Executive SummaryAs the number of Active Internet Users continues to surge in India (currently standing at 52 million ), Internet as a medium

is fast evolving not only into a compelling medium but also a highly efficient media vehicle for marketers (Source: I-Cube 2009 – IMRB’s annual syndicated study on Internet in India). This coupled with the challenges to stand out using other available media, calls for the need to source creativity and innovation with Internet as backbone.

Internet has enabled various new dimensions that allow marketers reach target segments in the most measurable, interactive and more essentially, cost-effective ways. While advertising on the Internet knows no geographic boundaries, technology is already available to help marketers focus only on specific markets and target segments. With so much on platter, inevitably Internet is a medium to stay

and not wither away. Taking that into perspective, the purpose of the report is to take a deep-dive into the Online Advertising scenario in India. Online Advertising in India is estimated to have reached Rs. 785 crores for FY 2009-10 of which, Text Advertisements accounted for Rs. 368 crores.
The study also reveals that display advertisements contribute Rs. 417 crores to the overall figure, as predicted in our previous reports. Display Advertising continues to surge, registering a growth of 22% over previous year’s figure of 325 crores. In FY 2007-08, Display Advertising was estimated to be Rs.

235 crores, registering growth of 77% in two years. Online Advertising is expected to grow by 26% in the year FY 2010-11 over FY 2009-10.
Interestingly though, the study reveals that big spending veteran advertisers like BFSI continue to repel away from Display Advertising (from 25% in FY 2007-08 to 17% in FY2008-09 and 13%

in FY 2009-10). Industry vertical wise, Auto, BFSI, Online Publishers, Travel, IT & Telecom are the biggest online spenders and they continue to remain so. FMCG companies are one of the biggest advertisers on
Television and other conventional media, but they are relatively new to Online Advertising. It is expected that FMCG’s online ad spend will gradually increase over the next couple of years.

Education appears as another vertical likely to grow in future.



The results of the report are arrived at by conducting primary as well as secondary research. Report follows the financial year and details information captured from respondents for the year FY 2009-10. Estimates based on inputs as provided by industry players are for the year FY 201011 (April 2010 – Mar 2011). Internet users: Structured face to face quantitative research was conducted with 800 individuals across among 15 cities during I Cube 2009, a syndicated product of eTech, IMRB International. Secondary research was done to understand the structure and dynamics of the Online Advertising in India. Information from various published resources was used to perform a data validation check. Information collected from secondary as well as primary research was thoroughly analyzed in preparing the report. Additions in this round of report: Online Advertising report always updated to encompass changing market dynamics. Details of new features included in this report include: • Market sizing and advertiser segment analysis for Text Ads is added for the first time • Travel industry is added separately as advertiser segment • IT & Telecom industry is now analyzed as separate advertisers • Advertisement on Social Networking sites is estimated

which are backed by hyperlinks which when clicked on.Advertisements made up of text (displayed largely as sponsored links on search engines). Auto. Evolution ModelOnline ads have evolved from CPI (Cost Per Impression) or CPM (Cost Per Mille-1000 Impressions) to CPC (Cost Per click) to CPA (Cost Per Acquisition) and this transition is observed among advertisers.Online AdvertisingOnline Advertising is a form of marketing communication on the Internet. readers or listeners) to purchase or take an action upon content displayed on a website (or webpage) in relation to products. and Travel are gradually moving towards Performance Based advertising. • Display Ads . logos. One of the most intriguing advantages of online advertising is its capability to immediately publish information and content that is not limited by geography or time. ideals. Online advertising can be classified in two types• Text Ads . photographs or other images. or services. as they are simple and a lot of web sites accept them.Ads that are placed at various points on a web page that typically contain text. makes it an efficient medium. Following illustration depicts how this shift from CPC to CPA is observed. Veteran advertisers such as BFSI. . Banner ads are priced slightly higher than text ads are known to have higher effectiveness. intended to persuade an internet user (viewers. This coupled with the ability to tweak or customize the advertising content and locations. Text ads are generally lower in cost than banners. takes the potential customer to the advertiser's web site.

Market size for Text3 Advertisements is calculated for the first time in this round of the report. . 993 crores in year FY2010-11. Market is currently dominated by Display ads and is expected to remain so for the next year.Market SizeTotal Online Advertising market of India is estimated at Rs. 785 crores for the year 2 FY2009-10 and is expected to grow to Rs. Earlier two rounds of the report had market size for Display Ads only. Overall Display ad market is expected to grow by 28% while Text is expected to grow by 26% in FY 2011.

. Relatively new advertisers such as FMCG and Education sector are spending more on Display ads than Text ads. A sample of Banner ad is shown belowBanner ads can range from being simple pieces of HTML code. 417 crores and is expected to grow by 28% to reach Rs. Travel. Advertiser proportion for Display ads is likely to remain more or less similar for year FY 2011. BFSI. auto & Telecom continue to remain biggest display ad spenders in year 2009-10 and will remain so for year 2010-11 as well. 534 crores in year 2010-11. Shockwave and Flash and also having video.Display adsTotal Display advertising market of India in year 2009-10 is estimated at Rs. to being multimedia objects developed using technologies like Java. sound and animationto maximize effectiveness.

368 crores and is expected to grow by 25% to reach Rs. Travel and Online Publishers . 459 crores in year 2010-11.Text AdsTotal Text advertising market of India in year 2009-10 is estimated at Rs. A sample of text ad is shown below- .the top three Text advertisers of year FY 10 are expected to continue to lead text based advertisers in FY11 as well. BFSI.

Under the Pay per click pricing system. also called "Cost Per Thousand (CPT). and the advertiser pays only for the amount of users who complete a transaction. is where advertisers pay for exposure of their message to a specific audience. but only when the listing is clicked on.Revenue Models- The three most common ways in which online advertising is purchased are CPM. In this payment scheme. CPA (Cost Per Action) or (Cost Per Acquisition) advertising is performance based and is common in the affiliate marketing sector of the business. and pay only when someone clicks on their listing which links directly to their website. This system allows advertising specialists to refine searches and gain information about their market. such as a purchase or sign-up. the publisher takes all the risk of running the ad. This is the best type of rate to pay for banner advertisements and the worst type of rate to charge as it ignores any inefficiency in the sellers web site conversion funnel. advertisers pay for the right to be listed under a series of target rich words that direct relevant traffic to their website. Advertisers pay each time a user clicks on their listing and is redirected to their website. CPC differs from CPV in that each click is paid for regardless of whether the user makes it to the target site. CPM (Cost Per Mille). CPC. pop-unders and interstitial ads. or loads of an advertisement. and CPA. However. "Per mille" means per thousand impressions. They do not actually pay for the listing. CPV (Cost Per Visitor) is where advertisers pay for the delivery of a Targeted Visitor to the advertisers website. . CPC (Cost Per Click) is also known as Pay per click (PPC). some impressions may not be counted. CPV (Cost Per View) is when an advertiser pays for each unique user view of an advertisement or website (usually used with pop-ups. such as a reload or internal user action.

368 crores. In year 2009-10.2) which increased to Rs. IMRB’s annual syndicated study on Internet in India. hence online Ad monetization4 per internet user for India in the year 2009-10 is Rs. 50 (USD 1. 58 for Display ads and Rs. . Display ad industry is estimated to be Rs.Internet users in IndiaInternet in India has significantly grown in the past decade. According to I-Cube. This indicates that online ad monetization per internet user has not grown significantly in year 2009-10 as compared with previous year. in September 2009. India had 52 Million active internet users. Ad monetization per internet user on display ads was Rs. 417 crores and Text ads is Rs. 52 for Text Ads. 65 per Internet user in year 2008-09. It was estimated that in the year 2007-08.

BFSI has evolved from a display advertiser to a performance based advertiser. . 52 crores from Rs. However during the economic slowdown. In FY 2010 (Apr’09-Mar’10) BFSI contributed around Rs. BFSIBFSI sector has been one of the long standing advertisers on Internet.Industry TrendsThis section gives detailed view about various advertiser segments. 177 crores in year FY11. 141 crores for year FY10 and is estimated to grow to Rs. Asset Management Companies. Effect of economic slowdown is reflected in ad spent by BFSI segment. Credit rating agencies and so on. As an advertiser. It is estimated that BFSI will continue to have display ads but is likely to have more of Performance based and Text advertisements in future. 55 crores for the year earlier. it was the most affected as well. Insurance companies. This totals to Rs. This sector contributes most towards Text as well as Display ads. BFSI verticals covers all advertisers from financial companies including Banks. 89 crores towards Text5 and Rs. 52 crores towards Display ads. Display ad spent for FY09 was down to Rs. and it reflected in their online ad spent. It is one of the first advertisers to adopt performance based advertisements and performance based payment mechanism (such as pay per activations). Non-Banking Financial companies.

AUTOAuto industry is another big contributor to online ads. . This is expected to reach Rs. it is expected that this segment will continue to remain one of the biggest online advertisers. cars and passenger vehicle manufacturers. tyre manufacturers etc. 62 crores for FY 2011. However. It is estimated that the Auto industry spent Rs. Auto vertical covers all advertisers from the automotive sector including OEM manufacturers. 24 crores in FY08 to the current level of Rs. the there has been a growth of 63% over a period of 2 years. Display advertising for the Auto industry has risen from Rs. 28 crores for FY11. with economy back on track. 39 crores for FY10. In other words. 17 crores on Text6 ads in FY10 which is expected to grow by 65% and reach Rs. Hit by the economic slowdown. auto industry’s online ad spend didn’t grow much during FY08 and FY09. The industry is primarily uses display advertising.

. a 28% increase. email. 67 crores for the year FY11. matrimony. During FY10 online publishers are estimated to have spent Rs. 90 crores in FY 11. Advertising spend of online publishers from this round does not include ad spend by Travel and tourism portals as it is now analyzed as separate advertiser segment. it is estimated that its Display ad spend for the year FY10 was Rs. 40 crores and Text Rs. ONLINE PUBLISHERSOnline advertising for publishers is defined as all advertising emerging from various websites related to gaming. Travel is one of the evolved online advertisers. Like BFSI and Auto advertisers.e. 58 crores towards Text ads which adds up to Rs. This spend is expected to grow to Rs. 74 crores in FY 10 to Rs. job space etc. 122 crores (Display Rs. 37 crores towards display and Rs.TRAVEL- Travel industry is another big online advertiser. portals. 72 crores) in FY11 i. which is gradually moving from display to performance based advertising. Text8 ad spent on other side is expected to grow from Rs. Added as separate advertiser segment this year. 59 crores and is expected to grow by 14% to Rs. 95 crores.

FMCG is likely to remain mainly as a Display advertiser in current year. PC accessories. personal care.IT. one of the biggest advertisers on Television. broadband. However. slowly. . TELECOM- Telecommunications is one of the biggest display advertisers. this industry vertical has started realizing importance of Internet as an advertising medium and leading FMCG companies have started advertising online. laptops. Broadly speaking. Being new entrant in online media. 17 crores on Text & Rs. mobile phones. edible oil etc. PDAs etc. PCs. servers. FMCG- FMCG. is so far one of the lowest spenders on the Internet. This new entrant is expected to spend about Rs. data cards and Internet services. beverages. landline services. For our analysis. the FMCG is includes advertisers from consumer goods such as soaps. powder. mobile services. detergents. telecom related products and services include Pre Paid cards. cosmetics. as well as in near future. processed food. 39 crores on display advertising in year 2010-11.INFORMATION TECHNOLOGY- Information technology is includes all those products and services for computing platforms including packages / customized software and services.

colleges and universities etc. coaching classes. Predominantly a display advertiser. Consumer durable advertisers are estimated to have spent Rs. Refrigerators. The ad spends of display ads have been growing steadily over the years. . 10 crores on Text13 ads. This category is also mainly a display advertiser. During year FY10. TV.CONSUMER DURABLES- All consumer durable items like Air Conditioners. 34 crores on Display which is almost double the amount they spent in FY08 and Rs. It is estimated that the segment will spend Rs. This segment has seen growth of more than 200% in ad spent from FY08 to FY10. EDUCATION- Education sector is one of the fastest growing advertisers on Internet. Audio systems and excluding IT and Mobile products are categorized as Consumer durables in our analysis. Education vertical includes all education related ads such as those by Educational institutes. 35 crores towards Display and Rs. 48 crores by the year 2011. and are pegged to touch Rs. 18 crores in Text ads in FY 2011. schools.

as compared with spending on Social Media marketing. Spending on email marketing campaigns is not as common. These could be branding activities like “Follow the Company” on a social networking site or it could be advertising on the same. as one of the prime online marketing activities among online advertisers.ONLINE MARKETING ACTIVITIES- Social media marketing has been on the rise. . It is estimated that about 11% of total online advertising was done on social networking sites in year 2009-10 and is expected to grow to 18% in year 2010-11. Large numbers of advertisers are now moving towards SNS for their marketing activities. Other conventional Online marketing activities such as SEO. It is observed that email marketing is done by companies with the help of their internal databases. SEM Advertising are still the most common forms of online marketing among advertisers ADVERTISING ON SOCIAL NETWORKINGSocial networking sites (SNS) have gained large user base in the past two to three years.

So do the Viral Ads. it can be seen that around two thirds of the active Internet users have seen sponsored ads and about half have clicked on them. Viral Ads. which are seen more as an entertaining video rather than an ad. The main reason for that is that people while surfing do not prefer unwanted intrusion. Also. It is only those ads which are noticed the most and thus have the highest visibility. They are mostly seen as a novel and creative video/ad rather than an ad.ONLINE ADVERTISING VIEWED BY INTERNET USERS- From the above data. They treat the web space as their personal and any attempt to interfere in that space does not go down well with the people. sponsored links in search engines have the highest Conversion ratio from Seen to Click followed by Streaming Videos. This is because the ads are relevant to the other contents on the web page. . Customers get most influenced by ads that are relevant to the context that they are looking for on the Internet. Sponsored links in search engines have the highest demand followed by Email Ads. The attention span is very low for these ads and do not result into click conversions. Viral Marketing Ads have the minimum viewership and are the least clicked. Pop-Ups have a very low Clicked to seen ratio. Thus. On the other hand. Streaming Videos have a low viewership demand because they usually do not have any relevancy to the content of the web page. But the sponsored links in search engines always display advertisements relevant to the search made by the people. And it is the placement of the ads which have the highest impact. Hence the propensity of clicking those ads increases. Ad Types like to seeThe right type of ads have the best seen to click conversion ratio. although known to create a lot of buzz have the least seen to clicked ratio. On the other hand.

influence their buying decision. This is because online ads are often intrusive and distracting. . These ads also help users find the right products they are looking for and to some extent. Thus care should be taken while deciding the placement of the ad.A majority feel that online ads are informative and interesting but click them only when they are relevant.

online advertising faces some challenges before it can achieve its potential. with 78 million claimed Internet users. page clicks and other existing metrics as CPC. ‘Reach’ signifies number of unique visitors exposed to a given medium. some other measure becomes the norm and replaces the earlier standard. will be critical for publishers to attract more advertisers and help growth of the online advertising industry. Besides these challenges. is their ability to convince why an advertiser must advertise on the publisher’s website (and not on any other). the online medium evolves so fast that before some measurement standard can be set. traditional high spenders in advertising like FMCG companies have not invested any significant money in online advertising. As per ICube 2009. ‘Reach’ of Internet users in India is approximately only 8%. On the other hand. As per some. in other words. . advertisers seem to lack knowledge about the online medium and how it could be leveraged effectively. CPA etc. many feel that very few companies are talking about brand metrics. some advertisers have launched successful online campaigns to begin with. Television has reached the masses and advertisers are easily able to reach their target audience quickly. accurate targeting as well as quality and type of audience. In fact. CPI. Existing online advertisers are especially keen to understand the return on investment for a given online investment. a major challenge that web publishers face. and progress in terms of Internet penetration is by far. A common currency would be required by both advertiser and publisher to use the medium effectively. One of the reasons commonly cited by many. but have been unable to sustain interest level for an extended period of time. unavailability of proper infrastructure in rural areas for Internet facilities is another major concern for advertisers. many feel that measurement will play a key role for online advertising medium to succeed. existing online advertisers face another challenge with regards to sustaining the interest level of an online advertising campaign. Also. Clients are looking beyond page views. In addition. Building appropriately tailored solutions for companies from the FMCG sector. is the reluctance of advertisers to spend heavily in a medium whose ‘Reach’ has yet to reach a significant level of the total population. Along similar lines. Essentially. limited.CHALLENGESIn India. Also. albeit at a much higher cost.

Website operators that ethically use online advertising typically use a small number of advertisements that are not intended to distract or irritate the user. rather than advertisements. and some have misleading images designed to look like error messages from the operating system. meaning that the website linked to by the advertisement is legitimate. some of which are deployed ethically and some are not. allowing advertisements to lead to sites with malicious software or adult material. while inspecting websites and publishers to insure website pages offer the highest degree of information security and compliancy with Can Spam Requirements. building and deploying fraud detection tools. Many sites use centralized advertising services whose advertisement may be blocked as a side effect of security and privacy measures. because the services require JavaScript and cross-site requests to function. Some websites use large numbers of advertisements.EthicsOnline advertising encompasses a range of types of advertising. and do not detract from the design and layout of their websites. through the use of online compliance centers. while such features are often not necessary to use the sites and are a potential source of vulnerabilities. The overuse of technologies like Adobe Flash in online advertising has led to some users disabling it in their browsers. Websites that unethically use online advertising for revenue frequently do not monitor what advertisements on their website link to. Many website owners deal directly with companies that want to place ads. including flashing banners that distract the user. . or using browser plug-ins. Some companies perform customer engagement studies in online marketing to insure consumer satisfaction.

Barak Obama's team ensured that the campaign had a strong presence on social networking sites such as Facebook. inherent differences in these options. email marketing. innovative perspectives are being practiced by established and traditional institutions. This service has generated better response rates compared to the traditional banner for some of the clients. Online display advertisement provides a marketer an option to generate awareness which in turn will result in brand-building in long run. however. This trend is very much apparent in India where in pricing for online advertising campaigns are frequently measured against the performance. Search engine advertising comprises a high proportion of the overall options due to efficient search engine avenues. the display advertising is evolving to deliver performance and leads similar to the ones delivered by search marketing. These options include search engine marketing. There are. banner ads. In the recent general elections in India (early 2009). classifieds and sponsored links. . many Indian politicians considered Internet as a useful platform for interactive political communication especially with youth. There are transactional banner systems5 emerging which enable users to purchase products and services via banner without visiting the vendor‟s website. Internet was found to be an effective tool to engage with them. rich media. In some of the recent examples seen. Meanwhile through search advertising a marketer can generate leads in a short span of time. digital video. rich media. Indian National Congress party used sites like YouTube and Facebook to execute web-based social marketing campaigns. Integrating Internet advertising in marketing campaignsRecognizing the possibility of using Internet as an effective tool for targeting niche audiences. digital video and sponsored links has relatively large number of participants but enjoys a limited share in the total spends. “Performance based” online display advertisementsThe yardstick to measure the effectiveness of online advertisement has evolved from mere number of impressions to the customer acquisitions leading to performance based advertisements. lead generation. With 50 Million Internet users in Urban India and majority of them in the age group of 18-24 years. Search engine marketing provides a distinct advantage of enabling a marketer by providing complete control over a campaign with selection of keywords and the ability to place the advertisements on the selected websites while the same does not hold true for online display advertisements. Barak Obama ensured he maintained a two-way interaction with his electoral.Emerging Trends in Online Display Advertising MarketOnline advertising avenues include various web-based options using which brand and marketing messages get delivered. MySpace and LinkedIn. Online display advertisement comprising banner ads. Through such presence. During the recent US Presidential elections.

Nokia. Apart from the political general elections. interesting and useful. IBM have used AR in their latest advertisements6. Most of the portals have already adopted these for inventory on their home pages. IKEA PS. Thus combined with the traditional advantage of delivering contextual messages at the right time. with the emerging technologies. exciting. Perk. several brands have started integrating Internet as part of their communications. augmented reality does not create a simulation of reality. Unlike virtual reality. the marketers can now allow their target audience to indulge into an in-depth brand experience. Immersive formats for Internet AdvertisingThe advancement in the technology is leading to the development in the area of online display advertisements allowing display advertisements to become more immersive.Bhartiya Janata Party (BJP) launched a website LKAdvani. The key ones to do so in 2009 include Tata Tea. Augmented reality is designed to blur the line between the reality the user is experiencing and the content provided by technology. usage of AR is predominantly witnessed in the field of advertising. Augmented Reality (AR): AR will offer different various advantages for different forms of online display advertisement in future. These banners are fresh. etc. Further. They can deliver a story with a mouse over or give an enticing hint to what users can expect when they click on the banner and led to a micro-site. Of these. sound and smell to the virtual world as it exists in the real world. Thus with the advancements in the space the Expandable Banner- Expandable banners which use a new technology that allows the banner to expand when the user rolls over them. Large corporate like P& G. The goal of augmented reality is to add information and meaning to a real object or place. Airtel. Vodafone. Augmented reality adds graphic. Instead. it takes a real object or space as the foundation and incorporates technologies that add contextual data to deepen a person’s understanding of the subject. Nike. compelling and highly interactive to the viewer. .in for its prime ministerial candidate Lal Krishna Advani. dealer in household furniture has offered mobile augmented reality solutions which enable users to imagine how this furniture would fit in their houses. Technological development in the field of AR is leading to the acceptance of this technology in various marketing activities. both the key parties (Congress as well BJP) teamed up with top Internet companies for spreading their campaign messages over the Internet.

With rising broadband availability. thanks to social media itself. In addition. These are comparable with television advertisements. with people pressed for time. across India. Broadly speaking. at significantly lower costs. Indian FMCG companies spend a majority of their advertising budgets on traditional advertising media i. which are similar to television advertisements. future of online advertising is promising. television and print . with a plethora of small and medium businesses mushrooming in India. companies are able to create buzz about their products and services. rather than relying on traditional forms of advertising. In fact. In fact. Social Media has captured the imagination of over 500 million people globally. colleagues and relatives. Effective engagement with consumers is the need of the hour for many organizations. with social media. either positively or negatively. the time spent on social media is second only to that spent over email. India has also seen rise in number of Internet users. However. Various social media applications like gaming. which might not be cost effective either. Currently. either through brand owners themselves or even through end users who have experienced the brand. chat etc have been instrumental in users spending a great deal of time on social media websites. we have observed online text advertisements or display advertisements (without much animation). Traditionally. the cost of hosting a video ad on the Internet is significantly lower than that of a television advertisement. emergence of social media and video ads. companies will utilize online advertising in a much larger way. Increased investments from the FMCG sector will be another important driver for increased online advertising expenditure. with rising broadband penetration. Moreover. Emergence of High Speed Broadband connectivity is a prime driver for online advertising to increase. FMCG companies are traditionally huge spenders as far as marketing and advertising of products are concerned. The Internet will enable this and moreover.e. people can get immediate answers for their questions in real time. the cost of broadband plans has been decreasing consistently and is becoming affordable for an increasing number of Internet users. friend updates. advertisers can target end users with video ads.FUTURE OF ONLINE ADVERTISING IN INDIAWith Internet penetration ever increasing. With this in mind. advertisers are now gradually awakening to the opportunity presented by social media. Online advertising has therefore been positively influenced by social media. they spend more time on social media to interact with friends. Also. Besides. People can interact with the brand and get a feel of the product or service on offer. increased investments by various companies as well as positive macroeconomic situation in India. as per IMRB International’s web audience measurement product WAM. Additionally. Also. albeit at much lower advertising costs. video ads or ads that require additional bandwidth will be more commonly seen. following key drivers will enable growth of this medium – Rising broadband penetration.

Internet would go a long way in enabling this bond. with ever increasing number of Internet users. In addition. Internet. FMCG advertisers have now realized that it is merely not enough to advertise on television or print only. Having tried and tested various advertising models as pay per click. enables immediate interaction with end users and helps bridging this gap in a very cost effective manner. with a rising Indian Internet user base as well as the advantages that online advertising offers. it is becoming very important for advertisers to build an emotional connect with consumers. with the macroeconomic situation in India also upbeat. Internet on the other hand. television as well as print advertising involves sizeable costs which smaller organizations might not be able to sustain. it will be increasingly difficult for advertisers to neglect the Internet as an advertising medium. In addition. pay per pageview and so on. Overall. While television and print ads can increase awareness of a certain product in a very quick manner. In sum. This certainly will trickle down to the online advertising spends of various companies. these media are unable to engage the consumers actively. Companies would use television. In addition. However. Companies from the BFSI. where they would pay publishers for the sales generated or at least sales enquiries for a given product or service. products and services. Internet would become an extremely important Sales medium. whereby they can be placed on strategic websites to attract desired target group. and specifications of the product/service. if any. which bodes well for the online advertising industry as a whole.advertisements. will enable one to know intricate details. Internet can play a pivotal role by engaging and helping customers know benefits of the companies’ products or services. . As per ICube 2009 (Annual syndicated study by IMRB International on Internet users). online advertisements have evolved to a certain extent. the number of claimed Internet users has risen to 78 million across India. on the other hand. Internet as a medium is progressively targeting required end users in an effective manner. as well as advantage or disadvantages. Automotive and Travel sectors have been early adopters of online advertising. In other words. while television and print media would be used for increasing awareness primarily. Further to interact with customers. Therefore. print and billboards for creating buzz about their brands. features. Indian companies as well as multinational companies (MNCs) are likely to spend more on their marketing and advertising budgets. it is likely that FMCG advertisers will be keen to exploit the online advertising medium. with emergence of social media. companies belonging to these industries are now keen on performance based advertisements.

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