1) Business Today has a good story covering the full spectrum of digital advertising companies in India - from full fledge interactive agencies to online Indian ad networks.

Most interesting tidbit from the story:

* As per a Lintas media report, Internet advertising in India is Rs 215 crores ( a 43% Y-o-Y growth)
* Possibility of the market growing to Rs 2500 crores by 2011
* Current mobile advertising in India is Rs 40 crores, expected to grow to Rs 500 crores by 2011

You can read the entire story here.

2) ContentSutra has another story on figures released by FICCI, which puts the Indian online advertising market at Rs 270 crores, a 69% Y-o-Y growth. Online advertising was just 1.3 % of total Entertainment & Media advertising in 2007.

If you take the average of both figures, it puts the Indian online advertising market at Rs 242.5 crores.

Compare this to an estimate released by Starcom MediaVest Group in April 2007 which put the Indian online advertising market at Rs 225 crores.

• Microsoft launches digital advertising platform in India
• India Social Media marketing - Using Orkut
• When Indian websites have to rely on TV to market themselves

Comments

• August 30, 2008, lalit bhamare commented: do you think that the domestic rular area product is survive in the market as their is having a good quality? how they are advertisement effectively with the less mony please give the soluton which are satisfactory with all angels in like country india beacuse it is very difficuct to launch new product.
• August 30, 2008, Anish commented: Guys, Just curious. Google came out of nowhere and ran away with almost 81% of search share to yahoo's 9%. I have been an admirer of yahoo for long, but if u look at India's online universe and user behaviour, how do u perceive yahoo as a product for now and for times ahead? I feel an eerie sense of stagnation in yahoo's approach, considering most users still look at it as just email and messsenger. So no matter wat yahoo does to strengthen its arsenal, the recall or perception seems to have stagnated. Indiatimes, Rediff and Sify have ceased to report any more inorganic growth spurts, but can yahoo pull off a coup in india's growing internet community? My personal view is...yahoo is under-marketed among the youth....I mean its visibility..when it comes to new products or services is too dim, so it ends up remaining a mail and messnger brand....a strong one at that. Any views?

• As of June last year, Orkut had 7.2 million unique visitors from India. Facebook had 0.78 million unique visitors, with a month over month surge of a whopping 230% (via AgencyFaqs)

• Assuming that India has 24 million Internet users, this means that about 30% of the Indian Internet users have used Orkut.

• Blogs have turned out to be shockingly popular - 85% of the online Indian users read blog

• Thats almost 20 million Indian Internet users

So, when it comes to digital marketing in India, are Indian marketers warming up to the social media phenomenon ?

In this multi-part series, I’m planning to pick each of the five channels (Orkut, Facebook, YouTube, blogs, brand websites) and discuss various marketing initiatives by Indian companies in each channel.

Advertising - Marketing on Orkut:

Several Indian companies were advertising on Orkut via AdWords, which Google had integrated into Orkut a short while ago. However, rising problems, mainly cultural, forced Google to remove ads from Orkut.

It is unclear at this point as to when ads will be enabled on Orkut again. I guess Google is still trying to figure out a way to effectively monetize Orkut.

Meanwhile, companies can probably pursue guerilla marketing tactics via scraps, but chances of running into legal problems via this method are plenty. Companies can probably provide branded widgets for stuff like greetings, photos, music etc - Orkut does allow users to embed HTML code in scrapbooks and festivals like Diwali, New Year etc. are times when you do see a lot of greetings scraps all over the place.

Several companies like MTV have sought out the option to run official communities on Orkut. Here’s the official MTV India community on Orkut.
At this time, Orkut doesnt offer varied advertising options similar to Facebook’s sponsored groups, social ads, pages etc. (I wonder why). The OpenSocial developer platform is yet to produce any interesting Orkut apps, partly because the OpenSocial platform API was half baked. (The only two publicly released Orkut applications are PhotoAttack and Hangout). As a result, companies cant yet build entertaining, engaging apps like they can for Facebook.

Till Google opens up advertising on Orkut again, the options for marketers to tap into that huge Indian demographic are pretty limited.

Can you think of any innovative ways of marketing on Orkut under the current circumstances ?

• Orkut Apps - Indian apps dominate
• This is Big - Google plans to open Orkut using APIs
• India online advertising market worth Rs. 250 crores, India mobile advertising is Rs 40 crores

Comments

• March 13, 2008, Sanjana commented: Well written article. It will be great if you can publish your articles in SiliconIndia also as I am a member of Siliconindia, I am sure that most of the members will like reading it. http://www.siliconindia.com/register.php?id=T49I1Fh5
• September 6, 2008, vishal patel commented: We are marketing on orkut communities is it illegal to do that ?

Time based contextual ad campaigns are effective - but only at the relevant time. Outside of the time window, they hardly make sense. Just like this one. I guess, TravelGuru took the easy way out.

• Yatra ads on TechCrunch
• India online advertising market worth Rs. 250 crores, India mobile advertising is Rs 40 crores
• Yahoo India acquires stake in ad network Tyroo

Comments

• February 22, 2008, Vikas commented: Funny. I noticed it recently as well and blogged it - http://v-slog.blogspot.com/2008/02/contextual-ad-messages.html. Out of context can actually be quite effective, given the ad clutter we see, but this one is just laziness.
• February 24, 2008, pranav commented: Vikas, two of us noticed it -- i hope this isnt TG's intentional marketing ploy -- if so, its working..after all, they got our attention, didnt they ? -p
• March 1, 2008, Srini commented: Pranav & Vikas The banner you are referring to is served by DGM-India affiliate network. These are static banners as you know. TG & DGM ill normally design banners according to the time and context. But it is the responsibility of the publisher to use those banners appropriately. So..its not a contextual ad..!!!

As per Rajnish, India head, MS Digital Advertising Solutions, “The total advertising market in India is of $5 billion. But the online advertising market is still minuscule. We find there is enough scope (for growth).We expect the online advertising market to capture two to three per cent of the total advertising market in as many years.”

BollywoodHungama, Equity Master, HDFC Securities and Facebook have been roped in for the launch. NDTV Media is the exclusive sales partner for Microsoft. I’m not sure if outsourcing the ad sales to an outside entity is such a good idea. A similar attempt by Sify last year, already flopped. (Update: I missed out that the MSN-NDTV relationship has been in place for some time now).

As per NDTV Media COO, Niraj Dutt, they plan to have 750 advertisers on the platform by end of the calendar year.

Hmm..Rediff could rope in only 230 advertisers in the last quarter - do you think 750 is an achievable target till the rest of the year ?

via ET

• India online advertising market worth Rs. 250 crores, India mobile advertising is Rs 40 crores
• Sify announces F1Q07 results
• Rediff F1Q07 earnings report

Comments

• February 21, 2008, Nikhil commented: The NDTV Media-MSN partnership is a fairly old one.
• February 21, 2008, pranav commented: Nikhil - thanks for pointing that out. corrections done.

* Revenues for quarter totaled $7.86 million, increase of 18% YoY

* Indian online revenues totaled $5.73 million, an increase of 22% while US publishing revenues totaled $2.13 million, increase of 9%

* Although revenue shot up, net income was $0.89 million as compared to $1.5 million for the same quarter last year - about 40% drop

* # of registered users reached 59.8 million - a 25% increase compared to last year

* 190 companies advertised on Rediff. Top 10 of those contributed 45% of the online revenue, compared to 57% last year.

The company is currently beta testing Rediff Language Search in 8 Indian languages. Users will be able to search in the language of their choice using this service.

via release

• Rediff F1Q07 earnings report
• Sify announces F1Q07 results
• Sify second Quarter: Net loss of $ 1.25 million

Comments

• November 2, 2007, Santosh commented: Perhaps someone ought to dig updata on how many of these advertisers are mainstream versus pure online businesses. I often see ads from DELL, HP, Auto Makers. No idea how much of the online ad business is coming from these guys. I don't see much in the Entertainment vertical. Google's self-serve AdSense has been gaining traction with online businesses and again is missing mainstream advertisers. - Santosh
• November 12, 2007, Tulika commented: Most of the online ads seen are from the travel, matrimony, jobs trio. Recently, I have noticed universities like Symbiosis and Pearl advertise. Online advertising still has some catching up to do in India with only 190 companies trying to advertise on Rediff.
• November 16, 2007, Javajee commented: I have not seen any posting from you lately? I miss the steady stream of news/deals from you...
• December 4, 2007, Prashanth commented: Hi Inidian startup coverage sites are here Thanks Prashanth http://cdprashanth.blogspot.com/2007/12/indian-startup-coverage.html

But apparently, the scenario is quite contrary in India.

TV advertising has become one of the preferred ways for Indian Internet websites to extend their reach. TV advertising of the Internet portals registered a growth of 190 per cent during January-August 2007 as compared to the same period in 2006 as per a latest report by AdEx India, a division of TAM Media. The number of Internet portals advertising on TV increased from 82 in January-August 2006 to 143 in January-August 2007.

www.Homeshop18.com, www.cleartrip.com, www.indiatimes.com, www.yatra.com, www.zapak.com, www.timesjobs.com, www.makemytrip.com, www.monster.com etc are some  of the leading Internet websites advertising on TV.

via BS

Quite interesting, but an unfortunate trend.

I mean, all these are the big portals - some with deep pockets, others with significant venture funding. And if they have to rely on TV advertisements, what does that translate into for the smaller startups ? Very few of the startups will be able to afford TV advertising, even if they are venture funded.  Besides, if the startup relies on advertising as a revenue generator, how would it be able to rope in advertisers if the startup itself, chooses to advertise on TV.  I mean, you gotta drink your own kool-aid, right ?

• India online advertising market worth Rs. 250 crores, India mobile advertising is Rs 40 crores
• Is offline the key to success of Indian Internet portals ?
• Somebody buy MouthShut already

Comments

• October 12, 2007, Ankur commented: Well, Internet in India does not have the kind of reach(to people) it has in US. TV in India, is a medium that reaches many more people. Btw, u just started the trend (Internet firms getting advertised through Internet) ;)
• October 15, 2007, Vikas commented: On the contrary - I think its good news. TV reaches a far wider mass and these internet portals are trying to bring that mass online. Internet Advertising requires a thriving e-commerce ecosystem, and all these portals are trying to be that. I doubt any of their TV spend is cannibalizing their online spend.
• October 15, 2007, pranav commented: to a certain extent, its true. but then, consider this - what room does it leave for a small startup competing in the same space ? to bring the mass online, the missing infrastructure piece also needs to be filled in.
• January 23, 2008, Sandeep commented: It is right that currently T.V is the major advertising channels for all the brands...but it is going to changes in the near future ..the rate with which e-commerce portals are emerging in India and ...the expansion of internet and mobile... the advertinsing big bukies are going to divert towards the new online means...I was through one of the website to be launched soon www.progressiveidea.com. They promises to adveritse poeple the ads of their choice....Its a gud way let the people decide what they want...not like an idioot box.
• January 30, 2008, jagan commented: Its really interesting to see that TV plays important role in comunication in INDIA.I feel communication should become far much better through other fast means like mails etc.There are so many hosting companies in INDIA now where people can take hosting from them and do bussiness from them .It is one means of communicating to their customers.But this communication has to grow still.I have been using one of the webhosting company in bangalore called manashosting.Its good company.All i need to tell is visit such good companies and try to use such type of good services where your way of living will change.

You can watch the live webcast here.

• Advertising agency WPP grows 22% in India
• Microsoft launches digital advertising platform in India
• India Social Media marketing - Using Orkut

On a separate note, G2, owned by WPP,  is close to acquiring three small to medium agencies in the digital marketing space in India.

A testament to how strong the advertising industry (including online-digital advertising) are growing in India.

• India online advertising market worth Rs. 250 crores, India mobile advertising is Rs 40 crores
• IAMAI conference on Digital Marketing
• Microsoft launches digital advertising platform in India

• When Indian websites have to rely on TV to market themselves
• When advertising loses its context
• Microsoft launches digital advertising platform in India

Comments

• August 25, 2007, Matt commented: That was no fluke. Wasnt targeted towards TechCrunch either. TribalFusion could check that you are from India, or that you are an Indian who normally checks Indian sites. So you were served an ad targeted towards that demographic. ICICI ads on TechCrunch, Indian loans or car ads are normal while visiting foreign sites (in TB, Adsense, CPX etc)

Nikhil has many more details on ContentSutra.

While on the topic of online advertising in India, it would be great to know whats on the mind of the advertisers when it comes to the online medium.

There was an interesting piece on the advertiser’s perspective by Ratish Nair, CEO, Interactive Avenues. I’ve highlighted a few points below:

Here’s typical client speak – and perception:

“Internet does not have critical mass.”

“Users on the Internet are not sufficient to warrant serious spends on the internet.”

“I have used the Internet and did not get much from it.”

“TV and Print gives me the reach I want.”

“Two sites give me all the reach I need, why should I advertise elsewhere.”

“Only teenagers are there on the internet.”

CPMs on the internet are easily at Rs 150 or less. CPTs on channels like Star Movies, NDTV 24×7 etc can be as high as Rs 2,500 to Rs 3,000. Print can be even more expensive. Compare this with the Internet at Rs 150! While the ROI-led advertisers like banks, insurance, travel, internet businesses spend heavily on the net, their business models and extensive tracking mechanism enable them to figure out exactly how the internet is working for them. Therefore, spending on the internet is literally a no-brainer for them. But what about other advertisers?

• Microsoft launches digital advertising platform in India
• When Indian websites have to rely on TV to market themselves
• India online advertising market worth Rs. 250 crores, India mobile advertising is Rs 40 crores

These estimates seem a bit far stretched to me for a couple of reasons:

1) Broadband internet base is not growing at a meteoric rate

2) At the given time (mid 2007), there just arent enough publishers in India

via AgencyFaqs

Comments

• July 11, 2007, Gaurav commented: I would say there aren't enough quality publishers in Indian Internet space.

Internet advertising is poised to emerge as the fastest growing segment over the next five years.

US will be the largest but slowest growing market at 5.3% CAGR by 2011.

via BS

A couple of panelists, including Garima from Citibank, were of the opinion that ad banners on blogs were a bad idea. The rationale being that advertising on blogs disrupts the sanctity and integrity of blogs.

I strongly disagree. Majority of the Indian blogs already use Adsense as part of their blogs and as long as bloggers have a disclosure policy, I think ad banners on blogs are perfectly acceptable.

What do other Indian bloggers feel about this ? Also, as part of the blog audience, what do you think about this ? Should blogs have ad banners ?

Comments

• June 26, 2007, Deepak Shenoy commented: I write a blog with adsense on it. While I do have ads of every variety, I also have written articles that are not flattering to the companies that seem to advertise on my site - In fact, in one instance I have specifically disclosed that such company ads may be displayed on the page. I don't get the integrity equation. Citigroup has a division that releases research reports on stocks ("buy", "sell" etc) and also have a banking or other relationship with the same company? For instance they said "BUY Indian Hotels" (The taj group of hotels) - http://www.indiaearnings.com/sub_india/compnews.php?autono=287796 - and they also have a co-branded card with Taj Hotels. You might say "but they are different divisions!" - to me, the viewer, it would pretty much sound like an integrity problem at the same lines as blogs with ads. Especially with third party ads like adsense where the advertiser can place an ad without the blogger even knowing about it.
• June 26, 2007, pranav commented: Deepak, Blogs and blogging has been so popular because they give the blogger the freedom of self expression. in other words, you write whatever you're passionate about. As a result, blogs and bloggers are generally more closely scrutinized about integrity, disclosure and such. Blogs and the blog audience form a very vibrant, enthusiastic, passionate and last but not the least - very opinionated ecosystem. One of the foundations of this ecosystem is trust. Any external factor (ads and banners) introducing bias into this ecosystem generally does not fare well with the blog audience. I could go on, but you get the picture.
• October 30, 2007, Sidhartha Bezbora commented: There is nothing wrong in putting ad banners in blogs. Most people start blogging as a hobby and in the process if they start putting some ads and earn some extra penny then there is no harm in it. Again a lot depends on the kind of blog where ad banners have been put. A new blogging ecosystem is getting developed there are millions of blogs out there some one is always looking to monetize his site. For example I love blogging and if my blog can financially support me I would love to leave my job and blog full time. Amit of Labnol.org is now a full time blogger earns good from his blog . He is full time into blogging and left his job. He is doing an excellent job.
• October 31, 2007, pranav commented: sidhartha, you nailed it -- if only these marketers felt the same way :-)
• November 1, 2007, Ebrahim Mafooz commented: We i being a web hosting provider and designer find many blogs hosted under me have google adsence associated with it. Mostly blogs are started just as a hobby and if its successfull they atleast get returns to pay up their hosting charges. And ads mostly dont become disturbing unless its a pop up or like so. and as sidhartha said its becoming a great revenue zone for all the newbies to the internet.
• July 11, 2008, Praveen commented: If blogger is really interested in personal blogging, he need not add advertisements in his blog. My web company hosts blogs at very cheap cost. I don't think that blogs hosted by us need banner ads for recovering the hosting cost.

via AgencyFaqs

Comments

• November 27, 2007, Adi commented: Has anybody used paypod so far. Have they got any advertisers on their list..??

No, this post isnt about this promo. A couple of other bits in the story caught my eye:

1) Revenue through Desktop TV for MSN India has reached $40K per month, a 250% YoY increase. Number of advertisers jumped from 65 in 2005 to 260 today.

Hmm…pretty interesting…I think Rediff is a bigger portal in terms of market share and pageviews than MSN India. As per Rediff’s earnings report early today, they had 177 advertisers. While MSN India had 260 advertisers ? That’s almost 80 more advertisers !!!

2) Multiplexes account for 60 - 70% of all ticket sales. For PVR Cinemas, one of the leading multiplex players, 17 - 18% of their ticket bookings happens at the PVR website.

Full story in FE.

Comments

• May 18, 2007, Raman Singh commented: The growth in MSN India's list of advertisers could be explained by Raj Nayak's aggressive NDTV Media team being responsible for selling advertising on MSN India. Raj has been one of the iconic figures in the media advertising industry and is the CEO of NDTV Media -- the media space/time selling company of NDTV. Sometimes the leader (here Rediff) may not be the most aggressive!