Indian Search Marketing Industry is Booming

Indian Search Marketing Industry is Booming

As per the recent report published by IAMAI on Indian Search Market, the industry is expected to grow from the present $ 112 Mn to $ 175 Mn by 2009 and $ 225 Mn by 2010.

IAMAI has identified few critical parameters that leads to the growth of SEM Market in India. They are:

1. Increase in Internet user base : 29mn active users, expected to grow at a significant rate in the next few years.
2. Increase in amount of Searches happening in India
3. Increase in Internet awareness
4. Increase in sectors employing SEM tactics

 
Online search breakdown
Top 4 metros account for 40% of searches. Other 4 metros (40%), small metros (21%) and other cities result in 8%. School going kids account for 16%, College going students (26%), Young men (27%), Older men (14%), Working women (10%) and Not working women (7%)

IAMAI is betting big on outsourced SEM, but sees some hindrances:

Lack of information about India
Apprehensions of Data security
Erratic behavior of exchange rates-
Globally, SEM expenditures in North America including US and Canada will reach $25.2 billion in 2011 which stood at $12.7 billion in 2007.

The study, to my surprise doesn’t take into account the big sword that’s hanging all over in the global economy- recession.

Advertising spend is dropping globally and search ads, though preferred over banner ads too is facing the heat – US SEM market is witnessing a decline and so is UK – India, being a nascent market will also suffer as advertisers will prefer the traditional channel more than Internet.