Local search 'dominates' web ad growth

19th December 2007

Local advertising space will make up more than half of the Indian internet ad market in the next two years, according to a search engine.

Kiran Konduri, one of the founders of Four Interactive, told the Business Standard that the sector was still small and had not been properly investigated, but he expected it to grow "exponentially".

The website said that internet advertising market in India is expected to reach Rs 450 crore this year, more than half of which would be search.

Many web portals have already put a focus on local searches, it also said.

"The online advertisement market in India is very small at the moment since nobody has seriously tried to explore the huge opportunities in the local market," continued Mr Konduri.

The company says it thought the web could be used more effectively to search for local restaurants, pubs and plumbing services, for example, as well as for information on community events and shopping.