Indian Online Adspend Takes Off, Portals Witnessing 100% Growth

Hindu Business Line: This is a story about online advertising taking off in India. Internet and Online Association of India (IOAI) said the Indian online ad spend has swelled to Rs 107 crore ($25.4 million) in 2004-05, a 155 per cent jump from Rs 42 crore ($10 million) in 2003-04; in 2002-03, it stood at Rs 34 crore ($7 million).
MSN India‘s year-on-year ad revenues have grown 100 per cent, says Rajnish R., Head (Marketing and Business initiatives), MSN India. Following a 40 per cent ad revenue growth in 2003-04, Sify.com is looking forward to a substantial growth this year.
Besides, to the delight of adspenders, online ad rates have plummeted by 40 per cent since 2000. The market rates for banners range from Rs 100 ($2.3) to Rs 450 ($10.7) at the cost per thousand reached (CPM).
Soshkeles (large ad formats that are displayed in the main area of pages) are advertised at a per day rate of Rs 35,000 ($833) to Rs 3 lakh ($7143) depending upon the sales volume. Web publishers have inked monthly deals for side panels at rates of Rs 15,000 ($357) to Rs 4 lakh ($9524).
IOAI estimates that the online ad segment will grow to Rs 218 crore ($52 million) in 2006-07. Preeti Desai says that the number of netizens in the country will reach 100 million by 2007 due to the widespread use of cyber cafes and mobiles. Contrary to the popular notion that cyberspace is a niche medium confined to the metros, IOAI has revealed that 49 per cent of India’s netizens are outside the top eight cities.

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