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Search Engine Marketing in India

Posted by kaushalkurapati on January 18, 2007

Pinstorm in association with IAMAI (Internet and Mobile Association of India) has prepared a very interesting report on the state of search engine marketing in India. Some interesting stuff from it, along with my own analysis:

  • They consider Indian companies spending in India and Overseas companies spending in India — so companies (Indian or otherwise) targeting Indians.
  • They essentially ‘sampled’ extensively and inferred search volume, ad-coverage, depth of advertiser market, average ad-spend, etc.
  • 1Billion searches in a month in India vs. 6.7 Billion searches in the US in December 2006. That number seems fairly high at first glance given that PC penetration is much lower in India compared to the US. On the other hand, see this — 37M Internet users in India (Sep 2006) vs. 250M Internet users in the US: ratio of 6.75:1. That ratio mirrors the search volume ratio exactly! (6.7 billion to 1 billion).
  • According to the report the number of advertisers targeting Indians is around 40,000. Thats a good size in itself, and will grow rapidly depending on (a) more users getting on to the Internet (larger target audience), and (b) more vernacular content and India-specific content coming online (more ad-sense shelf space so to speak).
  • US online ad market is roughly $10bn in 2006. Indian online ad-market, according to this report, is $52M — 0.5% of the US market. 
  • So who are the top spenders currently? Naukri (jobs), 99 acres (real estate), jeevansathi (online matrimonials – match making). Top categories? Banking / Financial services, Automotive, Matrimonial — all wanting to sell services to Internet savvy Indians (hence you may be making a certain amount).

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