Mobile ad expenditure grows 58% YoY in India

Digital advertising expenditure in India is expected to increase 33% to Rs. 9,700 crore at the end of 2017. That’s according to new research from the Internet and Mobile Association of India (IAMAI) and IMRB Kantar, which predict a digital ad market of around Rs. 7,300 crore growing at a rate of 40% compared to 2015.

Digital advertising spending in the country makes up around 14% of total ad spend. The report found that eCommerce was leading digital ad expenditure in terms of volume at around Rs. 1,361 crore, followed by fast-moving consumer goods and consumer durables.

Meanwhile, video ad spending has seen a significant boost and now accounts for 19% of total digital ad spend. IAMAI predicts the format to continue to grow rapidly until 2020.

Mobile advertising spending is also performing well at 58% year-on-year growth from Rs. 832 crore to Rs. 1313 crore in 2016. That includes SMS and in-app ad formats. However, email ad spending declined significantly to just Rs. 73 crore – down 53% from the previous year.

A recent report by Adobe found that Indian consumers are preferring customised online ads (75%) compared to non-customisable ones. Indeed, 32% of respondents said that digital ads could be improved by making them personalised.

Another 27% said ads would be better if they were more accurately targeted to their personal values. Just over a fifth of respondents (22%) would prefer to see fewer ads. Similarly, Indian respondents favoured personalised video ads.