New Delhi: The online advertising market in India will touch Rs 7,000 crore by 2015, driven by increasing Internet penetration and a large number of young people, says the Indian e-Retail report.
The online advertising market, which comprises search, display, rich media, video and classifieds is currently pegged at about Rs 1,850 crore (USD 410 million).
It is about seven per cent of the overall advertising pie, the report said.
"This is less than the global average of 15.5 per cent, but is probably ahead of where it should have been relative to the Internet penetration in the country," it added.
Advertisers in India are now spending 5-10 per cent of their advertising budgets on the Internet.
Globally, online advertising is growing at the cost of a decline in print advertising.
"That trend is different in India, where print and Internet are both in the growth mode. The online advertising is expected to reach Rs 7,000 crore (USD 1.6 billion) by 2015," the report said.
Due to the increasing Internet penetration and improved user engagement, the time spent on the web is expected to increase significantly, resulting in online advertising to account for 10-15 per cent of the overall advertising market by 2015.
Also, the report estimates the overall Internet commerce market to be worth about Rs 46,520 crore at the end of 2011.
While 76 per cent of this market was captured by the online travel industry, about eight per cent was contributed by financial services transactions and e-retailing each.
In e-retailing, computers and computer peripherals accounted for Rs 560.52 crore, while cameras, mobiles and MP3 players contributed Rs 389 crore.