INTERNET IN INDIAPAST | PRESENT | FUTURE

ContentsIntroduction

Evolution of Internet in IndiaInternet Statistics

Penetration |Demography | Age | Gender |GeographyInternet Surfing Habits

Why InternetInternet Advertising IndiaInternet Platforms

Social Media – the next catchment areaFuture of Advertising – confluence of mediumsAppendix/ SourcesCredentials

The Online Medium

The Internet is the only medium that lets us do all this

evolution of internet - India

• VSNL introduces internet in India via dialup in 6 cities on Aug 14,199519951995

• Rediff.com launched by Ajit Balakrishnan. • India’s first cyber café called “Cybercafe” launched in a Mumbai hotel19961996

• First online banking site launched by ICICI Bank• Naukri.com launched; this becomes India’s first profitable dotcom• Sabeer Bhatia’s Hotmail sold to Microsoft for $400 million in USA ; he becomes the poster boy of the Internet age to Indians

19971997

• India introduces new ISP policy which ends VSNL’s monopoly on internet• Sify becomes India’s first ISP• First major hacking case-teenagers hack data on BARC’s servers• Cybercafés start mushrooming across Indian cities

19981998

• First cyber crime related arrest-2 arrested for hackinggo2nextjob.com• Indian Railways launches online ticketing site, irctc.com• India’s first cyber crime police station opens in Bangalore• Dotcom bubble bursts – some sites close, some go into hibernation

20012001

• Dotcoms start exercising exit options• EBay buys out Bazee.com & Monster.com buys Jobsahead.com• First Indian Dotcoms IPOs are successful– indiabulls.com &indiainfoline.com• A high profile cyber crime exposes sheer inadequacy of India’s IT laws - Baazee CEO jailed for MMS scandal

20042004

• Youth is a key driver for the growing Internet base in India, with openness and adaptability to change being key factors.• The office is now the major access points for the Internet this year, having surpassed the popularity of cyber caf?s that were prominent last year.

• Oniline gaming emerges as a revenue model. online gaming industry in India at Rs 210 million20072007

• Financial cos check online advertising growth at 32%• Online display advertising industry, grew at 38 per cent in 2008-09 to Rs 325 crore• Social Media becomes the high point in online engagement

20092009

Statistics

• India has an active internet population of 52 million

• With a penetration level of 5.2% expected to reach 10% by 2015.

• The country's Internet population has grown 2600% since 2000

• 58% of the Indian online population is in the age group of 19-35

• 36% of Internet users from India are from small towns and rural India

• Sec C/D/E account for 35% of Indian internet users

• 78% of the young audience prefer Internet to television when it comes to entertainment / information**

Internet Penetration

Internet Users > India-China-US-UK

Geography

SEC Classification

Age Break Up

68%

32%

Gender Split

Daily Traffic Trend

Source: LiveMint

Highest traffic during late evening : 7-8pm

Time spent : Websites accessed

The Internet Advantage

Purchasing Power on the Net

Internet Advertising in India

Online Ads Market in India

• Online ad market in India is approximately INR 2350 Million in 2007-08. • expected that reach INR 3500 Million in 2008-09

• Reasons:– Increase in Internet Penetration

– Increase in the online activities of the Internet users

– Targeted Niche Advertising– Branding Power

– Cost Effective– Behavioural Targeting

– Creative Output– Online Sales

– Global Reach

Size of Internet Advertising

• PWC 's report states that internet advertising will grow 32 per cent over the next five years and touch Rs 1,100 crore in 2012 from Rs 270 crore in 2007.

• In 2007, the segment grew 69 per cent to Rs 270 crore from Rs 160 crore in the previous year. This was the highest growth compared with all other segments in the entertainment

and media industry.

• The share of Internet in the overall advertising pie is projected to grow to 2.4 per cent in 2012 from 1.4 per cent in 2007.

• In the US for comparison the online advertising industry contributes around 10% to the total market size.

• Globally it is estimated that market size is $45 billion for Internet advertising, which is 7.4 percent of the total $600 billion global advertising market

Industry wise spend

Industry spends growth

Internet Ad = effective sales

Advertising Opportunities Online

Website/Microsite Search Engines

Social Media

Email Banner s

Content Integration

Apps / Widgets

Mobile

Advtg.Options

SOCIAL NETWORK MARKETING –

THE NEXT CATCHEMENT AREA

Social Marketing

• Definition – It is a platform for connection between like minded people or those that have a

personal connection– Communities or groups are initially formed on physical connections & social

networks radiate outwards based on common interests between people (MGM).

– Social networking provides the platform for people to engage & find other like minded individuals.

But Why But Why Should I Care..?Should I Care..?

BECAUSE

In the last 5 mins..

1,000 Indians tweeted about their day

15,000 Indians watched a video

8,000 Indians updated their status message

15,000 Indians watched a video

200,000,000blogs

>100,000,000 videos

(65,000 new videos/day)

45% have started their own blog

73% of active online users have read a blog

1.5 million residents

Almost

4,000,000articles

SOCIAL-NETWORKING SITES ARE OFFICIALLY MORE POPULAR THAN MOST SITES!

IT’S A FUNDAMENTAL SHIFT IN THE WAY WE COMMUNICATE.

The old communication model

was a monologue.

The new communication model

is a dialogue.

Which means it’s….

TRANSPARENTINCLUSIVEINCLUSIVEAUTHENTIC

VIBRANTVIBRANTCONSUMER-DRIVEN

“Content is the new democracy andwe the people, are ensuring that ourvoices are heard.”Brian Solis, “The Social Media Manifesto”

PEOPLE ARE TALKING ABOUT YOUR BRAND. RIGHT NOW.

Tomorrow’s consumers are today’s “digital natives.”

But where does But where does social marketing social marketing fit in a marketing fit in a marketing

context?context?

Consumers expect to see commercials messaging on portals & sites.But on social network sites, without relevance & context, it has the ability to possibly devalue & detract from a brands relevance, stature & esteem.

Continual rise of social media: Content creation is mainstream

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Wave 1 Sep 06 Wave 2 June 07 Wave 3 March 08

% E

ver D

one

Read blogs / weblogs

Start my own blog/ weblog

Leave a comment on a blog site

Upload my photos to a photo sharing site

Upload a video clip to a video sharing site

Watch video clips online

Create a profile on a social network

Social Media adoption over time (waves 1 – 3) Global Average. Source: Universal McCann Social Media Tracker Power to the People

New influence landscape: the rise of social media

Results from the social media tracker have consistently proved the massive growth of social media platforms and movement of content creation into the mainstream.

Evolved ConversationPrism

Visualizing the social network

Community clustersMicro social networks that exist with a set of communities eg. Facebook

Enabled through platforms such as blogs, media sharing, feeds, communities, mobile technology etc. – people are meeting, connecting, organizing, sharing and collaborating in

unprecedented fashion

Interactions between “community clusters”

Legends

Five key Social Marketing take outs

• Absolute relevance– Just because you can, doesn’t mean you should

• Community– Understand your audience & reason for being

• Involvement– Offer something your audience wants

• Creative– If it looks like an ad & smells like an ad, it won’t work in social networking

• Measurement– What does success look like ? What is the economic value of the campaign ?

FUTUTRE OF MEDIA

The TV Generation• Switch off• I receive• Couch Potato• Helpless• Monoculture• United

The Net Generation• Switch On• I send & receive• Subway Surfer• Powerful• Multi-culture• Fragmented

The new Consumer

The New Broadcaster

Broadcasting 1.0– Closed systems– One to many

– The Network =Power

Broadcasting 2.0– Open Network– One to One– Many to Many– Networked = Power

Future of Advertising/Media

So what is Content, in the Future?• Professionally produced and traditionally / legally owned• Created by the Users and sharedalike- commons-public-free-etc• Meta-Content: the Users’ data and click-streams layered around other (professional)

content• Pro Content ‘appropriated’ by Users

– The Users themselves

• the Power of the Link Economy– The Real-Time Web is here– Following Logic (from Impressions to Followers)– Filtered & Curated by Pros and Peers– The shared ‘National’ Experience is back!– Fragmentation and Aggregation

It’s hard to ‘own’ a copy now but You can own the…Context, the Meaning, the Relevance, the Experience, the Embodiment, the Timing...

Open ContentA lot of Content Producers will expand into becoming - Context Providers, Curators, Aggregators, Packagers...

Curation: Exposing and Seeding, Testing,Rating, Tagging, Contextualizing,

Remixing, (Re-)Framing, Packaging...

OpenMobile

ConnectedCollaborative

Interdependent

People will consume this way…

Future of Advertising/Media

Summarizing

• The new content economy has created a huge opportunity to create new models of communication

• The peripheries of content will rule and not just the content• Adding value should be the focus, not extracting it

• Focus on the audience, first, and only then on the revenues• Constant Innovation is the key – there is no handbook to

success !

Sources:• Evolution of Internet in India :

– http://www.amitranjan.com/2005/08/31/milestones-in-indias-internet-journey/– http://iamai.in/PresCoverage.aspx#

• Internet Statistics– http://www.internetworldstats.com/asia.htm#in– http://iamai.in/ (IAMAI- ICUBE 2009)– http://data.worldbank.org/indicator/IT.NET.USER?cid=GPD_58– http://watblog.com

• Emergence and Rise of Social Media– Web2.wsj2.com

• Evolved Conversation Prism– www.theconversationprism.com

• Visualizing the social Network– http://darmano.typepad.com/logic_emotion/2006/06/visualizing_the.html

• Future of Media– http://www.mediafuturist.com– http://creativecommons.org/weblog/2006/07/page/2

Credentials• Vikram Gupta

– Digital Marketing Professional– Business Head (Delhi) @ Ignitee Digital Solutions Pvt Ltd.

vikram@ignitee.com | vikram.kr.gupta@gmail.com

http://in.linkedin.com/in/vikramkrgupta