I estimate the following size of the Indian Online Advertising Market during the year 2006 (Jan-Dec basis)
Display Advertising Revenues- Rediff 15.0
- Yahoo 12.0
- Indiatimes 6.0
- Web18 Group 3.0
- MSN 2.5
- Sify 2.0
- Naukri 1.3
- WebDunia 0.8
- Others 5.0
Total Display 47.5
- Search Advertising 15
Grand Total 62.5
Key trends that have emerged during the last year:
- Search accounts for almost 24% of the total Ad Market
- 90% of online advertising revenues go to Top 8-10 portals / portal group sites.
- Growth in Online advertising over 2005 is close to 100%.
- Most of the advertising is being sold directly by the Publishers. Ad networks still do not enjoy a noticeable share
- Almost 30-40% of Advertising is happening through Direct deals between Advertisers & Publishers.
- More and more advertisers are using online medium
- Almost 70% of Online Advertising is happening for "performance"
- Largest categories are Internet players & Financial services. These two together would account for close to 60% spends.
