Indian online ad spend up 155%

The always interesting Contentsutra reports on how Indian online adspend is taking off with portals witnessing 100% Growth:

The Internet and Online Association of India (IOAI) says Indian online ad spend grew to Rs 107 crore ($25.4 million) in 2004-05, a 155 per cent jump from Rs 42 crore ($10 million) in 2003-04; in 2002-03, it stood at Rs 34 crore ($7 million).

Online ad rates are also reported to have plummeted by 40 per cent since 2000. The market rates for banners range from Rs 100 ($2.3) to Rs 450 ($10.7) at the cost per thousand reached (CPM).

Soshkeles (large ad formats that are displayed in the main area of pages) are advertised at a per day rate of Rs 35,000 ($833) to Rs 3 lakh ($7143) depending upon the sales volume. Web publishers have inked monthly deals for side panels at rates of Rs 15,000 ($357) to Rs 4 lakh ($9524).

IOAI estimates that the online ad segment will grow to Rs 218 crore ($52 million) in 2006-07. Preeti Desai says that the number of netizens in the country will reach 100 million by 2007 due to the widespread use of cyber cafes and mobiles. Contrary to the popular notion that cyberspace is a niche medium confined to the metros, IOAI has revealed that 49 per cent of India's netizens are outside the top eight cities."

(Via ContentSutra.)