The online advertising market in India will reach Rs 3,575 crore by March next year, a 30 per cent rise from Rs 2,750 crore recorded in March 2014.

Of the Rs 2,750-crore digital advertisement market, at present search and display are the top two contributors. The search advertisements constitute 38 per cent of the overall advertisement spends followed by display advertisement with 29 per cent, according to joint study by the Internet and Mobile Association of India (IAMAI) and IMRB International.

According to the study – ‘Digital Advertising in India’ – social media contributes 13 per cent of the overall digital advertising spends.

It is estimated that the proportion of spends on search advertisements will reduce and spends on e-mail, video and mobile advertisements will increase.

By 2015, spends on video advertisements will grow 56 per cent annually and contribute 12 per cent to the overall market share of digital advertisements. In the financial year ended March 31, 2014, the contribution of search spends fell 30 per cent of the overall digital advertisement spends, contributing Rs 825 crore to digital advertisement market.

The advertising spends on mobile devices are growing at 43 per cent per annum and social media at 41 per cent and touched Rs 385 crore and Rs 440 crore during 2014. The advertising spend on video grew at 51 per cent and reached Rs 303 crore, while that on e-mail grew at 16 per cent to reach Rs 88 crore.

On industry-wise spends, e-commerce, telecom and FMCG and consumer durables are the top three verticals, the study said.

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