eStatsIndia.com View "Digital Marketers in India" The Internet advertising industry worldwide is gaining traction riding on a wave of growing mobile and Internet penetration. Digital ad formats, ad metrics, regulations and guidelines are all moving toward maturity, although worldwide this pace is still quite slow. International bodies like MRC (Media Rating Council) in the US is working in close collaboration with IAB.NET and other like minded players like DG Mediamind and IPA to arrive at a consensus in regard to the digital media metrics and related guidelines. Quite recently DG Mediamind has also submitted their new “Ad Viewability” metrics for final approval to the MURC. Furthermore, IAB.NET a consortium of around 500 lead members and advertisers is driving the adoption of new guidelines and regulations in the digital ads market space worldwide. The Internet advertising market in North Americas and East & West Europe is gaining traction due to economic recovery in the US and Europe markets. However when it comes to critical issues like consensus on digital ad metrics, related guidelines and regulations etc, a lot still remains to be done. In Indian subcontinent the digital ad market is still in its infancy. Worldwide around 14 countries have been driving the digital ads market adoption and growth. India and China are two key APAC countries figuring among these 14 lead markets/countries. RECMA regularly measures the digital ads market performance. They do so by measuring overall activity and account movements of advertisers worldwide. RECMA ranked India at 51 followed by China at no. 59 in their 61 countries advertisers’ performance study in the year 2013. In case of China the digital ad market is driving growth on the back of high activity among the B2B accounts. Key Chinese players like Alibaba.com are the ones mainly driving the ad market industry through classifieds and search ad formats. In fact recently Chinese; Alipay.com a payment engine surpassed major US based P2P payment sites like Paypal.com and Square’s Pay. This further consolidates the ever increasing digital ad market and E-commerce market space in China. More than 60% of the small B2B merchants transacting online in China are already making use of Alipay.com as their destination to transact their business online. In India although the rate of growth of digital ad market is quite high but the overall market size is still quite low as compared to other parts of the world. We can say that as compared to other digital ad markets, Indian digital ad industry is still in its infancy. But going forward the Internet ads market will grow owing to a high adoption of mobile and social ads in India. This is also because of high number of users in India accessing Internet through their mobile phones.

1. Excerpts from Internet Advertising Report 2014
Report Published :Feb 2014
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2. Economic And Industry Background
 India experienced its lowest growth in two decades. This was due to large current
account and government budget deficits plus high inflation. Economic growth in
India decelerated from 5.1% in 2012 to 4.8% 2013. This is attributed to week
household consumption and sluggish investment .
 Consumer price Inflation (CPI) remained stubbornly high at nearly 10% even as
the economy weakened further. In India , the unemployment rate rose from an
estimated 3.8% in 2011/12 to 4.7% in 2012/13.
 In the current weakening economic condition the Indian digital market is being
adversely affected by the lack of Internet penetration. The current internet
penetration in India stands at around10.6%. The digital advertising in India is
showing promising growth. Indian Digital market was around US $0.70 billion in
the year 2013 going forward this will grow at a CAGR of 36.35%.
Source: As per the recently published findings from the World Economic Situation and Prospects
(WESP) 2014 by UN
www. eStatsIndia.com Internet Advertising Round Up
2014

3.  Worldwide Internet ad spends constitutes about 25 % of ad budgets of the
marketers. In Indian context this is close to around 20%.
 Worldwide Digital media spends were around US$126.16 billion in the 2013. This will
grow further to US$145.34 billion by 2014.
Source: eStatsIndia.com Analysis
www.eStatsIndia.com
Region Internet Ad Spends
YE 2013
US USD 46.50 billion
APAC USD 33.57 billion
India USD 0.70 billion

4. SO WE HAVE BENCHMARKED AGAINST THE BEST SOURCE AVAILABLE
WORLDWIDE….IAB.NET/PwC
 Banners (static display)
 Classifieds
 Email (embedded only)
 Lead Generation (referrals)
 Rich Media
 Video (in-stream, in-banner, in-text)
 Search (paid listing, contextual text links and paid inclusion)
 Social Media
 Mobile ads Including search and banners
(Digital Ads Constituent formats have been benchmarked against IAB.NET /PwC)
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5. ENGAGEMENT WITH ONLINE ADS MEASURED BY CLICKS, DWELL AND OTHER
USER INTIATED ACTIONS WERE HIGH FOR AD UNITS THAT INCORPORATE
INTERACTIVE ELEMENTS SUCH AS ANIMATION, EXPANSIONS, SOUND AND
VIDEO
 Worldwide, click-through rates (CTR) of viewable impressions were 0.34%
compared to 0.22% for all rich media, a lift of 54.5%.
 Click Through Rate(CTR) Increased as ads included more interactive
elements.
 In India Standard Banners Ad Formats showed higher CTR of 0.18%.
Source: DG Media Mind Full-Year 2012 Global Benchmark
 Under Rich Media Expandable Banner recorded maximum average CTR of
0.44%, followed by Polite Banners with a CTR of 0.34%, in India.
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Standard Banner Size CTR
300x250 0.20%
728x90 0.14%
160x600 0.14%

6. PERFORMACE METRICS FOR INDUSTRY VERTICALS
IN INDIA ….
 Among Verticals, Retail (Rich Media) ads has the maximum CTR of around
0.62%. This is followed by Restaurant (a sub-category of Retail) recording a
CTR rate of around 0.57% in India. Other key verticals like Corporate,
Electronics, Government/Utilities, Financial and Services also recorded high
CTR.
 Tech/Internet vertical recorded highest expandable metrics (total expansion
rate) value of 50.8% . This is followed by Consumer packaged goods with a
value of 48.2% .
 Believability is the key currency to measure the effectiveness of digital ads. In
India digital ads with recommendations from friends and family scores at the
top when it comes to believability of digital ads.
Note: The industry categories used in the report were sourced from North American Standard Industrial
Classification (SIC). Other Sources: RECMA December 2013, DG Media Mind Full-Year 2012 Global
Benchmark, IAB and eStatsIndia.com Analysis
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7. Based on Overall Activity Volumes and Rates of Growth the top players and
verticals have been worked out…..
*Agency of Record; End Note: Digital Advertisers based on DARD ‐ Digital Agency Account Moves Jan 14, 2014 XO‐
by RECMA December 2013
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Industry
Verticals Advertisers Digital Assignments
Travel Samsonite/ Sterling
Holidays/ India Ministry of
Tourism/ Magic Holidays
Digital Advertising, Social Media,
Search/Social/Display/ Media
P&B, Campaign, Digital
Electronics LG/ Huawei Digital Advertising, Campaigns,
Analytics/ AOR*, Web Creative
Food & Beverages Nestle/7UP Website, CRM, Social, Analytics/
Digital AOR*, Online Presence
Clothing American Swan Display, Web, Social Media
Automotive Motul Digital Agency Of Record,
Strategic Planning, Display,
Website, Social Media, Product
Innovation
Retail Delhi Duty Free Performance, Social

8. o What’s the Internet advertising market size in India?
o What all are the key digital ad formats in India?
o What are the key metrics being used to measure the returns on the
digital media?
o Lead Internet Advertisers in India? (Key Accounts)
o Industry Verticals driving the Internet advertising in India?
o Future Growth Trajectory Going forward;
“How the Internet advertising market will grow?”
o Key Take Away’s for Advertisers, Agencies, Industry Stakeholders
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9.  To arrive at the size of the Internet Advertising market in its totality to
factor-in your ad budgets accordingly.
 To focus on key digital ad formats to smartly spend your digital ad
budgets.
 To refine your digital ad mix by concentrating on specific ad metrics
that can give you maximum returns for your ad spend dollars.
 To plan and strategize your marketing budgets going forward.
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10. REPORT TITLE: DIGITAL ADVERTISING ROUND UP 2014
TO ACCESS THE COMPLETE REPORT PLEASE CONTACT
 Analysts : Amita Sharma, Vikram Bhardwaj
 E-mail : vikram@estatsindia.com
 Mobile : +91 9810474007
 Web : http://www.estatsindia.com
www.eStatsIndia.com

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