Mobile advertising market to see 55% y-o-y growth

Written by Priyanka Akhouri | Mumbai | Updated: Jun 27 2009, 03:13am hrs
Analysts say 22% companies are expected to increase their mobile advertising spend in FY 2009 as compared to 15% companies that did so in FY2008. Telecom and FMCG sectors are investing around Rs 20 crore to Rs 35 crore on this medium to communicate their product messages in rural areas.

Deval Parikh, chief officer, handsets, value added services and procurement, Virgin Mobile (India) said, The year-on-year growth of mobile digital advertising market is expected to be 55%. Digital advertising is still in a nascent stage in India and brands are in the experimental stage with a focus to reach remote areas. Digital advertising space grew by about 74% in 2008-09 to reach Rs 680 crore and is expected to be Rs 5,390 crore by 2011. Of Rs 680 crore, wireless application protocol based advertising was about 30% of the mobile ad market, while opt-in SMS contributed 10% of the market share.

Chandan Mendiratta, VP, service provider-system engineering, Cisco India & SAARC said, With increasing mobile penetration in India, mobile digital advertising will be critical in reaching rural audience. Cisco is developing a new network-centric approach that allows real-time market segmentation enabling mobile operators to gain new revenues in the mobile advertising space.

Siddhartha Roy, COO, Hungama Digital Media added, In rural areas mobile penetration is much higher than the distribution of brands like HUL or Coca Cola. Brands are using voice-based services to overcome barriers such as language. As per a CII and Ernst & Young report, 100 million of the next 250 million Indian mobile users are likely to be from rural areas and that by 2012, rural users will account for over 60 % of the total telecom subscriber base.