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Business is showing many developmental changes all over the world. Companies are spending a huge share of their budget as advertising expenses. India is also adapting to the various new styles of advertisement. The Lintas Media Group had put forth a comprehensive analysis of media spends and buys in 2007. The report has studied various advertisement media like print, television, Internet, radio, cinema and outdoor. The report is showing some of the very interesting facts which are favourable for advertisement agencies in India.
According to the report, in the year 2007 in India, the total ad spends reached Rs. 17,356 crore and it is growing by a mere 3.5 per cent as compared to 2006. It shows that the overall growth in the ad spends is not much remarkable. However, the Internet ad spends grew by 43 per cent as compared to 2006 and it touched Rs. 215 crore. This is a very surprising figure for a country like India and it shows that advertisement agencies in India have done a great job.
India has a huge population and it is a growing economy which is showing huge prospects for the new businesses. Currently India has 250 million urban population and 65 million computer literates. In 2007 there were 40 million active Internet users and the number is increasing day by day. These figures are showing how India is emerging as a huge customer of the Internet. The advertisement agency in India are also taking benefits from this fact and that is why many of them have started providing online services. Now online advertising agencies are catering to the needs of various companies, publishers and other advertisers.
Moreover, a considerable part of the Internet users are using the Internet for buying and selling purposes. They are using the Internet for online air and railway tickets booking, searching properties, matrimony, communication and several other purposes. So a huge market for the advertisement is ready over the Internet and Indian advertisement agencies have developed some useful tools (search engine optimization, e-mail marketing etc.) to catch attention of this customer group. It seems that the speculation would come true that till the year 2011 the Internet advertisement will overpower the newspaper advertisement in terms of revenue generation and penetration.
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