Categories: Online Advertising

Ecommerce in India to spend half a billion dollars on advertising in 2015

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 CroreSpend in USD million
Flipkart17027.4
Snapdeal18029
Amazon India15024.2
Olx.in14022.6
BG Mahesh

Internet application ideator and implementor. Been there and done that since early 1990s. I like to present data to the common man in the simplest manner on the internet.

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