India Online 2009

Understanding Online Indians and their Net Usage Behavior and Preferences

• Most recent estimates of Internet user-ship in urban and rural India. Estimates based on

a land survey conducted between Dec 2008–Jan 2009 among 135,000 individuals from 16,000 households in 40 cities and over 12,000 households in 480 villages spread across all the 4 regions of the country

• Insightful understanding of net usage behavior and preferences of regular online Indians. Findings on ‘net usage dynamics’ based on a sample of over 50,000 ‘active’ online panel

members with JuxtConsult, and findings on ‘popular online activities and website preferences’ based on an online survey among more than 12,500 of these ‘active’ panel members in Feb-Mar 2009

• Understanding of online Indians as ‘consumers’ and not just as faceless net users. Includes their socio-economic status, online shopping behavior, and website and media preferences reported on the ‘most used’ basis

• Website preferences captured for over 32 online verticals/domains

Study Overview

A land survey was conducted to profile and estimate the users of internet. The survey covered ‘towns’ and ‘villages’ of all population strata, and ‘households’ of all socio-economic classes (SEC) within each of these towns and villages

Net usage dynamics, behavior and website preferences were captured from the ‘actual’ internet users form JuxtConsult’s own Internet User Panel (www.getcounted.net)

Demographic ‘weights’ derived from the land survey were then used to make the online panel and survey data representative of the entire online urban population (and not just of the online panel members)

Representation ‘weights’ were derived based on 6 demographic parameters - town class, SEC, region, gender, age and preferred language of reading

Only authentic Govt. of India data (NSSO/Census/RGI) were used for estimation of user-ship and derivation of representation ‘weights’

Methodology

Topline Findings

‘All’ internet users down at 47 million (39 million urban, 8 million rural)

Drop of 6% from last year (lapse of around 3 mn occasional users)

Just 10% growth in ‘regular’ users base*, reaching 38.5 mn (33 mn urban)

+3.5 mn regular ‘urban’ users over last year, +0.4 mn regular ‘rural’ users

15% growth in ‘daily’ internet users (+4.2 mn in last 1 year to reach 32 mn)

Pond gets smaller, but livelier…

* Regular internet users = internet users who use the internet ‘at least once a month’

** All internet users = Regular + Occasional internet users who have ‘used the internet in last one year’

Lapsers predominantly Cybercafe users

Exclusive cybercafé user base shrink to become just 6% of all internet users

Lapsers from cyber cafe account for most of the internet lapsers in last one year

Office continues to be the place from where internet is accessed the most (68% at ‘multiple’ access point level)

Average place of access per user is 1.9

On preferred access point basis, home tops at 37%

1 out of 4 computer user still not using internet

Most new broadband connections are ‘replacement’ connections

Still only 4 mn internet users access it through mobile phones

Only 13% of existing internet users prefer to read in English

More importantly only 20 mn Indians (<2% of all) prefer to read in English

Affordability & language holding it back…

4 out of 5 online Indian are in the ‘prime’ of their life (19-35 years)

3 out of 4 of them belong to the ‘consuming’ and ‘aspiring’ class (almost half of them belong to SEC ‘A’ and ‘B’)

Half of all Internet users are employed

Their average monthly family income is 3.2 times the national average

3 out of 4 of them come from the non-metro towns and nearby villages

Catching the ‘classes’ across the country…

Household Assets % Internet Users Owning

Color TV 78%

Mobile Phone 72%

Bank Account 68%

Computer/Laptop 71%

Fridge 53%

Life Insurance 46%

2-Wheeler 51%

Credit Card 25%

Air Conditioner 13%

4-Wheeler 10%

Invested in Shares 14%

On an average net users undertakes 13 activities online (2 less than last year)

Main gainers are dating/friendship, check cricket content, PC to PC net telephony and downloading mobile content. Main losers are download music, check business & financial news, check sports other than cricket, check cinema content and professional networking

42% use a local Indian language website (+8% over last year)

What they do when online…Top 10 Online Activities* % Undertaking Change from 2008

Search for travel products 84% -

Job search 71% -0.3%

Search for non-travel products 68% -

Instant messaging/chatting 67% -3%

Check general news 62% -1%

Dating/Friendship 55% +5%

Check cricket content/score 53% +3%

Check sports other than cricket 52% -

Matrimonial search 49% +0.4%

English info search engine 49% +0.6%

* Emailing not included as all panel members are email users by default

89% of all regular online Indians ‘shop’ online (search or buy)

20% have also bought online in last 1 year, i.e., ‘active’ online buyers base of 7.6 million

65% of online ‘buyers’ have bought a travel product online and 50% have bought a non-travel product online

74% of travel buyers have bought train tickets, 34% air tickets

Credit card is the most popular mode of online payment at 50%

Less than 1 in 5 ‘non-buying’ online shoppers cite ‘fear of misuse of credit card’as a reason for not buying online

Most net users ‘window shop’ online

Google continues to be the most used website of all!

Website % Use it the Most Change from 2008

Google 35% +7%

Yahoo 25% -3%

Gmail 11% +3%

Orkut 7% -1%

Rediff 4% -5%

Indiatimes 1% -0.1%

Moneycontrol 0.7% -0.1%

Hotmail 0.6% -0.4%

Youtube 0.5% +0.3%

Sify 0.5% -0.2%

Most Used Website for Specific Activities

Vertical Top Website % Use Most

Vertical Top Website % Use Most

Emailing Yahoo / Gmail 45% / 44% Matrimony Bharatmatrimony 37%

Instant Messaging Yahoo 38% Friendship/Dating Orkut 38%

Job Search Naukri 44% Share Pictures Orkut 26%

Online News Yahoo 21% Social Networking Orkut 53%

Info Search – English Google 76% Professional Networking Orkut / Linkedin 24% / 24%

Info Search – Local language Google 34% Video Sharing Youtube 32%

Online Travel Buy IRCTC 43% Non-cricket Sports Espnstar 19%

Games Zapak 41% Cricket content Cricinfo 27%

Online Buying (Non-Travel) Ebay 25% Cinema content Youtube / Yahoo 18% / 17%

Real Estate Makaan 23% Listen/stream Music Raaga 16%

Business & Financial News Moneycontrol 22% Financial Info & Quotes Moneycontrol 24%

Online Share Trading ICICIdirect 28% Buy/Rent Movie CD Rediff 27%

PC to PC Net Telephony Yahoo 29% Mobile content Yahoo 18%

PC to Telephone Net Telephony Yahoo / Skype 28% / 26% Cinema Tickets Google 19%

PC to Mobile Messaging (sms) 160by2 21% Astrology Astrology 25%

Net banking ICICI Bank 31% Download Movies Torrentz 35%

Report Details

• The India Online 2009 package of reports has an ‘Overall Report’, which

presents the broad level findings on various aspects of net usage (on the

base of ‘all internet users’)

• In addition there are a series of Supplementary Reports

• Each supplementary report presents a specific ‘category level’ or ‘user

segment level’ findings. Here the sample base is the ‘subset’ of internet

users belonging to a specific user segment, or undertaking a specific online

activity, and the report outlines their internet usage behavior and

preferences

List of Reports

List Of Reports1. Overall Report

User Segment Supplementary Reports:

2. Women on the net3. Youth on the net (teenagers and young adults)4. Urban versus Rural net users 5. Net users by their socio-economic (SEC) profile6. Students on the net7. Corporate employees on the net8. IT professionals on the net9. Heavy online spenders on the net10. Bloggers on the net11. Car owning net users12. Two-wheeler owning net users13. Credit card owners on the net14. Net users by place of access (homes, place of work,

cyber cafes)15. Net users by type of connection (broadband, dial-up,

etc.)16. Net users by city/town type (metros, urban uptowns,

emerging towns, and others...)17. Net users as financial investors18. Vernacular language net users

Category Supplementary Reports: (profiling users of top 5 websites)

19 . Online Shopping20 . Emailing21 . Instant Messaging / Chatting22 . PC to Mobile Messaging23 . Job Search 24 . Matrimony25 . Info Search – English26 . Travel Booking27 . Social Networking28 . Professional Networking 29 . Friendship / Dating30 . Sharing Pictures31 . Sharing Videos32 . Online News33 . Business/Financial News34 . Financial Info (quotes, rates, indices, etc)35 . Online Share Trading36 . Net Telephony (PC to PC, PC to Telephone )37 . Cinema Content38 . Book Cinema Tickets39 . Buy / Rent Movie CD/DVD40 . Sports Content (cricket, other sports)41 . Online Music42 . Online Games43 . Online Real Estate44 . Mobile Content Download45 . Astrology46 . Online Education / Learning

Note: Completion of any supplement report is subject to collection of sufficient sample responses in the survey.

Pricing of ReportsReport Price (Rs.)*

* 12.36% service tax extra

Price (USD)

Main Report 100,000 3,500

Supplementary Report 100,000 each 3,500 each

Main + 1 Supplementary Report (list price) 200,000 7,000

Main + 2-4 Supplementary Reports Less 15% of list price Less 15% of list price

Main + 5 or more Supplementary Reports Less 25% of list price Less 25% of list price

Note - only supplement reports cannot be bought in isolation (without the main report).

• Payment Terms : 50% advance, 50% after delivery of all reports

• Delivery Timeline : Main Report – First Week of April 2009

: Supplementary Report – 1 week per report thereafter or

from date of order, whichever is later

• Report Delivery Format : PDF

Demographic and socio-economic profile of online IndiansGender, age, city (village), city type (village type), region

Educational qualification, current occupation, industry of occupation, preferred language of reading, status in the household

SEC (urban, rural), monthly household income, most expensive vehicle owned

Household and financial asset ownership – home, land, TV, fridge, washing machine, AC, microwave, music system, DVD player, Ipod, camera, video recorder, tube well/pump, landline phone, mobile phone, computer, cable TV connection, bank account, demat account, fixed deposits, chit fund deposits, life insurance, medical insurance, debit card, credit card, mutual fund, shares, etc

Currently running loan liabilities if any

Net usage status and dynamicsYears of experience in using the net

Place of access (home, place of work, cyber café, transit, choupal/gram panchayat)

Net usage details by the most preferred place of access - type of connection, ISP subscribed to, frequency of usage, duration of usage, usage by day parts

Daily time spent on net vis-à-vis on computer usage, watching TV, reading newspaper and listening to radio

Information Coverage

Online activities undertaken and most used websitesPopular online activities and their usage penetrations

Most used websites at the overall level

Most used websites for 30 popular online activities:

Emailing Instant Messaging/Chatting

Info Search (English) Info Search (Local Language)

Job Search Astrology

Travel Booking Online Shopping (other than travel products)

News Financial Info (rates, quotes, etc.)

Online Share Trading Real Estate Info

Matrimonial Search Dating/Friendship

Social Networking/Communities Sharing Pictures

Sharing Videos PC to PC and PC to Phone based Net Telephony

Professional Networking PC to Mobile messaging (SMS)

Gaming Listen/buy Music

Sports (cricket & non cricket) Cinema Content

Buy/Rent Movies Downloading Mobile Content

Net Banking Online education/learning

Information Coverage

Online shopping behaviorPenetration of online shoppers (search) and buyers (search and buy)

Travel products bought and searched in last 1 year, search-to-buy ratios, frequency of buying and average monthly spends

Non-travel products bought and searched in last 1 year, search-to-buy ratios, frequency of buying and average monthly spends

Modes of online payment used

Motivations of buying online and problems faced while buying online

Reasons for not buying online (for those who search only)

Online marketing stimulus responded to (banner ads, search ads, virals, contest, e-mailers, newsletters)

Internet usage in local Indian languagesPopular languages of internet usage, most used websites for each of these languages

Blogging & online community membershipProportion of internet users reading, commenting and owning blogs

Proportion of internet users as members of online communities

Main problems faced while surfing the Internet

Information Coverage

Contact Details

• Address : 3, Kehar Singh Estate, 1st Floor, Westend

Marg, Lane 2, Said-ul-Ajaib, New Delhi – 110030

• Telephone : +91-11-29535098, +91-11-32451093, +91-9811256502

• Contact Person : Sanjay Tiwari

• Email : sanjay@juxtconsult.com

• Website : www.juxtconsult.com

Thank You!