Renowned marketing expert Philip Kotler has often mentioned of the lack of awareness, when it comes to exploring the potential of online advertising. He has pointed out that most companies tap merely 10 percent of the Internet’s inherent potential. This scenario is bound to change, as tech-savvy marketers are now looking at powerful multiple delivery platforms to get the brands noticed amidst the clutter and convey the message more effectively.
No surprise that by 2014 online advertising is projected to grow nearly four-fold! The relevant figures in India, in spite of low penetration of the Internet (just about 40-50 million active users) are equally encouraging. This can be attributed to young audiences who are increasingly surfing on their cellphones. They are turning to sites like Twitter and Facebook for socializing.
In the context of this rapidly evolving scenario, the Internet advertising industry is set to propel itself on fast track. Currently worth Rs 7.8 billion, it’s expected to scale Rs 28.5 billion by 2014, according to KPMG and the Federation of Indian Chambers of Commerce and Industry (FICCI). The study reveals that currently Internet advertising in India accounts for just about 3.5 percent of the advertising spends. The figure will almost double (nearly 7 per cent) by 2014, it is expected.
Around 30 percent of the advertising budgets globally are set aside for online properties. For example, Ford has shifted nearly 25 percent of its marketing spend to online media. The UK has achieved distinction of becoming the first ever country where online ad spend now exceeds that of TV. Around 6 percent of the overall online spends is spent on mobiles (largely because of the rise in mobile apps), close to 43 percent on search (essentially Google) and about 34 percent on display ads.