Snapshot of-juxt-india-online-landscape-2010-press


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Snapshot of-juxt-india-online-landscape-2010-press

  1. 1. India Online Landscape 2010 Online Indians and their Net Usage Behavior and Preferences
  2. 2. <ul><li>Most recent and comprehensive estimates of Internet user-ship in urban and rural India. Estimates based on a land survey conducted between Apr 2010–May 2010 among 259,341 individuals from 37,024 households in 100 cities and over 20,396 households in 1,040 villages spread across all the 4 regions of the country. Estimates cover both ‘regular’ and ‘occasional’ internet users as well as both ‘computer’ and ‘mobile’ based internet users </li></ul><ul><li>Insightful understanding of net usage behavior and preferences of regular online Indians. Findings on ‘net usage dynamics’ based on a sample of over 28,881 ‘active’ internet user panel members with Juxt, and findings on ‘popular online activities and ‘website preferences’ based on an online survey conducted among 12,294 of these ‘active’ panel members during Apr-May 2010 </li></ul><ul><li>Understanding of online Indians as ‘consumers’ and not just as faceless net users. Includes their socio-economic status, household and financial asset ownerships, online shopping behavior and website and media preferences reported on the ‘most used’ basis. Website preferences captured for 47 online verticals/domains </li></ul>Study Overview
  3. 3. <ul><li>A land survey was conducted in Apr-May 2010 to estimate ‘internet users’ in India. The survey covered ‘towns’ and ‘villages’ of all population strata in all the mainland states and union territories in India (covering all the key, and 69 of the total 77 regions in India as classified by NSSO) </li></ul><ul><li>Though the selection of towns and villages was ‘purposive’, the sampling within the towns was done on ‘ 2-stage random’ basis (firstly a random selection of polling booths, and then a random selection of households from the electoral list within each of these randomly selected polling booths); within villages sampling was done on ‘systematic random’ basis (selection of every n th house in the village) </li></ul><ul><li>Net usage dynamics, usage behavior and website preferences were captured from the ‘actual’ internet users in an online survey using Juxt’s own 180,000+ member Internet User Panel ( ) </li></ul><ul><li>The online panel and survey data was made ‘representative’ of the entire online Indian population (and not just of the online panel members or those surveyed) by using ‘demographic weights’ of internet users as derived from the land survey </li></ul><ul><li>Representation ‘weights’ were derived and applied on 3 demographic parameters – zone, urban district/ village class and SEC; while ‘corrections’ were also made for 3 parameters – gender, age and preferred language of reading. Only authentic ‘Govt. of India’ base population statistics were used for this purpose ( NSSO/Census ) </li></ul>Methodology Overview * For a detailed understanding of the methodology of the study please refer to the ‘Methodology’ section of the dataset
  4. 4. The Big Picture
  5. 5. <ul><li>The story of ‘ lack of spread ’ yet ‘ deeper and more involved ’ usage of internet continues in India. The ‘lack of spread’ of internet usage in the ‘urban areas’ is quite worrying and so is the ‘lack of any breakthrough’ in availability of meaningful and relevant online services and content in local Indian languages </li></ul><ul><li>Though a faster growth in base of ‘daily users’ is per se a healthy sign, indicating ‘high relevance’ among existing users, it is also a cause of worry - as having reached a high 79% level already means that it is fast approaching the ‘saturation point’. Internet is not adding new users fast enough ! </li></ul><ul><li>While there is a definite need to improve ‘connectivity’,’ speed’ and ‘content’ to enhance the ‘quality’ of user experience for existing users, there is a much bigger and urgent need of getting new users in the fold – the need to address issues like ‘availability’, ‘accessibility’, ‘affordability’, ‘relevance in day-to-day life’, ‘simpler/less technical operability’ and last but not least ‘language comfort-ability’ </li></ul><ul><li>With most internet using households having ‘multiple users’, internet usage appears to be ‘infectious’, which means ‘ entering the house ’ is the bigger challenge at hand </li></ul>The Big Picture
  6. 6. <ul><li>Though the internet usage through ‘mobiles phones’ appears to be gaining momentum, it is still essentially an ‘urban’ phenomenon and largely only ‘ complementing’ PC based usage and not really emerging as an alternative mode of accessing and using internet. However, with PC penetrations in India being low, and not showing any signs of exponential growth, mobile based internet usage could be the ‘wait and watch’ area for the ‘next big leap’ in the internet space in India </li></ul><ul><li>If ‘social interactivity’ emerged as a mainline internet activity last year, then it has further entrenched itself in gaining usage and acceptance. However, one needs to be careful in equating ‘ rise of social interactivity ’ with ‘rise of social media’, as what has gained importance is mainly personal and professional ‘interaction and sharing’ (social networking, professional networking, communities) and not necessarily ‘discussion, debates or commenting’ (blogs, product reviews, forums, etc) </li></ul><ul><li>Use of internet for ‘personal entertainment’ purposes has also gained further prominence. Among the existing users, internet is clearly moving towards becoming a larger and intrinsic part of their ‘personal’ lifestyles and not merely their ‘professional’ lifestyles. Internet ‘surfing’ has not only become the favorite ‘indoor entertainment’ of most internet users, but they have come to expect a mix of ‘learning’ and ‘entertainment’ from it </li></ul>The Big Picture
  7. 7. <ul><li>Internet has already become the ‘ dominant media ’ in most internet user’s lives. More internet users use internet with much higher frequency and intensity at homes than they use any other medium </li></ul><ul><li>From the ‘media’ perspective, net users not only make a good ‘marketing audience’ but also a ‘ better quality’ consumer class . They are definitely more employed, more educated and have much higher incomes and socio-economic status than users of any other medium </li></ul><ul><li>Last but not least, internet is the only medium that is a full scale ‘marketing medium’ and not just a ‘communication’ or ‘infotainment’ medium. It offers ‘unmatched’ possibilities in not just advertising but also in informing, interacting, engaging and eventually transacting in real time </li></ul><ul><li>It is ironical that in India internet has largely remained a ‘window’ shop , with the base of online buyers hovering around just ‘1 in 5’ for almost last 2-3 years. It is equally ironical that ownership of ‘credit cards’ among online Indians has also hovered around ‘1 in 4’ for last 2-3 years now </li></ul>The Big Picture
  8. 8. <ul><li>If internet has to seriously evolve into an ‘ e-retailing ’ and ‘e-commerce’ medium in India then a much higher ownership of credit cards (or other convenient payment options) are required, as almost half on all online ‘non-buyers’ cite not having a credit card as the main reason for not buying online </li></ul><ul><li>In sum, our last year report’s concluding remarks still largely hold true – “while making the access to internet more ‘readily available’ and ‘affordable’ may do half the trick in making internet usage grow in India, the other half of the trick will have to come from giving people more ‘reasons’ as well as ‘ more motivating reasons ’ to access and use the internet” </li></ul>The Big Picture
  9. 9. Topline Findings
  10. 10. <ul><li>51 mn ‘active’ internet users in India, 40 mn urban and 11 mn rural </li></ul><ul><li>Growth of only 8% (after a shrinkage of 5% last year) </li></ul><ul><li>Lack of growth in ‘urban’ areas largely slowing down its spread </li></ul><ul><li>Internet reaches 10% Indian households but only 4.4% Indians (2/3 rd households have ‘multiple’ users in them) </li></ul><ul><li>97% are regular users and 79% use daily. High base of ‘daily users’ and increased base of ‘online buyers’ indicates growth in ‘depth’ (pond becoming ‘fishier’) </li></ul><ul><li>23% access it on mobile phones (3 times over last year) , though most of these users are ‘dual’ users (PC + Mobile) </li></ul>Pond not growing, but ‘fishier’ * Regular internet users = use internet ‘at least once a month’, Occasional internet users = who have ‘used the internet in last one year’
  11. 11. <ul><li>‘ Dual’ users access internet on their mobiles habitually - 2 out of 3 access ‘daily’ and 1 in 3 uses it for more than an hour daily </li></ul><ul><li>Almost all ‘dual ‘ users (95%) have GPRS enabled phones and most have activated GPRS service on them </li></ul><ul><li>‘ WAP enabled’ data services (72%) and ‘GPRS activated’ direct browsing (61%) are the most popular mode of mobile internet usage </li></ul><ul><li>‘ Poor speed’ (and ‘affordability’) are the biggest perceptual barrier in higher adoption of mobile internet usage among existing net users </li></ul><ul><li>‘ Connectivity’ problems are the biggest irritants on PC based usage as well. Starts with ‘speed’ - half of all broadband users claim ‘below 256 kbps’ speeds </li></ul>Mobile access adding ‘depth’
  12. 12. <ul><li>Rural user base up at 20%, largely a result of slow & wavy growth in urban areas </li></ul><ul><li>Growth relatively more in ‘South’, making it the most ‘net-savvy’ region </li></ul><ul><li>Growth relatively more in the ‘smaller’ urban areas’ (below 5 lakhs population) – they now account for half of all urban internet users. But a ‘thinly’ spread out presence of net users in smaller towns and rural areas </li></ul><ul><li>‘ Home’ continues to be the largest ‘single’ place of access at 53%. Average ‘number of places’ of access down marginally at 1.7 </li></ul><ul><li>Only ‘home’ and ‘transit’ user base have shown increase. Home and office based users are the more ‘frequent’ and ‘heavier’ users of internet </li></ul>Yet, need to ‘cast’ the net wider
  13. 13. <ul><li>Internet is the ‘dominant medium’ in 2/3 rd internet users’ lives (they surf for >2 hours daily) </li></ul><ul><li>Internet ‘surfing’ is the favorite ‘indoor entertainment’ of 4 out of 5 of them. ‘Listening to music’ is the biggest hobby among them, and high interest in ‘cinema’ and ‘gaming’ also attracts them towards internet (sports relatively lesser) </li></ul><ul><li>Among other media, they read ‘newspapers’ the most, followed by TV. However, they are relatively ‘heavier users’ of TV </li></ul><ul><li>For more of them, while internet is largely about ‘learning and entertainment’, mobile is essentially about ‘staying connected’ and TV about ‘entertainment and staying updated’ </li></ul><ul><li>‘ Money’ is the biggest motivation driving their lives, followed by ‘family’ and ‘career’ </li></ul><ul><li>Internet users are largely ‘functionality’ buyers (2/3 rd give highest importance to ‘performance quality’). Brand image is most important for only 1 in 5 of them </li></ul>Internet ‘intrinsic’ to their lifestyle
  14. 14. <ul><li>Social interactivity and entertainment activities gain user-ship significantly (music downloading, PC to mobile sms, social networking and online communities gain in prominence) </li></ul><ul><li>‘ Social interactivity’ platforms put together account for 81% of all regular internet users (up +13% over last year) </li></ul><ul><li>But ‘blogs’ haven’t really taken off – still at a lowly 29% readership </li></ul><ul><li>Watching videos, downloading movies and screensavers/wallpapers also gain noticeably </li></ul><ul><li>Usage of ‘local language’ content fell sharply (-15% over last year) - though mainly for Hindi, as usage of ‘South Indian’ languages content have gone up </li></ul>Rise of Social Interactivity (and Entertainment)
  15. 15. Popular Online Activities – Top 10 Online Activity % Internet Users Undertaking Emailing 94% Download Music 72% Instant Messaging/Chatting 56% Job Search 56% PC to Mobile SMS 55% Social Networking 54% Info Search Engine 52% Watch Videos 50% Screensavers/Wallpapers 50% Online Communities 50% Average number of online activities undertaken per person - 17
  16. 16. <ul><li>Google gains further prominence – becomes the most used website of almost half of all regular online Indians. Preference for Yahoo drops noticeably </li></ul><ul><li>Google’s dominance also manifested at the ‘verticals’ level – Google, Gmail, Orkut and Youtube are most used websites for 24 distinct online activities </li></ul><ul><li>Yahoo leads in 3 verticals. For the rest of the verticals, it is the ‘specialized’ players who lead or dominate user preferences </li></ul>The rise, and rise, of Google!
  17. 17. Most Used Websites – Overall Level Top 10 * On preferred usage basis (i.e., the site they use the most among all the sites they use) Website % Use it the Most Google 46% Yahoo 11% Gmail 9% Orkut 6% Rediff 4% Facebook 2.4% Moneycontrol 1% Youtube 1% Blogspot 0.8% 160by2 0.7%
  18. 18. Most Used Websites – By Verticals Vertical Top Website % Use Most Emailing Gmail 62% Emailing from Mobile Gmail/Google 64% Instant Messaging Gtalk/Gmail 41% Job Search Naukri 48% Online News Yahoo 23% Info Search – English Google 79% Online Travel Buy IRCTC 51% Online Games Zapak 26% Online Buying (Non-Travel) Ebay 32% Real Estate Google 24% Business & Financial News Google 26% Online Share Trading Sharekhan 18% PC to PC Net Telephony Google/Gtalk 54% PC to Telephone Net Telephony Yahoo 21% PC to Mobile Messaging (sms) Way2sms 45% Net banking Onlinesbi 29%
  19. 19. Most Used Websites – By Verticals Vertical Top Website % Use Most Matrimony Bharatmatrimony 38% Friendship/Dating Orkut 46% Share Pictures Orkut 37% Social Networking Orkut 53% Professional Networking Orkut 35% Video Sharing Youtube 36% Non-cricket Sports Yahoo 29% Cricket content Cricinfo 42% Cinema content Google 20% Watch Videos Youtube 76% Financial Info & Quotes Moneycontrol 18% Buy/Rent Movie CD Ebay 23% Mobile content Google 18% Book Cinema Tickets Bookmyshow 33% Download Movies Torrentz 30% Download Music Songspk 27%
  20. 20. Most Used Websites – By Verticals Vertical Top Website % Use Most Listen/stream Music Songspk 14% Share/Upload Music Youtube 22% Health & Lifestyle Content Google 38% Online Education and Learning Google 40% Astrology Astrology 22% Screensavers/Wallpapers Google 45% E-greetings 123greetings 48% Join Online Community Orkut 52% Follow Tweets Twitter 72% Search Locations/Maps Google 87% Search for Higher Education Info Google 53% Online Tutorials Google 40% Search/Buy Books Google 56%
  21. 21. <ul><li>Only 53% internet users ‘window’ shopped online, a whopping 35% points drop compared to the last year </li></ul><ul><li>However, the drop is due to significant decline in the ‘searchers only’ base </li></ul><ul><li>‘ Online buyer’ base increased by 2.5 million (33% growth), taking up the proportion of online buyers to 21% of all internet users (both ‘travel’ and ‘non-travel’ gained buyers) </li></ul><ul><li>40% online shoppers ‘bought’ online (+18% points over last year). Indicates that mere ‘window shoppers’ gave way to the ‘serious’ buying-intending online shoppers </li></ul><ul><li>Net users make a good ‘marketing audience’ – 3/4 th of them have ‘responded’ to some kind of ‘marketing stimulus’ when online </li></ul>Window shoppers give way to ‘serious’ ones
  22. 22. <ul><li>Over half of all internet users are ‘employed’, and half of those employed are ‘corporate employees’ </li></ul><ul><li>2/3 rd of those employed are ‘head’ of the household (the rest 1 in 3 being the ‘other earning members ‘of ‘multi-income’ families) </li></ul><ul><li>‘ 25-35 years’ forms the ‘single’ largest age group among internet users. A highly educated lot, almost half of all net users belong to SEC ‘A’ and ‘B’ </li></ul><ul><li>Their ‘average’ claimed monthly family income is Rs. 17,960 (3 times the national average) </li></ul><ul><li>They show significantly higher ‘ownership levels’ of most household and financial assets – at least 2 times higher for the more ‘evolved’ modern day assets </li></ul>‘ Catching big’ in the small pond
  23. 23. Household & Financial Asset Ownerships Household Assets % Internet Users Owning % Change From Last Year Color TV 85% +7% Mobile Phone 84% +13% Bank Account 72% +4% Computer/Laptop 80% +1% Fridge 59% +6% Life Insurance 47% +2% Debit Card 46% +3% Washing Machine 39% +4% Ipod/MP3 Player/Walkman 19% 0% Credit Card 26% -3% Air Conditioner 13% +0.5% Microwave 13% +1% Invested in Shares 14% -0.6%
  24. 24. <ul><li>Students form the ‘single’ largest occupational group among internet users at 30% </li></ul><ul><li>Internet user base is still predominantly male. However, female user-ship is ‘inching’ upwards (from 1 in 6 a couple of years back to around 1 in 4 currently) </li></ul><ul><li>‘ Housewives’ as a user base is just emerging (at 5% of all internet users currently) </li></ul><ul><li>Majority of internet using households own a ‘2-wheeler’ (45%). Only 1 in 10 user household has a car </li></ul><ul><li>Only 1 in 4 internet user has a credit card (a dismal level keeping in mind that almost half of all online ‘non-buyers’ cite ‘lack of credit card’ as a reason for not buying online) </li></ul>Some ‘caveats’ though…
  25. 25. Thank You!