NEW DELHI: The online advertising market in India is expected to
grow 116 per cent from US$4.2 million per year to US$500
million per year by 2004, IDC has predicted.
The research company said a higher internet adoption rate and the shift
of traditional companies would propel growth of the online medium.
Despite negative market sentiment surrounding the internet economy, the
study tipped online advertising in Asia-Pacific to reach US$702
million in 2004.
The expected 46 per cent rise from this year's forecast online spend of
US$225 million will be fuelled largely by traditional companies,
it said, because advertising by dotcoms is all but dead.
Despite continuing a crackdown on online content providers in China, the
mainland is forecast to emerge as one of the fastest-growing regions in
terms of year-on-year growth.
However, markets such as Korea and Taiwan - where growth had been
explosive - would need to combat declining CPM rates in order to pull
ahead, the report found.
Matthew McGravey, senior internet analyst for IDC Asia-Pacific, said:
"There is still nowhere near enough online advertising revenue out there
to go round, and a lot of dotcoms are going to be affected next
year."
The region can still show robust growth rates because the increase will
come off a very low base, the report added. IDC also said that online
advertising in Asia-Pacific, excluding Japan, accounted for just 0.5 per
cent of total advertising revenue last year.
