Internet advertising boom next in line: experts
As more Indians go online, a boom in the Internet advertising industry is waiting in the wings with the digital medium poised to rule over all other media in the coming years, say experts.business Updated: Mar 29, 2010 10:56 IST
As more Indians go online, a boom in the Internet advertising industry is waiting in the wings with the digital medium poised to rule over all other media in the coming years, say experts.
With over 49 million Internet users, the country's online advertising market is expected to surge to Rs 1,100 crores this year registering a growth rate of almost 50 per cent, estimates Internet giant Google.
Due to its reach, impact and cost effectiveness, web advertising is fast becoming a preferred choice for most companies, cutting across segments.
"Keeping in view the rapid changes in technology, the trend obviously is moving towards the digital media. It is an alarm for advertisers to explore this wide platform and reach specific target audiences. A boom in Internet advertising is just waiting to happen as connectivity improves with the wider use of broadband," Narasimha Jayakumar, Business Head, Google India told PTI.
With higher adaptability to technological changes the growth of Internet is predominantly driven by youth, who also form a major chunk of the advertisers' target segment.
Pointing out to mature markets like the UK, where the market share of online advertising crossed that of print media advertising this year, Harish Bahl, CEO, online advertising agency Quasar Media, says the digital media is all set to rule in the coming years.
"There is no doubt that the digital media will reign supreme in the coming years. And that is why all large advertisers are making a beeline on the Internet," he says.
Scoring over traditional medium, particularly the print and television, the digital medium offers various advantages like precision targeting, measurable ROI (Return on Investment), low entry-level fee and global reach.
"Added to all this is the fact that this is the only medium that lets one build long term relationship with the consumer, get their feedback and talk to them at various stages across the consumer value chain," says Harminder Kaur, Chief Strategy Officer, Ignitee Digital Solutions, a Mumbai-based Internet marketing agency.
According to a study by the Internet and Mobile Association of India (IAMAI), education and automobiles are the only two sectors which seem to be making the most of the online advertising space.
"Online ad spending by educational institutions is expected to grow by 76 per cent this year. Following this, automobile sector is expected to show the second highest growth rate of 46 per cent," says the report.