Digital advertising spend in India to touch Rs 9,700 crore by end-2017

New Delhi: The digital advertising spend in India is expected to continue at a compound annual growth rate (CAGR) of 33 per cent to touch Rs 9,700 crore by December 2017, a recent study said here on Monday.

The digital advertising spend was estimated to be around Rs 7,300 crore at the end of 2016, growing at a rate of 40 per cent over 2015.

The report - Digital Advertising in India - jointly done by Internet and Mobile Association of India (IAMAI) and IMRB Kantar said that the digital advertising spend is about 14 per cent of the total advertising spend in the country.

In terms of volume, e-commerce leads the digital advertising spends with around Rs 1,361 crore, followed by fast moving consumer goods, consumer durables and banking, financial services and insurance (BFSI), it said.

"However, a comparison of these verticals in terms of share of spends on traditional versus digital show that BFSI organisations incurred the highest share on digital advertising spends. Around 40 per cent of their overall advertising spend was on digital followed by e-commerce, telecom and travel," the statement said.

In 2016, it is estimated that search ads (close to Rs 2,044 crore) constituted 28 per cent of the overall ad spends followed by video (close to Rs 1,387 crore) which contributes to around 19 per cent; mobile and social media (close to Rs 1,314 crore) each are at around 18 per cent and display ads (close to Rs 1,168 crore) at 16 per cent, the report said.

It added that spends on video ads have shown a significant increase and accounted for 19 per cent of the overall spends in digital advertising.