The Indian Digital Landscape 2016

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Key numbers and Trends

INTERNET PENETRATION IN INDIA 2016  

India has approx 450 million internet users which is more than the number of users in USA.

It is projected that India will have 600 million internet users by 2020. This means almost a 50% Growth!

Source: http://dazeinfo.com/2016/02/08/mobile-internet-users-in-india-2016-smartphone-adoption-2015/

94% of users access the Internet through their mobile phones in Urban India. 64% also use the desktop or laptop to access the Internet. 90% of those who use the mobile to access the Internet consider it their primary device for browsing. Following is the frequency of access and sector wise distribution:

The TV viewership in India in close to 850 million and Internet penetration at 350 million.

The TV penetration will grow to 3% year on year where as Internet penetration will grow by 18% during the same period

Source: https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/FICCI-KPMG_2015.pdf

MOBILE INTERNET PENETRATION IN INDIA

2016  

As of June 2016 there are close to 371 million mobile internet users in India. Mobile internet users in India will grow at 21 percent from 2014 to 2019

Source: http://www.iamai.in/media/details/4614 http://economictimes.indiatimes.com/articleshow/50842642.cms

Urban mobile Internet users are expected to constitute about 71% of this number, with 262 million users, while rural India is expected to have 109 million mobile internet users. 

There are close to 250 million internet enabled smartphones in India.

The reasons of growth are:

India is expected to reach 30% global milestone in 2016 when total smartphone

users will be close to 250 million and India will beat USA to become 2nd largest smartphone market in the world.

Source: https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/FICCI-KPMG_2015.pdf

DIGITAL INITIATIVES IN INDIA 2016  

The overall investment for the Digital India initiative is estimated to be around INR 100,000 Cr for the existing schemes and the additional INR 13,000 Cr for the new initiatives.

Some of the world’s biggest tech giants are gearing up to capitalize on the Digital India Initiative. Google, Microsoft and Facebook have expressed their interest in providing high – speed internet technologies.

High Speed Internet Access:

1. Google – Project Loon 2. Facebook – Solar Powered Drones 3. Microsoft –Involved unused TV

spectrum – ‘White Space Technology’

MOBILE APPS IN INDIA 2016  

In 2016, 12 Billion apps are supposed to be downloaded in India, more than 7 t imes the number of apps downloaded in 2012 which was 1.59 Billion at a CAGR of 79%.

This is an average of 17 apps per person where 3 are paid apps compared to a global average of 26 apps with 5 paid apps. 90% of the apps downloaded in India are the free apps.

Android has 85% market share with iOS at 10% and windows at close to 5% market share. 18.

Games apps (64%) were the most popular category followed by Social and Communication apps (15%) and next are the music streaming apps.

E-Commerce will shift to Mobile App Platforms. A major lifestyle E-Commerce company (Myntra) draws close to 80% of its traffic and 60% of its sales on mobile app.

DIGITAL MEDIA SPENDS IN INDIA 2016  

The digital advertising spend in India hit INR 5200 crore by the end of 2015, growing at a CAGR of 35% between 2011 and 2015; way ahead of the global digital growth rate of 10% during the same period.

The E-Commerce industry has posted a growth of 40% in ad spending, making it top digital spender ahead of Telecom. Banking, Financial services and Insurance have the highest share of digital in ad spends.

The spending on search dropped from 30 percent of the total digital ad spend in 2014 to 29 percent in 2015 where as spending on display slipped from 23 percent in 2014 to 17 percent in 2015.

On the other hand, better ad performance and greater scope of reach and engagement on mobile, social and video had been instrumental in improving their share to 16 percent, 18 percent and 17 percent respectively in 2015.

SOCIAL MEDIA IN INDIA 2016  

Facebook continues to be the most popular social media platform in India with 96 percent of the total accessing it. This is followed by Google Plus at 61 per cent, Twitter at 43 per cent and LinkedIn at 24 per cent.

Source: http://www.iamai.in/media/details/3677

Only 18 percent of the social media users access internet from office, whereas another 18 per cent constantly access these through their smartphones or tablets. About 75 per cent access it from their homes.

84% of the internet users in 35 cities in India, including four metros New Delhi, Mumbai, Chennai and Kolkata, use internet primarily to access social media sites such as Facebook and Twitter. This figure stands at 85 per cent for rural India. The four metros continue to account for almost half of the social media users in urban India. Usage from non-metros and small towns is somewhere around 5% of the overall social media users. College students continue to dominate the social media usage at 34 % followed by youngsters in the 21-35 years age bracket. 

Source: http://www.iamai.in/media/details/3677

Mobile advertising become a major contributor to social media revenues

90% of users access their social media accounts through the mobile devices. The total mobile ad revenue for Facebook accounts for 66% in Q4 2015

Globally, Twitter has about 80% active monthly users coming from Mobile Devices of which 8% reside in India.

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