SEM Market in India pegged at $ 225 million by 2010
IAMAI has published a report on the Indian SEM market (Search Engine Marketing), and as per the report, industry is expected to grow from the present $112.5mn to $175mn by 2009 and $225mn by 2010.
The growth is primarily driven by:
- Increase in Internet user base : 29mn active users, expected to grow at a significant rate in the next few years.
- Increase in search
- Increase in awareness
- Increase in sectors employing SEM tactics
Online search breakdown
- Top 4 metros account for 40% of searches. Other 4 metros (31%), 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.
What’s your take?
Download the report.
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Related posts:
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- Mobile Internet Users in India – Only 2 Million are Serious Users [Report]
- Gaming Industry in India – Road Rash and NFS the most Popular [Report]
- Advertising Market in India: TV and Radio to grow faster than the Print
- Market Report: Mobile Banking in India used by 40 Million Urban Indians
About the author - Ashish Sinha is a Startup Mentor/Product Strategy Coach, and the founder/chief editor of pluGGd.in.
He has launched/managed couple of products (consumer as well as enterprise) in US and India, and now consults with startups/small businesses on their product/media strategy. He can be reached at: ashish (at) pluGGd.in [+91 98452 06443]
Agree~
The companys will attache great importance to SEM.
SEM is investment not expense
What happened to your math
Top 4 metros account for 40% of searches. Other 4 metros (40%), small metros (21%) and other cities result in 8%.=> 40 + 40 + 21 + 8 = 109%. Not to great idea to cut and paste without reading
Good catch – its 31%. hv rectified.
thanks.
some wrong here also.
SEM is the way to go because it is the least expensive and most ROI driven.