INDIAN INTERNET INDUSTRY

Submitted by : Lourdhu Selvin

0

500

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1500

2000

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3500

1995 2000 2005 2010 2015E

Internet Users (mn)

Emerging Market taken here as BRIC & Indonesia*Source: IWS, ETForecasts, BCG Report, Sept 2010

12811476

752

1414

Rest of World

Emerging Markets

Internet in India has been showing growth in double digits

since last 10 years

Current Internet penetration at 7% and forecasted to be

around 21% by 2015

58% of the internet penetration is from Top 10 Cities

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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010

1,400,000

100,000,000

112 Million internet users

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2010 2015

0%

20%

40%

60%

80%

100%

120%

2000 2001 2003 2004 2006 2007 2008

Less than 5 lakh towns 5 - 10 lakh towns Other metros Top 8 metros

60%

40%

40% Internet penetration in less than 10 Lakh town

21%Penetration7%

Penetration

Internet population will triple in 5 years

*Source: PwC Analysis and Industry Estimates

38 M+ UsersAdding 55K users daily

Avg 107 Friends per user1,681,000 Apps live

9 M UsersAdding 30K users daily

Avg 120 connections per user6 Minutes per Visit

21 M UsersAdding 38K users daily

3 Hr of Videos consumed by an average user90% UGC

5 M+ Users Adding 25K users daily

8 MN tweets on a daily basis56 Followers per users

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

NOT JUST YOUTHAt 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

*Source: IRS 201, TG:15+, All India ,IAMAI,IMRB

115 130135

6562

6040

6060

125

130

160

2009 2010 2011

Print Print Radio Internet TV

*Source: IAMAI, IRS 2009(R2) and Google internal analysis; Base: online population in India ,

Comscore 2009 Banking and Finance website Audience demographic

Media Consumption hours / week

23%

30%

21%

26%

Your Consumer is Online & Getting There Faster……

Events fuelling digital growth

o 3G Transition

o Reducing PC/laptop prices

o Smart phone prices are reducingfrom 25K to ~10K

o Data plans prices are furtherreducing

Internet as a marketing platform is Bigger

Internet offers a wide variety of services that entice users to

devote more time to the medium hence giving the

advertiser more interaction time

28.10 M

9.5 M

11.6 M

4.7 M

1.66 M 0.7 M

18.29M

5.99M

7.54 M

3.05 M

1.12 M0.5 M

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

Male Female

Source: ComScore Dec, 2011

*Total 112 Mn People hooked on to the web in India – iCube 2011

Avg. Mins Per Visitor

159

31

89

28

68

46

16

23

29

11

*Source: IAMAI

26

27

32

42

43

42

57

62

76

79

89

97

Instant Messengers

Photos

Entertainment-Movies

Travel

Career Services

Education

Business/Finance

Entertainment -…

News/Information

E-mail

Search

Social Networking

% Reach

Social networking is the most popular online Activity across all age group withCollective reach of 97 %

The Avg. time spent is also more than the other digital activities

Online Activity : Change from last year

Online Activity % Internet Users Undertaking

% Change From last 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

Source: MSN and Mediamind Report, 2011

What is driving web Behavior?

E-Commerce has hit tipping point….India – growth?

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2010 2015E

e-commerce in India

o 4 out of 5 internet users ‘shop’ online (search or buy online), translating into a 80 million strong online consumer base

*Source : Euromonitor International, Juxt Report ,2011

E-commerce in IndiaTop Five Business Hub

1. Delhi

2. Mumbai 3. Bengaluru

4. Jaipur

5. Chennai

On an average day on 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

A car or bike accessory sells every 11 minutes

A piece of home decor sells every 12 minutes

Source: eBay Census Guide 2011

3%5%

8%

16%19%

21%

29%33%

39%

28%26%

65%

72%

40%

Automotives CPG & Healthcare

Finance Media & Entertainment &

Local

Retail Technology Travel

Research online Purchase online

Research online Purchase offline

Significant Research online across categories…

Source: Consumerbarometer.com