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Online Display Advertising IndiaDecember 2009

Research conducted by:

Research conducted for:


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TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY 4

2.0 RESEARCH METHODOLOGY 6

3.0 ONLINE ADVERTISING MARKET IN INDIA 7

3.1MARKET SIZE 8

3.2QUARTERLY DISTRIBUTION OF REVENUES 9

3.3BREAK UP OF MARKET BY VERTICALS 10

3.4GROWTH IN VALUE OF VARIOUS VERTICALS 11

4.0 GLOBAL ADVANCEMENTS IN ONLINE DISPLAY ADVERTISING 12

4.1GLOBAL ONLINE DISPLAY ADVERTISING MARKET SIZE 12

4.2IAB GUIDELINES FOR GAUGING PERFORMANCE OF DISPLAY ADVERTISEMENT 13

5.0 UNDERSTANDING AN INTERNET USER 15

5.1DEMOGRAPHIC DISTRIBUTION OF USERS 16

5.2ONLINE ADVERTISEMENT FOR DIFFERENT PRODUCT CATEGORIES 17

5.3SEARCHED FOR INFORMATION AFTER WATCHING THE ADVERTISEMENT 18

5.4PRODUCT PURCHASED 19

5.5CONVERSION FROM VISIBILITY TO PURCHASE OF ONLINE ADVERTISEMENTS 20

5.6PROBLEM SEEN BY INTERNET USERS IN ONLINE ADVERTISEMENTS 21

6.0 ONLINE ADVERTISING IN SME 22

6.1AWARENESS AND USAGE OF ONLINE ADVERTISEMENTS AMONGST SMES 23

6.2BARRIERS FOR USING ONLINE ADVERTISEMENTS AMONGST SMES 24

7.0 EMERGING TRENDS IN ONLINE DISPLAY ADVERTISING MARKET 25

7.1 PERFORMANCE BASEDONLINE DISPLAY ADVERTISEMENTS 25

7.2 INTEGRATING INTERNET ADVERTISING IN MARKETING CAMPAIGNS 26

7.3 IMMERSIVE FORMATS FOR INTERNET ADVERTISING 26

8.0 ENDNOTE 28


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1.0 Executive Summary

As media vehicles continue to fragment and mesh within each other, marketers need tounderstand the implication of various parameters guiding this fragmentation basis the

consumer behavior. The challenge for a marketer is to have a deeper understanding of

every media vehicle so that they can selectively target right customers for their

message delivery.

Internet has opened up a lot of opportunities for marketers for targeting customers in

interactive and measurable ways. Online advertising helps to target specific customer

segments and gather information across geographical boundaries in a cost effectivemanner. Online advertising helps in not only leading visitor to a publisher s site but also

creating awareness which potentially could result in gradual brand building. This report

aims to map the size of online display advertising in India. The report charts detailed

behavior of Internet users and small-medium enterprises in the online display

advertising market in India. The report is based on an extensive research conducted by

IMRB International and supported with industry feedback.

Findings of the report show that size of the online display advertising market has

reached INR 3250 Million for FY 2008-09 registering a significant growth rate of 38%

and is expected to surge at INR 4300 Million for FY 2009-10. The study reveals the fact

that online publishers (26%) remain major contributors of this market while there is a

sharp decline in the contribution of the BFSI sector (25% to 17%) this year. In addition,

FMCG sector and mobile handset manufacturers have adopted this form of advertising

as an effective tool to target Internet users in the age group of 18-24 years, who are the

growth drivers of the Internet in India.

Online display advertisement has consistently formed a sizeable portion of overall

online advertisement market. It has continued to be an effective long-term option for

digital marketers in targeting customers with specific characteristics. Although the share

of other options such as search engine marketing may assume larger proportions over


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time, display advertisement will continue to command a substantial part of this

spending. Recent financial debacle in the US and its ripple effect on the Indian economy

has resulted in differences in the market dynamics compared with previous years.

However, increase in the Internet user base, extensive usage of Internet by political

parties for elections and usage of Internet for advertising by SMEs are the factors

strongly supporting for sustained growth of online display advertising market in India.


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2.0 Research Methodology

The research team at eTech Group | IMRB, a specialist unit of IMRB International

adopted a mix of primary as well as secondary research for this report. Given below is

the research methodology used for the report:

In-depth discussions with the key players in the

online display advertising industry

Detailed questionnaire was designed to get insights

on the market size of online display advertising

industry

Relevant data points were culled out from I-CUBE

2008 reports, an annual syndication of eTechnology

group, IMRB International

This is based upon primary survey covering 20,000

Households, 90,000 individuals, 1000 SMEs and 500

cyber cafes

Secondary research was done using informationfrom various published resources and other research

bodies to triangulate with our findings


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Figure 1: Growth in the Active Internet User Base in India(All figures are in Million. Source: I-Cube2008, Annual IMRB Syndication)

4.9

11.9

16.4

32.2

46

50

57

5.57.5

32

36

42

3.3

8.711.2

21.1

4.32.2

2000 2001 2003 2004 2006 2007 Mar-2008 Sept-2008

(Est.)

Mar-2008

Rural

Claimed Internet User Active Internet User

3.0 Online Advertising Market in India

The graph above illustrates the growth in Internet user population in India over the

years. The Internet penetration findings are based on I-Cube 20081 which is an annual

research syndication conducted by IMRB International. India has witnessed continuousgrowth in the Internet adoption in certain sections of society - predominant patterns exist

mostly in urban areas. Across all urban areas, there has been an increase in the

number of Claimed2 as well as Active3 Internet users. Further with increased

penetration in less affluent classes of the society, Internet has started to reach the

bottom of the pyramid.

1Internet in India (I-Cube) reports are based on a primary survey conducted across 30 cities - among 20,000 Households, 90,000individuals, 1000 SMEs and 500 Cyber Cafes. To extend the scope of this study, we have carried out this research across 100

rural centers to understand Internet behaviour in rural areas.

2 Claimed Internet User is an individual who has used the Internet at any point in time in past. This gives us a clear indication as

to how many Indians have experienced Internet at least once in their lifetime.

3Active Internet User is an individual who has used the Internet at least once in the last 1 month.


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With nearly 0.6% of penetration in the total population, there are 3.3 Mn Active Internet

users in rural India. Non-Government Organizations (NGOs), GOI initiatives, community

service centers and CSR activities by private companies have played a significant role

in ensuring this penetration.

3.1 Market Size

The below figure illustrates the growth of online display advertising market in India. In

the financial year 2007-08, the size of this industry was at INR 2350 Million. During the

year 2008-09, the industry grew at a high rate of 38% reaching INR 3250 Million. Based

on the primary research conducted in this study, it is expected that the industry will grow

at a lower rate at 32% and will grow to INR 4300 Million .

The ad spent per user, shown in Figure 3, is a function of the total display advertising

market and the Internet user base in India. The online display advertising spent per user

in India is INR.65 which is very less compared to the other developed countries.

Understanding the impact of economic downturn and it effect on budget allocation for

marketing activities, online Ad spends per user is expected to increase marginally to

INR.68 for the next year.

4300

3250

2350

38%

32%

FY 2007-08 FY 2008-09 FY 2009-10

Fi ure 2: Online Dis la Advertisin Market INR Million


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3.2 Quarterly Distribution of Revenues

Distribution of revenues across the year in various quarters follow a particular trend withmaximum revenues recorded for first and third quarters of the financial year 2008-09.

The growth in the first quarter was largely influenced by continued growth in the past

years. With the skepticism of the economic downturn, online advertisement spends

reduced in the second quarter. In the third quarter, due to holiday season and festivals

online expenditure grew to 27%. There seems to be an overall reduction in marketing

spends in the last quarter. However, some sectors such as telecommunication and

automobile seem to have regained their momentum.

6568

2008-09 2009-2010

Figure 3: Ad Spent per User (INR)

27%

23%

24%

26%

April to June

July to September

October to December

January To March

Figure 4: Quarterly Distribution of Revenues


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3.3 Break up of Market by Verticals

The figure above shows the percentage distribution of different industry verticals

contributing to the online advertising market. With the recession in the US economy and

its global effect, there is a sharp decline in the contribution from the BFSI sector to the

market and is expected to decline further in the year 2009-10. This decline pertains to

foreign banks that have operations in India and extensively use online medium for

targeting HNIs and businessmen.

Online publishers are the major contributors to online advertising market with 26% of

the revenue from this industry vertical. This is attributed to the available platform as well

as easy accessibility to the target audience, which in turn, helps them to become key

influencer. Their share is expected to remain static or decline in smaller percentage in

upcoming year. Online spending by political parties, general merchandise companies

and real estate players which are categorized as Others formed 4% of online

marketing spend in the financial year 2008-09. These expenditures are expected to fall

to 2% in the next financial year.

17%

9%

10%

8%

15%

6%

4%2% 4%

26%

BFSI

Auto

FMCG

Consumer Durables

IT / Telecom

Education

Online publishers

Electronic Media

Print Media

Others

15%

8%8%

2% 2%4%

25%

16%

11%

9%

2008-09

(Market Size INR 3250 Million)

2009-10

(Market Size INR 4300 Million)

Figure 5: Industry Breakup of Online Display Advertising


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3.4 Growth in Value of Various VerticalsThe graph below shows the value in INR Million and growth of the various verticals in

the online display advertising market. Of these industry verticals, Education and Print

media are expected to grow at the rate of 76%. There is a sharp decline witnessed in the online

advertising spend from BFSI sector because of financial debacle over the last year.

Following this, automobile sector is expected to show the second highest growth rate

(46%) with increase in the product launches and emergence of Internet as the effective

medium to target youth who constitutes the major chunk of Internet user base in India.

With lot of information available online and introductions of the websites where you can

compare the features, prices of various vehicles it offers great help to the prospects for

taking purchase decision.

Figure 6: Growth in Online Advertising in INR Million (FY 2008-09 and FY 2009-10)

5

53

276

325

260

48

8

195

845

130

49

130

645

387

47

3

344

688

344

1075

172

86

90

40%46%

32%

41%

76%

32%

76%

17%

27%

-31%

BFSI Auto FM CG Consumer

Durables

IT / Telecom Education Online

publishers

Electronic

M edia

Print Media Others

FY 2008-09 FY 2009-10 % Growth


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4.0 Global Advancements in Online Display Advertising

4.1 Global Online Display Advertising Market Size

Based on the reports published by Internet Advertising Board (IAB), the aggregate

online advertising revenue in the US has reached INR 1172 Billion in the year 2008.

This revenue has been growing exponentially in past years. However, due to recent

downturn the growth has been a little lower. Of this aggregate revenue, online display

advertising comprising banner ads, sponsorship links, rich media and digital video

amount to 32% (or INR 375 Billion). On the other hand, search advertising commands

45% of this share. The latest estimates for Europe market has not been made available

by IAB yet. The previous reports have indicated that the European market stands at INR

872 Billion for the year 2007.

Figure 8 below, illustrates the Online spends per user in developed countries like USAis INR 7165 of which INR 2293 is spent on online display advertising per user (i.e. 32%

of the Total Online Advertising Spend). This is far higher than the online display

advertising spent in India which stands at INR 65. The online display advertising spend

per user in India is still lower compared to other European countries.

900

1131 1172

562

872

2006 2007 2008

USA Europe

Figure 7: Aggregate Online Ad Revenue Europe and USA(INR Billions)

Source: IAB Internet Advertising Revenue Report March 2009& IAB Europe AdEx 2007


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4.2 IAB guidelines for gauging performance of Display Advertisement

As witnessed earlier, there are numerous forms of online display advertisements that

can be used to convey messages by marketers. The consequence or users reactions

on these advertisements are not completely known. Continuously, standards are being

devised as well as initiatives undertaken to arrive at the most appropriate method of

measuring the performance of various forms of digital advertisements. Interactive

Advertising Bureau (IAB) (http://www.iab.net), which comprises media and technology

companies, shares best practices and charts measurement guidelines.

The bureau is focused on including participants from the US and Europe. It is expected

that the guidelines charted out by the bureau can be utilized in Indian markets to gather

an in-depth understanding of online display advertisements. Based on the evolution of

online advertisements, IAB has charted out guidelines for different types of impressionsdisplayed to an Internet user. These guidelines are exhaustive and include search,

display as well as interactive rich advertisement displays.

10380

9415

8535

7165

6265 5930

5065

38353290 2975 2890 2875

Norway UK Denmark USA Sw eden GermanyNetherlands Belgium Finland France Austria Italy

Figure 8: Online Ad Spends per user across various countries(INR)

Source: IAB Europe Ad Ex 2007/PWC
http://www.iab.net/http://www.iab.net/http://www.iab.net/http://www.iab.net/


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The most dominant forms of measuring effectiveness of an online advertisement have

been the formulation of a price on click or viewing of it, illustrated in Figure 9 below.

To be exhaustive in measuring performance of any medium, it is imperative to evaluate

the reach as well as effect criteria or in simpler terms, look for forest as well as

count the trees. Using reach criterion, the extent of online advertisements can be

examined while through effect criterion; users reaction post witnessing an online

advertisement can be discerned. In its latest release, IAB has proposed guidelines for

audience reach measurement as well as through rich applications which are the

emerging options for online display advertisement.

Figure 9: Various Performance Measures


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Base: 1.8 Mn Active Internet users who have clicked on online Advertisements(Source: I-Cube 2008, Annual IMRB Syndication)

5.0 Understanding an Internet User

The effectiveness of the online advertising is based upon targeting the right customers

in a cost effective way. Today, most of the websites are loaded with different forms of

advertisements to enable advertisers for conveying their message regarding theirproducts/services. I-Cube 2008, annual syndicated study for tracking Internet usage

characteristics in the country, examines the orientation of users towards online

advertising. Internet users in their online purchase decision get influenced by their

exposure to various kinds of online display advertisements. This section charts out the

product purchase behaviour of a user post visibility of online advertisement to the final

product purchase.

Of the different types on online display advertising, online banners record the highest

recall of 50%. 29% of the 1.8 Mn Active Internet users were able to recall streaming

videos which they had seen in past. With improvement in the infrastructure and

reduction in the hardware prices there is higher possibility of using streaming videos as

an effective method for online advertisement. The lowest recall percentages (23%) are

23%

23%

23%

29%

50%

Pop-ups

Flash

videos

Sponsored

links

Streaming

videos

Banners

Figure 10: Recall of Different Types of Online Advertisements


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for pop-ups, flash videos and sponsored links. While sponsored links are not apparent

on a website, pop-ups and flash videos are often blocked by browsers.

5.1 Demographic Distribution of Users

Growth of Internet in India is predominantly driven by youth i.e. users in the age group

of 18-35 years. With higher adaptability to the technological changes, users in this age

group are using different applications available on the Internet. As witnessed in the

following graph, College Going Kids and Young Men form 60% of users who have

clicked on online advertisements followed by older men and school going kids.

Figure 11: Demographic Distribution of Users who have

clicked on an Online Display Advertisement

19%

8%3%

10%

30%

30%

School Going Kids

College Going Student

Young Men

Older Men

Working Women

Non-w orking Women

1.8 Mn Active Internet Users who have clicked on online display advertisement

(I-Cube 2008, Annual IMRB Syndication)


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5.2 Online Advertisement for Different Product Categories

(Source: I-Cube2008, Annual IMRB Syndication)

The above table shows the list of categories for which display ads were clicked by the

Internet users. Category of ads related to mobile phones and devices are most

frequently clicked by active Internet users. As youth in the age group of 18-35 years

form a substantial proportion of Internet users, advertising such devices over the

Internet is a viable option. This is followed by advertisements for financial products,

travel and automobile. Further, with the increase in the popularity of online portals for

travel, entertainment and jobs there is significant proportion of visibility seen for

advertisements from this area of operations.

Base: 1.8 Mn Active Internet users who have clicked on online advertisements

Online advertisement for different product categories Percentages

Mobile Phone/Instruments 58%

Ads for Loans by Banks/Financial 50%

Entertainment Sites 42%

Ads for Job Sites 40%

Investment options like Mutual Funds 39%

Education/Training related 37%

Computer/Laptop/Printer/Scanner 38%

Air Tickets Ads 35%

Personal Products 28%

Insurance Ads 28%

Hotels & Holiday Tours/Packages 25%

Automobile Ads 23%

Matrimonial Advertisements 20%


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5.3 Searched for Information after Watching the Advertisement


Online advertisements play an important role in generating awareness as well as

building branding among users regarding different product categories. Maximum

number of users searched for information for the product like mutual funds after

witnessing online advertisements. Online advertisements related to the job sites as well

as mobile phone/instrument have high rate of persuasiveness. In contrast, online

advertisements for products like matrimonial and tour packages seem to have the least

influencing power leading to the lowest information search.


Information Searched Percentages






Air Tickets Ads 3%


Personal Products 3%Ads for Loans by Banks/Financial 1%

Automobile Ads 1%

Insurance Ads 1%


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5.4 Product Purchased


The above table shows the number of Active Internet users who have purchased

product after clicking on the Online Display Advertising. Across all product categories,

investment options like Mutual Funds have recorded the highest online purchase after

clicking on the online advertisement. This could be due to the online banking facilities

like online trading, online banking facilities offered by financial institutions. Convenience

and higher discounts act as major drivers for higher purchase of air tickets using online

travel sites. Online display advertisements related to matrimonial seems to generate

almost none or minimal impact in enticing Internet users to look for information or buy

products.


Products Purchased Percentages


Air Tickets Ads 18%




Personal Products 5%

Ads for Loans by Banks/Financial 3%

Automobile Ads 2%Insurance Ads 2%




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5.5 Conversion from Visibility to Purchase of Online Advertisements


The above table shows the number of users who have clicked on an online display

advertisement which has led to the product purchase across product categories. The

maximum conversion from visibility to the purchase is observed for investment options

like Mutual Funds followed by Air Ticket advertisements and advertisements regarding

Education/Training. In addition to this, these product categories draw higher customer

involvement leading to higher number of users searching online information after

witnessing an advertisement. Although, irrespective of higher visibility online purchases

for Insurance products are lower. This shows that function of online advertisements is

to create awareness while traditional method of selling these products through financial

advertisers is more preferable for Insurance products.


Product Categories ClickedOnline Ads

Searched forInformation

ProductBought

Mobile Phone/Instruments 58% 6% 7%

Ads for Loans by Banks/Financial 50% 1% 3%

Entertainment Sites 41% 4% 1%

Ads for Job Sites 40% 8% 12%

Investment options like Mutual Funds 39% 13% 38%

Computer/Laptop/Printer/Scanner 37% 3% 2%

Education/Training related 37% 6% 15%

Air Tickets Ads 35% 3% 18%

Personal Products 28% 3% 5%

Insurance Ads 28% 1% 2%


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5.6 Problem seen by Internet users in Online Advertisements

Active Internet users feel that online advertisements are misleading and distracting. This

could be attributed to reaching not to the exact page where product is advertised but to

the home page of the advertiser after clicking an online display Advertisement. This is

not in accordance with the requirement of the users who are in a search of a good deal

but ultimately leading to the advertisers home page and not to the product advertised .

While 37% of the Internet users state that they ten to ignore ads, however, the corollary

is that quite a few of (66%) feel that online display advertisements serve wide variety ofproducts and these advertisements are generally not ignored by them.

62%

54% 52%

37%

70%

34%

47%

Theypresent

misleading

information

Theydonot

offer

comprehensive

information

Adsare

distracting

Theyareless

likelytomake

mepurchase

Theyare

irrelevant

Iignorethem

Theydonot

offerawide

varietyof

products

Figure 12: Problems seen in Online Display

Advertisement

Base: 1.8 Mn Active Internet users who have clicked on onlineAdvertisements

(Source: I-Cube 2008, Annual IMRB Syndication)


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6.0 Online Advertising in SME

Small-Medium Enterprises4 (SMEs) are keen on advertising in specific geographies

considering constraints regarding the scope of operations and limited advertising

budgets. This might have resulted in the higher popularity for Newspapers, Yellow

Pages and even online classifieds. Interestingly, SMEs are embracing Internet as an

advertising medium including Internet advertising as well as online classifieds with

considerable percentage of awareness and likeliness of usage in future. It has been

witnessed that online advertising has gained acceptance among SMEs in India and

Internet medium is capable of having an impact on the audiences with considerable

percentage of SMES showing likeliness of using online advertisement in future.

4For the purpose of the study we defined SME as an enterprise with employee strength of 11-250. Only those SMEs

which had either a Head office or a single office in the Top 8 Metros (Mumbai, Delhi, Kolkata, Chennai,

Hyderabad, Bangalore, Pune and Ahmedabad) were considered.

44%

23% 23% 22%

6%

2%

8%8%

3%6%

34%

23%

45%

31%

15%

21%

Newspaper Yellow Pages Magazine/

Journals

Internet Out of Home

(Billboards,Hoardings

etc.)

Online

Classifieds

Radio Others

Advertisement Methods Currently Used Likely to advertise in future

Figure 13: Advertising Methods Utilized by SME

Source: I-Cube 2008, Annual IMRB Syndication


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6.1 Awareness and Usage of Online Advertisements amongst SMEs

Overall, display advertisements are more popular among SMEs compared to the searchengine marketing in India. The highest conversion from awareness into actual usage

exists for Online Banner advertisements followed by email marketing. Few SMEs use

Pop-ups as preferred type of online advertising. Compared to the online display

advertisements there is lower awareness and usage of SEM (Search engine Marketing)

among SMEs. It has been observed that SMEs prefer local search engines for

advertisements and some of these even opt for sponsored search links on these search

engines.

74% 69%

44%

35% 33% 31%

20%

14%10%

3%7%

10%

22%27%

Banner Ads on

Portals and other

w ebsites

email Marketing Advertisements in

Blogs

Pop-ups Content Based ads Results on search

engine

Sponsored search

item on a search

engine

Awareness of Online Advertisement Methods Present Usage of Online Advertising Methods

Figure 14: Awareness/Usage of Online Advertising Options (SME)



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6.2 Barriers for Using Online Advertisements amongst SMEs

Inadequate reach and perception of Internet as a Less effective media are the main

barriers preventing SMEs from using online advertising. Lack of awareness among

people and lack of expertise are other important barriers for not using online advertising.

32%

22%

18%16%

10%

36%

9%

Inadequate

reach

Less effective Lack of

awareness

Lack of

expertise for

implementation

Online

advertising is

not relevant to

the brand

image/

objectives

Considered

more intrusive

than others

Others

Figure 15: List of Barriers for Using Online Advertisement



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7.0 Emerging Trends in Online Display Advertising Market

Online advertising avenues include various web-based options using which brand and

marketing messages get delivered. These options include search engine marketing,banner ads, rich media, digital video, email marketing, lead generation, classifieds and

sponsored links. Search engine advertising comprises a high proportion of the overall

options due to efficient search engine avenues. Online display advertisement

comprising banner ads, rich media, digital video and sponsored links has relatively large

number of participants but enjoys a limited share in the total spends. There are,

however, inherent differences in these options. Online display advertisement provides a

marketer an option to generate awareness which in turn will result in brand-building in

long run. Meanwhile through search advertising a marketer can generate leads in a

short span of time. Search engine marketing provides a distinct advantage of enabling a

marketer by providing complete control over a campaign with selection of keywords and

the ability to place the advertisements on the selected websites while the same does

not hold true for online display advertisements

7.1 Performance based online displayadvertisements

The yardstick to measure the effectiveness of online advertisement has evolved frommere number of impressions to the customer acquisitions leading to performance based

advertisements. This trend is very much apparent in India where in pricing for online

advertising campaigns are frequently measured against the performance. In some of

the recent examples seen, the display advertising is evolving to deliver performance

and leads similar to the ones delivered by search marketing. There are transactional

banner systems5 emerging which enable users to purchase products and services via

banner without visiting the vendors website. This service has generated better

response rates compared to the traditional banner for some of the clients.

5http://www.bizreport.com/2007/07/new_type_of_banner_ad_launched.html


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7.2 Integrating Internet advertising in marketing campaigns

Recognizing the possibility of using Internet as an effective tool for targeting niche

audiences, innovative perspectives are being practiced by established and traditional

institutions. During the recent US Presidential elections, Barak Obama's team ensured

that the campaign had a strong presence on social networking sites such as Facebook,

MySpace and LinkedIn. Through such presence, Barak Obama ensured he maintained

a two-way interaction with his electoral.

In the recent general elections in India (early 2009), many Indian politicians considered

Internet as a useful platform for interactive political communication especially with

youth. Indian National Congress party used sites like YouTube and Facebook to

execute web-based social marketing campaigns. With 50 Million Internet users in Urban

India and majority of them in the age group of 18-24 years, Internet was found to be an

effective tool to engage with them. Bhartiya Janata Party (BJP) launched a website

LKAdvani.in for its prime ministerial candidate Lal Krishna Advani. Further, both the key

parties (Congress as well BJP) teamed up with top Internet companies for spreading

their campaign messages over the Internet.

Apart from the political general elections, several brands have started integrating

Internet as part of their communications. The key ones to do so in 2009 include Tata

Tea, Nike, Nokia, Perk, Vodafone, Airtel, etc.

7.3 Immersive formats for Internet Advertising

The advancement in the technology is leading to the development in the area of online

display advertisements allowing display advertisements to become more immersive,

interesting and useful. Thus combined with the traditional advantage of delivering

contextual messages at the right time, with the emerging technologies, the marketers


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can now allow their target audience to indulge into an in-depth brand experience. Thus

with the advancements in the space the

Expandable Banner:

Expandable banners which use a new technology that allows the banner to expand

when the user rolls over them. These banners are fresh, exciting, compelling and highly

interactive to the viewer. They can deliver a story with a mouse over or give an enticing

hint to what users can expect when they click on the banner and led to a micro-site.

Most of the portals have already adopted these for inventory on their home pages.

Augmented Reality (AR):

AR will offer different various advantages for different forms of online display

advertisement in future. The goal of augmented reality is to add information and

meaning to a real object or place. Unlike virtual reality, augmented reality does not

create a simulation of reality. Instead, it takes a real object or space as the foundation

and incorporates technologies that add contextual data to deepen a persons

understanding of the subject. Augmented reality is designed to blur the line between the

reality the user is experiencing and the content provided by technology. Augmented

reality adds graphic, sound and smell to the virtual world as it exists in the real world.

Technological development in the field of AR is leading to the acceptance of this

technology in various marketing activities. Of these, usage of AR is predominantly

witnessed in the field of advertising. Large corporate like P& G, IBM have used AR in

their latest advertisements6. IKEA PS, dealer in household furniture has offered mobile

augmented reality solutions which enable users to imagine how this furniture would fit in

their houses7.

6http://funkadelicadvertising.blogspot.com/2009/09/top-10-augmented-reality-adveritising.html

http://www.itvt.com/story/5315/procter-gamble-use-augmented-reality-make-print-advertising-interactive

7http://www.mobiadnews.com/?p=3829


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8.0 Endnote

Over time, the online advertisement space is expected to change its composition.

Presently, search engine marketing has a fairly high share of this space which is glaring

in matured markets. Display advertisement, however, will continue to hold its share due

to its distinct advantages such as ensuring long-term impression of a brand, a higher

possibility of interactivity and delivering rich media messages to users. At the same

time, online publishers and agencies are developing the space to deliver an immersive

brand experience by bringing in concepts like augmented reality.

The market is poised for huge growth, specially considering the fact that the traditional

advertisers (FMCG, Consumer Durables, etc.) still form a small proportion of the overall

online display advertising market in India . Further, the medium has a high viability for

opening up a new segment of buyers altogether the SMEs which form a substantial

chunk of businesses in India.

In order to grow the market, the online display advertising industry in India needs to

develop globally accepted performance measures that also cut across various other

media vehicles like television, print and radio. This would allow true media meshing.

With the distinct advantage of online in terms of the number of hours spent online,

immersive experience that online can offer and the contextual delivery of messages,

online advertising is bound to emerge a winner.

Further, the online publishers need to continue developing better user experiences so

that online ads are not seen as a nuisance, rather are sought after.

All in all there are exciting times ahead for the online display advertising in India.


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About eTech Group | IMRB

eTech Group | IMRB (a specialist unit of IMRB International) is a research based consultancy offering

insights into IT, Internet, Telecom & emerging technology space.

Our continuous link with industry and a constant eye on the pulse of the consumer ensures that we candecode the movements of technology markets & consumers. To our clients we offer an understanding of

the present market environment and a roadmap for the future.

Contact Details:

eTech Group | IMRB

IMRB International

A Wing, Mhatre Pen Building

Senapati Bapat Marg, Mumbai

Tel : (91)-22-24233902 Contact us:

Fax: (91)-22-24323900

www.imrbint.com

About Internet and Mobile Association of India (IAMAI)

The Internet & Mobile Association of India (IAMAI) is a not-for-profit industry body registered under the

Societies Act, 1896. Its mandate is to expand and enhance the online and mobile value added services

sectors. It is dedicated to presenting a unified voice of the businesses it represents to the government,

investors, consumers and other stakeholders. The association addresses the issues, concerns and

challenges of the Internet and Mobile economy and takes a leading role in its development. The

associations activities include promoting the inherent strengths of the digital economy, evaluating and

recommending standards and practices to the industry, conducting research, creating platforms for its

members, communicating on behalf of the industry and creating a favorable business environment for the

industry. Founded in January 2004 by leading portals in India, IAMAI in the only specialized industry body

in India representing the interests of online and mobile value added services industry.

Contact Details:

Dr. Subho Ray, President, IAMAI

406, Ready Money Terrace, 167, Dr Annie Besant Road, Mumbai - 400 018

Tel : +91-22-24954574 | Fax : +91-22-24935945 | http://www.iamai.in

Research team for this report:

Balendu Shrivastava, Group Business Director

Tarun Abhichandani, Insights Director

Rohit Gangwal, Research Manager

balendu.shrivastava @ imrbint.com


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Published By:

Dr Subho Ray, President, on behalf of Internet and Mobile Association of India,

406 Ready Money Terrace, 167, Dr Annie Besant Road, Worli, Mumbai 400018

Documents

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