India's mobile ad spend to grow 40 per cent in a year, Maxus wins first Smarties award

The report is based on research conducted by exchange4media and input from brands, agencies and the mobile ecosystem in India in September 2012.

Based on conversations with industry leaders (including brands and agencies) in India. the report estimates that mobile advertising is 10 per cent of India's overall digital pie, putting it in the vicinity of US$33 million. 

The MMA believes that there are more than 120 million mobile internet users in India. 

Growth in the mobile sector will the fuelled by display, search and SMS, said the report. It found that search and SMS (measured and opt-in) are already the largest contributors to mobile advertising in India. 

India's government is also clamping down on SMS marketing, allowing users to opt out. "This ensures that SMS marketing is becoming more relevant...and will drive the right level of engagement," noted the report. 

Improving infrastructure and cheaper smartphones in India will also be a major growth driver, it continued. According to Nielsen, smartphones currently represent 9 per cent of overall handsets in urban India, and even in tier-two markets smartphone penetration is at 6 per cent. In India, smartphones and tablets are already available for prices ranging from US$36 to US$545 and the report estimates that this is likely to drop even further. Better 3G coverage and the launch of 4G, along with lower price points, will also boost mobile ad spend. 

"Mobile advertising is growing at a fast pace and will soon challenge other channels," said Rohit Dadwal, managing director, MMA, Asia Pacific. “We are already seeing digital spends exceed traditional in markets like Australia. This is a sign of how the market will evolve.”

Marking the growth of mobile marketing in India, the MMA also held its first Smarties India 2012 Awards. The Smartpies recognise the best in mobile marketing at local, regional and international levels. 

Maxus India was the country's first to win the agency of the year award. The network also took home the award for best campaign of the year for its 'Light powered Media for light powered watch' campaign to launch Titan HTSE light powered watches. In addition to these two awards, Maxus also won five Gold and seven silvers—more than any other agency. 

The Media Company of the Year award went to vserv.mobi.