eMarketer India Online

8/3/2019 eMarketer India Online

http://slidepdf.com/reader/full/emarketer-india-online 1/15

Executive Summary: As the world’s second-most-populous country, India is near the top of the list when it comes

to sheer numbers in every category of media usage. Internet users are no exception.eMarketer estimates that there

will be 49.7 million Internet users in 2009, a figure set to exceed 96 million by 2013.

106776

Internet users in India have taken to social media very strongly.

Blogging and social networks are both popular; three research

firms agree that at least 60% of Internet users have visited or

created profiles on social networks. Google maintains a strong

lead in the space with orkut, but analysts agree that there is

room for several Websites that can focus on building a strong

brand and maintaining cultural relevance.

As consumers become more familiar with the Internet,

e-commerce has shown strong growth. According to

researcher JuxtConsult,a total of 70% of Internet users went

online to shop in 2009, an increase of 13 percentage points

over 2008. Business-to-business (B2B) e-commerce is

attracting a lot of attention from international players,as well,

due to the growing needs of a booming services economy.

Online advertising spending in India is rising fast, and that growth

will introduce new avenues for spending as ad budgets recover

from the recession.According to PricewaterhouseCoopers (PwC)

online ad spending will reach $114.0 million in 2009.Many leading

industry players expect India,along with other large emerging

economies, to lead the way out of the global ad downturn.

According to several estimates, India has the fastest-growing

population of mobile phone users in the world.That pace is only

expected to increase in the next few years,as Citi Investment

Research and Frost & Sullivan expect India to surpass half a billion

users.While most use their phones solely for communication,the

potential for data services,especially mobile banking,is vast.

India Online

November 2009

® Digital Intelligence Copyright ©2009 eMarketer, Inc. All rights reserved

Internet Users and Usage 2

Social Media 4

E-Commerce 6Online Advertising 7

Mobile 9

Endnotes 11

Related Information and Links 14

Comparative Estimates: Internet Users in India, 2008& 2009 (millions)

comScore World Metrix*, January 2009

eMarketer, February 2009

Internet & Mobile Association of India (IAMAI)**, January 2009

JuxtConsult***, April 2009

2008

32.1

40.7

39.8

35.1

2009

-

49.7

-

38.6

Note: *ages 15+; **used in the past month; ***use at least once per month Source: eMarketer, February 2009; various, as noted, 2009

106776 www.eMarketer.com

For additional information on the above chart, see

Endnote 106776 in the Endnotes section.



2India Online®

Internet Users and Usage

Internet use in India has been gaining momentum.

In February 2009, eMarketer estimated that there

were 40.7 million Internet users in 2008 and would

be 49.7 million in 2009, an increase of 9 million.

JuxtConsult, an online marketing research firm in India, estimatedslightly fewer Internet users than eMarketer, at 35.1 million in

2008.The firm also forecast growth of 3.5 million users,up to

38.6 million in 2009.

106776



Several research firms have predicted similar increases from 2007

to 2008. comScore World Metrix reported in January 2009 that

there were 32.1 million Internet users in December 2008,an

increase of 5.9 million users over the same period in 2007.

The Internet & Mobile Association of India (IAMAI), in the January

2009 report “I-Cube 2008,” estimated 32.0 million Internet users in

2007 and 39.8 million in 2008.

Drilling down into the “India Online 2009” JuxtConsult report, there

was a drop of 2.91 million total Internet users from 2008 to 2009.

The researcher attributes the decline to the decreased usage of

Internet cafes,affecting mainly occasional users,who decreased

in number from 14.3 million to 7.9 million from 2008 to 2009.The

report also mentioned that daily Internet users increased to

32 million in 2009.

103314

While India may be in the top 10 countries worldwide by Internet

users,according to comScore figures, it rates lower when looking

at Internet penetration. In a country where the US Census Bureau

puts the population at 1.2 billion, eMarketer’s estimate of

49.7 million users accounts for only 4.3%.

Where Internet user penetration is low, broadband penetration is

not any better. In 2009,eMarketer estimated a total of 8.3 million

broadband households in India.That figure is set to more than

triple to 29.9 million by 2013, but would still represent only 14.1%

of total households.

The June 2009 “Global Media and Entertainment Outlook 2009”

report from PwC placed broadband households in India at 7.8 million

in 2009 and 21.9 million in 2013.

In August 2008,comScore reported on search engine usage in

India for the month of June.It found that India accounted for less

than 2% of total worldwide search queries, with significantly fewer

queries per user;53.1 was the average in India, while 92.5 was the

average worldwide.

097595






2008

32.1

40.7

39.8

35.1

2009

-

49.7

-

38.6

Note: *ages 15+; **used in the past month; ***use at least once per month Source: eMarketer, February 2009; various, as noted, 2009


Internet Users in India, 2008 & 2009 (millions)2008 2009

Regular users* 35.09 38.57

Occasional users** 14.31 7.92

Total 49.40 46.49

Note: urban and rural locations; *use the Internet at least once per month;**used the Internet in the past year Source: JuxtConsult, "India Online 2009," provided to eMarketer, April 7,

009


Search Engine Usage in India and Worldwide, June2008

Searchers(thousands)

Searches(millions)

Searchesper

searcher

India 23,416 1,242 53.1

Worldwide 802,267 74,217 92.5

Note: ages 15+; home and work locations; excludes traffic from publiccomputers such as Internet cafes and access from mobile phones or PDAs Source: comScore qSearch 2.0 as cited in press release, August 19, 2008




India Online®

3

Internet Users and Usage

While Internet users in India may not be prolific searchers,the

share of search queries by Website still follows international

trends.Google’s share of online search queries in India is

indicative of its top-of-mind status for online consumers.ViziSense

found that Google accounted for 91.2% of all search queries

performed in India during July 2009.Yahoo! accounted for 6.2%,

Microsoft for 2.3% and local search player Guruji took 0.3% of totalsearch queries.

106433

Search is not Google’s only strength, of course.comScore World

Metrix studied Google-owned sites in India in July 2009 and found

that the Web goliath also commanded a strong lead in online

video, social networking and online maps. Internet users spent a

whopping 82.8% of their time watching online video at YouTube.

orkut commanded a 68.2% share of time spent on social

networking, and Google Maps took 63.9% of time on map sites.

Still, search is the most popular online activity in India by far.

JuxtConsult found that five different types of content searches were

among the most popular online activities queried in its survey, with

travel, job and product searches taking the top three spots.

103322

JuxtConsult also found that 35% of respondents used Google

more than any other Website.The next-most-popular site was

Yahoo!,with 25% of respondents.

Internet users in India are quickly growing into a sizable segment

of consumers.According to eMarketer estimates, there will be

49.7 million Internet users in 2009,a figure set to nearly double to

96.8 million by 2013.

One question online marketing professionals face,everywhere in the

world,is where to reach those Internet users. India is no exception.

Share of Online Searches in India, by Search Engine, June & July 2009 (% of total)

June2009

July2009

Google search 90.76% 91.19%

Microsoft & Yahoo! searches 8.86% 8.49%

Yahoo! search 6.33% 6.21%

Microsoft search 2.53% 2.28%

Guruji search 0.38% 0.32%

Note: may not add up to 100% due to exclusion of local sites; home, work and university users; includes partner searches and cross-channel searches for each property Source: ViziSense as cited in press release, August 20, 2009


Online Activities of Internet Users in India, 2009 (% of respondents)

Online travel search 84%

Job search 71%

Product search 68%

Instant messaging/chatting 67%

Check general news 62%

Dating/friendship 55%

Check cricket content/score 53%

Check sports other than cricket 52%

Marriage search 49%

English information search engine 49%

Source: JuxtConsult, "India Online 2009," provided to eMarketer, April 7,009




India Online®

4

Social Media

Looking at several research firms’ figures, one

online activity in particular seems widespread:

social media. In the March 2009 “Norton Online

Living Report 2009”Symantec Corp. found that

71% of Internet users surveyed in India had a

profile on a social network.

Universal McCann found that among Internet users who used the

Internet daily or every other day in 2008,66% of respondents in

India had created a social networking profile. In the 2009 follow-up,

the same question yielded an increase to 78%.

107095



comScore found that only 60.3% of Internet users had visited a

social network during December 2008.While lower than the other

researchers’ survey results, it is important to note that there was a51% jump in unique visitors to the category over the same period

in the prior year, outpacing the estimated total Internet user

growth in India by 29 percentage points.

comScore also ranks the most popular social networks in India.

In December 2008,orkut was the leading site with 12.9 million

unique visitors,followed by Facebook (4.0 million) and

BharatStudent.com (3.3 million).

101714

In the associated press release,Will Hodgman,executive vice

president at comScore, stated that several global brands were

taking advantage of the popularity of social networking in India

and increasing their local user base throughout 2008.The top

three social networks in growth were hi5,Facebook and MySpace

which saw increases of 182%,150% and 110%,respectively, over

the previous year.

“While there is certainly room for severalplayers in the social networking space in

India, the sites that have the right blend of having both a strong brand and culturalrelevance will be best positioned for futuregrowth.” —Will Hodgman, executive VP, comScore, in a

statement, February 17, 2009

Comparative Estimates: Online Social Network Usersin India, 2008 (% of Internet users)

Symantec Corp., March 2009Universal McCann, July 2009

comScore World Metrix, February2009

% of Internet

users

71.0%66.0%

60.3%

Age

18+16-54

15+

Usage

Currently have a profileCreated a profile

Active reach ofInternet users

Source: various, as noted, 2009


Leading Social Networking Sites in India, December2007 & December 2008 (thousands of unique visitors

and % change)

orkut

Facebook

BharatStudent.com

hi5

ibibo

MySpace sites

LinkedIn

PerfSpot.com

BIGADDA

Fropper.com

Total social networking audience inIndia

Total Internet audience in India

December2007

7,123

1,619

1,736

714

1,970

352

293

2,106

515

256

12,795

26,240

December2008

12,869

4,044

3,269

2,012

990

741

513

433

385

248

19,369

32,099

%change

81%

150%

88%

182%

-50%

110%

75%

-79%

-25%

-3%

51%

22%

Note: ages 15+; home and work locations; excludes visits from publiccomputers such as Internet cafes and access from mobile phones andPDAs Source: comScore World Metrix as cited in press release, February 17,

009




India Online®

5

Social Media

JuxtConsult found that from February to March 2009 Google’s

orkut was the fourth-most-used Website in India, adding weight to

the findings from comScore.

103323

JuxtConsult’s findings are based on an active online panel of

50,000 opt-in Internet users in India that were tracked from

February to March 2009.

Google is the dominant portal across several channels of online

entertainment and activities in India.In social networking,orkut takes

the majority with a 68.2% share of time spent on social networks.

107282

Google also has a strong foothold in another Web 2.0 activity in

India,blogging. Blogger grabbed a 47.6% share of time spent on

blogs by Internet users in the country.

In January 2009,Windchimes Communications released

“Research on Social Media in India” and found that reading and

commenting on blogs were the fourth- and sixth-most-popular

activities of Internet users in India.

Research from IndiBlogger, a popular blogging platform in India,

noted that 8% of bloggers on its site posted to their blogs daily,and

47% posted at least weekly.

105158

Most Used Websites According to Internet Users inIndia, 2009 (% of respondents)

Google 35.0%

Yahoo! 25.0%

Gmail 11.0%

orkut 7.0%

Rediff 4.0%

Indiatimes 1.0%

Moneycontrol 0.7%

Hotmail 0.6%

YouTube 0.5%

Sify 0.5%



Share of Time Spent on Google-Owned Sites Among

Internet Users in India, by Category, July 2009Google

site% share

of total timespent in

site category

Search* Google sites 88.4%

Multimedia YouTube 82.8%

Social networking orkut 68.2%

Maps Google Maps 63.9%

Blogs Blogger 47.6%

E-mail Gmail 46.8%

Photos Picasa Network 16.2%

Note: ages 15+; home and work locations; *based on share of searchesconducted

Source: comScore World Metrix and comScore qSearch as cited in pressrelease, September 14, 2009


Blogs in India, by Frequency of Posting, May 2009 (%of bloggers)

Daily 8%

At least every other day 16%

At least every three days 24%

At least weekly 47%

At least monthly 88%

Note: n=7,895 self-registered blogs on IndiBlogger Source: IndiBlogger, "State of the Indian Blogosphere," May 19, 2009




India Online®

6

E-Commerce

JuxtConsult’s yearly report,“India Online 2009,”

found that monthly Internet users in India are

increasingly turning online to shop, but only some

are buying.A total of 70% of Internet users went

online to shop in the 12 months prior to the 2009

survey, an increase of 13 percentage points over

2008, but only 20% actually purchased an item.

103321

The researcher estimated that the total number of online buyers

decreased slightly in 2009 due to the lower penetration,despite the

growth of regular Internet users.

According to a study from Google,online shoppers in India

research and purchase a variety of products online.The most

common items include travel (66%),entertainment (40%) and

technology (26%) products.

101515

The JuxtConsult report found similar trends in e-commerce: 65%

of buyers purchased travel products or services online during the12 months prior to being surveyed. Looking deeper, 74% of online

travel buyers purchased train tickets and 34% purchased airfare.

According to the Visa report “e-Commerce Consumer Monitor

Q2–Q4 2008,”online buyers in India spent an average of $3,442 in

the 12 months prior to being surveyed in Q4 2008.That is an

increase of $1,023 over the previous quarter, indicating a

strengthening of the online marketplace.

105124

The study ranked India third in average spending among the

countries surveyed.Only Singapore and Hong Kong had higher

average outlays.

According to MasterCard Worldwide’s May 2009 report,

“Economic Crisis and Preference for Online Shopping in

Asia/Pacific, Middle-East and Africa,”online buyers in India

increased the number of purchases they made from October to

December 2008 to 2.9 from the previous year’s 2.6.While they

may be making more individual purchases, the average amount

spent decreased from $625 to $552 in the same period.

MasterCard also found that 75% of online buyers surveyed

planned to increase online purchases in the next three months.

There is tremendous opportunity for brands to showcase

products on their Websites for Internet users in India.According to

a survey by MTV Networks, from September to December 2008,

92% of Internet users in the country ages 12 to 24 thought that

official Websites can be good sources of information.

103749

Online Shoppers and Buyers in India, 2008 & 2009 (%of respondents)

Online shoppers

57%

70%

Online buyers

23%

20%

2008 2009



Types of Products Both Researched and PurchasedOnline by Online Buyers in India, 2008 (% of respondents)

Travel products 66%

Entertainment products 40%

Technology products 26%

Source: Google as cited by The Financial Express, January 4, 2009


Average Amount Spent Online* by Online Buyers inSelect Countries in Asia-Pacific, Q3 & Q4 2008

Q3 2008 Q4 2008

Singapore $2,989 $4,018

Hong Kong $1,785 $3,791

India $2,419 $3,442

Japan $2,976 $2,972

South Korea $3,038 $2,472

Australia $3,253 $2,382

Note: n=9,142 ages 18-49; *in the past 12 months Source: Visa, "e-Commerce Consumer Monitor Q2-Q4 2008" conducted by Ipsos as cited in press release, June 4, 2009


Attitudes About Brand Websites Among Teen andYoung Adult Internet Users in Select Countries,September-December 2008 (% of respondents)

Like seeing consumer reviews onofficial Websites

Like to see pictures of brand'sproducts on Website

Official Websites can be goodsources of information

Germany

59%

80%

76%

India

87%

88%

92%

Japan

61%

78%

69%

UK

73%

89%

85%

US

73%

91%

83%

Note: n=8,000 ages 12-24 Source: MTV Networks, "A Beta Life Youth," provided to eMarketer, May 5,

009




India Online®

7

E-Commerce

Out of all the countries surveyed, Internet users in India were the

most receptive toward consumer reviews and pictures of brand’s

products on their Websites, as well.

Online shoppers in India are also well-informed,especially when it

comes to big-ticket purchases.J.D. Power Asia Pacific reported in

late September 2009 that online buyers were researching

automobiles online before visiting a dealership.The survey found

that in 2009,34% of new-vehicle shoppers researched their

purchases online and 74% knew the exact model that they wanted

to buy.All that research paid off, as 80% of prospective buyers who

visited a dealership walked out with a new car.

While automobile sales cannot be applied to all categories of

online retail, these findings are telling. Providing information to an

engaged, well-informed population increases a brand’s chances

of persuading shoppers to choose it over potential rivals.

B2B e-commerce also has a strong foothold in India.The IAMAI’s

report,“Online B2B Marketplaces,” found that total spending on

B2B e-commerce would reach $89 billion by December 2009.The

report found that the top three online B2B marketplaces were

IndiaMART,Tradeindia and Alibaba.com.

Demonstrating the importance of this growing market,

Alibaba.com, the world’s largest B2B e-commerce company, has

increased its attention on India. In an interview with The Hindu

Business Line on September 16,2009,David Wei,CEO and

executive director at Alibaba Ltd., indicated that Alibaba.com was

currently looking for a local partner to grow its business in India

through a joint venture. Mr.Wei considers India,China, the US and

Japan to be the four countries that his company cannot ignore,

and hypothesizes that India will overtake the US in sheer market

size in the next three years.

He also confirmed that the biggest challenge to e-commerce in

India is the absence of widespread broadband connections. Even

with a lack of broadband access,Alibaba.com reached the

milestone of 1 million members in June 2009.

Online Advertising

Online advertising spending in India is rising fast,

and that growth will introduce new avenues for

spending as ad budgets recover.According to

PwC’s June 2009 report, “Global Entertainment &

Media Outlook,” online advertising spending will

reach $114.0 million in 2009.

106739



Several other research firms have forecast higher online ad spending

ZenithOptimedia reported the highest figures,at $227.0 million in

2009 and $396.0 million in 2010.Zenith benchmarks its forecast on

data provided by the IAMAI.

GroupM predicted the second-highest spend for onlineadvertising, at $165.0 million in 2009.

Lintas Media Group and KPMG both forecast very close figures for

online advertising spending in 2009, at $160.9 million and $160.0

million,respectively. Pitch-Madison’s “Media Advertising Outlook

2009—Mid-term Review” forecast the lowest figure for online ad

spending,coming in at $104.1 million in 2009.

Comparative Estimates: Online Advertising Spendingin India, 2008-2010 (millions)

GroupM, September 2009

KPMG and Federation of Indian Chambers ofCommerce (FICCI), March 2009

Lintas Media Group, August 2009

Pitch-Madison, September 2009

PricewaterhouseCoopers (PwC), June 2009

ZenithOptimedia, June 2008

2008

$132.0

$120.0

$103.4

$83.4

-

$119.0

2009

$165.0

$160.0

$160.9

$104.1

$114.0

$227.00

2010

-

-

$225.2

-

-

$396.0

Note: converted at average 2008 exchange rates Source: various, as noted, 2008 & 2009




India Online®

8

Online Advertising

By far the largest growth area in advertising is found on the

Internet.All the researchers noted above have forecast

double-digit growth in both 2009 and 2010,with ZenithOptimedia

predicting a whopping 72.4% climb in 2009.

106775



Online advertising growth rates for 2009 vary greatly, with the

next-highest rate predicted by Lintas Media Group (56%), followed

by KPMG and the Federation of Indian Chambers of Commerce

(FICCI) (35.5%).

GroupM and Pitch-Madison agree on the lowest rate (25.0%) for

2009.Of the five,only three have published growth rates for 2010.

Again,Zenith leads the pack (70%),followed by Lintas (40.0%) and

GroupM (35.1%).

In September 2009,The Wall Street Journal interviewed Sir Martin

Sorrell, CEO of the WPP Group, which includes GroupM.Askedwhich markets will be the first to see an ad recovery,Sir Martin

said he expects China and India to lead the way.

“I would expect to see a recovery first inChina and India. In India, they are arguing

whether it will be 6% or 7% growth, and wewould give our eye to be flat.Flat in the U.S.and Western Europe is the new up.” —Sir Martin Sorrell,CEO,WPP Group, in an interview with

The Wall Street Journal,September 22, 2009

GroupM’s growth rate projections support their Sir Martin’s

prediction, as they are the only firm that forecast stronger growth

in 2010 than 2009. In addition,the firm’s September report,

“Interaction 2009,”projects that online advertising will play an

important part in the global ad recovery for all media, with search,

mobile and display all showing strong signs of growth.

The Internet has just begun to grab market share of ad dollars in

India. In 2008,Lintas Media Group found that the Internet

accounted for only 2% of total spending.

106299

According to Pitch-Madison’s “Media Advertising Outlook 2009,”

Internet advertising accounted for 1.7% of the total INR207.17 billion

($4.76 billion) ad spend in 2008.

101363

Print and TV advertising still hold a majority of the advertising

dollars in India.Advertisers are also varying how they utilize TV ads

to reach consumers.A September 24,2009,article from the World

Advertising Research Center (WARC) cited data from livemint.com

highlighting brands’ innovative use of TV ads. Called “roadblocks,”

brands buy out large chunks of programming, sometimes even for

a whole day. One company,Vodafone, reported 90% to 95% brand

recall following the ads.

Comparative Estimates: Online Advertising SpendingGrowth in India, 2008-2010 (% change)

GroupM, July 2009



Pitch-Madison, January 2009

ZenithOptimedia, April 2009

2008

73.7%

-

80.0%

45.0%

-

2009

25.0%

35.5%

56.0%

25.0%

72.4%

2010

35.1%

-

40.0%

-

70.0%



Advertising Spending in India, by Media, 2008 (% of total)

Print 47.5%

TV 41.1%

Outdoor 6.3%

Radio 2.7%

Internet 2.0%

Cinema 0.4%

Source: Lintas Media Group as cited by livemint.com, August 23, 2009


Advertising Spending in India, by Media, 2008 (billionsof INR, % change and % share)

Spending % change % share

Print INR98.25 16% 47.4%

TV INR83.19 17% 40.2%

Outdoor INR14.19 11% 6.8%

Radio INR6.62 38% 3.2%

Internet INR3.63 45% 1.7%

Cinema INR1.29 24% 0.6%

Total INR207.17 17% 100.0%

Note: numbers may not add up to 100% due to rounding Source: Pitch-Madison, "Media Advertising Outlook 2009" as cited by Business Standard, January 31, 2009




India Online®

9

Online Advertising

TV and print advertising may grab the majority of the market,but

online content still has the power to influence Internet users in

India.The Nielsen Company’s July 2009 “Online Global Consumer

Study” found that online advertising has a profound impact on

Internet users.Three of the top 10 most trusted types of advertising

were brand Websites (78% trusted), consumer opinions posted

online (74% trusted),and permission-based e-mails (65% trusted).

106384

As Internet penetration and online access continue to expand in

India,online advertising will become an important component of

any marketing initiative.

Mobile

At least one-third of the total population of India is

forecast to have a mobile phone by the end of

2009, according to three different research firms.

eMarketer’s own estimate for 2008 was a bit

more conservative at 290 million active SIM cards

107097



Frost & Sullivan’s estimate of 493 million was the highest for

mobile subscribers in 2009, and the firm forecast growth of

190 million to 683 million in 2010. Gartner’s June 2009 figure was

the second-highest, at 452 million,and the researcher projected a

total of 771 million for 2013. Citi Investment Research pegged the

number of subscribers at 448 million, and Informa Telecoms &

Media came in with a figure of 433 million.

In a press release from January 2009, Informa analyst Nick

Jotischky described the growth of mobile subscriptions in India.He

stated that India added more subscribers during 2008 than any

other country, including China.

“India became the world’s largest market interms of net additions in 2008 for the firsttime with 102 million new mobilesubscriptions over the 12-month period,ahead of China.” —Nick Jotiskchy, principal analyst

for emerging markets, Informa Telecoms & Media, in a

statement, January 27, 2009

Types of Advertising Trusted by Internet Users inIndia, March-April 2009 (% of respondents)

Recommendations from people known 93%

Editorial content 87%

Brand Websites 78%

Newspaper 77%

TV 76%

Consumer opinions posted online 74%

Magazines 73%

Brand sponsorships 72%

Radio 66%

E-mails I signed up for 65%

Billboards/outdoor 62%

Ads before movies 61%

Search engine result ads 50%

Online video ads 50%

Banner ads 48%

Text ads on mobile phones 43%

Source: The Nielsen Company, "Online Global Consumer Study" as cited inress release, July 27, 2009


Comparative Estimates: Mobile Phone Subscribers inIndia, 2007-2010 (millions)

Citi Investment Research, December 2008

eMarketer*, June 2008

Frost & Sullivan, September 2009

Gartner, June 2009

Informa Telecoms & Media, January 2009

International TelecommunicationUnion (ITU), June 2009

iSuppli Corporation, November 2008

Research on Asia Group, Inc. (ROA),August 2009

Telecom Regulatory Authority of India(TRAI)**, January 2009

2007

228.0

-

-

-

218.7

233.6

233.6

-

-

2008

339.0

290.0

-

-

321.3

346.9

319.9

341.3

346.9

2009

448.0

-

493.0

452.0

433.0

-

-

-

-

2010

545.0

-

683.0

-

-

-

-

-

-

Note: *active SIM cards; **data is for Q4 Source: eMarketer, June 2008; various, as noted, 2008 & 2009




India Online®

10

Mobile

eMarketer predicted in June 2008 that mobile subscribers in India

would reach a total of 560.0 million in 2012,a compound annual

growth rate (CAGR) of 17.9% over the period.Both Citi and Informa

showed a CAGR of over 25% in mobile phone subscribers from 2007

to 2009,while Gartner predicted a CAGR of 14.3% from 2009 to 2013.

Madhusudan Gupta,senior research analyst at Gartner,attributed

the double-digit growth rates to the fact that operators are focusing

on expanding into the rural areas of India.He added that another

factor contributing to growth across both rural and urban areas is

the increasing availability of value-added and mobile-data-based

services,as users start to diversify their mobile content activities

past voice calling.

There are nearly 10 times as many mobile phone users in India as

there are Internet users.eMarketer estimated in June 2008 that

25.3% of the entire population in India had a mobile phone,a figure

that would increase to 45.9% by 2012.Gartner’s June 2009 report

also found relatively high penetration,at 38.7% in 2009 and 63.5% in

2013.The International Telecommunication Union (ITU) reported inJune 2009,based on operator and local regulator data, that 29.2% of

the population in India had a mobile phone by the end of 2008.

095365

Growth of mobile Internet users is far surpassing that of fixed

Internet users. eMarketer estimated that in 2008 there were more

than twice as many mobile Internet users (106 million) as fixed

Internet users (40.7 million).By 2012,mobile users (298 million) are

expected to triple fixed users (85.8 million).

Research from mobile analytics and billing firm Bango indicates

that India was the third-largest consumer of mobile data services

on their network for the month of February 2009. India accounted

for 11.1% of all mobile Internet traffic among 208 countries, behind

only the US and the UK.

102374

According to a Nielsen Mobile report on content activities of

mobile subscribers worldwide, urban users in India are using their

mobile devices for more than just voice services.A full 63% of

respondents had used text messages during Q1 2008. In a

separate report from January 2009,Nielsen Mobile found that only

1% had watched mobile video on their phones.

Mobile Usage Metrics for India, 2008 & 2012 (millionsand % penetration)

2008 2012

Population (1) 1,148.0 1,220.0

Mobile phone subscribers* 290.0 560.0

Mobile phone penetration 25.3% 45.9%

Mobile Internet users** 106.0 298.0

Mobile Internet users % of mobile subscribers 36.6% 53.2%

Note: *active SIM cards; **accounts that use a browser (WAP or XHTML)to access the Internet via mobile phone; SMS/MMS/IM not included Source: eMarketer, June 2008; (1) US Census Bureau, July 2007


Top 10 Countries, Ranked by Mobile Internet Traffic,February 2009 (% of total)

US 29.3%

UK 20.3%

India 11.1%

Indonesia 5.5%

South Africa 5.4%

Egypt 1.7%

Malaysia 1.4%

Spain 1.4%

Portugal 1.2%

Sweden 1.1%

Other* 21.6%

Note: *198 countries Source: Bango as cited in press release, March 12, 2009




India Online®

11

Mobile

While many in India may not view their phones as an entertainment

device,they are finding other, more practical uses.According to

Juniper Research,mobile users on the Indian subcontinent

accounted for 7% of mobile banking users worldwide.

100943

Mobile consumers are also viewing plenty of ads.According to

AdMob’s monthly “Mobile Metrics Report,” India accounted for

6.1% of all banner and text ads served by the AdMob network in

June 2009.That was over half a billion ads served in just one month.

According to PwC, mobile advertising spending in India was below

$500,000 in 2009.This is expected to increase,however, as mobile

TV subscriptions and 3G access spread. By 2013,PwC has forecast

that mobile ad spending will reach $29 million.

Endnotes

Endnote numbers correspond to the unique

six-digit identifier in the lower left-hand corner

of each chart.The charts from the report are

repeated before their respective endnotes.

106739

106739

Extended Note: GroupM measurement includes display, paid

search and mobile data. ZenithOptimedia includes classified,

display and search data.

Citation: GroupM,September, 2009;KPMG and Federation of

Indian Chambers of Commerce (FICCI),"Media and Entertainment

Industry Report 2009" as cited by The Indusview Advisors,March

2009;Lintas Media Group as cited by livemint.com,August 23,

2009;Pitch-Madison,"Media Advertising Outlook 2009--Mid-term

Review" as cited by livemint.com, September 2, 2009;PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates,

"Global Entertainment and Media Outlook: 2009-2013," June 16,

2009;ZenithOptimedia as cited by agencyfaqs!,June 18,2008;

eMarketer calculations,June 2008

Mobile Banking Users* Worldwide, by Region, 2011 (%of total)

Far East and China 41%

Western Europe 22%

North America 12%

Middle East and Africa 8%

Indian subcontinent 7%

Asia-Pacific** 5%

Eastern Europe 3%

Latin America 2%

Note: *transactional users who also have traditional branch-based services, excluding users who cannot be reached with traditional services;

**excludes Far East and China Source: Juniper Research, "Mobile Banking: Strategies, Applications andMarkets 2008-2013" as cited in "Banking on the Mobile," January 14, 2009


Comparative Estimates: Online Advertising Spendingin India, 2008-2010 (millions)

GroupM, September 2009



Pitch-Madison, September 2009

PricewaterhouseCoopers (PwC), June 2009

ZenithOptimedia, June 2008

2008

$132.0

$120.0

$103.4

$83.4

-

$119.0

2009

$165.0

$160.0

$160.9

$104.1

$114.0

$227.00

2010

-

-

$225.2

-

-

$396.0

Note: converted at average 2008 exchange rates Source: various, as noted, 2008 & 2009




India Online®

12

Endnotes

106775

106775

Citation: GroupM,July 2009;KPMG and Federation of Indian

Chambers of Commerce (FICCI),"Media and Entertainment

Industry Report 2009" as cited by The Indusview Advisors,March

2009;Lintas Media Group as cited by livemint.com,August 23,

2009;Pitch-Madison, "Media Advertising Outlook 2009," January

2009;ZenithOptimedia,December 2008 as cited by JPMorgan,"Advertising & Marketing Services - Advertising 101:A Primer with

a Focus on Macro" as cited by Adweek,April 2, 2009

106776

106776

Extended Note: comScore includes home and work locations;

excludes traffic from public locations such as Internet cafes and

access from mobile phones and PDAs. eMarketer defines an

Internet user is a person of any age who uses the Internet from

any location at least once per month

Citation: comScore World Metrix as cited in press release,January

23, 2009; International Telecommunication Union, September 2009;

Internet & Mobile Association of India (IAMAI) and Indian Market

Research Bureau (IMRB) International, "Internet in India (I-Cube)

2008" as cited in press release, January 12, 2009;JuxtConsult,"India

Online 2009," provided to eMarketer,April 7,2009

107095

107095

Extended Note: comScore includes home and work locations;

excludes traffic from public locations such as Internet cafes and

access from mobile phones and PDAs. Universal McCann

measure users with daily or every other day Internet access.

Citation: comScore World Metrix as cited in press release, January

23, 2009; International Telecommunication Union, September 2009

Internet & Mobile Association of India (IAMAI) and Indian Market

Research Bureau (IMRB) International, "Internet in India (I-Cube)

2008" as cited in press release, January 12, 2009;JuxtConsult,"India

Online 2009," provided to eMarketer,April 7,2009

Comparative Estimates: Online Advertising SpendingGrowth in India, 2008-2010 (% change)

GroupM, July 2009

KPMG and Federation of Indian Chambers of

Commerce (FICCI), March 2009Lintas Media Group, August 2009

Pitch-Madison, January 2009

ZenithOptimedia, April 2009

2008

73.7%

-

80.0%

45.0%

-

2009

25.0%

35.5%

56.0%

25.0%

72.4%

2010

35.1%

-

40.0%

-

70.0%








2008

32.1

40.7

39.8

35.1

2009

-

49.7

-

38.6Note: *ages 15+; **used in the past month; ***use at least once per month Source: eMarketer, February 2009; various, as noted, 2009


Comparative Estimates: Online Social Network Usersin India, 2008 (% of Internet users)

Symantec Corp., March 2009

Universal McCann, July 2009

comScore World Metrix, February2009

% of Internet

users

71.0%

66.0%

60.3%

Age

18+

16-54

15+

Usage

Currently have a profile

Created a profile

Active reach ofInternet users





India Online®

13

Endnotes

107097

107097

Citation: Citi Investment Research,"Deteriorating '09 Handset

Industry Outlook," provided to eMarketer, December 16, 2008;

Frost & Sullivan as cited in press release, September 21, 2009;

Gartner, "Forecast:Mobile Services,Asia/Pacific, 2004-2013" as

cited in press release, June 18, 2009; Informa Telecoms & Media,

"World Cellular Information Service" as cited in press release,

January 27, 2009; International Telecommunication Union (ITU),

"World Telecommunication Indicators Database," June 2009;

iSuppli Corporation, "CE and Mobile Telecom Driving India's

Electronics Industry" as cited in press release, November 17,2008;

Research on Asia Group, Inc. (ROA), "Indian Mobile Market

Dynamics and Forecast" as cited in press release,August 31, 2009;Telecom Regulatory Authority of India (TRAI) as cited in press

releases,February 2008-April 2009

Comparative Estimates: Mobile Phone Subscribers inIndia, 2007-2010 (millions)

Citi Investment Research, December 2008

eMarketer*, June 2008

Frost & Sullivan, September 2009

Gartner, June 2009

Informa Telecoms & Media, January 2009

International TelecommunicationUnion (ITU), June 2009

iSuppli Corporation, November 2008

Research on Asia Group, Inc. (ROA),August 2009

Telecom Regulatory Authority of India(TRAI)**, January 2009

2007

228.0

-

-

-

218.7

233.6

233.6

-

-

2008

339.0

290.0

-

-

321.3

346.9

319.9

341.3

346.9

2009

448.0

-

493.0

452.0

433.0

-

-

-

-

2010

545.0

-

683.0

-

-

-

-

-

-

Note: *active SIM cards; **data is for Q4 Source: eMarketer, June 2008; various, as noted, 2008 & 2009




India Online®

14

Related Information and Links

Related Links

Citi Investment Research

https://www.citigroupcib.com/invest_research

comScore Inc.

http://www.comscore.com

Gartnerhttp://www.gartner.com

Google

http://www.google.com

GroupM

http://www.groupm.com

Federation of Indian Chambers of Commerce (FICCI)

http://www.ficci.com

Informa Telecoms & Media

http://www.informa.com

International Telecommunication Union (ITU)

http://www.itu.int

The Internet & Mobile Association of India (IAMAI)

http://www.iamai.com

JuxtConsult

http://www.juxtconsult.com

KPMG

http://www.kpmg.com

Lintas Media Group

http://www.lintasmedia.in

The Nielsen Company

http://www.nielsen.com

PricewaterhouseCoopers (PwC)

http://www.pwc.com

Symantec Corp.

http://www.symantec.com

Universal McCann

http://www.universalmccann.com

Visahttp://www.corporate.visa.com

ViziSense

http://www.vizisense.com

The Wall Street Journal

http://www.wsj.com

ZenithOptimedia

http://www.zenithoptimedia.com

Contact

eMarketer, Inc. Toll-Free: 800-405-0844

75 Broad Street Outside the US: 212-763-6010

32nd floor Fax:212-763-6020

New York,NY 10004 [email protected]

Report ContributorsSusan Reiter Managing Editor

Joanne DiCamillo Production Artist

Mike Froggatt Researcher and Writer

Dana Hill Production Artist

Jared Jenks Numbers Editor

James Ku Data Entry Associateand Production Artist

Nicole Perrin Senior Editor

Hilary Rengert Senior Researcher

Allison Smith Director of Charts



India Online®

15

About eMarketer

eMarketer is a business service unlike any

other.eMarketer does not conduct research. It

aggregates and analyzes all the available

research, surveys and data on a given topic. So

you see far more than a single source could everprovide.eMarketer doesn’t deliver one point of

view, it gives you thousands. Providing overviews

and insights available nowhere else,eMarketer

reports on the reports,analyzes the analysts and

dissects the data.

A Trusted Resource

eMarketer serves as a trusted, third-party resource,cutting

through the clutter and hype–helping businesses make sense of

the numbers and trends. eMarketer's products and services help

companies make better, more informed business decisions by:

■ Streamlining research sources and reducing costs

■ Eliminating critical data gaps

■Providing an objective, bird’s eye view of the entire landscape

■Better deploying and sharing information across the company

■Building solid business cases backed up by hard data

■Reducing business risk

■ Saving valuable time

To learn more about subscriptions to eMarketer ,

call 800-405-0844 (outside the U.S. and Canada,

call 001-212-763-6010), or e-mail [email protected].

Documents

eMarketer India Online