pathetic?
    Is Indian Language on the net really pathetic?

Recent Posts

  • From Entropy to Negentropy: The Transformative Power of Open Finance- Part I
  • Brand recall of the WiFi logo in India is very strong
  • Fixing the Visa application process with Consent Managers
  • How India can solve the Challenges in Digital Advertising starting in 2023
  • Digital Media needs an Online Dispute Resolution system

Categories

  • Government
  • Internet Portals
  • Mobile
  • Online Advertising
  • Internet
  • Media
  • Social Media
  • Broadband
  • Indian Languages
  • etc

Tags

3g acquisition android award bangalore books Broadband broadband penetration browsers comscore dailyhunt digital advertising in india digital india domain name election campaign election digital campaign elections facebook google hindi iamai imrb india online advertising indic fonts internet penetration kannada market size mobile advertising mobile apps mobile internet mobile marketing mobile penetration my column mysore nielsen Print Media sjce smartphones tier-2 tv advertising twitter ugc vijay next whatsapp yahoo

Copyright © 2025 · Mahesh.com

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT