Digital Trends India- 2017. Mobile rules, Rural vs Urban rise

1. Digital Trends
INDIA 2017

2. The Digital
Media
Landscape
Image courtesy- digitalmarketingexperts.com

3. Digital India
Languages Used
Urban 66% 55% 11%
Rural 26% 38% 27%
Location / Device
85% English
22% Hindi
13% Tamil
12% Marathi
9% OriyaMobile Internet users by
June 2017
420 Mn
Internet users by
June 2017
465 Mn Social
241 Mn 160 Mn
(90% on mobile)
Sources: Mary Meeker Report, IAMAI AND IMRB, KPMG, Mashable
Brimming with Enthusiasm- Internet users YOY growth declining globally, whereas growth rate YOY @28% in India
Urban: Internet Penetration- 60%,
YOY growth @7%
Rural: Internet Penetration- 17%,
YOY growth @22%
Urban,
62%
Rural
, 38%
India will continue to witness the growth, there are potential approximately 750 million users still in rural India. Local
languages are going to be key in convincing the next billion users to come online.
By 2021, 201mn Hindi users expected
to be online (38% of user base)

4. Mobile rules, powered by data
Hours spent on Android phones in 2016
Mobile’s share of web traffic
App downloads from Google Play
Increase in data usage, since Reliance Jio
79
%
150
Bn
6
Bn
9x
• India wireless data cost, declining to more
affordable levels (-48% in the last year)
• Intense competition in mobile hardware; rise of
China OEMs + Reliance
• 55% Unique mobile user penetration
• 79% Mobile connectivity
• 16% Mobile broadband penetration
Further increase in
mobile + data users
Time spent with media
per week (hours), 2016
Mobile- THE primary device
Mobile used as primary
device for accessing internet:
77% of urban users
92% of rural users
Rural India has leapfrogged to mobile technology
with lower penetration of computers as a medium
to access Internet
Sources: Mary Meeker Report

5. Mobile First >> Mobile Only
Mobile users likely to constitute 85-90% of the total online population by 2020@ 1 Bn
50%
% of mobile data would be
video content by 2017
In 2016
60%
% of all Google Searches
2017
96%
Internet = Mobile
• India is starting to witness the emergence of a mobile first and possibly a mobile only population
• Preferences are shifting to mobile for a variety of activities including video consumption and shopping
• Mobile is fast becoming the starting point for consumer-brand interactions
Smartphones
Sources: KPMG, Ericsson Consumer Labs, Facebook, Google, IPSOS, Cisco
4G
In 2017
160 M
In 2018
285 M
(% of mobile subscribers)
Social Video
In 2022
520 M
India is world’s second largest
smartphone market
Expected growth @83% CAGR until 2020
Mobile as primary device

6. Purpose of Access
Purpose of Access: URBAN
93% General Search
86% Online Communication
84% Social Networking
76% Entertainment
63% Online Transaction
61% Online Shopping
87% Entertainment
86% Communication
84% Social Networking
76% Online Services
Purpose of Access: RURAL
Sources: IAMAI AND IMRB, Mary Meekers report
Search and communication dominate usage pattern in urban, entertainment leads the way in rural.
On mobile, entertainment is the major activity, followed by search, social and messaging
Percent of time spent on mobile
by category, 2016
Time spent on smartphone jumped by 23% from
June 2016- March 2017

7. India Entertainment Re-Imagined
Average Indian user is watching 8.5 hours of video content every month on Facebook and YouTube put together
Sources: Mary Meekers report, KPMG Report, Consumer Barometer, IMRB MRB, Kantar Media and Culture Machine
Video platforms/sites used: Top 10 video streaming apps
by monthly avg users on android -2016
3-4 X Growth
3-4 times growth recorded for music
and video streaming apps, 2016
OTT services are growing but social media networks continue to be the most popular video platforms. LinkedIn has also
introduced auto play videos, which would further enhance this trend
*OTT services such as Hotstar, Netflix, Amazon
Prime Video, Jio TV and VOOT.
47%
42%
11%
Facebook Youtube OTT Services*
Rise of social video, especially on Facebook
Short, crisp videos perform better
Mobile data used more than Wi-Fi
Comedy/Entertainment- the most popular genre
89% weekday viewing VS to 65% on weekends
Hotstar is the most popular OTT service
Hindi videos are the most-watched ones
Video consumption trends

8. Local language internet users in India
Penetration of Local Language
Internet Users
Overall in India Urban Rural
50% 45% 56%
Local Language Users– by SECLocal Language Users– by Gender
157 Mn – Local language Users in India, an expected 201 Mn Hindi users by 2020 end
Local Language Users– by Age
Source: IAMAI IMRB Report, KPMG-Google report
Almost every new user coming online, roughly 9 out of 10—is not proficient in English. Since the rural internet penetration will
increase, we can expect vernacular consumption to rise in terms of handset compatibility, voice translations and more

9. • 80% of all web traffic emanates from mobile, second highest in the world. 28 hours a week are
spent on mobile- This makes mobile the most powerful of all platformsThe Mobile Obsession
• From targeting demographic/psychographic segments to ‘individual’ personalization at scale Personalization
• Vernacular becoming the epicentre of digital – need to be hyperlocal, personalized, social and
always on! Brands need to start focussing on this aspect especially when mobiles and search
giant Google have started including vernacular in the product itself
Vernacular Content
• Online video content has increased from 49% to 66% in 2016. 40% of mobile data traffic is
being driven by audio and video content
Unstoppable Rise Of The
Video
• YOY growth in internet population; Shift in internet usage expanding and diversifying from
primarily urban to rural and lower-income consumers across all age-groups. Brands will need
to consider this rising population while thinking of marketing and even designing products
2X urban, 4X rural
Source: 2015 WARC, BCG, IAMAI Report, FICCI-KPMG Report 2016
Summarizing