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Indian Online Advertising Market – Advantages, Problems, Statistics & Types

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Online Advertisement

Online advertisement is process or medium of marketing and promotion of products services performed over the net. Some of the common types include but are not limited to search engine results page, online classified, social network, e-mail spam, banners, blogs and many more.

Advantage of Internet Advertising

One of the most important benefits of online advertising is its quick nature. The advertisements are published immediately and are available globally, the content is not limited by geography/time. Some of the other benefits include efficiency of investment, customization. Advertisement techniques such as AdWords, Google AdSense help the ads to be displayed on relevant pages only thus improving the effectiveness.

With the internet becoming the buzzword of the today’s modern era, it is becoming an ongoing source which is emerging and growing with every passing day thus expanding its horizon and reach. The growth attracts attention of viewers towards the advertisement displayed and thus the medium is becoming a more sophisticated and widely used tool for advertisers to generate sales. A big advantage of online advertisement is the ability of controlling the product, price etc. Various forms of animation are also offered in online advertisement which attracts the audience with a greater impact by the mode of visual effects. Other advantages include:

  • Inexpensive – Ratio of cost to the reach of the target audience is very low
  • Wide Audience – Ability to reach wide audience for small budget
  • Convenience – Help people to research and purchase products and services conveniently
  • Measuring Statistics – Advantage of using statistics easily and inexpensively. Help in tracing campaign and its reach.
  • Customization– Marketers can determine payment method and also choose on messages to be broadcasted to the audience.

Online advertising comprises of banner, e-mail, in-game advertisement, social media like Facebook, MySpace, etc. When talking about efficiency of the medium we find that online advertising has given results and help in growing business revenue.

Read about Web Developers in India.

Types of Internet Marketing

Internet marketing is broadly divided into the following types:

  • Display advertising: use of banners etc. in blog, website
  • Search engine marketing (SEM): Promote website by improving their visibility in search engine result pages (SERPs)
  • Search engine optimization (SEO): Process of optimizing or improving the visibility/ranking of a page in search engines via “natural/un-paid” method
  • Social media marketing: Process of gaining traffic through Social Media
  • Email marketing: Direct marketing through electronic mail sent to a group of people
  • Referral marketing: Method of promoting products or services to new customers through referrals (Word of mouth)
  • Affiliate marketing: practice in which business rewards affiliates for each visitor or customer brought by them
  • Video marketing: Engaging viewer with the help of video so as to guide them to a product or service

Problems of Online Advertising

Use of online advertising also has certain ill-effects. Some of the key points are:

  • Malware – Class of advertising methods which is illegal and alters system settings
  • Limitations – Many internet products are scams thus it is difficult to know which one is worth buying
  • Inability of consumer to touch/feel the product. This is definitely a drawback when it comes to the promotion of products such as apparels etc.
  • Security concerns – There is always a threat to sharing of personal information.

Online Advertising Statistics

If we talk about the online advertising market, it is expected to reach over Rs. 2,900 core by March 2014 in the country, The market has tremendous potential and has shown a growth of over 29% year-on-year to reach Rs. 2,260 crore by March, 2013. The market was valued at Rs 1,750 crore in March, 2012 and it was expected to grow at over 40% annually.

Methodology like “Search and display” advertising continue to form a large portion of the overall revenue in 2011-12. However the percentage has declined for the year 2012-13. Rise in mobility has resulted in a rise in revenue from mobile, social media and video advertising which has doubled to Rs. 230 Crore in 2012-13 from Rs 115 crore in 2011-12.

Advertisements on mobile phones and tablets grew from 7% share in 2011-12 to 10% in 2012-13. Coming to social media, email and video advertisement contributed Rs 300 Crore, Rs. 68 Crore and Rs. 150 Crore in the advertisement market with shares being 13%, 3 % and 7 % respectively.


Niraj Satnalika

Niraj is an MBA in International Business (Finance). Prior to this he completed B.Tech in Electronics and Instrumentation. He is currently working with Confederation of Indian Industry (CII), Kolkata in capacity of Consultant. Satnalika is actively involved with an NGO and works towards promoting education among the underprivileged.

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