Mumbai, March 25: Internet advertising will grow 32 per cent over the next five years and touch Rs 1,100 crore in 2012 from Rs 270 crore in 2007, according to a study released by Ficci and PricewaterhouseCoopers.

In 2007, the segment grew 69 per cent to Rs 270 crore from Rs 160 crore in the previous year. This was the highest growth compared with all other segments in the entertainment and media industry.

The growth projected in the study is on a small base, but both Ficci and PricewaterhouseCoopers are optimistic about the segment’s prospects going ahead.

The share of Internet in the overall advertising pie is projected to grow to 2.4 per cent in 2012 from 1.4 per cent in 2007.

By 2012, the Indian entertainment and media industry is projected to reach Rs 1.16 lakh crore from Rs 51,300 crore in 2007, an 18 per cent compounded annual growth rate.

Television is likely to be the major contributor to the overall industry revenue pie and it is estimated to grow at the rate of 22 per cent cumulatively over the next five years, from Rs 22,600 crore in 2007 to over Rs 60,000 crore by 2012.

According to the study, Indian advertising will be a Rs 45,300-crore industry by 2012 from Rs 19,600 crore in 2007. The share of both television and print advertising will be the same at 44 per cent.

At present, the share of print advertising at 48 per cent is the largest, followed by television. By 2012, it is estimated that its size will be around Rs 20,000 crore, the same as television advertising.