Ad spend on Net poised for rapid growth

The internet will bring in big dollars to advertisement this year, as compared to last year, according to the ad expenditure forecast by a reputed media agency. It is predicted that by the end of 2007 ad spent on the internet will be more than double than what it was in 2006 at Rs 450 crore. Rs 210 crore was spent on the internet in 2006.

The growth of ad spend on the internet is also expected to take a quantum leap in the next two years, with the figure reaching Rs 2,250 crore by 2009, which will be almost 10 times the size it is now.

According to the research findings, the ads spends on print and television in the next two years are also set to rise to Rs 14,330 crore, and Rs13,450 crore, respectively. In comparison to 2006 there will be a growth of 46.7% and 49% respectively. Print and television together still contribute to 85% of the total advertisement spend of Rs 32,845 crore.

The contribution of the internet in all overall advertisement revenue pie will be close to 6.8%. Currently its share stands at just 1%. By 2009, the estimated figure suggests that ad spends on the internet will surpass those on radio, cinema and outdoor, individually.

In 2006, the ad spend on radio was Rs 370 crore while on cinema and outdoor, it was Rs290 crore and Rs 1,050 crore respectively. In comparison, ad expenditure on the internet was lower, at Rs 210 crore. By 2009, the research has estimated, the ad spend on the internet will be Rs2,250 crore, compared to Rs 585 crore on radio, Rs 558 crore on cinema , and Rs 1,673 on outdoor media. The forecast also maintained by 2009 advertising expenditure in the country will be 0.57% of the GDP as compared to the current 0.51%.

Incidentally, an earlier report by Initiative Futures Worldwide the flagship arm of the Lintas media group, had cited a similar upsurge covering seven years of data for six media in 56 countries including India, painting a truly global picture of worldwide advertising expenditure . That report maintained that 2004 was the best year in advertisement since 2000, with spends up year-on-year by 7.9% at the global level. Building on this, 2005 grew by a further healthy 5.5%. In 2006, ad expenditure rose at a similar rate.