internet usage vs ad spend in india
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Internet Usagevs.
Ad SpendHow has the changing internet usage trend
influenced the advertising spend across different media?
Internet Usage in India
• According to the IAMAI report India currently has over 100M active internet users; to be more specific about 121 million internet users as on Dec’2011.
• This is a 20% YoY growth of the Internet subscribers in India and there is a lot more to come.
Internet Usage in India
But how is this changing the advertising money spent in
different media?
The answer is, it is NOT.
• While Internet penetration grew in India and while USA witnessed -12% growth of the print media industry, India still recorded double digit growth of the conventional media industry and projects the same trend to continue in foreseeable future (source PwC).
• Interestingly, in India 73% users are using Internet for just music, video and email communication and are not a good target for any kind of advertising online.
• PwC reports that the current Internet advertising spend in India is at $170M and projects that it will reach $530M in 2015. There is a lot of hope fueled by possibility of affordable 3G in near future. Still compared to those figure, Indian print media advertising stands at $2.52B today and will hit $4.38B in 2015!
Ad Spend as per PwC report
At 85% share of combined ad spend, print and TV advertising together will
still dominate over all other media and Internet advertising at 5% share (or $530M mark) in 2015 does not look any better than its 3% share today!