Online Ad. Spends: Are We Keeping Track With Reality?

In 2008 the over all ad expenditure on Internet was around Rs. 600 Crores, which makes it only 1% share of over all expenditure on Media & Entertainment(M&E) industry of India. While there is growth in net audience every year, the time spent on this medium is also growing rapidly over the years. In fact the growth in time spent on the net is higher than the growth in our share of ad expenditure on this medium.

 Figure 1: Avg. Daily Time Spent On Net vs. Share of Ad.   Spends  On Net fig1                                                                                                          

 

 

 

 

 

  Source : Avg. Time Spent = Indian Readership Survey Round 1(IRS R1)

                 Share of Ad. Expenditure = Industry Estimate, FICCI- KPMG Report

                  TG = 12 years +

  The similar chart for other media has remained either flat or declining.

Figure 2: Average Daily Time Spent On Various Media  fig2 

 

 

 

 

 

 Source: Avg. Time Spent = Indian Readership Survey Round 1(IRS R1)

            TG = 12 years +

 Over the period of time the role of net has also evolved in our lives. From a communication medium, today we use net from searching of information to sharing our views/work and also as an entertainment medium.

 The core group for net audience is always 15-39 years. However, the share of elderly age(40 years+) on the net has also increased from 2005.

  Figure 3: Age-wise Break Up Of Net Audience fig3

 

 

 

 

 Source: Avg. Time Spent = Indian Readership Survey Round 1(IRS R1)

                TG = 12 years +

 The core users of net, 15-39 years of age group with SEC AB spend higher time on the medium.

 Figure 4: Comparison Of Time Spent On Net  fig4

 

 

 

 

 

 Source: Avg. Time Spent = Indian Readership Survey Round 1(IRS R1)

            TG = 12 years +

 Why Should We Look At Net As An Advertising Option Seriously?

  • The core audience of net is youth(15-39 years) and from higher socio economic category(SEC) AB and is growing rapidly
  • This group is normally the trend setter and the early adopters for many new categories
  • Also the medium allows peer-to-peer communication which can be used for reviews, opinion shaping etc.
  • Precision targeting is possible like geographic targeting, behavioral and profile based etc.
  • One of the most measurable media
  • Advertising options are also evolving everyday