As per Internet and Mobile Association of India (IAMAI) statistics India online advertisement market is around 162 crores in 2006 compared to 42 crores in 2004. Still most advertisers are sticking to traditional modes like printed media and visual media.

In 2006 Ad Revenue 24% was came from financial services like credit card, debit card, personal loans, home loans, insurance, mutual funds, bill payments, card loans, utility payments and investments. 11% of total ad revenue came from tech field, 12% from travel and 11% on automobiles. Personal online services like matrimonial services and placement services accounted total revenue of 11%.


There are many methods to track results of online advertising.

CPM: Cost per 1000 impressions. Advertising company will pay the site owner for each 1000 page views or impressions. For big international sites like Yahoo, Msn, Lycos CPM charges are around $20 to $40. i.e. around Rs900 to Rs1800 per 1000 page views. or 90 paisa to 180 paisa per impression...

CPC: Cost Per Click. This also another common mode of tracking results in online advertisement. In search engine marketing it is called Pay Per Click or PPC. In this mode the advertisement may be viewed many times but advertiser pays only when a user click on the advertisement. This method provides additional incentives to the publisher if he targets the ads
correctly.


CPA: Cost Per Action: This is another mode of tracking ad performance and is common in Affiliate Marketing. In this advertiser pays only if a visitor purchase a product or signup for a service. Some variations of CPA also exists like Cost Per Lead(CPL) in which publisher get a payment for a lead like filling up a form or signing up for a news letter which may lead to a sale in future. Cost Per Order is based on each time a order is
processed.
Advertising Methods

There are many methods for online advertisements. In rich media advertising Ad Company uses banner ads, wallpaper ads, pop-ups, video ads, streaming audio, streaming video and mobile ads. In contextual advertising ad network display ad related to the content of the page. Google Adsense, Yahoo Publisher Network and MSN adCenter are examples of contextual
advertising. Affiliate marketing and Email Advertising also another forms of online advertisement.

Indian Online Advertisement Scenario

In India more and more companies are adopting Internet based advertisement methods. Big spenders are ICICI Bank, Citibank, Hindustan Lever Limited (HLL) etc. Also matrimonial sites like Bharath Matrimony and Shaadi are offering affiliate marketing features. India's net population is expected to cross 100 million in another 2 years. So there is a huge potential for online advertisement in India.