While internet usage in India has grown significantly to over 121 million users, internet advertising spending has not increased at the same rate and remains low compared to traditional media like print and television. Internet advertising in India is projected to reach $530 million in 2015, but will still only account for 5% of total ad spending, similar to its 3% current share. Most Indian internet users currently use it for activities like music, video, and email rather than for online advertising. Print media ad spending in India is projected to hit $4.38 billion in 2015 and will continue to dominate the advertising market along with television.

1. Internet Usage
vs.
Ad Spend

2. Internet Usage in India
• According to the IAMAI report India currently
has over 100M active internet users; to be
more specific about 121 million internet users
as on Dec’2011.
• This is a 20% YoY growth of the Internet
subscribers in India and there is a lot more to
come.

3. Internet Usage in India

5. But how is this changing the
advertising money spent in
different media?
The answer is, it is
NOT.

6. • While Internet penetration grew in India and
while USA witnessed -12% growth of the print
media industry, India still recorded double
digit growth of the conventional media
industry and projects the same trend to
continue in foreseeable future (source PwC).

7. • Interestingly, in India 73% users are using
Internet for just music, video and email
communication and are not a good target for
any kind of advertising online.

8. • PwC reports that the current Internet
advertising spend in India is at $170M and
projects that it will reach $530M in 2015.
There is a lot of hope fueled by possibility of
affordable 3G in near future. Still compared to
those figure, Indian print media advertising
stands at $2.52B today and will hit $4.38B in
2015!

9. Ad Spend as per PwC report

10. At 85% share of combined ad
spend, print and TV advertising
together will still dominate over all
other media and Internet advertising
at 5% share (or $530M mark) in 2015
does not look any better than its 3%
share today!