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.
33 comments:
good to see these numbers, Anurag. I am curious to know about the source?
Is online advertising set for another 100% growth year in India?
With ecommerce growing, what do you think of CPC based deal aggregators ? We recently talked about it @ ileher and I was wondering what is your take on it ?
http://ileher.com/2007/01/19/hungry-for-online-deals/
Dear Vivek
These are my own estimates based on market information / sources.
I estimate that Online Advertising in 2007 should grow at least by around 60-70%.
I did go through your post on the Deal Aggregators .. very interesting. I agree in times to come we shall definitely see more such plays happening in the "Deals" and "Comparison Shopping" space.
Anurag, any info on who are some of the online advertisement networks that have India targeted ads? I was doing some research but didn't find any significant ones. In fact it doesn't even look like there is an India specific Adsense by Google yet. Same for YSM, no India focus just yet.
I guess its because of the fact that the online advertising market is still minuscule in India compared to global markets. But with the market increasing, this looks like a gap (small players just cannot afford to contact individual big advertisers). Thoughts?
Anurag,
Very good information.
Does Rediff's share include Pay4click?
According to REDIFF Quarterly Report,
"Within India, Online revenues from online advertising increased to $4.52 million or 103% over the prior year quarter".
Hence, on an Annualized basis it comes to $16 million.(15% Share)
According to Pinstrom report
http://www.iamai.in/iamai_rep_060926_final_for_web02.pdf
The Indian Advertisers targeting Indian Audience using Search Engine is $16 million (15% Share)
The number does match with Rediff.
This puts the Total Indian Online Advertising Market by Indian advertiser targeting Indian audience to $106 million.
Madhur,
Alootechie had an article on upcoming online Indian ad network. http://www.alootechie.com/news_detail.asp?id=1265
Madhur - Ravi did mention about a post on Aloo Techie http://www.alootechie.com/news_detail.asp?id=1265. Tribal fusion is one global network that is operating in India. And yes I completely believe that over the period of next 12-24 months we will see more Ad networks emerging in the Indian Online space. Early efforts are being made by Tyroo, Ozone, Komli etc.
Ravi - I have taken the estimates on Calendar year Jan-Dec 2006. Since the market is growing fast and the base is small this itself would explain a lot of the difference between your estimates and mine.
Hi,
This is quite informative. Could you also give the comparisons with the global scenario - for e.g. display v/s search and the big players in each of these categories.
Anurag,
I stand corrected.
Your number better reflects the Online market.
My estimate included
1) Affiliate Links (Matrimonial sites)
2) Paid Links/Text Ads
3) Higher numbers for Other Online News Site.
4) Overlap with Ad Network.
(Ozone media's 10% share in online ads)
http://www.clickpress.com/releases/Detailed/26296005cp.shtml
Hi Anurag,
Reached your blogs though my friends blog roll. Thanks for all the interesting information about the online advertising in India.
I run a online startup and need a suggestion from you related to online advertising.
Recently a Mumbai based big media firm contacted us to host some promotion for Citibank and asked for the rate card. I was not sure what price I should quote to them. It will be great if you can share some key points about how I should evaluate the importance of my business and decide on the rates.
Thanks.
-N
Dear Shaswati - I do not have ready numbers on share of global portals, will have to do lot of research :-), but it is something on my mind. I promise I will post it once I complete the research.
Dear N - Maybe you would like to drop me a mail @ anurag1@gmail.com and share your contact details.
Hi Anurag,
Nice stats here and pretty much agree that the most notable categories of advertisers are the Financial services, although travel can be a major player as well.
However in my view, I still see that online marketing is at it's nascent stages in India compared to UK (highest) followed by the US.
I believe that there is still a long way to go before we can take stock of the situation.
And as is the case everywhere, Search marketing always paves the way.
Hi there Anurag,
I am writing a piece for uni on the development of the SEO industry in India and was wondering if you could help me with this. I was wondering if you could give me in-sight into the leading 5 companies in India as well as your reasons for choosing these. I would also like to know your views on the future of SEO in India
Hmm, the whole indian advertising scenerio is changing.. but then if we take the number of internet user , that is still very low...
could you please call me at 9810248883. very urgent regarding an interview for TBR mag. cant find any of your contacts.
Hullo Anurag,
I keep reading ur blog. Really informative. I'm an MBA student doing a project on network marketing companies in india. Need the figures (revenues, market shares, commissions) for some indian companies. Would greatly appreciate if you could help me with this. U could mail me at deepanvita6@mica.ac.in
Anurag, compliments on a great blog on such a focussed subject.
I guess online ADs has a long long way to go over here. People do start relating to a brand but where s online shopping, or purchases. We still prefer to buy in real physical marketplaces. Its growing at a good pace but still, it will take some time to get into every household and make people more aware.
Hi anurag...I am wondering why is rediff still the leader in online portals?..yahoo, google are also getting local content and local language..yahoos technology is better. Please share your thoughts on why Yahoo has not been able to surpass rediff
Hello,
I am akshat choudhary, and I run a popular group sms service called Activ Mobs in Karnataka. I wanted to talk to you about mobile marketing but could not find an email address.
You can find out more about us at www.inactiv.com.
Also you can mail me at akshat(at)inactiv(dot)com
Regards,
akshat
hi anurag,
found your blog very enlightening. m a journalist currently workin onj a story on online advertising trends for indian websites. considering your knowledge on it, i was wondering if you help me please.
waiting to hear from you.
tanvi Shukla
Correspondent- DNA Money
tanu_shukla@yahoo.com
09890660746
Hi Mr.Anurag - Am interested in taking the help of your marketing skills for our business in Hong Kong.
Wish to know if I can have your email address to contact you directly.
Avi
Hi Anurag,
I am Janki Vyas, a MMS first year student and temporarily a part of the HR team at a JWT, Mumbai. As part of my project i am looking for New Media Experts...people who can come and share insights with our senior management. Thats when i came across your profile....i was wondering if you would be open to coming in for a session on new media- internet, etc.
Also, would you be able to suggest people who i could get in touch with for the same?
Sorry if im bothering you! its just that i dont kn where to start looking...it would be great if you could help!
Thanks & regards,
Janki Vyas
janki.vyas@gmail.com
i would like to know the types of online companies dat give ads n hw can we approach them
Hi Anurag,
Just a new visitor, In fact I found your blog really impressing. Can you help me with some data as in the Market Share of Ad Networks.
As we see in todays, India Online Advertising industry, there is no consolidation but fragmentation due to many players(Major and Niche) - Publishers and Advertisers.
Hence to create a market place is easy with no barriers to entry.
Can some data be provided in regards to prove ridiculously small market share of India Ad network)
Hi Anurag,
great work!!I need a breakup for the online advertising spends across verticals.Can you please help.
Hi Anurag, I have sent you a mail on your gmail account. Please do reply to me...
Thanks
can you post some more detailed figures about e-commerce websites in India?
These figures are good can you post aome more detailed figures about market of e-commerce in India
Hi Anurag,
Very interesting article. I want know the to the break up of the online amount spent by financial services industry (Share trading, Insurance etc). I would really appreciate if you could give some authentic sources.
Awaiting your response
Regards,
Bhavik
hi
thanks for the figures on online ad market. i am dng my research on trends in online advertising can u help me with some links where i can get statistics on the trends in online advertising
Hi, I am currently looking for those Indian companies who spent more on online advertisement. Can you give me those details or give me the source where i can get those.
Thanks in advance.
Hello Anurag
I am Chandresh Bind an experts in Web promotion/Internet marketing/Search engine marketing last 3 years. can you explain about what is future of internet marketing after 15 years latter in India.SEO Services Delhi Web Development India
broadminded concept, you have mention great tips..I really appreciate it and you have shared very valuable blog. We can utilize and i would like to thank to you a lot for
sharing this.
Anurag, any info on who are some of the online advertisement networks that have India targeted ads? I was doing some research and find out some significant ones.
online advertising india
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