PMMAO 2010 Internet Outlook: On hyper Line

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The Pitch-Madison Advertising Outlook 2010 presents an encouraging sight for internet. Online advertising will lead the path of recovery for media this year. It projects internet to be the fastest growing medium for the third consecutive year. With a projected growth of 50 per cent, internet is expected to fetch a staggering Rs 680 crore, up from Rs 453 crore in 2009 and also increase its share in the ad pie to 3.2 per cent, an increase of 0.8 percentage points in the projected ad pie worth Rs 21,145 crore.

The mood is equally buoyant amongst internet players. “The advertisers are engaging more with internet, in view of the positive result they received from their experiment on the medium, last year,” says Manish Vij, Co-founder, Quasar Media. He also expects internet advertising to grow at a healthy rate of 35 per cent. That is however, 15 percentage points lesser than our projections.

Parminder Singh, Business Head, Google India too hopes 2010 to be a thriving year for the medium. “Internet advertising is expected to brew a storm by capitalising on the positive market sentiments about the medium,” he says.
Advertising online is expected to go beyond traditional routes like banner ads and site-captures. Online videos are the norm of the day. Youtube has already signed up with the IPL to show Season III matches live on the internet, creating an added source of revenue.

With emerging technologies facilitating mobile users to explore internet on their handsets, observers feel that the year will also witness a large number of rural users engaging themselves with internet. The catalysts for this growth certainly are the impending licensing of 3G and WiMAX, which can open up the market for online videos on mobiles.

“Moblile internet is going to be the preferred way for the users considering the socio-economic structure of India. The rural market is expected to catch up with the mobile revolution,” says Singh. But marketers and the internet industry need to analyze the behaviour pattern of users before exercising any campaign through the medium, he adds.

However, Sanjeev Bikhchandani, CEO, Naukri.com, is sceptical about internet making inroads into hinterlands. “Don’t expect a revolutionary change in one year. If smart phones get cheaper and GPS is on, then the potential is considerable,” he says.

Studies show that online advertising is proving to be the most cost-effective way to reach the younger and more affluent population.  As per a report commissioned by online advertising network, Tyroo, social networking sites account for 44 per cent of India’s online traffic with Orkut and Facebook being the leaders in the category.

Thus, the dynamic platform will see a paradigm shift in advertising in 2010 and advertisers are expected to  utilise the power of browsing to connect with an evolved audience.

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Neeta Nair

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