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

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

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

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’

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 28% growth in ‘daily’ internet users (+7 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’

‘ 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

28% growth in ‘daily’ internet users (+7 mn in last 1 year to reach 32 mn)

Lapsers predominantly Cybercafe users Exclusive cybercafé user base shrink to become just 6% of all internet users Lapsers from cyber cafe account for 85% of all 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%

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

Lapsers from cyber cafe account for 85% of all 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 3 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…

1 out of 3 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

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…

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

Household Assets % Internet Users Owning Color TV 81% Mobile Phone 89% Bank Account 70% Computer/Laptop 83% Fridge 58% Life Insurance 47% 2-Wheeler 51% Credit Card 32% Air Conditioner 16% 4-Wheeler 10% Invested in Shares 16%

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… * Emailing not included as all panel members are email users by default Top 10 Online Activities* % Undertaking Change from 2008 Job search 72% +1% Instant messaging/chatting 68% -2% Check general news 63% -0.3% Dating/Friendship 56% +6% Check sports (other than cricket) 53% -4% Check cricket content/score 53% +3% English info search engine 50% +1% Matrimonial search 50% +0.5% Listen/stream music online 49% +0.6% Download music 48% -6%

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)

91% 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 7.5 million 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

91% 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 7.5 million

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

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%

Report Details

The India Online 2009 package of reports has an ‘O verall 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

The India Online 2009 package of reports has an ‘O verall 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

Overall Report User Segment Supplementary Reports : Women on the net Youth on the net (teenagers and young adults) Urban versus Rural net users Net users by their socio-economic (SEC) profile Students on the net Corporate employees on the net IT professionals on the net Heavy online spenders on the net Bloggers on the net Car owning net users Two-wheeler owning net users Credit card owners on the net Net users by place of access (homes, place of work, cyber cafes) Net users by type of connection (broadband, dial-up, etc.) Net users by city/town type (metros, urban uptowns, emerging towns, and others...) Net users as financial investors Vernacular language net users Category Supplementary Reports : (profiling users of top 5 websites) Online Shopping Emailing Instant Messaging / Chatting PC to Mobile Messaging Job Search Matrimony Info Search – English Travel Booking Social Networking Professional Networking Friendship / Dating Sharing Pictures Sharing Videos Online News Business/Financial News Financial Info (quotes, rates, indices, etc) Online Share Trading Net Telephony (PC to PC, PC to Telephone ) Cinema Content Book Cinema Tickets Buy / Rent Movie CD/DVD Sports Content (cricket, other sports) Online Music Online Games Online Real Estate Mobile Content Download Astrology Online Education / Learning List Of Reports Note: Completion of any supplement report is subject to collection of sufficient sample responses in the survey.

Overall Report

User Segment Supplementary Reports :

Women on the net

Youth on the net (teenagers and young adults)

Urban versus Rural net users

Net users by their socio-economic (SEC) profile

Students on the net

Corporate employees on the net

IT professionals on the net

Heavy online spenders on the net

Bloggers on the net

Car owning net users

Two-wheeler owning net users

Credit card owners on the net

Net users by place of access (homes, place of work, cyber cafes)

Net users by type of connection (broadband, dial-up, etc.)

Net users by city/town type (metros, urban uptowns, emerging towns, and others...)

Net users as financial investors

Vernacular language net users

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

Online Shopping

Emailing

Instant Messaging / Chatting

PC to Mobile Messaging

Job Search

Matrimony

Info Search – English

Travel Booking

Social Networking

Professional Networking

Friendship / Dating

Sharing Pictures

Sharing Videos

Online News

Business/Financial News

Financial Info (quotes, rates, indices, etc)

Online Share Trading

Net Telephony (PC to PC, PC to Telephone )

Cinema Content

Book Cinema Tickets

Buy / Rent Movie CD/DVD

Sports Content (cricket, other sports)

Online Music

Online Games

Online Real Estate

Mobile Content Download

Astrology

Online Education / Learning

Pricing of Reports 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 Report 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

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 Indians Gender, 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, b ank account, demat account, fixed d eposits, 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 dynamics Years 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

Demographic and socio-economic profile of online Indians

Gender, 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, b ank account, demat account, fixed d eposits, 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 dynamics

Years 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

Online activities undertaken and most used websites Popular 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 activities undertaken and most used websites

Popular 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

Online shopping behavior Penetration 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 languages Popular languages of internet usage, most used websites for each of these languages Blogging & online community membership Proportion 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

Online shopping behavior

Penetration 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 languages

Popular languages of internet usage, most used websites for each of these languages

Blogging & online community membership

Proportion of internet users reading, commenting and owning blogs

Proportion of internet users as members of online communities

Main problems faced while surfing the Internet

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 : [email_address] Website : www.juxtconsult.com 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 : [email_address]

Website : www.juxtconsult.com

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