Digital Marketing Landscape in India -

Digital Marketing an Opportunity?

Mobile Ads Spend 2012-13: INR 230 Crores

Search Ads Spend 2012-13: INR 850 Crores

Social Media Ads Spend 2012-13: INR 300 Crores

Display Ads Spend 2012-13: INR 662 Crores

Market size in India:

Source for Digital Marketing Spending: : IMRB International and IAMAI

Email Ads Spend 2012-13: INR 68 Crores

FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14(Est.)

1,140

1,750

2,260

2,938

54%

29%

30%

Indian Digital Media Spending (INR Crores)

Category FY 2010-11 FY 2011-12 FY 2012-13 Search 493 718 850 Display 557 595 662 Social - 175 300 Mobile 90 123 230 Video NA 88 150 Email - 53 68

Spending by Top Digital Marketing Categories (INR Crores)

The Indian online landscape is very different. There are 137 million internet users in India now that makes it the 3rd biggest internet market. Moreover, India is one of the top market for mobile phones in the world. With millions of mobile subscribers and rapidly increasing mobile internet, India provides a great opportunity for marketers. The size of digital advertising in the overall advertising pie increased from Rs.1,750 crore in 2011-12 to Rs.2,260 crore in 2012-13.

Industry wise Digital Marketing Ad Spend in India2010-2011 2011-2012 2012-2013

Auto 114 297.5 293.8BFSI 205.2 192.5 271.2Consumer Durables 68.4 122.5 158.2E-Commerce Players 0 105 113Education 68.4 105 158.2Electronic Midea 45.6 35 45.2FMCG 68.4 122.5 203.4IT 102.6 140 180.8Online Publishers 114 157.5 203.4Others 34.2 17.5 22.6Print Media 11.4 17.5 22.6Telecom 125.4 227.5 316.4Travel 182.4 210 271.2Total Ad Spend 1140 1750 2260

A u t o B F S I C o n s u m e r D u r a b l e s

E - C o m m e r c e P l a y e r s

E d u c a ti o n E l e c t r o n i c M i d e a

F M C G I T O n l i n e P u b l i s h e r s

O t h e r s P r i n t M e d i a T e l e c o m T r a v e l

114

205.

2

68.4

0

68.4

45.6 68

.4 102.

6

114

34.2

11.4

125.

4 182.

4

297.

5

192.

5

122.

5

105

105

35

122.

5

140 15

7.5

17.5

17.5

227.

5

210

293.

8

271.

2

158.

2

113

158.

2

45.2

203.

4

180.

8

203.

4

22.6

22.6

316.

4

271.

2

Industry wise Digital Marketi ng Ad Spend in India2010-2011 2011-2012 2012-2013

In the financial year 2013-14, online advertising market on an average is expected to grow by 40 percent (last four years average). In 2012-13, the industry verticals which has performed well include: Auto (13%), BFSI (12%), Travel (12%) and Telecom (14%). In 2012-13, one of the verticals which has seen decline in spend is Ecommerce, which constitutes to about 5% of the total market spend which was 7% in FY 2011-12.

Understanding Digital Market LandscapeEmail Marketing

SMS Marketing

Social Search and Creative

Digital ad-network

Mobile VAS Marketing

Digital Marketing AcquisitionsMarch 2014, WPP Group’s global marketing communications agency JWT has agreed to acquire a majority stake in the Mumbai-based social media agency Social Wavelength

February 2014, Bangalore based digital agency 22Feet Acquired By DDB Mudra. The new entity is named as 22feet Tribal Worldwide.

January 2014, Publicis Groupe, acquired Law & Kenneth, the New Delhi-based independent agency led by adman Praveen Kenneth.

February 2014, E-commerce company Infibeam had also acquired Bangalore-based digital marketing firm ODigMa to offer digital marketing solutions to its B2B merchants who use the company’s digital commerce platform BuildaBazaar.

December 2013, advertising agency Grey acquired a majority stake in the rural marketing services provider RC&M

October 2013, Publicis Groupe acquired Mumbai-Based ad agency Beehive Communications

September 2013, advertising & marketing agency Ogilvy & Mather acquired majority stake in the Hyderabad-based digital technology company PennyWise Solutions.

July 2013, Digital media agency Gozoop acquired Digital media marketing firm Red Digital

Digital Marketing AcquisitionsJuly 2013, Indian digital service network To The New acquired Singapore based digital marketing company, Techsailor

May 2013, Dentsu India entered in an agreement to acquire 80% stake in Network18’s Webchutney

April 2013, Publicis Groupe acquired Bangalore-based technology service provider Neev Technologies.

March 2013, Publicis Groupe acquired Mumbai-based digital marketing firm Convonix.

January 2013, Omnicom owned advertising agency TBWA has acquired Indian digital agency group Magnon. The acquisition includes two companies: Magnon Solutions, which is a digital agency operating in India, and Magnon International, which is a digital outsourcing agency.

March, 2012, Mobimasta a mobile marketing firm is acquired by Ad2c, a JV between Affle and D2 Communications which is Dentsu & NTT Docomo JV.

June 2012, WPP-owned JWT Singapore acquiring a majority stake in Hungama Digital Services, the digital and promotions marketing division of Hungama Digital Media Entertainment Private Ltd

August 2012 , Publicis Groupe acquired Mumbai-based performance marketing agency Resultrix to operate it as a unit within Performics.

Digital Marketing AcquisitionsApril 2012, Publicis Groupe acquired Mumbai-based digital agency Indigo Consulting to make it operate as a unit within the Leo Burnett Group in India. a digital marketing and web development firm Indigo Consulting

August 2012, media and digital communications group Aegis Group plc entered into an agreement to acquire a digital performance marketing and search agency Communicate 2, through its digital performance agency iProspect.

August 2012, Japanese advertising major, Dentsu, had acquired a 51% stake in Mumbai-based Indian advertising agency, Taproot India .

December 2012, Publicis Groupe, the French advertising and public relations company, acquired digital media agencies, MarketGate.

December 2012, Publicis Groupe, the French advertising and public relations company, acquired digital media agencies in India, iStrat.

July 2011, WPP had also acquired a controlling stake in Hyderabad-based Mindset Advertising Pvt Ltd.

In 2010, Publicis had acquired a majority stake in 20:20 Media, public relations company and 2020 Social, a social media consulting company

In 2007, WPP had also acquired a controlling majority stake in Smile Interactive, Quasar Media

Thanks Braj Mohan Chaturvedi | + 91 9900590943 chaturvedibraj@gmail.com | www.braj.in