Digital ad spend expected to grow at 33% by December 2017

NEW DELHI: The digital advertising spend in India is expected to grow at the rate of 33% to touch Rs. 9,700 crore by December 2017. The market was estimated to be around Rs.7,300 crore at the end of 2016, growing at a rate of 40% over 2015, said a report titled ‘Digital Advertising in India’, published by the Internet and Mobile Association of India ( IAMAI) and IMRB Kantar.

According to the report, the digital advertising spend is about 14% of the total advertising spends in the country. "In terms of volume, e-commerce leads the digital advertising spends with around Rs. 1,361 crore, followed by FMCG, Consumer Durables and BFSI," said the report.

Spends on Video ads have shown a significant increase and accounted for 19% of the overall spends in digital advertising. This category is estimated to witness significant growth till 2020. Spend on mobile advertising (SMS/in-app ads) also recorded high year-on-year growth of 58% from Rs. 832 crore in 2015 to around Rs. 1,313 crore in 2016. Spending on email ads has reduced substantially (-53% YoY) and is now estimated at only Rs. 73 crore, added the report.