An article in How long can the e-comm ad splurge last? (dated April 22, 2015) highlights the digital ad spend by ecommerce players in India. In 2015 the digital ad spend in India is projected to be $939 million but who will be contributing to this spend – ecommerce players in India.
Few highlights from the article ($1 = INR 62),
- Total media spend in 2015: Rs 49,000 crore ($7.9 billion)
- Digital advertising will account for 9.51% of ad-spends in 2015 (this figure varies from report to report)
- TV to stay dominant medium with a 45.8% share of the total ad spend across all media in 2015
- Ecommerce spend on ads in 2015: Rs 3,430 crore ($553 million), which accounts to 7% of total ad spend by all brands. This spend is 1/6th of the Rs 20,000 crore ($3.23 billion) raised in funding in 2014.
- FMCG dominates the ad pie: 30% share of total ad spend
- Ecommerce ad spend growth year-on-year: 50%
- Ecommerce ad volume growth: 100% (2013), 169% (2014)
- Ecom players may spend Rs 500 crore ($81 million) during IPL8 cricket season.
Ecommerce players incurred a loss of Rs 1,000 crore ($161 million) in 2014.
Ecommerce Ad Spend in 2014
| Ecomm Player | Spend in INR Crore | Spend in USD million |
|---|---|---|
| Flipkart | 170 | 27.4 |
| Snapdeal | 180 | 29 |
| Amazon India | 150 | 24.2 |
| Olx.in | 140 | 22.6 |
Leave a Reply