google's year in search 2016

The Year in Search

20152016

3

PROLOGUE

-Rajan Anandan

2016 will be remembered as a transformational year for India. India emerged as the second largest Internet and smartphone economy in the world — with over 350 million connected citizens and 220 million smartphone users. Affordable access to high-speed internet turbo-charged appetites and opened up a new online world for users across the length and breadth of the country.

This has led to a fundamental shift in how Indians find information, make decisions, engage with people, and make themselves heard. For example, more and more people are turning to Search for highly contextual and hyperlocal queries such as ‘How-to’ and ‘Near-me’. 2016 saw the volume of ‘How-to’ queries grow by 44%. Further, online video is growing at an unprecedented pace with over 2X growth in watch time in 2016. Over 50% of Indian internet users are watching online videos to learn something new.

Another much-anticipated outcome of this device and content boom is the emergence of a new group of users. We call it the emergence of Bharat. It’s interesting to witness the insatiable pace at which this new wave of people are consuming information and experiences online. Non-metros now account for almost 30% of YouTube watch time, backed by regional content, better devices, and the increase of accessibility. Approximately one-third of all search queries now originate from outside the Top 20 Indian cities. This group is also driving several new trends such as the rapid increase in consumption

of Indic language content, which is expected to only grow further. Over the next three years, India’s internet population is expected to grow to 650 million and with nearly three-fourths of users coming from smaller towns, the socio-economic fabric of India is likely to change.

With this mass movement of users to online platforms and explosion of content, Machine Learning is beginning to play an impactful role in enabling brands to create more targeted, relevant, and creative brand campaigns. A great example of this is ‘Universal App Campaign’ which uses Machine Learning to serve the right app specific promotional ad to the right audience across Google’s platforms.

Given the mainstream role of digital, we started on a journey last year to share with you an annual report on key online trends that gives a flavour of evolving user preferences. And this year too, I am happy to share a multi-segment view that delves into Indian consumers and what’s top of mind for them. I hope this will form a solid starting point for your brand journey in 2017!

Section Page No.

Key Trends

Industry Insights

Auto

Banking, Financial Services and Insurance

Classifieds

Consumer Packaged Goods (CPG)

eCommerceEducation

Government

Retail

Media & Entertainment

Technology

Telecom

Travel

6 - 14

15 - 50

16 - 18

19 - 21

22 - 27

28 - 31

32 - 3536

37

38 - 39

40 - 42

43 - 45

46 - 47

48 - 50

Coming of Age of Online Video

More on Digital Consumer

51 - 54

55 - 57

Sources 58

TABLE OF CONTENTS

6

KEY TRENDS

7

1. Evolution of Digital BharatNewer access methods, content choices, and a new class of users are evolving as a result of the Internet’s reach going beyond 350M users

Watch time for ‘Tamil’, ‘Telugu’, ‘Kannada’, and ‘Malayalam’ content on YouTube has more than doubled in 2016.2

10X growth in ‘Local language’ searches over the past 1.5 years due to increasing availability of Indic keyboards and keypads on smartphones.1

Highest Indic searches were for ‘News’, ‘Bollywood’, ‘Religion’, ‘Social Networking’, ‘Education’, and ‘Jobs’.1

► Content is also Catching Up with Demand

► Consumers are Searching in their Preferred Languages

INDIC

10X

8

► New Wave of Users are Driving Growth

5X

30% of job portal users want to see content in local languages.3

Hindi content consumption on websites is growing 5X faster than English content.*

Over 1/3rd of search queries are coming from outside Top 20 metros.1

These Top 20 metros now account for more than 30% of YouTube watch time, backed by regional content, better devices and access.2

*As per Adsense inventory on Google Display Network

9

2. Digital is Becoming the New Age MallConsumers are increasingly researching and purchasing online across multiple industries

Over 15% of ‘eCommerce’ payments will take place through digital wallets in 2020, up from current 6%.6

Interest for ‘Digital currency’ and ‘Plastic money’ grew up to 5X post-demonetization.1

► Newer Online Payment Methods are Evolving

► Beyond Traditional eCommerce Categories, Other Industries are Increasingly Seeing Online Fulfilment

50% of Air travel transactions took place online in 2016.4

Over 40% of movie tickets were booked online in 2016.17

1 in 5 car buyers are willing to consider booking of a car

online in 2016.5

10

► Across Sectors, Online Markets are only Set to Grow!

Online real estate market set to grow to INR 900 Cr (US$135M) by 2020.3

INR 53,200-66,500 Cr (US$8-10B) of Consumer Packaged Goods will be sold

online by 2020.7

eServices market set to grow to INR 900 Cr (US$135M) by 2020.3

25% of organized retail sales will be online by 2020.8

11

HOW TO

3. India Turns to Digital for AnswersFrom crisis to questions, to newer market needs, India searches for answers online

HOW-TO

1

W-TO

12

155%68%

Find alternate solutionsHigh searches for ‘What is CVV’,

‘How to transfer money online’, or ‘How to fill a cheque’.1

Hunt for Cash155% jump in searches for ATMs.1

Hideouts for Cash68% jump in a day for queries

relating to ‘Black money’.1

► Digital Emerges as the Go-To Destination for Answers

► Demonetization Led to a Spike in Searches Related to Figuring Solutions and Alternatives

‘How-to’ queries increased by 44% in the year,while queries for other questions (what, when, where, why) grew by 32%.1

12

► Addressing New Market Needs

55% increase in searches for ‘Usedgoods’ as this very unstructured

market gets organized.1

5X increase in queries to find things‘Near me’ in the past year, with users

accessing information on the go.1

Searches for newer local servicesgrew by over 50% in 2016,

e.g. ‘Movers’ and ‘Packers’ (74% growth), or ‘Home repair services’ (87% growth).1

13

4. Online Videos - Not just Entertainment

► Online Videos are the Go-To Destination for Learning

36%

90% of car buyers who are online are influenced by online videos during

their purchase journey.5

54% of internet users view online videos to learn something new.9

‘How to’ searches grew by 3X on YouTube in 2016.1

‘Education’ and ‘Jobs’ content consumption on YouTube has

doubled in the past year, while ‘Recipe’ watch time has increased by 6X.2

36% of mobile phone buyers who are online are influenced by online videos

during their purchase journey.9

20% of online users looking to plan their travel are influenced by online

videos during their purchase journey.9

► Online Videos are an Integral Part of Product Research

14

► Online Videos Let Users Stay Up-to-Date

32% of Internet users view online videos to stay up-to-date with trends.9

210% growth in watch time for ‘Hindi news’ on YouTube.2

5X increase in watch time for ‘Beauty tips’ and ‘Styles’ content in 2016.2

54% growth in watch time for ‘Technology’ content on YouTube; consumers are looking for reviews of latest mobile phones and laptops, with ‘Unboxing’ becoming a big trend.2

NEWS

15

INDUSTRY INSIGHTS

16

AUTO

94% of car buyers rate Search as the most useful touchpoint in the purchase journey.5

This indicates strong purchase intent during research. 3 in 4 queries for cars were for specific brands.1

‘Two wheeler’ queries have begun to spike like never before. Queries for ‘Motorcycles’ grew at about 80% YoY; while queries for ‘Scooters’ grew at about 104% YoY.1

Over 100% growth in YouTube watch time for ‘Auto’ content.2

58% of car buyers say that online video has altered their consideration set of brands.5

85% of car buyers took a follow-up action after watching online videos.5

94%

100%growth

Over

Car Searches for brands grew at 42% YoY Scooters: 104%

Motorcycle: 80%

85%90%online car buyers influenced by video

► Online Search is a Critical Touchpoint for Car Buyers

► Online Video Emerges as an Integral Part of Online Car Buyer Research

17

AUTO

‘Dealer’ queries grew strong at 27% YoY — 5X of the growth seen in the last year.1

► India Relies on Search Engines to Find Dealers

60% of the car buyers online looking for dealers rely on search engines to locate dealerships.5

car dealers near me

► Increased Traction for Car Financing

Strongest growth in Tier 3 towns for financing queries: Tier 3 (66%) Tier 2 (40%) Tier 1 (23%) Metros (18%).1

‘Auto financing’ queries grew by 26% YoY, with the largest traction during the earlier stages of the purchase funnel, indicating that research and intent were a priority for consumers before visiting a dealership.10

5XCARS

26%growth

18

AUTO

1 in 5 car buyers are willing to consider booking a car online (up from 13%in 2013).5

‘Convenience’ trumps ‘Offers’ as the primary reason for booking cars online in 2013.5

Top questions for ‘Auto’ on Google are ‘How to drive a car’ and ‘How to ride a bike’.

Did You Know?

► Booking Cars Online is Still New but Growing

19

BANKING, FINANCIAL SERVICES AND INSURANCE

Interest for ‘Digital currency’ and ‘Plastic money’ grew up to 5X post-Nov 8. ‘ATM’ related queries went up 25X in the 3 weeks post the announcement. Since December, ‘ATM’ related queries have reduced from peak by about 50%.1

‘Finance-related’ queries shot up ~40% with ‘Online banking’ and ‘Bill payment services’ being the most-searched categories.1

► Demonetization Fuels Finance Searches

5X 25X2.5X

6X

2X

Consumer interest in ‘UPI’ grew 15X post-demonetization. Top ‘UPI’ related searchesinclude ‘UPI app’ and ‘UPI India’.1

Interest in ‘Credit cards’ grew by 22% while ‘Debit cards’ grew by 92%.1

Queries for ‘Mobile banking’ and ‘Netbanking’ grew by 460% and 128% respectively in the 30 days post the demonetization announcement.1

58%15XUPI App

UPI India growth in mobile wallet queries.

How to transfer money online

How to fill cheque

What is CVV

Online Banking

► Digital Currency and Digital Payment Queries Skyrocket

20


Mobile now accounts for 50% of all searches for ‘Personal loans’, with a YoY liftof 60%.1

Mobile now accounts for 37% of all ‘Life insurance’ searches versus 28% last year.1

‘Stocks and securities’ category has the highest skew towards mobile queries, with mobile’s share at 58%.1

50% 37% 58%searches insurance searches mobile queries

Most searched personal investment category was ‘Equity funds’, with 75% of the total share growing at 22% YoY. Searches for ‘Liquid funds’ grew by 58%, while those for ‘Debt funds’ by 83%.1

75%

► Mobile Continues to Rule Finance Searches

► Personal Investing Goes Online

21

VS

Generic searches for categories like ‘Mutual funds’ (31% vs. 25%) and ‘Home loans’ (22% vs. 12%) grew faster than brand-related searches.1

‘Auto insurance’ has moved from 38% generic searches at the start of 2015 to 50% by the end of 2016.1

‘Life insurance’ and ‘Credit card’ categories remain dominated by brand-related searches, with 90% and respectively being brand- related.1

50%

90%

While 77,000 PoS were installed in November 2016, almost 2M merchant apps for digital payments were downloaded. Searches for ‘POS’ and ‘Merchant apps’ saw the same wide gap, with apps coming up as the go-to solution for receiving payments.11

2Mmerchant apps for digital payments were downloaded.

88%

Did You Know?

38%


► Generic Searches Grew More than Brand Searches for BFSI Products

22

CLASSIFIEDS

The online job market is set to double from INR 725 Cr (US$109M) to INR 1,496 Cr (US$225M) by 2020.3

Searches for ‘Job affiliated’ areas like ‘Resume writing’ and ‘Interview training’ grew by 2X.1

2016 saw a massive growth in searches for public sector jobs which also included ‘Hindi’ searches; ‘रलेव े नौकरी 2016’ and ‘सरकारी नौकरी’ were breakout searches.1

30% of job portal users want to see content in local languages.3

2x 2x

► जॉब की तलाश

23

CLASSIFIEDS

Online real estate market set to grow 4X from INR 213 Cr (US$32M) to INR 900 Cr (US$135M) by 2020.3

Over 50% of searches are from mobile. Key players such as MagicBricks, Housing, and Makaan, have moved to PWA technology for their mSite.1

Searches for ‘Real estate’, grew by 38% in 2016, making it one of the fastestgrowing sectors within ‘Classifieds’.1

1 in 4 searches for ‘Real estate’ were driven by NRIs.1

► Real Estate Emerges as a Strong Category

Real Estate 4X

38%

24

CLASSIFIEDS

48% of searches came outside of the Top 6 metros; ‘Jobs’ (39%), ‘Matrimonial’ (49%), ‘Services’ (48%), ‘Real estate’ (51%).1

Consumers are increasingly looking at buying ‘Used goods’. Searches for ‘Used goods’ grew by 55%.1

‘Value-added services’ are playing a larger role in increasing interest for ‘Used goods’. Searches for ‘Home delivery’ of ‘Used goods’ saw a 5X increase.1

59% of consumers are willing to pay a premium for services like ‘Quality verification’ and ‘Home delivery’ while purchasing ‘Used goods’.3

55% 5X 59%increase

39% 49% 48% 51%

► Searches for Classifieds are No Longer a Top Metro Phenomenon

► Second-Hand Gets First Class Treatment

25

► 2016 was the Year of eServices

Searches for ‘eServices’ grew by 50% in 2016.1

‘eServices’ market is set to grow 7X from INR 60 Cr (US$9M) toINR 440 Cr (US$66M) by 2020.3

Top services being searched for are ‘Dining’ (140% growth), ‘Astrology’ (140% growth), ‘Movers and packers’ (74% growth), and ‘Home repair’ (87% growth).3

CLASSIFIEDS

74%

50%

140%140% 87%

7X

26

CLASSIFIEDS

Consumer interest in ‘Wedding’ affiliated categories like ‘Photographers’, ‘Wedding planning’, ‘Bridal wear’, etc., jumped by 30%.1

Searches & app downloads for ‘Dating’ were hand in glove in 2016. ‘Dating’ related searches grew by 50%, along with a 53% increase in downloads for ‘Dating’ apps.11

50%growth in Dating related searches

30%increase in Wedding affiliated categories

► Searches for Matrimonial & Dating Moved Online

27

More than a third of users found value in additional features like ‘Agent to connect’, ‘Wedding planning’, ‘Photography’, and ‘Astrology’ on matrimonial sites.3

Online matrimony market is set to double from INR 492 Cr (US$74M) to INR 1,197 Cr (US$180M) 2020.3

10%of searches for ‘Mobile phones’ in India are for ‘Used mobile phones’.1

CLASSIFIEDS

Did You Know?

1 in 3 2X

28

CONSUMER PACKAGED GOODS (CPG)

‘Beauty’ content consumption has exploded on YouTube, with a 5X increase in watch time; 90% of top ‘Beauty’ content is created by YT content creators.2

Consumers are turning to Google for their ‘Beauty’ needs with a 70% YoY growth in searches; highest searches are around ‘Hair care’, followed by ‘Skin care’ and ‘Makeup’.1

The Internet will influence INR 73,150 Cr (US$11B) of ‘Beauty & hygiene’ sales in India by 2020, two-thirds of the overall ‘Beauty & hygiene’ industry.7

INR 19,950 Cr (US$3B) worth of ‘Beauty & hygiene’ products will be sold online by 2020, a 10X growth from previous levels.7

2/3rd

70% growth in searches

5X increase in watch time

10Xgrowthof the industry to be

digitally influenced by 2020

► Beauty & the Digital Beast

29


► Back to the Roots

Consumers are turning to natural remedies for their ‘Beauty & hygiene’ needs with a 46% growth in searches in 2016.1

As per IMRB Kantar Worldpanel data, penetration of ‘Herbal/Natural beauty’ products grew 3X faster than average.12

Indian men are turning to the Internet to get answers for their grooming needs, with43% online men using Google Search for their research.9

Men are 3X more interested in ‘Trimmers’ than ‘Razors’, which can also be seen by an 80% YoY growth in searches for ‘Beard styles’.1

80%growth in searches for Beard Styles

50% YoY growth was observed in searches around ‘Male grooming’, with ‘Shaving’ having the highest search share, followed by ‘Deodorants’.1

3X

43% 50%growth

46%growth

► Male Grooming is on the Rise

30


1 in 3 online parents are influenced by search results in their purchase decisions.9

There is a 3X increase in searches for ‘Pregnancy’ related apps.1

Consumers are becoming more health conscious with growing search interest in ‘Weight loss’ (35%), ‘Dieting’ (50%), and ‘Exercise’ (45%). ‘GM diet’, ‘Paleo diet’, and ‘Ketogenic diet, were the top searched diets in 2016.1

Consumers are also looking for healthier food alternatives. Searches for ‘Healthy recipes’ grew by 50%, while ‘Green tea’ searches grew by 40%.1

There is a 3X increase in searches for ‘Health & Fitness’ related apps.1

Within ‘Baby’ related searches, highest searches are around ‘Pregnancy information’(40%), followed by ‘Baby names’ (25%).1

Highest searches are around

followed by

Pregnancy Info

Baby Names

3X

3X

Dieting (50%)

Exercise (45%)

Weight loss (35%)

Health is Wealth

► Parenting Moves Online

► Health Consciousness on the Rise

31


► Searches for CPG go Beyond Metros

50% of searches came from outside the Top 6 metros, growing at 75% YoY.1

‘Baby care’ has the highest skew with 55% searches coming outside the Top 6 metros.1

Growing interest in ‘Indic’ content with 50% YoY growth in searches; 75% of ‘Indic’ searches are for ‘Hindi’ content.1

There is a higher search interest in ‘Virat Kohli’s hairstyle’ than those of leading Bollywood actresses.1

Did You Know?

>

50%

32

eCOMMERCE

Every 2nd shopping search is related to ‘Lifestyle’, growing at 40% YoY.1

78% of online buyers have bought a ‘Lifestyle’ product online.8

‘Lifestyle’ will drive 35% of the ‘eCommerce’ revenue by 2020, making it the single largest ‘eCommerce’ category.8

A 5X increase was observed in ‘Near-me’ searches in the past year.1

39% of smartphone users who conduct a local search visit a store within a day.8

Digital will influence 50% of ‘Organized retail’ by 2020.8

78%

39%50%

35%revenue

5x

40%growth

STORE

OPENOPEN

Lifestyle

Lifestyle includes Fashion,Personal Care, Home Furnishing etc.

► Lifestyle Continues to be the Crowd-Puller

► Increasing Digital Influence on Organized Retail

33

► eCommerce Goes Beyond Discounts

eCOMMERCE

High consumer interest in 2016 was driven by ‘Mobile phones’ (reduced handset prices and data costs) and ‘Appliances’ (online platform adoption by brands).1

After a muted growth in 2015 (7%), consumer interest in ‘Electronics’ saw a resurgence with a 25% growth in 2016.1

9 out of 10 online buyers purchase products online for reasons beyond discounting; 60% buy due to assortment, and 50% for convenience.8

Consumers searched for ‘Brands’ and ‘Products’ 5X more than for ‘Discounts’ or ‘Offers’.1

Assortment - 60%

Convenience - 50%

5X

25%growth in 2016

Brands & Products

► Electronics Came Back on the Radar

34

After a muted growth in H1, H2 shopping searches grew significantly at 35% YoY, on the back of festive sales by key ‘eCommerce’ players. ‘Mobile’ grew 1% in H1 and 33% in H2. ‘Furniture’ grew 25% in H1 and 36% in H2.1

91% of the growth in ‘Shopping’ searches were driven by searches outside of the Top 6 metros.1

Consumers were increasingly looking for content in their preferred language, with a 350% growth in Indic searches.1

33%for Mobile

36%for Furniture

350% growth

खरीदारी

eCOMMERCE

► H2 Riding High on Festive Sales

► Bharat Drives Growth in Shopping Queries

35

► Emergence of the Female Shopper

‘Apparel’ (77%), ‘Beauty’ (62%), and ‘Electronics’ (59%) are the top categories being purchased by women online.8

The number of women online shoppers will increase 5X by 2020 (15M to 75M).8

By 2020, 42% of ‘eTail’ spend will be driven by women (up from 20% in 2015).8

77% 62% 59%

5Xby 2020

2016 saw a 2X increase in searches for ‘How to sell online’.1

Did You Know?

eCOMMERCE

42%by 2020

36

EDUCATION

► Online Video for Education & Jobs

Searches for ‘Android and iOS app development courses’ grew by about 25%.1

India is expected to have the largest developer population globally, overtaking the US by 2018, with 4M developers.13

Searches for ‘Online education’ from Non-Top 6 metros grew 10X faster than the Top 6 metros.1

► Online Education: Beyond Metros

Top searched terms are around learning ‘Spoken English’ followed by ‘Science experiments’.

‘Education’ and ‘Jobs’ content consumption on YouTube has doubled in a year.2

25%growth 10X

fasterApp DevelopmentIndia US

2XSPOKENENGLISH

Online Education

► India Gears Up for App Development

37

GOVERNMENT

► Government Goes Digital

Post-demonetization, searches for PM Modi app went up 50X.1

Searches for ‘Government services’ grew by over 20% in 2016.1

Top 5 searched ‘Government services’ for 2016: ‘Indian railways’, ‘Aadhar card’, ‘EPFO’, ‘Post office’, and ‘Passport’.*1

Goods & Services Tax(GST)

Bhim App

GST

Demonetization

Sabarimala

7th Pay Commission

Surgical Strike

PMO App

ISRO

Swachh Bharat

Unified Payment Interface (UPI)

PMO

*excludes Government jobs

► Huge Demand for PMO App

► What India Searched for in 2016 in News & Politics.1

► Online Education: Beyond Metros

38

RETAIL

► Consumers are Already Omni-Channel

► The Online Shopper is Brand Conscious, However Brand Loyalty is Up for Grabs

Over 60% of searches for ‘Offline retailers’ are for either ‘Location’ or ‘Offer’, indicating strong intent to visit offline stores.- Brand (39%) Location (25%) Offers/Sale (14%) Online Assets (13%) .1

40% of ‘Apparel’ searches were brand-led. Searches for ‘Apparel brands’ were higher than ‘Apparel offers’, indicating that customers are willing to pay for quality.1

However, users were undecided, and 2 out of 3 buyers considered more than one brand before purchasing.8

60%searches for offline retailers are for either location or offer

2/3rd

39

RETAIL

For ‘End of season sales’, search interest picks up almost 2 weeks before the sales begin for most brands.18

73% of users look for early inspiration and make initial discoveries online, and 55% users prepared online for an immediate offline purchase.9

Search interest for

picks up almost 2 weeks before sales begin

73%of users look for early inspiration

55%of users prepared online for an immediate offline purchase

OPENOPEN

Sales

► User Interest in ‘Retail Sales’ Starts Long Before End of Season Sales

40

MEDIA & ENTERTAINMENT

► From Cricket to Kabaddi, Digital is the New Playground for Sports

While ‘Cricket’ and ‘Football’ continue to take the largest share of sports queries, newer sports like ‘Kabaddi’, ‘Badminton’, and ‘Hockey’ have doubled their share.1

Cricket struggles with low traction for players beyond ‘Kohli’, ‘Dhoni’, and ‘Sachin’. The next most searched player is at 25% of query volumes of the top ones. ‘Sindhu’, however, rules ‘Badminton’ with 8X growth in queries for ‘Badminton’ after an Olympic win.1

Football’s appeal in the ‘Mid-tier’ audience segment doubled in the last 2 years, while still remaining the most popular sport among the ‘Premium’ audience. ‘Cricket’ and ‘Kabaddi’ saw distributed traction among ‘Premium’ and ‘Mass’ segments, while ‘Badminton’ and ‘Hockey’ had less support with the ‘Premium’ audience.1

► Online Video Skyrockets

50%growth in ‘Sports’

Queries since 2015

Most sports currently face a void of heroes and fandom.

Football remains the most popular sport among the ‘Premium’ audience

60%

‘Video OTT’ category on the Play Store grew by ~68% from January to December 2016.15

Watch time of leading ‘OTT’ platforms including YouTube grew exponentially on the back of the free data offer by Jio and free internet by Google at railway stations.2

Searches for ‘Watch online’ increased by over 60% with an increasing interest in ‘Online video streaming’. ‘Watch TV online’ emerged as a strong trend too, growing at over 40%.1

68%

41


Queries for the ‘Music’ category grew by 40% in the last 3 months of 2016.1

Women users are 1.3X more engaged on music streaming apps than male users in terms of time spent.16

YouTube emerges as the largest channel for ‘Music’ with over 50M views for trending ‘Bollywood songs’ in just over a week after their release.2

40%

Over 40% of ‘Movie tickets’ were booked online in 2016. The year also saw a 25% growth in queries for online ticketing for movies.17

While ‘Bookmyshow’ remains the most searched term in the category, 2016 saw an increase in searches for ‘Offers’ (45%) and specific locations (35%).1

45% 35%

► Growing Demand for Streaming Music

► Online Ticketing Space Heats Up

42

A correlation of over 80% was observed between YouTube views of the trailers and first weekend box office collections for movies.2

Studios have started using YouTube to pique user interest much before release, putting content as early as a year before release, garnering traction before trailer launch.2

‘Songs and dance covers’, ‘Remakes’, and ‘Unplugged versions’ play a role in spiking interest in ‘Movies’.2

3

Did You Know?

Top 5 most searched shows of 2016 were predominantly from ‘Hindi GEC’: ‘Yeh Hai Mohabbatein’, ‘Kumkum Bhagya’, ‘Yeh Rishta’, ‘Kya Kehlata Hai’, etc. ‘Game of Thrones’ is the only English show to find space in the Top 5, and ‘Bigg Boss 10’ in the ‘Reality show’ category.2

3


► YouTube - The Battleground for New Movie Releases

43

TECHNOLOGY

Over 60% of all ‘PC’ and ‘Smartphone’ buyers research online prior to a purchase.9

Over 80% of buyers use the Internet to search for ‘Stores in their vicinity’.9

~2X growth in searches related to offline stores selling ‘PCs and smartphones’.1

Search queries for ‘Chinese challengers’ witnessed 3.5X growth during 2016 while searches for ‘Indian brands’ increased only 1.4X.1

This reflects in shipment trends — volume share for ‘Chinese brands’ increased 2.5X to 21% while share of ‘Indian brands’ dropped from 40% to 32% in 2016 over 2015.19

3.5XGROWTH

1.4XGROWTH

60%

电话电话

电话

Chinese smartphone sales increased by

2.5X

80%buyers

2x

Chinese Indian

► Online Research Extensively Aiding Offline Purchases

► Chinese Challenger Smartphone Players Rapidly Gaining Ground at the Cost of Indian Players

44

TECHNOLOGY

► Mid-Priced Smartphone Segment Growing

India had the second highest search interest for ‘B2B tech’ and ‘SaaS’ globally in 2016 growing 5X faster than the Top 5 peer countries.1

Rise of new-age startups, a lack of legacy B2B software, and rapid digitization of business processes led to a strong rise in searches for ‘SaaS’.20

Searches for ‘Mid-priced smartphone’ segment INR 9,975 - INR 29,925 (US$150-$450) grew 2.5X in 2016.1

This is reflected in shipment trends — ‘Mid-price’ segment shipments increased 30% while shipments in the ‘Premium’ segment declined by 11% in 2016 vs 2015.19

► India is the Fastest Growing Major Economy in Cloud Services Adoption

$ $$$$$

$$

Mid-price segment shipmentincreased

30%Premium segment shipment declined

11%

5XB2B Tech / Saas

45

TECHNOLOGY

In the ‘Smartphone’ category, 61% of all searches were from mobile devices (39% in 2015) and grew at 100%.1

In the ‘Personal computers’ category, searches from mobile devices accounted for 35% of all queries (20% in 2015) and grew at 80%.1

In the ‘Consumer electronics’ category, 63% of all searches (30% in 2015) were from mobile devices and grew at 127%.1

Smartphone 61% 35% 63%

Searches for traditionally popular ‘White goods’ such as ‘Televisions’, ‘Microwaves’, and ‘Washing machines’ continued to grow by over 100%.1

‘Air purifiers’ generated a lot of interest in the second half of the year with over 60% search growth on account of deteriorating air quality in metros.1

Searches for ‘Online software’ or ‘Web services’ from India grew more than the rest of the world combined in 2016.1

Did You Know?

60%search growth in Air Purifiers

100%increase in searches for white goods

► Mobile is Rapidly Overtaking Desktop as the Primary Online Research Platform

► Significant Increase in Search Interest Across Consumer Durable Categories

46

TELECOM

► Jio Launch Unlocks 4G Ecosystem

15X surge was observed in ‘Jio’ branded queries after launch.1

Overall 4G queries grew by 8X in 2016, coupled with a commensurate increase in searches for 4G devices at 3X.1

An increasing number of users go online to research and compare ‘4G plans’ (3X growth in queries), figure out ‘Processes’ (5X growth in ‘How-to’ queries), and assess ‘Speed and network’ (6X growth in queries).1

15X 8X4G

► Telcos Emerge as Strong OTT Players, Stepping Up the Acquisition Drive

Jio took almost 50% acquisition share in the ‘Video OTT’ category in 2016, while Airtel Wynk achieved ~30% acquisition share in the ‘Music OTT’ category.15

Interest in ‘Content’ (music, movies, games, etc.) for Telcos grew by 16X on Search, with users actively seeking ‘Entertainment content’ and ‘Apps’ from their service providers.1

Telcos’ share in ‘Branded’ queries for ‘Music genres’ is still 15%, compared to non-telco players.1

15%

47

TELECOM

Cat B & C Circles are evolving on mobile data usage. They now account for 30% of Search traffic.1

A Tier 2 user searches as much as a metro user, quickly evolving to similar categories of searches.1

These circles have shown increasing interest in video, now accounting for almost 30% of YouTube watch time, backed by regional content, better devices, and increasing access.2

Airtel launched their payment bank and saw a jump of 2X in interest in just one day! Other telcos such as Vodafone and Idea saw a 66% growth in queries for their payment banks.1

Online recharge and bill payment remained the largest use cases for telco wallets, with 1 in 3 users preferring them to any other payment method.22

Searches for ‘Free internet’ grew by 100% in 2016, as hunger for data consumption grew. ‘Wifi’ searches grew by over 110%, with the top 2 searches being ‘Wifi password’ and ‘Wifi map’.

$ $ $ 100% $

Queries for Telecom wallets,payments bank etc. grew by

Did You Know?

► Search Goes Non-Metro

► Telcos Gain Mobile Wallet Interest

48

TRAVEL

► Air Travel Soars High Online

‘Air travel’ searches have grown by 3X since 2013, while the number of air travelers grew by 45%.23

Generic queries grew at 19%, while ‘Route’ queries grew the fastest, at 43%.1

Half of all air travel transactions took place online in 2016.24

58%of Queries for air travel are branded

50%

► Mobile in Travel is Now about Convenience and Simplicity

Mobile is driving growth in ‘Travel’ queries, with queries across all segments growing at least 5X in the last 3 years.25

30% of queries on mobile are for ‘Last minute travel needs’, which grew by more than 100% YoY.1

5x1/3rdof all ‘Travel’ searches are related to micro-moments

49

TRAVEL

43% of queries in ‘Travel’ are now originating outside the Top 6 metros. Of all queries on mobile, 55% are from metros.1

In non-metros, ‘Car rental’ is the fastest growing segment at 100%. ‘Bus & rail’ queries grew at 43%, while queries for ‘Destination activities’ and ‘Short trips’ grew at 38%.1

‘Hotels’ are the biggest segment in ‘Travel’, capturing 38% of ‘Travel’ queries and growing 16% in 2016.1

Searches for ‘Hotels’ grew at 42%, with the most searched term being ‘Hotel’, indicating Search to be one of the major starting points of consumers on the path to purchase.1

‘Branded’ queries in ‘Hotels’ are only at 22%, indicating that the consumer is undecided during research.1

42% or

► Travelers Turn to Online to Find Hotels

► Reaching Travelers Beyond Metros

50

TRAVEL

► Alternate Stays for Millennial Travelers

8M millennials searched and browsed for ‘Alternate stays’. Searches for ‘Alternate stays’ now constitute 11% of searches for ‘Accommodation’.1

2016 saw 6X growth in queries for ‘Bed & breakfast’, and 3X growth in those for ‘Vacation homes’.1

Searches for ‘Holiday homes’, ‘Homestays’, ‘Houseboats’, and ‘Luxury cottages’ grew by over 2X.1

Queries for ‘Last minute travel plans’ are on an all time high, growing at 123% for ‘Air travel’, 113% for ‘Bus and rail’, and 32% for ‘Hotel bookings’.

Did You Know?

51

COMING OF AGE OF ONLINE VIDEO

52


► YouTube for Many Indias

Watch time for ‘Tamil’, ‘Telugu’, ‘Kannada’, and ‘Malayalam’ content on YouTube has more than doubled in 2016.2

Users watching ‘Tamil’ and ‘Telugu’ content are 2X more engaged than the average. Both categories saw explosive consumption of traditional content like ‘Movie trailers’ and original content like ‘Web series’.2

► Entertainment. Entertainment. Entertainment.

‘Music’ (69%), ‘Movies’ (56%), and ‘TV shows’ (37%) are the fastest growing sources of online entertainment.9

2X

56%

37%

2X

69%

53


14,000 years worth of time was spent on watching ‘Kids content’, growing at 80% YoY in 2016.2

‘Rhymes’ was the most searched query amongst kids’ content.2

YouTube Kids app, with over 10 billion views per year globally, was launched in India. It is customized for Indian children — with localized language and highlighted Indian content.2

‘Comedy’ (84%), ‘Beauty’ (61%), and ‘Cooking’ (58%) are the fastest growing categories on YouTube search.2

A new wave of content creators crossed 1M subscribers with a 3X Increase in watch time; ‘Cooking’ (Nisha Madhulika), ‘Comedy’ (BBkiVines, Being Indian), and ‘Music’ (Vidya Vox, Sanam) gained massive popularity.2

1M

80%

► Rise of the New Wave

► The New Playground for Kids

2X

54


► YouTube on the Go

Indian YT Channels with over 1M subscribers jumped up by 100% in 2016 to a total of 40. 2

Did You Know?

1M subscribers

Amongst YouTube’s Top 10 markets worldwide, India is one of the fastest growing in mobile watch time.2

YouTube Go was built from the ground-up with insights from India and will launch in 2017. The app has been designed to maximize user fun without burning up data, working more effectively in areas with limited connectivity.2

55

MORE ON DIGITAL CONSUMERS

56

► India is More Curious & Unique ► India is More Photogenic

DIGITAL CONSUMERS

10% of searches in 2016 were for things never searched for before.1

Searches for ‘Photography’ and ‘Cameras’ grew by 37%.1

100% growth in searches for ‘Selfies’.1

Photography / Cameras

37% 100%

► India is More Metro

Search behavior across non-metros is increasingly mirroring that in metros.1

In 2016, 100 towns showed similar search patterns as metros, up from 30 in 2015.1

Non-metros searched for newer categories such as ‘Finance’, ‘Retail’, ‘Health’, and ‘News’, beyond categories like ‘Entertainment’, ‘Jobs’, and ‘Education’.1

$

57

DIGITAL CONSUMERS

growth in ‘Near-me’ queries only within the past one year

Top searches on Google Maps in 2016

This is an indication that users are searching more and more on-the-go.1

‘Restaurants’, ‘Hotels’, ‘ATMs’, and ‘Tourist attractions’ were the top searches on Google Maps in 2016.

NEAR ME 5x

► India is More Hyperlocal► India is More Photogenic

58

SOURCES

1. Google Internal Search Data, 2015-162. Google Internal YouTube Data, 20163. Digital Classifieds in India 2020; A study by KPMG & Google, 20164. Phocuswright India Consumer Travel report 20165. Auto Gearshift Study 2016 (Google-led research through survey partner TNS Global)6. Digital Payments Report: Making of a $500B ecosystem in India, Google and BCG, 20167. Impact of Digital on Beauty & Hygiene, A Google Bain study, 20168. Digital Retail in India 2020; A Google-A.T.Kearney Study, 20169. Consumer Barometer Survey, 2015-1610. Google Internal Search Data, 2015-16, Google Kotak Consumer Querimetrix 1.1, 201511. App Annie, RBI, Google Search12. IMRB Kantar Worldpanel Data, 2015-201613. Economic Times: India overtakes US in mobile developer courses14. Google Internal Data; Google Playstore15. Google Internal Playstore Data, App Annie, 201616. Nielsen Smartphone Analytics Report, 201617. KPMG FICCI Media and Entertainment Industry Report 201618. Google Trends19. IDC Shipment data 201620. SaaS for Global Audience; A study by Accel & Google, 201621. Operator Quarterly Report, Hindustan Times22. Google BCG Digital Payments Report, 201623. Google Internal Search Data, 2016. DGCA, Phocuswright India Consumer Travel report 201624. Phocuswright India Consumer Travel report 201625. Google Internal Search Data, 2013-16

While this report talks of various companies and industries, it only relates to information and insights based on data from Google products. Unless otherwise specified, all statistics are based on analysis of internal Search queries data and YouTube Usage Data in 2015 & 2016. Joint reports by Google cited in this Playbook are independent market reports and are not influenced by any party. Data from search queries used in this Playbook is based on searches done by users independently on Google. Google doesn’t take any responsibility of the publically available data cited in the report.

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