At the end of 2009, the Online / Internet Advertising market in India was a mere 3% of the total expenditure of Advertising Market in India with bulk 43% with Newspapers and the next 40% pie with TV, according to Yahoo! India. Here is an excerpt on the state and the evolution of Internet Advertising in India as per Yahoo!
Internet Advertising Market is still small because the number of users on Internet is <5% of population is a Myth because 25 Mn Users read English Newspapers while there are 50 Mn Internet users and the Ad revenues is 7,000 Cr / year in newspapers while it is around 1,000 Cr for the Web.
Case Study – Advertisers haven’t seen basic rationale for advertising online. A leading auto manufacturer in India, stated that over 80% of their consumers & prospective consumers are online. Yet, less than 3% of their budget is invested online! What’s worse, that online budget is primarily to purchase leads @ INR 150 per Test Drive form filled up (for a 15Lac car). When it comes to Internet Advertising, We can test the waters with Internet Advertising with small budgets. Can we test the effectiveness of Radio medium with 5 lacs ?
Effectiveness of Creative Strategy is the responsibility of the advertiser – Publishers & Agencies must invest much higher quality resources to build powerful campaigns online. Advertisers must remunerate agencies in a fair manner to encourage such investments. Advertisers judge the effectiveness of advertising based primarily on data. Internet has an advantage because it is a measurable medium.
How can Corporates Leverage between Other Advertising Media and Internet because Web is a very effective medium for Metrics – The Total Online Audience in Taiwan stands at 10MM users. (45% Internet penetration) Yahoo! Taiwan reaches 97% of this online audience. It’s nice to have an online component in media mix, but TV or Print is a must. Online media is great for promotion campaign but not for branding yet.
Finally, the responsibility also lies on the Websites and their Webmasters that they demonstrate the ability to build brands online and not just deliver clicks and leads, if the big bucks have to come online.