Online advertising revenue surpasses print revenue advertising in the US. India still has a long way to go though.
18th April 2011

An interesting piece of news released by Emarketer.com which caught my attention and may be a major indicator of things to come - Online advertising revenue has surpassed Print newspaper ad revenue in the US. Print ad revenue is estimated at $22.8 billion while online ad spend stands at $25.8 billion in the year 2010.

However due to low net penetration and issues of multiple language support it will take a long long time for the same to happen in India. Print ads in India continue to dominate with shares of 40-45% followed by TV ads of another 40-47% with online ad revenue a miniscule 1-2% of ad spends in India. Surprisingly trends seem to show that print ad spend is actually growing in India with the launch of slew of new newspapers.

For online advertsing to grow in India we would need the following factors:

  • A gigantic leap in internet penetration in India
  • A large increase in the number of agencies dealing with online ads.
  • A distinct drop in the number or print subscriptions to make room for online ads.

All three seem very distant currently. The spoiler in the game might be Mobile ads but that area is still showing more promise then results. Mobile ads are also in that space where real figures are clouded by hype, projections and the smell that comes with new technology. Only time will tell when the dust settles on this new advertising avenue.

However there is no doubt about the distant future. With a large percentage of India's population being very young, digital adoption will increase as more of the population comes of age and there will be a proportionate increase in online revenue spends.

Cheers,
Ron

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