Internet on INDIAPublished on March 2012

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

1995 2000 2005 2010 2015E0

500

1000

1500

2000

2500

3000

3500

Internet Users (mn)

12811476

752

1414

Rest of World

Emerging Markets

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

Internet Growth: The Indian Story

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

Pointers

* In Millions1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

1,400,000

100,000,000

*Source: internetworldstats.com

India is the 3rd largest Internet User Market

112 Million internet users

Total Pop : 1.2B

Urban (12+) : 240M

Internet : 100M

SEC A/B (15-44): 50M

At 100M+ users, online users represent the strong purchasing class

2010 2015

0

50

100

150

200

250

100

300

Internet population will multiply 3.1x in 5 years

2000 2001 2003 2004 2006 2007 2008

0%

20%

40%

60%

80%

100%

120% 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

*Source: internetworldstats; Internet’s New Billion, BCG – Sep2011; IAMAI; IRS

Internet population will triple in 5 years

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+ 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 NetworkAs 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.

What makes the internet so Powerful? Audience across age groups

*Source: ComScore, Dec, 2011

What makes the internet so Powerful?Media Consumption Landscape

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

2009 2010 2011

115 130 135

6562

6040

6060

125

130

160

Print Print Radio Internet TV

( *In Minutes)

*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 reducing from 25K to ~10K

o Data plans prices are further reducing

Internet as a marketing platform isBigger

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

Implication for Advertisers…

Monthly Online Presence

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

28.10 M

9.5 M

11.6 M

4.7 M

1.66 M 0.7 M

18.29M

5.99M7.54 M

3.05 M

1.12 M 0.5 M

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

Purpose of Internet visit

*Source: IAMAI

Instant Messengers

Photos

Entertainment-Movies

Travel

Career Services

Education

Business/Finance

Entertainment - Multimedia

News/Information

E-mail

Search

Social Networking

26

27

32

42

43

42

57

62

76

79

89

97

% Reach

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

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

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

What is driving web Behavior ?

2010 2015E0

20

40

60

7

40

e-commerce in India

470 %

growth

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

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

Research online Purchase on-line

Research online Purchase off-line

Significant Research online across categories…

Source: Consumerbarometer.com

1.4Bn Weekly Search Queires on Google alone

Entertainment

Computers and

ElectronicsTelecom Finance &

Investment Health Sports

Technology Auto Travel Local and Retail

21%

3%

29%

19%

72%

33%40%

65%

Research online purchase online

Research online purchase offline

9/1/0

8

11/1/0

8

1/1/0

9

3/1/0

9

5/1/0

9

7/1/0

9

9/1/0

9

11/1/0

9

1/1/1

0

3/1/1

0

5/1/1

0

7/1/1

0

9/1/1

0

11/1/1

0

1/1/1

1

3/1/1

1

5/1/1

1

7/1/1

1

9/1/1

10

5

10

15

20

25

30

35Mobile and Desktop Search Query Growth Over The Last 3 Yrs

Mobile 28XDesktop 6X

source: Google Internal, Consumer Commerce Barometer Source – Google

a growth story of 60% Y-o-Y

As we speak India is changing:

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

YOU THANK

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