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Ad spend on Internet expected to surpass radio, cinema and outdoor by 2009: ZenithOptimedia
In 2006, the total ad spend for the Internet amounted to 1 per cent of the advertising pie, whereas in 2009 it’s expected to cross 6.8 per cent
The advertising expenditure forecast by the media agency ZenithOptimedia predicts that by the end of this calendar year (2007), the ad spend on the Internet will be more than double what it was in the previous year (2006). The figures suggest that in the calender year 2006, ad spend on the Internet was Rs 210 crore, which is estimated to grow to Rs 450 crore by the end of 2007.
However, the growth of ad spend on the Internet is expected to take a quantum leap in the next two years – the figure may reach the Rs 2,250 crore mark by 2009, which will be almost 10 times the size it is now.
Overall, the contribution of the Internet in the overall advertising revenue pie will be close to 6.8 per cent. Currently, its share stands at just 1 per cent.
In 2006, the ad spend on radio was Rs 370 crore, while on cinema and outdoor, it was Rs 290 crore and Rs 1,050 crore, respectively. In comparison, ad expenditure on the Internet was lower, at Rs 210 crore.
By 2009, as estimated, the ad spend on the Internet will be Rs 2,250 crore, compared to Rs 585 crore on radio, Rs 558 crore on cinema, and Rs 1,673 on outdoor media.
The ad spends on print and television in the next two years will rise to Rs 14,330 crore, and Rs 13,450 crore, respectively. In comparison to 2006, there will be a growth of 46.7 per cent and 49 per cent, respectively. Print and television together will still contribute to 85 per cent of the total advertising spend of Rs 32,845 crore.
The forecast also suggested that by 2009, advertising expenditure in the country will be 0.57 per cent of the GDP as compared to the current 0.51 per cent.