Though online spend share of the top 1,000 advertisers remains low at 4% in fiscal 2010, it’s still a jump from 2% in fiscal 2009. Online advertising share will continue to grow albeit slowly and is expected to touch 5% in fiscal 2011. Ad spend share will continue to be dominated in 2010-11 by television (close to `8,100 crore), followed by print (`6,690 crore), and below-the-line advertising at `3,758 crore. In 2010-11, online advertising is estimated to grow at `876 crore while mobile advertising will marginally increase to reach `129 crore

1. Source : Mint and Webchutney Survey Report 2010

2. Source : Mint and Webchutney Survey Report 2010
Growing online medium
Though online spend share of the top 1,000 advertisers remains low at 4% in fiscal
2010, it’s still a jump from 2% in fiscal 2009. Online advertising share will continue to
grow albeit slowly and is expected to touch 5% in fiscal 2011. Ad spend share will
continue to be dominated in 2010-11 by television (close to `8,100 crore), followed by
print (`6,690 crore), and below-the-line advertising at `3,758 crore. In 2010-11, online
advertising is estimated to grow at `876 crore while mobile advertising will marginally
increase to reach `129 crore.

3. Source : Mint and Webchutney Survey Report 2010
Falling mobile spend
Mobile advertising spends have been low at 45% in fiscal 2010. In fact, this is likely
to drop further to 36% in fiscal 2011. Mobile advertising stood at `65 crore in
2008-09 and saw a marginal growth of 0.5% in 2009-10 and stood at `95 crore.
And while sectors such as consumer services, auto and durable goods had the
maximum spend share in the mobile segment (21%), pharma spent only 1% in the
space. Telecom, too, had a low spend share in the segment of just 2%.

4. Biggest spenders
The FMCG sector, with the largest overall ad spend of `7,910 crore at 42%, spends
only `56 crore or 9%, on advertising online. It is the banking, finance and services
industry which contributes the maximum (around `114 crore or 19%) to total
online spends. This is followed by sectors such as consumer services which spends
`108 crore in the space. IT spends `79 crore and telecom spends `70 crore in the
online advertising segment, according to the report.
Source : Mint and Webchutney Survey Report 2010

5. Tracking viewers online
Advertisers haven’t yet utilized the potential of the online medium in terms of
advertising. While 73% of advertisers view only the click impressions (the number of
times viewers click on the site), 84% don’t know how to track viewers who reach
advertisements or companies through social media. Advertisers cannot think of the
online medium as a substitute for traditional media. They need to look beyond just
clicks.
Source : Mint and Webchutney Survey Report 2010

6. Using social media
It’s clearly with the need to connect with younger consumers that the report has
noticed an increase of 50% in social media usage by advertisers. Facebook, YouTube
and Orkut continue to be popular social media platforms for advertisers. General
Motors, for instance, ended up with more than 10,000 fans on Facebook in less than
six months.
Source : Mint and Webchutney Survey Report 2010

7. Source : Mint and Webchutney Survey Report 2010
Creating brand awareness
Online media is effective in
driving traffic to a website.
And while the medium
barely helps in driving traffic
to a store, many advertisers
admit that it can create
brand awareness. “Digital
platform as an advertising
option is evolving fast and
this is where we feel it’s right
to invest. We believe that
the youth are opinion
leaders and we would like to
target them,” said L.K.
Gupta, chief marketing
officer, LG Electronics India.

8. Tapping online potential
Online ad spends will increase by 45% in the next fiscal. At least 51% of the advertisers
surveyed in the report have indicated that they will increase spends in the online segment in
fiscal 2011. Gaurav Gupta, business head, utility vehicles and strategic planning, General
Motors India, says: “Media and creative agencies have to sell the power and potential of the
online medium. Too much of focus on return-on-investment (ROI) takes away from the true
potential of the medium.”
Source : Mint and Webchutney Survey Report 2010

9. Prakash Ranjan
http://in.linkedin.com/in/prakashranjansingh
http://blog.prakashranjansingh.com
http://digitalmarketingstories.wordpress.com
http://myvideopouch.wordpress.com
9
Facing The Digital Reality

10. Prakash Ranjan
http://in.linkedin.com/in/prakashranjansingh
http://blog.prakashranjansingh.com
http://digitalmarketingstories.wordpress.com
http://myvideopouch.wordpress.com
9
Facing The Digital Reality