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Social media landscape
in India
September 2009
By Preeti Anand
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Executive Summary
Social media usage is rapidly growing in India and holds immense opportunity for Indian businesses to cost-effectively reach out to a large number of
consumers. However, in this increasingly consumer-centric world, Indian businesses will need to spend a considerable amount of effort in studying the
consumer behaviour to effectively reach out to them through this medium with the right benefits and value.
While a number of social media studies have been conducted in Western countries, this field has been relatively unexplored in India. An oft sited issue
surrounding the adoption of social media by firms in India is their low awareness on how this medium can be leveraged for business. This report consolidates
the findings from 647 responses of an online questionnaire on social media, and seeks to provide a better understanding of social media usage patterns of Indian
consumers.
Key findings in the report are:
• Social media users in India are young, predominantly male and have well paid occupations
• The top five social media sites in India provide a near captive audience, a majority of whom are long-time and returning users
• Motivation for social media usage in India is driven the most by the desire to build relationships
• Indian consumers are turning to social media for guidance on buying decisions in a variety of categories
• Social media users in India consider peer and professional opinion as more credible sources for purchase guidance than either of them alone
• Indian consumers no longer wish to be passive entities but want to actively participate in collaborative marketing on social media
• Indian users’ perception of value from social media sites is affected by frequently updated, quality content
• Like with the Internet, privacy issues are of the biggest concern for the users of social media
This report provides some interesting insights into social media usage and consumer behaviour, some of which challenges conventional understanding of social
media marketing. This report can hence help businesses design more effective strategies, which are adapted to the Indian context, to tap into the target
consumer base.
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Soci
ial med
dia user
rs in India
Social media users in India are pre
m n edominantly male, are between the age gr
m roup of 21 and 40 years and have well pa occupation being
d d aid ns,
primari employed with the priv
ily vate sector. Li
ifestyle brands, especially t
those for the youth, have a real opportu
unity to use f
focussed
strategi and tactics through socia media to tap into this lucr
ies al p rative market s
segment.
INCOME
GEN
NDER & AGE
PROFESSION
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Soci
ial med
dia usag
ge patte
erns, Sit
tes visited
T social med sites
Top dia
in India are Orkut,
n
L
LinkedIn and
Facebook. Social
N
Networking si
ites are
th top prefere
he ences in
al age groups, though
ll ,
th users in th 31-40
he he
an 41-50 age group
nd e
pr
refer profe
fessional
networking sites (LinkedIn) compared to the
g
users in th
he 21-30 ag group who prefer
ge o
etworking site (Orkut, Facebook).
personal ne es
The top 5 s
sites have a h
huge share of t total
the
POPULAR SO
OCIAL MEDIA SITES IN INDIA
A social medi users. Poor proliferation of other
ia
sites indica that there is little fragmentation
ates
in the Indian social m
I media market The top five sites provid a nearly cap
t. e de ptive audience making it ea
e asier to conce
entrate ad spe
ends and
reach th critical 3/5 impressions m
he mark quickly.
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Soci
ial med
dia usag
ge patte
erns, Ex
xperience
e & Frequ usage
uency of u
A large majority of s
e social media u
users have bee using socia media at lea for a year. The 21-30 ag group has the most expe
en al ast . ge erienced
socia media user A significa number o social med beginners are in the ol
al rs. ant of dia lder age
categ have now adopted the Inter
gory of 41-50 years. Older age groups h
0 rnet and socia media
al
rathe than growin up in the In
er ng nternet with social media all around them. ◄
The frequency of v
visits to social media sites is an indicator of the active u
l usage of socia media
al
ority of users visiting socia media sites at least
in India, with a large majo
h al
once a day.►
►
EXPERIEN
NCE WITH SO
OCIAL MEDIA FREQUE
ENCY OF USA
AGE OF SOCIAL MEDIA TO
OOLS
Long ti (have been using for mo than a year and returnin users (visit about once in two days) in an un-fragme
ime n ore r) ng t n n ented market, is ideal
for soci media mark
ial keters.
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Soci
ial med
dia tech
hnograp
phics
‘Techno
ographics’ ref
fers to the lev of audien participation in social c
vels nce computing rat
ther than spec
cific technolog adoption. C
gy Creators
create the user gene
t erated content Critics and Collectors h
t, d help dissemina it and Sp
ate consumers of the content. Joiners
pectators are c f
specifically participate in social netwo
n orking sites a play
and
all the other four roles in t context.
that
Most users are present i the “Spect
in tators” and “J
Joiners”
category. T
The significa
ant number of “Creator
rs” and
uggest many active users in India. Th large
“Critics” su he
number of “Joiners” in
ndicates the popularity of social
f
media usage.
networking over other for of social m
rms
Before brand and online publishers att
ds tempt to deplo social
oy
technologies they must understand th target aud
s, heir dience -
specifically its social “technographic” make-up - a only
and
then create a social media strategy.
a
SOCIA MEDIA TECHNOGRAPHIC PROFILE
AL
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Purpose of
f social media usage
People turn to social media for ful
lfilling variou motives or n
us needs. Indian consumer’s m
motivation to u social med is driven t most
use dia the
by the desire to build relationship although many users see fulfillment of a multitud of other ne
ps, m ek de eeds like netw
working, learni
ing, and
entertai
inment etc. Cl
learly social m
media is succes
ssful at satisfy an individual social and psychological needs.
y l’s l
rity of the ty
The popular ype of social media sites (social
l
networking, blogs etc.) is closely lin
nked to the relative
importance o the user ne
of eeds. So for instance, the n
need for
relationships is identified as a user need and this is r
s d, reflected
in the popul
larity of socia networking sites. These results
al g e
indicate tha the user m
at motivation ca be an im
an mportant
indicator of w
which social m
media sites are adopted by th user.
e he
Knowing the motives and needs of the target audie
e d e ence can
be an imp
portant facto in design
or ning the ma
arketing
communicati
ion as a pu strategy s
ull since its suc
ccess is
dependent o the volun
on ntary particip
pation of the target
e
audiences. H
However marketers should tr
read with caut
tion; the
user desire to build relatio
onships indica that socia media
ates al
is a place f friends an not for corporations to intrude
for nd
PUR
RPOSE FOR W
WHICH SOCIA MEDIA SITES ARE VIS
AL SITED BY
upon.
USERS IN INDIA
S
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Guid
dance o
on buyi
ing decisions
Social media is used for guidance on purchase decisions in a variety of pr
m d roduct/service categories. In
nformation on certain categ
n gories of
ts/services lik Travel, Consumer electr
product ke ronics, Media i.e. Books, M
a Movies and M
Music are mo likely to b sought tha other
ore be an
product
t/service categ
gories like Fin
nancial or Heal
lthcare.
The top 5 categories – travel des
stinations, electronic
gadgets, res
staurants, boo and movi
oks ies, and auto
omobiles
fall into the search cate
e egory i.e. pro
oduct or servi with
ice
features an
nd character
ristics easily
y evaluated before
purchase, o experience category i.e. product or service
or
where prod
duct character
ristics are dif
fficult to obs
serve in
advance, bu these chara
ut acteristics can be ascertaine upon
ed
consumption Hence th
n. hese product or servic
ts ces are
potentially m
more likely to be looked u on social m
o up media as
compared to credence pr
o roducts i.e. wh
here it is diffi
ficult for
consumers to judge the quality or rel
levant attribut of a
tes
product, like in financial s
e services or healthcare.
Businesses i these popul categories can be early a
in lar adopters
of social me marketing
edia g.
PRO
ODUCT/SERVI
ICES REFFERRED FOR PUR
RCHASE GUID
DANCE ON
SOCI
IAL MEDIA
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Sou
urce refe
erred fo
or purc
chase guidance on so
ocial me
edia
Majority of Social media users in India look for a c
combination o user
of
and company generated in
y nformation and not just use information alone.
d er
Consumers a evaluating the brand promise com
are g mmunicated th
hrough
company pro
ovides sources against the u
s unbiased opin
nions of other users,
r
to reduce the uncertainty in decision-ma
e n aking.
Peer opinion is considere a more cr
n ed redible sourc than professional
ce
opinion on social media. Company p
provided infor
rmation is the least
e
referred sour for guidanc on purchase ◄
rce ce e.
SO
OURCE REFFERRED FOR PU
URCHASE GUI
IDANCE
Indians repose les faith in th corporation on social media. A
ss he ns
major
rity of the users are no willing to share their personal
ot o r
inform
mation with businesses even in return for better service ►
n r es.
Onlin marketing communicatio campaign without som form of
ne ons n, me
consu
umer involvem
ment, is likel to be ineff
ly fective in eng
gaging the
consu
umers. The su
uccess of onlin marketing campaigns wil be based
ne c ll
on its integration w end-user p
s with provided feedb
back.
USER WILLINGNES TO SHARE PERSONAL
SS E
INFORMATIO FOR BETT
I ON TER SERVICE FROM COMPA
ANIES
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Valu
ue of Co
onsume
er‐to‐Consumer (C2C
C) exchanges o
on socia
al medi
ia
Informatio about a com
on mpany or its p
products/servi
ices has a bear
ring on
consumer behavior wh
hich ranges fr
rom generatin interest abo the
ng out
company and/or its products/services to c
customer adv
vocacy
manifested through rec
commending the brand to others. Whe this
o en
informatio is mapped with user g
on d generated or company gen
nerated
informatio it is seen that C2C (co
on, onsumer) exchanges
onsumer-to-co
represent a powerful source of additio source of value creatio
onal f on.
hanges are driv
C2C exch ving a new tren of social sh
nd hopping where
e
indiv
viduals recom
mmend to other the produc and
rs cts
serv
vices that they brought or us The peer-
sed. -
PRODUCT/SERVICE
ON
ACCESSING INFORMATION OF A
influ
uence factor an visible feed
nd dback channel in
ls
the f
form of comm
ments, online p
polls etc. are
CONSUMER
ouraging peop to be more participative i the
enco ple in
social Web.
ON SOCIAL MEDIA
Soci media mark
ial keting should imbibe a mix
OR
ON
cons
stituting “push (advertising and websit
h” g tes)
COMPANY
and “pull” (inform
mation from neutral, infor
rmal
IMPACT
com
mmunication) m
marketing tactics to engage the
e
targe consumer b
et base.
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Soci
ial med
dia and collabo
orative marke
eting
Social media can pla an importan role in colla
m ay nt aborative mark
keting. Under the rubric of collaborative marketing, co
r f onsumers beco
ome co-
produce i.e. empowered partici
ers ipants in the process of both creation as well as co
onsumption, r
resulting in m
more active, e
engaged
consumers.
umers no long wish to be passive enti
Indian consu ger e ities but
want to ac
ctively partic managing their own
cipate in m
consumption Consumers i India would like to most interact
n. in d
with a compa on social media for ne product ide The
any ew eas.
other top cat
tegories are f
feedback on p
products/servic and
ces,
creating and maintaining relationships.
rative marketi effort wit these co-pr
The collabor ing th roducers
can have a direct impac on a firm’ productivit gains
ct ’s ty
through bette customer en
er ngagement, increased custom self
mer
service and
d hence re
educed costs
s, better cu
ustomer
relationships, improved communicati
ions and in
ncreased
MARKETING E
M EFFORTS FOR WHICH CON
R NSUMERS WO
OULD LIKE transactions.
TO
T BE REACH
HED ON SOCI
IAL MEDIA
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Perc
ception
n of valu
ue and service
e expec
ctations
s
Indian consumers’ p
perception of v
value from so
ocial media sites is
affected by frequentl updated, qu
d ly uality content. Consumers a no
. are
longer a passive audi
ience but seek participation in active, eng
k n gaging
convers provides them with genuin value. One-way
sations that p m ne
marketi approache as seen in tr
ing es raditional mas media mark
ss keting,
telemar
rketing, promo
otional emails etc., may pro to be ineff
s ove fective
to targe the new age consumers. ►
et
ENGAGEM
MENT DRIVER ON SOCIA MEDIA
RS AL
Though most social media sites a free and open for partic
h are cipation,
consum
mers have bas service ex
sic xpectations lik protection of user
ke
informa
ation, site ava
ailability, and usability. Priv
vacy issues ar a big
re
concern and consume in India de
n ers rong sense of mistrust
emonstrate str
when c
companies try to engage with them th
y hrough social media.
Compan
nies will hen need to d
nce lear values based on
demonstrate cl
MAIN CONC
CERNS IN INT
TERACTING THROUGH
T openness, flexibility and an external customer fo
ocus.◄
SOCIAL M
MEDIA
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About the author
Preeti Anand is a recent grad from the MBA batch of 2008-09 from Lancaster University Management School in the UK (ranked 27th in
the global FT 2009 MBA ranking). This report is part of the work carried out for her dissertation on the ‘Impact of Social media on
Consumer behavior’.
Preeti has prior technical and managerial work experience of nearly 6 years in the IT industry in India, having worked for companies like
Hewlett-Packard, EMC and Motorola. Currently, she works as a consultant with one of the world’s largest enterprise software companies
to assist them on their social media strategy and has also authored several whitepapers for them on new age technologies, such as Cloud
computing, Building brand equity on social media, Virtualization etc.
Email: anand.preeti@gmail.com
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