Tablets, smartphones to fuel online advertising

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Nikita Upadhyay, Lalitha Srinivasan: Mumbai, Jan 16 2012, 01:23 IST
Online advertising in India is set to take off as low-cost tablet computers and expanding wireless networks tempt more people to use digital devices for information and entertainment. With India’s internet users expected to double to 300 million by 2014, the advertising industry’s dynamics could see a major change as more companies choose to market their products through online or mobile platforms.

“Low-cost tablet computers will enhance digital advertising volumes,” says Sam Balsara, chairman of Madison World, the largest Indian-owned advertising agency. “By improving computer penetration, they will give a big fillip to digital advertising.” Madison World has plans to recruit more digital media specialists to its 50-member team.

DataWind received orders for over 1.4 million units of its low-cost Aakash tablets in the past two weeks, managing director Suneet Singtuli told a newspaper on Friday. The government plans to buy 100,000 Aakash tablets at R2,250 apiece. Aakash will meet its match in the R1,500 Sakshat tablet developed by engineering students from the Indian Institutes of Technology. Prices may fall further to R1,000.

“Marketing spend on digital will grow and not only on advertising but also on search, e-commerce and social,” says Vikram Sakhuja, CEO, South Asia, GroupM India, India’s largest media-buying agency owned by the UK’s WPP Group. “In an underdeveloped marketing economy like ours, there is room for all media to grow, but in terms of share, digital will increase profoundly.”

Group M is also strengthening its digital specialist wing.

Digital advertising growing annually at 60-70% — although on a rather low

... contd.

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