Excerpts from Internet Advertising Report 2014

Report Published :Feb 2014

www.eStatsIndia.com

Economic And Industry Background

India experienced its lowest growth in two decades. This was due to large current account and government budget deficits plus high inflation. Economic growth in India decelerated from 5.1% in 2012 to 4.8% 2013. This is attributed to week household consumption and sluggish investment .

Consumer price Inflation (CPI) remained stubbornly high at nearly 10% even as the economy weakened further. In India , the unemployment rate rose from an estimated 3.8% in 2011/12 to 4.7% in 2012/13.

In the current weakening economic condition the Indian digital market is being

adversely affected by the lack of Internet penetration. The current internet penetration in India stands at around10.6%. The digital advertising in India is showing promising growth. Indian Digital market was around US $0.70 billion in the year 2013 going forward this will grow at a CAGR of 36.35%.

Source: As per the recently published findings from the World Economic Situation and

Prospects (WESP) 2014 by UN

www. eStatsIndia.com Internet Advertising Round Up

2014

Worldwide Internet ad spends constitutes about 25 % of ad budgets of the

marketers. In Indian context this is close to around 20%.

Worldwide Digital media spends were around US$126.16 billion in the 2013. This will

grow further to US$145.34 billion by 2014.

Source: eStatsIndia.com Analysis

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Region Internet Ad Spends YE 2013

US USD 46.50 billion

APAC USD 33.57 billion

India USD 0.70 billion

SO WE HAVE BENCHMARKED AGAINST THE BEST SOURCE AVAILABLE WORLDWIDE….IAB.NET/PwC

Banners (static display)

Classifieds

Email (embedded only)

Lead Generation (referrals)

Rich Media

Video (in-stream, in-banner, in-text)

Search (paid listing, contextual text links and paid inclusion)

Social Media

Mobile ads Including search and banners

(Digital Ads Constituent formats have been benchmarked against IAB.NET /PwC)

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ENGAGEMENT WITH ONLINE ADS MEASURED BY CLICKS, DWELL AND OTHER USER INTIATED ACTIONS WERE HIGH FOR AD UNITS THAT INCORPORATE INTERACTIVE ELEMENTS SUCH AS ANIMATION, EXPANSIONS, SOUND AND VIDEO

Worldwide, click-through rates (CTR) of viewable impressions were 0.34% compared to 0.22% for all rich media, a lift of 54.5%.

Click Through Rate(CTR) Increased as ads included more interactive elements.

In India Standard Banners Ad Formats showed higher CTR of 0.18%.

Source: DG Media Mind Full-Year 2012 Global Benchmark

Under Rich Media Expandable Banner recorded maximum average CTR of 0.44%, followed by Polite Banners with a CTR of 0.34%, in India.

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Standard Banner Size CTR

300x250 0.20%

728x90 0.14%

160x600 0.14%

PERFORMACE METRICS FOR INDUSTRY VERTICALS IN INDIA ….

Among Verticals, Retail (Rich Media) ads has the maximum CTR of around 0.62%. This is followed by Restaurant (a sub-category of Retail) recording a CTR rate of around 0.57% in India. Other key verticals like Corporate, Electronics, Government/Utilities, Financial and Services also recorded high CTR.

Tech/Internet vertical recorded highest expandable metrics (total expansion rate) value of 50.8% . This is followed by Consumer packaged goods with a value of 48.2% .

Believability is the key currency to measure the effectiveness of digital ads. In India digital ads with recommendations from friends and family scores at the top when it comes to believability of digital ads.

Note: The industry categories used in the report were sourced from North American Standard Industrial Classification (SIC). Other Sources: RECMA December 2013, DG Media Mind Full-Year 2012 Global Benchmark, IAB and eStatsIndia.com Analysis

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Based on Overall Activity Volumes and Rates of Growth the top players and verticals have been worked out…..

*Agency of Record; End Note: Digital Advertisers based on DARD ‐ Digital Agency Account Moves ‐ Jan 14, 2014 XO by RECMA December 2013

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Industry Verticals Advertisers Digital Assignments

Travel Samsonite/ Sterling Holidays/ India Ministry of Tourism/ Magic Holidays

Digital Advertising, Social Media, Search/Social/Display/ Media

P&B, Campaign, Digital

Electronics LG/ Huawei Digital Advertising, Campaigns, Analytics/ AOR*, Web Creative

Food & Beverages Nestle/7UP Website, CRM, Social, Analytics/ Digital AOR*, Online Presence

Clothing American Swan Display, Web, Social Media

Automotive Motul Digital Agency Of Record, Strategic Planning, Display,

Website, Social Media, Product Innovation

Retail Delhi Duty Free Performance, Social

o What’s the Internet advertising market size in India?

o What all are the key digital ad formats in India?

o What are the key metrics being used to measure the returns on the digital media?

o Lead Internet Advertisers in India? (Key Accounts)

o Industry Verticals driving the Internet advertising in India?

o Future Growth Trajectory Going forward; “How the Internet advertising market will grow?”

o Key Take Away’s for Advertisers, Agencies, Industry Stakeholders

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To arrive at the size of the Internet Advertising market in its totality to factor-in your ad budgets accordingly.

To focus on key digital ad formats to smartly spend your digital ad budgets.

To refine your digital ad mix by concentrating on specific ad metrics that can give you maximum returns for your ad spend dollars.

To plan and strategize your marketing budgets going forward.

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REPORT TITLE: DIGITAL ADVERTISING ROUND UP 2014

TO ACCESS THE COMPLETE REPORT PLEASE CONTACT

Analysts : Amita Sharma, Vikram Bhardwaj

E-mail : vikram@estatsindia.com Mobile : +91 9810474007

Web : http://www.estatsindia.com

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www.eStatsIndia.com