4G services expanding in India.
By Raif Karerat
WASHINGTON, DC: The U.S. may currently boast the highest earning potential for both online media and entertainment companies, but several emerging markets are quickly closing the gap, namely India, China, Russia, and Mexico.
A newly published report by Ernst & Young indicates international growth will be sustained by continuously ramping internet proliferation. It also estimates there will be two billion broadband connections by 2016 in the aforementioned emerging markets — over twice that of established, mature markets. Smartphone shipments to the four nations featured in the report are also set to double between 2014 and 2018.
Online media companies have had limited success engaging Indian markets in the past due to limited smartphone and broadband access. However 4G services are gradually beginning to emerge throughout the country, steadily leading more Indian citizens to the world wide web.
Despite India’s steady climb into the digital age, Ernst & Young says India is not expected to generate significant advertising revenue in the short-term, especially in comparison to other global emerging markets. India’s online advertising market is projected to generate a relatively paltry $1 billion in revenue next year, while China is slated to rake in $23 billion from the same bracket.
While the online advertising sector in India may not see an immediate boom, prospects for the future appear promising. By 2016, India will be home to 300 million broadband connections and by 2020 it will become the nation with the youngest average age– 29– meaning there is extensive room for long-term growth.
India currently sits behind China and the U.S. in terms of overall internet usage, but a report published last month by the Internet and Mobile Association of India claims the sub-continental nation could leapfrog its northern neighbors by 2018, at which point over half a billion Indians would be online.