MEDIA-I: Indian ads to rise 116pc by 2004

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