The digital advertising market in India is projected to reach INR 7,044 crores by December 2016 at a CAGR of 35%. The digital advertising market was pegged at INR 5200 crores by the end of December 2015. These are the latest findings of the "Digital Advertising in India" report, jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International on July 06, 2016.

The report finds that the digital Advertising spend is about 12% of the total advertisement spends in the country. In terms of volume, e-Commerce lead the digital ad spends with INR 1040 crores, followed by Telecom and BFSI. However, a comparison of these verticals in terms of share of spends on Traditional Vs Digital show that BFSI organizations incurred the highest share on digital advertisement spends. 40% of their overall advertising spends was on Digital followed by e-Commerce, Telecom and Travel.

In 2014, search ads constituted 30% of the overall ad spends followed by Display ads at 23% and Social Media at 18%. The report finds that Search continue to lead in 2015 with spends close to INR 1488 crores. Social Media spend was close to INR 940 crores. Spend on video ads such as YouTube also showed huge gains in 2015 and accounted for 17% of the overall ad spends in the digital space. This has been driven by higher Internet speeds available to the consumers coupled with an increase in mobile advertisements. As these trends continue, video advertisement is expected to gain further in 2016.

The Internet & Mobile Association of India (IAMAI) mandate is to expand and enhance the online and mobile value added services sectors