BFSI sector to gain most from increased online ad spend

With Internet users estimated to be over 50 million, and Internet banking on the rise, the online ad spend "" pegged at Rs 250 crore "" is only set to increase. Industry observers say the figure could grow more than ten-fold (to Rs 2,500 crore) by 2011.

It's the banking, financial services and insurance (BFSI) segment "" accounting for almost 35 per cent of the total online ad spend in India (the largest spender on online marketing after travel at 50 per cent) "" which is expected to benefit the most from this trend.

Vivek Bhargava, founder and managing director, Communicate 2 "" a leading Search Engine Marketing (SEM) firm "" based in Mumbai, says: "The BFSI sector, one of our core domains, has exponentially increased their spends over the last few years with us, in some cases even four-fold from their earlier online spends."

More people are purchasing insurance policies through online banner ads rather than the traditional 'insurance agent' route.

"The point to note from the insurance standpoint is that the search volume for insurance is steady and high throughout the year," says Sridhar Seshadri, business head, finance, for Google's Monetisation Business in India.

Vishal Gupta, associate director, marketing, Aviva Life Insurance, says: "We have seen a more than 100 per cent increase in lead generation in January-March compared to the last quarter. Aviva spends a 5 per cent of total ad spend on online marketing. Since the medium is interactive, we not only can advertise, but also can educate the target audience."

Shyamal Saxena, chief distribution and marketing officer, Bharti AXA Life Insurance Company, agrees: "With consumers becoming increasingly Internet-savvy, marketeers in the financial services space are willing to experiment with not just online, but all the digital media. Internet and digital media will become an integral part of media planning and will attract significant investments."

The online medium caters to an audience that is more likely to have surplus money.

"The BFSI segment contributes a significant portion of our ad revenue and is growing rapidly as more clients come on board. More importantly, savvy BFSI advertisers are looking at between 50 and 150 per cent increase in the contribution to business from internet advertising," adds Seshadri.

"Depending on how well digital strategies are executed, BFSI clients have managed to get up to 40 per cent of their total business leads from digital advertising. And with costs that can be much lower, this makes tremendous sense for the advertisers to leverage," Seshadri concludes.