Digital’s Share of Ad Spending in India Begins to Blossom - eMarketer

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Digital’s Share of Ad Spending in India Begins to Blossom

Digital ad spending started low, but is rising fast in India

June 13, 2012

Advertising spending in India experienced modest growth from 2010 to 2011 and will accelerate in the coming years, according to a March report from the Federation of Indian Chambers of Commerce and Industry (FICCI), produced in conjunction with global consultant network KPMG.

Ad revenues reached INR300 billion ($6.38 billion) in 2011, up 12.8% over 2010, and are forecast to increase to INR586 billion ($12.46 billion) by 2016. This represents a modest uptick in sustained growth, with a compound annual growth rate (CAGR) of 14.3% from 2011 to 2016.

Ad Revenues in India, by Media, 2011-2016 (billions of Indian rupees)

Digital ad spending in India, which started from a low base of INR10 billion ($212.6 million) in 2010, experienced a jump of 50% in 2011 to INR15 billion ($318.9 million). As the online market matures through the forecast period, CAGR will slow to 29.9%, for a total of INR57 billion ($1.21 billion) in 2016.

Contrary to trends seen in the West, print will maintain its status as the No. 1 ad medium in India through 2016, accounting for 41% of all ad spending. TV will follow at 39.2%. Online, as a still-emerging medium, will only account for 5.9% in 2012, but its share will grow to 9.7% by 2016.

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Check out today’s other articles, “TV and Online Video Advertising Slow to Integrate” and “Daily Twitter Use on the Rise.”

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