Advertising has become one of the core functions for corporates in the current market scenario. Consumers are rapidly becoming more aware about brand differentiations which make it very important for the companies to choose the right mechanism to create the appropriate buzz for their products. Advertisements have been existent in various forms such as print, radio, outdoor, TV etc. However, the current most popular form is internet advertising that has caught the eye of large number of consumers. Due to the increasing penetration of internet and activities such as social media networking; consumers, especially youth, are spending longer hours on the internet which makes it an efficient tool for companies to generate correct ads to attract them. Online advertising industry in India is growing dynamically and is set to increase further. Companies are now spending huge amounts on advertising on the online medium that helps them to target their specific group of consumers. The report begins with the Indian advertising industry section that highlights the prospects of advertising on all the respective mediums. Apart from the market size, it delves into the growth rates of respective mediums in the current year showing the comparison between them. This is followed by the Online Advertising industry section that depicts the market size and growth of advertising on the internet. It also highlights the major segments in the space and their respective shares. It includes an overview of the segments in the online advertising space along with the major advertisement spends on the same from various different industry verticals. It also shows the advertising options that a particular advertiser has in the online segment which is followed by the section highlighting the advantages of online advertising as a medium and also the major payment metric systems that are followed in the industry by service providers. This is then followed by the major technological advancements that have taken place in the industry with respect to the various types of online ads that the industry players have devised to target their respective segments of consumers. The key factors of growth for the market have been analyzed. An analysis of the factors driving growth in the market has been added which includes large domestic internet base, positive consumer behavior and patterns towards online media, growing proliferation of internet on mobile and large expatriate population. The factors hindering growth in the market have also been analyzed which include lack of trust in internet advertising and literacy and language barriers. The key trends analyzed in the market include emergence of social media, internet turning into an effective sales medium, growing online marketing activities from corporates, increase in private equity investments and Indian players expanding globally. The competition section provides an overview of the competitive landscape of the market highlighting the current market share of the most used search engines in the country. It also highlights the major online ad networks that are functional in India. It includes a matrix depicting a comparison between some major online ad networks with respect to their services. It also includes brief profiles of major domestic and foreign players.

1. Online Advertising Market – India
June 2011

2. Executive Summary
 Indian advertising industry is expected to witness a growth CAGR of X% to reach INR Y bn in 2011
from INR Z bn in 2010
 X advertising industry in India is the fastest growing segment in the advertising industry
Market  It is divided into two types of advertisements namely Display Advertisements and Text
LE
Advertisements
 Segment 1, 2 and 3 are some of the highest spenders on the online medium for advertisements
MP
Factors Driving Growth: Factors Hindering Growth:
Factors
influencing
Growth S A
 Large Domestic Internet base
 Positive consumer behavior & patterns
towards online media
 Growing proliferation of internet on mobile
 Lack of trust in internet advertising
 Literacy and language barriers
 Large Expatriate Population
 Emergence of Social Media networking  Increase in private equity investments
Trends  Internet turning into an effective Sales medium  Indian players expanding globally
 Growing online marketing activities from corporates
 The industry in India is dominated by X and Y types of players
 Although India has a large network of players operating strongly in the domestic market, foreign
Competition ad networks are also making their way into the Indian market to utilize the large consumer base
 Competition in the market is likely to increase with entry of more and more multinationals
ONLINE ADVERTISING MARKET IN INDIA 2011.PPT 2

3. •Indian Advertising Industry
•Online Advertising Industry
•Factors influencing growth
•Trends
•Competition
ONLINE ADVERTISING MARKET IN INDIA 2011.PPT 3

4. Indian advertising industry has huge growth prospects with
the internet segment to develop strongly
Indian Advertising Industry – Overview Trend of Advertising Revenues
Segment 1 Segment 5 Segment 4
• Market for advertising in India is estimated at INR X
segment 3 Segment 2 Segment 6 Y%
bn in 2010 and is expected to grow at Y% CAGR to
reach INR Z bn in 2011
• Segment 1 continues to be the largest segment
LE
INR bn f
e
X%
r
t
u
P
although internet is fast catching up as a strong d q s
p
medium for advertising c
exhibiting the largest growth during 2010
S M
• Internet advertising is expected to grow at Z%
A
 This phenomenon is owing to the growing penetration of
internet among individuals and emergence of fast
b
a
0
2006 2007 2008 2009 2010 2011e
technology oriented online mediums that are driving the forecast
interests of end consumers
Segment Growth Rates
 Rising usage of internet on mobile phones with services +X% 2010
such as 3G is also boosting the online advertising market +y%
INR bn c 2011e
• The overall industry is set to witness growth with p1
p q1
increasing localization of content on various q
b
mediums
+Z% +a% +b%
• More and more players in the industry are driving a +c%
the growth by offering better customized solutions r r1 s s1 t t1 u u1
0
Segment Segment Segment Segment Segment Segment
Source: 1 2 3 4 5 6
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5. Segment 1 advertisements dominate the online
advertisement market in India
Online Advertising Industry – Overview Market Size & Growth
• Online advertising is a form of marketing INR bn
communication on the Internet which intends to: u
e
LE
 Influence a consumer towards purchasing or taking up an t
d Z%
action on the content displayed on the website with
P
respect to products, ideals, or services c r s
• Online Advertising market in India is estimated at INR b
M
X bn for the FY2010 and is expected to grow to INR Y p q
a
bn in FY2011
• The market in India is divided into:
 Segment 1
 Segment 2
S A 0
2006 2007
Segment Growth Rates
2008 2009 2010 2011e
forecast
• The market is currently dominated by Segment 1 and Segment 1
this trend is expected to continue FY 2010 Segment 2 FY 2011e
• Overall segment 1 market is expected to grow by X%
while Segment 2 is expected to grow by Y% in FY
2011
S2% S4%
• Factors such as growing internet base (computers S1% S3%
and mobiles), growing popularity of social media
networking sites are also fueling growth in the online
advertising market in India
Source:
ONLINE ADVERTISING MARKET IN INDIA 2011.PPT 5

6. Factors Influencing Growth – Summary
Factors Driving Growth Factors Hindering Growth
Large Domestic Internet base Lack of trust in internet advertising
Positive consumer behavior &
patterns towards online media Literacy and language barriers
Growing proliferation of internet on
mobile
Large Expatriate Population
ONLINE ADVERTISING MARKET IN INDIA 2011.PPT 6

7. Trends – Summary
Emergence of Social Media
networking
Indian players expanding Internet turning into an
globally Key effective Sales medium
Trends
Increase in private equity Growing online marketing
investments activities from corporates
ONLINE ADVERTISING MARKET IN INDIA 2011.PPT 7

8. Online advertising market in India is witnessing stiff
competition among domestic and international players
Competition Most used search engine
• Online advertising industry in India is largely
dominated by X and Y
• Ad networks help advertisers by providing ‘higher
reach at lower costs’ and also provide ‘performance
LE S2%
Segment 2
Segment 3
P
based’ deals S4% S3% Segment 4
• In spite of the online industry’s long tail, X% of the
M
S1%
total revenues go to the top X‐Y portals/portal group Segment 1
sites
S A
• Search accounts for almost X% of the total online ad
market by revenues
• Company X dominates the search advertising market Major Online ad networks in India
while Company Z has a hold on display and banner
advertising Ad Network 1 Ad Network 2
• Company 1, an Indian based search engine and
Ad Network 3 Ad Network 4
services portal earned advertising revenues of USD X
mn in fiscal year ended Mar 31, 2011 from India Ad Network 5 Ad Network 6
 From the past X‐Y years, ad networks have started gaining
acceptance in the Indian market Ad Network 7 Ad Network 8
Ad Network 9 Ad Network 10
Source:
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9. Major Domestic Players (1/7)
Company Business Description
Company 1 • The company launched its ad network named as ‘X’
• It uses proprietary 4th generation ad serving technology to aggregate billions of ad impressions
across categories, create audience segments and help advertisers reach users
• Provides a completely transparent platform for advertisers to tap into audiences across sites by
various categories, surfing habits, context and other similar features
• Has a large client base across categories such as Category 1, 2, 3 , 4, 5 and 6
• The company is backed by Company X
• Offers features like contextual targeting, behavioral targeting, re‐targeting, etc.
Company 2 • Is a wholly owned subsidiary of Company X
• Started its operations in India in the year 20XX and has offices in State 1 and 2
• Its principal activity is the provision of online marketing services through the mediums of
performance based marketing, search engine positioning, optimization and marketing services,
including the provision of competitive intelligence gathering services
• Some of its reputed clients include Company 1, 2, 3, 4, 5, 6, 7 and 8
Source:
SAMPLE
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10. Thank you for the attention
The Online Advertising Market – India report is part of Research on India’s Media &
Entertainment Industry Series.
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