New Delhi, May 3 (IANS): The digital advertising market in India is likely to grow 30 per cent on a year-on-year basis to 12,046 crore in 2018, a report said on Thursday.

In t2017, the market rose to Rs 9,266 crore, 27 per cent higher than in 2016, according to the "Digital Advertising in India 2017" report

The report was jointly published by the Internet and Mobile Association of India (IAMAI) and Kantar IMRB.

"The growth in spends on digital advertising is expected to continue at a CAGR (compound annual growth rate) of 30 per cent to touch Rs 12,046 crore by December 2018," the report said.

It further said expenditure on digital advertising is about 16 per cent of the total expenditure in the advertising market in the country.

Sector-wise, the banking and financial services institutions lead in terms digital advertising with an expenditure of around Rs 2,022 crore followed by e-commerce, telecom and travel.

According to the survey, brands and organisations spend most on online searches for digital advertising.

"Search takes the lion's share of digital ad spending. 27 per cent of total digital ad spends Rs 2,502 crore is made on search," the report said, adding that it is followed by expenditure on video and mobile where companies spend around Rs 1,779 crore and Rs 1,761 crore respectively.

Expenditure on social media stands at 18 per cent, amounting to around Rs 1,668 crore.

Advertising through mobile phones (SMS and In-app advertisements) grew 34 per cent in 2017, to Rs 1,761 crore from Rs 1,314 crore in 2016, as per the report.

"This is because advertising on mobile is considered to be innovative and conveys the message clearly. Also, in-app advertising avenue is currently being explored and used across various industry sectors since it is believed to fetch better monetisation," it said.