The Future Estimates in Online Advertising Revenues
I sometimes feel that why should the travesties of justice in the form of recession had to strike our generation. A prolonged discussion of global recession would lead us to macro-economics and fiscal policies going wrong at a macro level; so let’s chuck it and talk about the recession’s role in the future of revenue generation in the online advertising world.
Marketing in all forms have suffered during these times and the online world is no exception. But, as the experts say that the internet space is still into the sunrise stage, there has been growth, but too minimal in results as compared to the last decade. An international survey done by Interactive Advertising Bureau and PricewaterhouseCoopers says, “With growth now at 10.6% it is evident that online ad sales have hit a plateau of $23.4 billion. Q4 sales reached $6.1 billion, showing only a small gain of 2.6%“.
India has a major role to play in the global online businesses and there needs to be credit card penetration taking place in the domestic market for the online ad industry to grow. Why? Simple because, most of the transaction online happen through a credit card. More the users of credit cards, more transactions take place resulting in increase of revenues for the online ad industry.
Mr Ajit Balakrishnan, Chairman & CEO, Rediff.com said that the Indian market of online advertising is expected to be at Rs. 600 crores. He gave a keynote address at a seminar organised by the IAA (International Advertising Association), titled ‘Digital Download’ wherein he says, “With 40 million online users today, the country is already amongst the top five Internet users but that is still a small number compared to the size of the country. While recession had slightly slowed down the trajectory growth in the online space, the number of users was expected to grow to 300 million in the next 3-5 years“.
Mr. Balakrishnan’s main concern was the unreasonable prices in the broadband services that is hampering the online revenue growth to some extent. Considering that there have been heavy investments, it is necessary to implement and develop broadband services from the grassroots level for this problem to get solved. Another interesting thing that Mr Hemant Sachdev, Joint Managing Director, Microsoft Corporation India brought out was the explosion of Social Media and its ability to engage the user. This engagement has a direct co-relation with the increase in revenues. Reasons are simple. I am sure you can interpret.
I was just googling out more on this topic about the future of Online Revenues when I struck upon this. Techcrunch has this amazing article in the form of a debate on ‘The future of Online Advertising’ between the experts Danny Sullivan and Eric Clemons. You got to read it fully to have a bird’s eye view of all the intricacies in the online advertising world.
The statistics that have been brought out by so many people is in verity an eye-opener and shows us a somewhat clear picture about where the online advertising industry is heading. Smart Internet Marketers, it is time for you guys to think and implement new strategies and generate as much revenue as you can in the limited number of opportunities that you would be getting.
The question is – Should you all believe in the statistics and their interpretation?
Haven’t you heard - Statistics are like bikinis. What they reveal is suggestive, but what they conceal is vital.
I am not being a cynic, Just being Me. 
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It’s a fact that online industry is growing at a faster pace today. The best example would be the Advani Campaign that we see all over the web. This is great news for us Digi-Ad-ies
VJ
http://www.resultrix.com
In 1920 majority of shareholders sold their stake in Ford because they insisted the auto industry had reached its peak. Maybe they were right in light of the events with the Big 3 recently.
Many are saying that Online Advertising has reached its peak already.
Major trends follow the S-curve where it takes 50% of the time to reach 10% of the market and the same amount of time to reach 90%.
With that logic, online advertising is now at 8-9% of all marketing budgets. It would be a strong indicator then in the next 10-12 years it will be 90%.
We are about to witness a major shift and transfer of wealth. Which side will you be on?
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