A Bioscope into the Digital Growth in India

Rahul NandaCOO & Partner, Webchutney

INTERNET GROWTH IN INDIA

Internet still not about reach!

65 Mn

185 Mn

400 Mn

585 Mn

Source: Juxt Consult, India Online Landscape 2011

Internet

Mobile

Television240 mn

165 mn105 mn

50 mn

Urban

Print

65 Million ‘Active’ internet users in India (+28% from 2010)

• 61 million ‘regular’ users (46 mn urban users, 16 mn rural users)

• Internet reaches 29 million Indian households (avg. users per household up marginally at 2.23)

• Covers 11.3% of all Indian households and 5.4% of all Indians (13% urban, 2% rural)

• Over 4 in 5 are ‘daily’ users. Daily users’ base grew faster, at 33%

• 73% Male, 27% Female

More about ‘depth’ than ‘spread’

Active’ internet users = who have used the internet ‘in last one year’, ‘Regular’ internet users = use internet ‘at least once a month’

A marketer’s dream TG!

75%

73%

72%

65%

64%

49%

60%

Urban

Male

19 – 35 years

SEC ‘A’, ‘B’, ‘C’

Employed

Rs.12,500+ MHI

Own an automobile in the HH

Source: Juxt Consult, India Online Landscape 2011

Youth leading the web revolution

Source - Comscore: State of Internet India Demographics, % Figures

Worldwide

Asia Pacific

India

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

26

29

35

26

28

40

22

23

16

14

12

6

11

9

3

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

Composition of Internet Audience 15+

75%

Top activities on the net

44%

Check general news

47%

joined online

community

62%job search

68%download

music

61%

social networking53

%PC to mobile SMS

56%

IM/chatting

47%

Professional networking

94%

emailing

Source: Juxt Consult, India Online Landscape 2011

74%

web search

Source: Comscore Video Metrix Report, 2011

1.7 B videos viewed in India every month

9.1 B minutes spent on online videos every month

5th largest nation in the world in terms of online video reach

Online video reaches 71% of Indian Internet Audience

• 4 out of 5 internet users ‘shop’ online • (search or buy online)

• 70% increase in online buyers from last year

• Online buyers of ‘non-travel’ products (13.5 million) outnumber ‘travel’ ones (8.6 million)

• Most bought ‘non-travel’ products were mobile phones & accessories

(56%), computer hardware and consumer electronics (35% each) and movie tickets (30%). Most bought ‘travel’ products were train tickets (83%) and air tickets (58%)

Online buying picking pace

50 million strong online ‘Shopper’ base

Source: Juxt Consult, India Online Landscape 2011

Top websites 2011

Group Buying/Deals

Source: Juxt Consult, India Online Landscape 2011

E-Commerce

Net-Banking/FinanceTravel

Local language dominates traditional media

Source: TAM | Market: All India

Source: Doubleclick Ad Planner & Juxt Consult, India Internet Landscape 2011

China

• Baidu.com• qq.Com• Taobao.com• Sina.com.cn• Youku.com

Russia

• Mail.ru• Yandex.ru• Vkontakte.ru• Odnoklassniki.ru• Youtube.com

Thailand

• Facebook.com• Live.com• Sanook.com• Hi5.com• Kapook.com

Japan

• Yahoo.co.jp• Fc2.com• Rakuten.co.jp• Youtube.com• Goo.ne.jp

Brazil

• Orkut.com.br• Live.com• Youtube.com• Uol.com.br• Globo.com

What about Online?

India

• Google.com• Facebook.com• Youtube.com• Naukri.com• Bharatmatrimony.com

Still a long way to go… Requires content & interactivity in local languages

Growth of Indian ad industry in last 5 years…

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

22%

17%

-10%

27%

17%

Source: Pitch-Madison Media Advertising Outlook 2011

A TALE OF 2 TRUTHS

Online population growing and engaged with increased spending

Online spend share of overall advertising budgets ridiculously low

Online spend share is relatively small

Print41%

TV45%

OOH6%

Radio4%

Cinema1%

Internet3%

Source: Pitch-Madison Media Advertising Outlook 2011

But growth is high…

That’s double the growth of ad-spends on TV!

2009 to date, growth in ad spends (CAGR)

19%

20%

21%

22%

42%

Television

Print

OOH

Radio

Internet

Source: Pitch-Madison Media Advertising Outlook 2011

• Leverage the internet for its strength:Frequency and not reachSelective and contextual targetingInteract and engage, not just sell (CRM)

• Beware of its 2 current weaknesses – mass reach, women consumers

What we tell our clients…

MOBILE INTERNET – THE INFLEXION POINT

• 15 years ago, there were more computers in this country than mobile phones

• Today, there are 10 times more mobile phones than computers

Food for thought….

Internet usage on Mobile Phones

All Mobile Users in India304 million (100%)

Urban Mobile Users 158 million (52%)

Rural Mobile Users 146 million (48%)

Use Internet on Mobile Phone Only

0.8 million (0.3%)

Use Internet on PC Only

27.4 million (9%)

Use Internet on Mobile Phone & PC

9.6 million (3.2%)

Use Internet on Mobile Phone Only

0.9 million (0.3%)

Use Internet on PC Only

9.4 million (3.1%)

Use Internet on Mobile Phone & PC

0.3 million (0.1%)

Not use Internet at all

120 million (40%)Not use Internet at all

135 million (45%)

Source: Juxt Consult, India Mobile Landscape 2010

All mobile users using Internet - 15% – 48.4 million

Mobile users using Internet on Mobile Phone – 3.8% – 11.6 million

Mobile web gaining ‘Volume’

30 M App downloads a week in

India

Source: Morgan Stanley, Mobile Internet Presentation, Feb 2011; Industry estimates, Google Indexed query Data

+4X YoY+50X since 2007

Indexed Query growth – Mobile ( top 1000 commercial queries)

8XFaster adoption than PC

web

7.3 B Monthly mobile ad

impressions

Barriers to growth

Lower Device & Data Costs

‘Low entry cost’ will be critical for Mobile / Mobility

Devices to add to the next 100m Internet users

OUR APPROACH TO DIGITAL

Establishing a presence

(Websites)

Acquisition / Traffic Generation (Search & Display Media)

Brand Campaigns & Product launches (micro-sites)

Social Media Presence (FB, Twitter, LinkedIn, Blogs)

Integrated Campaigns & Social Conversations (360 approach, mobile, customer support, reputation management, ecommerce)

1999 – 20052005-2008

2009-2010

2010-2011

2011+

The client evolution

Consumer Journey- Digital

Source: http://www.freshtito.com/2011/06/1090/

WHAT’S WORKED FOR USCase Studies

Jaago Re’s TV campaign and voting website to promote citizens to Vote had already helped to build affinity for the Tata Tea brand. Our challenge was to take the campaign to the next level and initiate a long-term movement that would actually empower people to ‘wake up’ and change India.

Tata Tea - Jaago Re

So we created India’s first Social ‘Change’ Network

Our objective was to reach out to young bachelors and create greater awareness + preference for Bharat Matrimony – India’s number one matrimonial site.

Bharat Matrimony –

Biwi Ho Toh Aisi (My Kind of Wife)

So we created a simple and fun experience on Web + Mobile

Our objective was to leverage brand Airtel’s association with Champions League T20 and use the cricket card to engage and interact with the Target Audience in their natural online habitats during the Airtel Champions League T20, 2010.

Airtel – Real Fans

India’s first Youtube Channel Contest

• Integrated Campaigns ; 360 degree Approach

• Online Promotion meets Offline Activation

• Inclusion of Mobile

• Social Conversations

• Co-creation of Content

• Treat the Internet as an “Individualized” Mass Medium

Key takeaways from our experience

THANK YOU!

For more Creative Showcase visit – www.webchutney.com/playinprogressMy mail id is : rahul.nanda@webchutney.net