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Internet on
INDIA

Published on March 2012
By 2015, 40% of the Planet will be on the
 Internet

                                            Internet Users (mn)
  3500




  3000

                                                                       Rest of World
                                                                       Emerging Markets
  2500




  2000
                                                                                          1414


  1500
                                                                       752



  1000

                                                                                          1476
                                                                       1281
   500




     0
                1995                 2000             2005               2010               2015E



*Source: IWS, ETForecasts, BCG Report, Sept 2010             Emerging Market taken here as BRIC & Indonesia
Internet Growth: The Indian Story
Pointers
   Internet in India has been showing growth in double digits since
    last 10 years
   Current Internet penetration at 5% and forecasted to be around
    11% by 2015
    58% of the internet penetration is from Top 10 Cities

120,000,000
                                                                                         100,000,000
100,000,000

 80,000,000

 60,000,000

 40,000,000

 20,000,000
              1,400,000
         0
               1998   1999   2000   2001   2002   2003   2004   2005   2006     2007    2009     2010
                                                                                             * In Millions


                                                                              *Source: internetworldstats.com
India is the 3rd largest Internet User Market
                                                                                  Internet population will multiply 3.1x in 5 years
                                                                                   Internet population will triple in 5
                                                                                   years                                              300
                                                                                   250




      112 Million
                                                                                   200


                                                                                   150

                                                                                                      100

             internet users
                                                                                   100

                                                                                                                                      21%
                                                                                   50               7%                            Penetration
                                                                                                 Penetration
                                                                                    0
                                                                                                     2010                             2015



 40% Internet penetration in less than 10 Lakh town                              At 100M+ users, online users represent the strong purchasing class

    120%      Less than 5 lakh towns           5 - 10 lakh towns
              Other metros                     Top 8 metros
    100%                                                                                            Total Pop        : 1.2B

     80%
                                                                                                    Urban (12+)       : 240M
                                                                   60%
     60%
                                                                                                    Internet          : 100M
     40%
                                                                                                    SEC A/B (15-44): 50M
     20%
                                                                   40%
     0%
           2000   2001   2003    2004   2006   2007    2008



                                                                   *Source: internetworldstats; Internets New Billion, BCG  Sep2011; IAMAI; IRS
Indian E & M Industry and Growth of Internet




                                                *Source: PwC Analysis and Industry Estimates

  The growth of Internet as a Industry is the highest among all other Industry
 in this segment in India. By 2015, Indian Internet Industry would be worth 24
     Billion INR with a projected growth of 25.5%, highest among all others.
Emergence of Social Network in India
                                  38 M+ Users
                               Adding 55K users daily
                              Avg 107 Friends per user
                                1,681,000 Apps live

                                          9 M Users
                                    Adding 30K users daily
                                 Avg 120 connections per user
                                      6 Minutes per Visit


                                             5 M+ Users
                                         Adding 25K users daily
                                      8 MN tweets on a daily basis
                                         56 Followers per users


                                                  21 M Users
                                              Adding 38K users daily
                                  3 Hr of Videos consumed by an average user
                                                    90% UGC


                    3 out of 4 Internet User is on Social Network
 As per latest consumer survey 85% people say that social media does impact their
                                   buying decisions
                                                                     *Source: ComScore, Dec 2011
What makes the internet so Powerful?
Audience across age groups

  NOT JUST YOUTH
At 41.20 %, the 29-44
    year age band
    emerges as the
 single largest age
   group of regular
     internet users*



   BUT THE WEB ALSO
   TRANSCENDS AGE.
33.7 % between 15-24 yrs

   58 % OF USERS ARE
   BETWEEN 25-44 Yrs.




*Source: ComScore, Dec, 2011
What makes the internet so Powerful?
Media Consumption Landscape


                     Print
                      TV      Print     Radio   Internet

                                                                        160

                                         130

              125


                                                                        60
                                        60
              40
                                                                         60
                                        62
            65

                                                                        135
              115                       130




           2009                       2010                          2011         ( *In Minutes)




                                                  *Source: IRS 201, TG:15+, All India ,IAMAI,IMRB
Your Consumer is Online
& Getting There Faster

Media Consumption hours / week                    Events fuelling digital growth

                                              o        3G Transition

             23%                              o        Reducing PC/laptop prices

                                              o        Smart phone prices are
                                                       reducing from 25K to ~10K
             30%
                                              o        Data plans prices are further
                                                       reducing
             26%


             21%



                                 *Source: IAMAI, IRS 2009(R2) and Google internal analysis; Base: online population in India ,
                                                      Comscore 2009 Banking and Finance website Audience demographic
Implication for Advertisers

        Internet as a marketing platform is   Bigger
Implication for Advertisers.



   Internet offers a wide
  variety of services that
  entice users to devote
more time to the medium
        hence giving the
         advertiser more
         interaction time
Implication for Advertisers
The presence of your message on the key sites (depending on the
audience being targeted) is key to the success of any media plan
Monthly Online Presence
                                                                                         Source: ComScore Dec, 2011

  28.10 M




                                               Male    Female


            18.29M




                                     11.6 M
                     9.5 M
                                              7.54 M
                             5.99M
                                                       4.7 M

                                                               3.05 M
                                                                        1.66 M                   0.7 M
                                                                                   1.12 M
                                                                                                           0.5 M

      Total             15-24           25-34              35-44                 45-54                   55+




    *Total 112 Mn People hooked on to the web in India  iCube 2011
Purpose of Internet visit
                               % Reach                                       Avg. Mins Per
                                                                                Visitor
      Social Networking                                             97           159
                Search                                         89
                                                                                  31
                 E-mail                                   79
                                                                                  89
      News/Information                                   76
        Entertainment -                            62
                                                                                  28

       Business/Finance                            57                             68
             Education                        42                                  46
        Career Services                       43
                                                                                  16
                 Travel                       42
                                                                                  23
   Entertainment-Movies                  32
                Photos              27                                            29
     Instant Messengers             26                                            11

    Social networking is the most popular online Activity across all age group with
                               Collective reach of 97 %
            The Avg. time spent is also more than the other digital activities
                                                                                 *Source: IAMAI
Online Activity : Change from last year
          Online Activity              % Internet Users   % Change From last
                                           Undertaking           Year
             Emailing                       95%                  +1%
Search or buy non-travel products           76%                 +33%
  Web info search (text, images)            74%                    -
         Download music                     69%                  -3%
            Job search                      62%                  +6%
         Social networking                  61%                  +8%
   Search or buy travel products            59%                 +25%
    Instant messaging/chatting              57%                  +1%
         PC to mobile SMS                   54%                  -2%
          Pay bills online                  51%                 +22%
Visit local Indian language websites        29%                  +2%

             Online shopping, Search are the biggest gainers!
       Job Search and Social networking witnessed a steady growth


                                                                 Source: Juxt Report, 2011
What is driving web Behavior ?
What is driving web Behavior ?




 Social Networks should be used for emotional connect thus can be used to create
positive brand image, engagement with the TG and to start direct conversation with
                                     the Brand

 Google remains the primary source of seeking information and has been used for
 more rational purposes thus should be used extensively for reach, conveying brand
                      information and benefits and features.
                                                            Source: MSN and Mediamind Report, 2011
E-Commerce has hit tipping point.India  growth?



                                                  e-commerce in India
                                             60
                                                                               40
                                             40

                                             20          7
                                              0
                                                       2010                 2015E




  o 4 out of 5 internet users shop online (search or buy online), translating into a 80
  million strong online consumer base
  o 29 mn of these online shoppers (or 29% of all internet users), also buy online -
  70% Increase from 10 million last year
                                                        *Source : Euromonitor International, Juxt Report ,2011
E-commerce in India
Top Five Business Hub


    4. Jaipur                                    On an average day on
                                 1. Delhi
                                                      eBay India

                                                  A piece of jewellery sells
                                                      every 4 minutes

                                                A health or beauty product
                                                   sells every 4 minutes

                                                  A piece of apparel sells
                                                      every 7 minutes

                                                A watch sells every 9 minutes
                                   5. Chennai
                                                A car or bike accessory sells
                                                     every 11 minutes

                                                A piece of home decor sells
                                                     every 12 minutes
    2. Mumbai           3. Bengaluru
                                                      Source: eBay Census Guide 2011
Significant Research online across
categories

                                                                        72%

                Research online Purchase online              65%


                Research online Purchase offline



                       39%                                                             40%
         33%
                                    28%                                            29%
                                                   26%
                                                                     21%
                                                          19%
                                            16%

                               8%
                  5%
    3%


  Automotives      CPG &       Finance      Media &        Retail   Technology      Travel
                 Healthcare               Entertainment
                                             & Local




                                                                           Source: Consumerbarometer.com
1.4Bn Weekly Search Queires on Google alone


                        Computers
                                                                             Finance &
Entertainment              and                     Telecom                                                                       Health                                                  Sports
                                                                            Investment
                        Electronics




                                a growth story of 60% Y-o-Y

                  Research online purchase online                           Mobile and Desktop Search Query Growth Over The Last 3 Yrs
            72%                                                             35
                  Research online purchase offline
                                                         65%                30                   Mobile 28X
                                                                            25                   Desktop 6X
                                                                            20
                                        40%
                                                                            15
                         33%
                                 29%                                        10
      21%                                          19%                        5
                                                                              0
                   3%
                                                                                  9/1/08



                                                                                                     3/1/09

                                                                                                              6/1/09

                                                                                                                       9/1/09



                                                                                                                                          3/1/10

                                                                                                                                                   6/1/10

                                                                                                                                                            9/1/10



                                                                                                                                                                                3/1/11

                                                                                                                                                                                          6/1/11

                                                                                                                                                                                                   9/1/11
                                                                                           12/1/08




                                                                                                                                12/1/09




                                                                                                                                                                     12/1/10
     Technology      Auto         Travel        Local and Retail



                                      source: Google Internal, Consumer Commerce Barometer                                                                                     Source  Google
As we speak India is changing:




     If this machine is hooked, click on the image!
                   Else you can visit: http://bit.ly/ugJ7yf
THANK

YOU
If you wish to re-write your brand proposition in 140
characters contact us @SMG_India

More Related Content

India on internet 2012

  • 2. By 2015, 40% of the Planet will be on the Internet Internet Users (mn) 3500 3000 Rest of World Emerging Markets 2500 2000 1414 1500 752 1000 1476 1281 500 0 1995 2000 2005 2010 2015E *Source: IWS, ETForecasts, BCG Report, Sept 2010 Emerging Market taken here as BRIC & Indonesia
  • 3. Internet Growth: The Indian Story Pointers Internet in India has been showing growth in double digits since last 10 years Current Internet penetration at 5% and forecasted to be around 11% by 2015 58% of the internet penetration is from Top 10 Cities 120,000,000 100,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 1,400,000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 * In Millions *Source: internetworldstats.com
  • 4. India is the 3rd largest Internet User Market Internet population will multiply 3.1x in 5 years Internet population will triple in 5 years 300 250 112 Million 200 150 100 internet users 100 21% 50 7% Penetration Penetration 0 2010 2015 40% Internet penetration in less than 10 Lakh town At 100M+ users, online users represent the strong purchasing class 120% Less than 5 lakh towns 5 - 10 lakh towns Other metros Top 8 metros 100% Total Pop : 1.2B 80% Urban (12+) : 240M 60% 60% Internet : 100M 40% SEC A/B (15-44): 50M 20% 40% 0% 2000 2001 2003 2004 2006 2007 2008 *Source: internetworldstats; Internets New Billion, BCG Sep2011; IAMAI; IRS
  • 5. Indian E & M Industry and Growth of Internet *Source: PwC Analysis and Industry Estimates The growth of Internet as a Industry is the highest among all other Industry in this segment in India. By 2015, Indian Internet Industry would be worth 24 Billion INR with a projected growth of 25.5%, highest among all others.
  • 6. Emergence of Social Network in India 38 M+ Users Adding 55K users daily Avg 107 Friends per user 1,681,000 Apps live 9 M Users Adding 30K users daily Avg 120 connections per user 6 Minutes per Visit 5 M+ Users Adding 25K users daily 8 MN tweets on a daily basis 56 Followers per users 21 M Users Adding 38K users daily 3 Hr of Videos consumed by an average user 90% UGC 3 out of 4 Internet User is on Social Network As per latest consumer survey 85% people say that social media does impact their buying decisions *Source: ComScore, Dec 2011
  • 7. What makes the internet so Powerful? Audience across age groups NOT JUST YOUTH At 41.20 %, the 29-44 year age band emerges as the single largest age group of regular internet users* BUT THE WEB ALSO TRANSCENDS AGE. 33.7 % between 15-24 yrs 58 % OF USERS ARE BETWEEN 25-44 Yrs. *Source: ComScore, Dec, 2011
  • 8. What makes the internet so Powerful? Media Consumption Landscape Print TV Print Radio Internet 160 130 125 60 60 40 60 62 65 135 115 130 2009 2010 2011 ( *In Minutes) *Source: IRS 201, TG:15+, All India ,IAMAI,IMRB
  • 9. Your Consumer is Online & Getting There Faster Media Consumption hours / week Events fuelling digital growth o 3G Transition 23% o Reducing PC/laptop prices o Smart phone prices are reducing from 25K to ~10K 30% o Data plans prices are further reducing 26% 21% *Source: IAMAI, IRS 2009(R2) and Google internal analysis; Base: online population in India , Comscore 2009 Banking and Finance website Audience demographic
  • 10. Implication for Advertisers Internet as a marketing platform is Bigger
  • 11. Implication for Advertisers. Internet offers a wide variety of services that entice users to devote more time to the medium hence giving the advertiser more interaction time
  • 12. Implication for Advertisers The presence of your message on the key sites (depending on the audience being targeted) is key to the success of any media plan
  • 13. Monthly Online Presence Source: ComScore Dec, 2011 28.10 M Male Female 18.29M 11.6 M 9.5 M 7.54 M 5.99M 4.7 M 3.05 M 1.66 M 0.7 M 1.12 M 0.5 M Total 15-24 25-34 35-44 45-54 55+ *Total 112 Mn People hooked on to the web in India iCube 2011
  • 14. Purpose of Internet visit % Reach Avg. Mins Per Visitor Social Networking 97 159 Search 89 31 E-mail 79 89 News/Information 76 Entertainment - 62 28 Business/Finance 57 68 Education 42 46 Career Services 43 16 Travel 42 23 Entertainment-Movies 32 Photos 27 29 Instant Messengers 26 11 Social networking is the most popular online Activity across all age group with Collective reach of 97 % The Avg. time spent is also more than the other digital activities *Source: IAMAI
  • 15. Online Activity : Change from last year Online Activity % Internet Users % Change From last Undertaking Year Emailing 95% +1% Search or buy non-travel products 76% +33% Web info search (text, images) 74% - Download music 69% -3% Job search 62% +6% Social networking 61% +8% Search or buy travel products 59% +25% Instant messaging/chatting 57% +1% PC to mobile SMS 54% -2% Pay bills online 51% +22% Visit local Indian language websites 29% +2% Online shopping, Search are the biggest gainers! Job Search and Social networking witnessed a steady growth Source: Juxt Report, 2011
  • 16. What is driving web Behavior ?
  • 17. What is driving web Behavior ? Social Networks should be used for emotional connect thus can be used to create positive brand image, engagement with the TG and to start direct conversation with the Brand Google remains the primary source of seeking information and has been used for more rational purposes thus should be used extensively for reach, conveying brand information and benefits and features. Source: MSN and Mediamind Report, 2011
  • 18. E-Commerce has hit tipping point.India growth? e-commerce in India 60 40 40 20 7 0 2010 2015E o 4 out of 5 internet users shop online (search or buy online), translating into a 80 million strong online consumer base o 29 mn of these online shoppers (or 29% of all internet users), also buy online - 70% Increase from 10 million last year *Source : Euromonitor International, Juxt Report ,2011
  • 19. E-commerce in India Top Five Business Hub 4. Jaipur On an average day on 1. Delhi eBay India A piece of jewellery sells every 4 minutes A health or beauty product sells every 4 minutes A piece of apparel sells every 7 minutes A watch sells every 9 minutes 5. Chennai A car or bike accessory sells every 11 minutes A piece of home decor sells every 12 minutes 2. Mumbai 3. Bengaluru Source: eBay Census Guide 2011
  • 20. Significant Research online across categories 72% Research online Purchase online 65% Research online Purchase offline 39% 40% 33% 28% 29% 26% 21% 19% 16% 8% 5% 3% Automotives CPG & Finance Media & Retail Technology Travel Healthcare Entertainment & Local Source: Consumerbarometer.com
  • 21. 1.4Bn Weekly Search Queires on Google alone Computers Finance & Entertainment and Telecom Health Sports Investment Electronics a growth story of 60% Y-o-Y Research online purchase online Mobile and Desktop Search Query Growth Over The Last 3 Yrs 72% 35 Research online purchase offline 65% 30 Mobile 28X 25 Desktop 6X 20 40% 15 33% 29% 10 21% 19% 5 0 3% 9/1/08 3/1/09 6/1/09 9/1/09 3/1/10 6/1/10 9/1/10 3/1/11 6/1/11 9/1/11 12/1/08 12/1/09 12/1/10 Technology Auto Travel Local and Retail source: Google Internal, Consumer Commerce Barometer Source Google
  • 22. As we speak India is changing: If this machine is hooked, click on the image! Else you can visit: http://bit.ly/ugJ7yf
  • 23. THANK YOU If you wish to re-write your brand proposition in 140 characters contact us @SMG_India

Editor's Notes

  • #3: By 2015, nearly 3 billion people will be using the Internet more than 40% of the worlds projected population. Cisco as cited by Mashable.com, June 20112890mn figure taken from etforecasts - http://www.etforecasts.com/products/ES_intusersv2.htm
  • #5: 3,296 Indian cities shopped online in 2010. From this, 2, 234 were tier 2 and tier 3 cities including Ludhiana, Vadodra, Faridabad and Surat eBays online study on the Indian ecommerce landscape