Online advertising market to grow 27% by 2013: Study

Netscribes (India) Pvt. Ltd., a knowledge consulting solutions company, has launched the Online Advertising Market – India Report.

According to the report, the industry has grown at 74% per annum from 2004-08, driven by increasing awareness among advertisers and increase in internet penetration. Online ad networks have started gaining acceptance in the Indian market in the past 2-3 years.

Online advertising in India, largely dominated by search engines and portal, is fast gaining acceptance and offers an ever increasing user base. Increasing awareness among advertisers, low input costs for advertisers, and increase in Internet penetration are driving growth of the online medium and its horizontals.

The market is expected to witness only a 27% p.a. growth from 2008-2013. primarily due the massive advertising budget cuts in the industry.

The developing online advertising market in India is already witnessing stiff competition among domestic as well as international players. Niche and emerging nature coupled with low barriers to entry in this industry could lead to rise in competition. BFSI, Online publishers and IT/Telecom are the major revenue contributors for the online advertising industry in India. Acquisitions and investments by foreign players as well as private equity firms are providing a boost to this industry in the nascent stage.