Online Advertising Market – India October 2014
Executive Summary Market
Indian advertising industry is expected to witness a CAGR of 15% over the period 2013-18e Online advertising industry in India is the fastest growing segment in the advertising industry It is divided into two types of advertisements namely Display Advertisements and Text Advertisements
Challenges
Drivers Factors influencing Growth
Trends
Lack of trust in internet advertising Literacy and language barriers
Large Domestic Internet base Positive consumer behavior & patterns towards online media Growing proliferation of internet on mobile Large Expatriate Population Emergence of Social Media networking Advent of mobile marketing Local online advertising spreads wings Internet turning into an effective sales medium Growing online marketing activities from corporates
Visual content slated to take new shape Increase in private equity investments Indian players expanding globally
Major Players
Competition
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
ONLINE ADVERTISING MARKET IN INDIA 2014.PPT
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•Macroeconomic Indicators •Introduction •Market Overview
Indian Advertising Industry Online Advertising Industry •Business Model •Drivers & Challenges •Trends •Competitive Landscape Traffic Statistics
•Strategic Recommendations •Appendix ONLINE ADVERTISING MARKET IN INDIA 2014.PPT
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Macroeconomic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15 14 d1 c1 13 b1 12 a1
c4 b4 a4
c3 b3 a3
d2 c2 b2 a2
11
Q1
Q2 2010-11
2011-12
2012-13
Q3 2013-14
Q4
Inflation Rate: Monthly % 2 1
p
r
s
q
0 -1
-t
-2
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
ONLINE ADVERTISING MARKET IN INDIA 2014.PPT
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Display advertisements dominate the online advertisement market in India Online Advertising Industry – Overview
SAMPLE
• Online advertising is a form of marketing communication on the Internet which intends to: Influence a consumer towards purchasing or taking up an action on the content displayed on the website with respect to products, ideals, or services
• The market is currently dominated by Display ads and comprises rich media, video and classifieds • Factors such as growing internet base (computers and mobiles), growing popularity of social media networking sites are also fueling growth in the online advertising market in India
Online Advertising Industry – Growth INR bn x6
x7 x1
x2
2013
2014e
x3
x4
x5
0
Advertising Break Up
2015e
2016e
2017e
2018e
Online Advertising – Segmentation (2013) b8
bi
b3
b2
b4
b7
a4 a1
b5
a2 a3
b6
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Tools are also available for online advertising that facilitate…
SAMPLE
Online Advertising Tools (1/2)
• Online advertisements have surfaced as one of the most effective and popular method of marketing any business • Owing to the factors such as dynamism, cost effectiveness and penetration power of reaching one’s target audience with ease, online advertising bore distinct results compared to other marketing techniques • Online advertising makes use of certain online tools that work towards promoting products including both goods and services Online Advertising Marketing Tools Google AdWords
• text
Facebook Ads
• text
Microsoft adCenter
• text
ONLINE ADVERTISING MARKET IN INDIA 2014.PPT
7Search
• text
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Drivers & Challenges – Summary
Drivers
Challenges
Large domestic internet base
Lack of trust in internet advertising
Positive consumer behavior and patterns towards online media
Literacy and language barriers
Growing proliferation of internet on mobile Large expatriate population
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Trends – Summary Emergence of Social Media networking Advent of mobile marketing Local online advertising spreads wings Internet turning into an effective sales medium ` Key Trends
Growing online marketing activities from corporates Visual content slated to take new shape Increase in private equity investments Indian players expanding globally ONLINE ADVERTISING MARKET IN INDIA 2014.PPT
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Market Competition – Porter’s Five Forces Analysis Impact XX Threat of New Entrants
Impact XX
Bargaining Power of Suppliers
Impact XX
Competitive Rivalry
Impact XX
Bargaining Power of Buyers
Impact XX Threat of Substitutes
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Competitive Benchmarking (1/4)
SAMPLE
Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin
%
10
Net Margin
y3 y4
5
y6
0 -5
y1
y2
-10
DGTL Media Pvt. Ltd.
IDG Media Pvt. Ltd.
SVG Media Pvt. Ltd.
• Text • Text
• Text
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Private: Domestic Company – Company 1 (1/5)
SAMPLE
Company Information
Offices and Centres – India
Registered Address
Tel No. Fax No. City
Website Year of Incorporation
Head Office
Products and Services Category Advertising
Products/Services Online Advertising
Key People Name
Designation
Person 1
Nominee Director
Person 1
Director
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Private: Domestic Company – Company 1 (2/5)
SAMPLE
Shareholders of the Company
Ownership Structure p2
Name
No. of Shares held
Shareholder 1 Shareholder 2 p1 Total
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Private: Domestic Company – Company 1 (3/5)
SAMPLE
Financial Snapshot Total Income
Total Income INR mn
q1
Key Ratios Profit / Loss
q3
q5
q4
q6
q7
Profit INR mn
q2 0 2011
2012
y-o-y change (2013-12)
2013
2012
2011
2010
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity
q8
2010
Particulars
2013
Financial Summary
Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
• Company incurred a net loss of INR -mn in FY 2013, as compared to net profit of INR - mn in FY 2012
Liquidity Ratios
• It reported total income of INR -mn in FY 2013, registering an increase of -over FY 2012
Leverage Ratios
• Earned an operating margin of -% in FY 2013, a decrease of percentage points over FY 2012 • The company reported a debt to equity ratio of - in FY 2013, an increase of -% over FY 2012
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
ONLINE ADVERTISING MARKET IN INDIA 2014.PPT
Decline
13
Private: Domestic Company – Company 1 (4/5) Key Recent Developments Description
Overview
SAMPLE News
• Text • Text
Infrastructure
• Text • Text
Technology Partners
• Text • Text
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Private: Domestic Company – Company 1 – SWOT Analysis (5/5)
SAMPLE
• Text
• Text
S
W
O
T
• Text
• Text
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Traffic Statistics – Company Ranks
SAMPLE Most Viewed Sub-Domains
Global Rank
u1
India Rank
u2
p2
p1
Visitors from India (%)
u3
Audience Snapshot
Technical Details
Age (Years)
u4
Unique Page Views/Day (%)
u7
Gender
u5
Search Engine Redirection (%)
u8
Time (mm:ss)
u6
Average Load Time (Secs)
u9
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