Mobile ad spends in India to grow 40 percent by 2013, MMA

 The Mobile Marketing Association (MMA), in partnership with exchange4media, on Friday released the first mobile advertising spend report for India, which estimates the size of the current spend at Rs 180 crore, and is expected to increase by 40% in the next 12 months.





According to the report, industry leaders including brands and agencies indicate that mobile advertising is 10% of the overall digital advertising spends in India. The MMA states that there are more than 12 crore mobile internet users in India. Many advertisers are yet not exploring the medium at all bringing the overall digital spends in India at 5%-7% of the overall advertising pie in India, which is pegged at Rs 27,000 crore to Rs 28,000 crore, according industry estimates. The report is based on research conducted by exchange4media and inputs from brands, agencies and the mobile ecosystem in India in September 2012.

"Mobile is an exciting, fast-growing category, but it's still a very small piece of the overall ad pie. Mobile advertising is growing at a fast pace and will soon challenge other channels," said Rohit Dadwal, MD, MMA, Asia Pacific . "We are already seeing digital spends exceed traditional in markets like Australia. This is a sign of how the market will evolve."

Display, search and SMS (measured and opt-in) are the key drivers contributing to mobile advertising spends in India, and will help drive the growth of the medium and ad spends to Rs 250 crore in 2013.