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Internet advertising sees slower growth in US, faster growth in India

October 19, 2012 Leave a Comment

Internet advertising in the US has always been an envy for folks in India. Online advertising in the US clocked an average of $2.83 billion a month for Jan-June 2012! Few highlights from a study by PricewaterhouseCoopers,

  • Internet advertising reached $17 billion in the first half of the year, but the rate of growth declined from 23 percent between 2010 to 2011 to 14 percent between 2011 and 2012
  • The economy was slow in 2010 which makes the growth in 2011 look strong.
  • As your base gets bigger, your dollar growth can be higher but as a percentage it looks smaller.
  • Mobile continues to be a big gainer, with spending nearly doubling from $636 million in the first half of 2011 to $1.2 billion in the same period this year.
  • Spending by pharma and healthcare was up 81 percent to $1.1 billion in 2012 and automotive climbed 29 percent.
  • AdWords accounted for is still in the lead, accounting for 48% of all online ad sales.
  • Movie dollars are going online – the increase in the entertainment category, which includes advertising for film, music and video games.
  • The advertising industry has proved quietly resilient despite ongoing economic hurdles worldwide. advertising will rise from $538.75 billion in 2012 to $676.17 billion in 2016
  • China is set to become the world’s second-largest advertising market in 2013, and the second-largest digital advertising market the following year, behind the US.

Where does Online Advertising stand in India?

  •  Online advertising in India is currently at about $ 410 mn and is about 7 % of the total advertising spend. It is expected to reach $ 1.5 bn by 2015.
  • Mobile advertising was at $ 56.5 mn in 2011 and is forecast to reach $ 247 mn by 2015.
  • Digital Advertising is expected to reach Rs 4,391 crore by March 2013 and Rs 3,535 crore by the end of 2012 calendar year.
  • Currently India has about 140 million internet users, expected to grow to 220 million by 2015.
  • Broadband connections: 15 million (August 2012), 175 million by 2015 and 600 million by 2020.
What do we need to improve internet usage in India?
  • Average internet speed in India 1 Mbps & in South Korea it stood at 14.2 Mbps! Global average stands at 3 Mbps.
  • India needs an Internet Minister in the cabinet. Basic qualification – he/she needs to be using the internet!

References

  • Internet advertising still a growth business, but pace slows
  • Asia-Pacific Poised to Dominate World Ad Market
  • Digital Ad Report Finds Big Growth in Mobile
  • Future of news in India: Print down, digital up

Related

Filed Under: Online Advertising Tagged With: india online advertising, us online ad spend

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