This document summarizes internet and digital growth trends in India. It finds that while internet reach has grown, with over 240 million users, depth of usage is more important, with only 61 million regular users. Youth and urban males are leading users. Popular online activities include web searches, emailing, music, and social networking. Mobile internet is gaining volume rapidly due to lower costs and more phones. The document advocates an integrated digital approach for clients including social media, campaigns, and mobile. Case studies show successes with social change networks, matrimonial marketing, and cricket-based brand engagement. It concludes the internet should be treated as an individualized mass medium.

1. A Bioscope into the Digital Growth in India Rahul Nanda COO & Partner, Webchutney

2. Internet growth in india

3. Internet still not about reach! 400 Mn 185 Mn 165 mn 585 Mn Mobile 105 mn Print 65 Mn 50 mn Internet 240 mn Television Urban Source: Juxt Consult, India Online Landscape 2011

4. More about ‘depth’ than ‘spread’ 61 million ‘regular’ users (46 mn urban users, 16 mn rural users) Internet reaches 29 million Indian households (avg. users per household up marginally at 2.23) Covers 11.3% of all Indian households and 5.4% of all Indians (13% urban, 2% rural) Over 4 in 5 are ‘daily’ users. Daily users’ base grew faster, at 33% 73% Male, 27% Female 65 Million ‘Active’ internet users in India (+28% from 2010) Active’ internet users = who have used the internet ‘in last one year’, ‘Regular’ internet users = use internet ‘at least once a month’

5. A marketer’s dream TG! 75% 73% 72% 65% 64% 49% 60% Urban Male 19 – 35 years SEC ‘A’, ‘B’, ‘C’ Employed Rs.12,500+ MHI Own an automobile in the HH Source: Juxt Consult, India Online Landscape 2011

6. Youth leading the web revolution Composition of Internet Audience 15+ 75% Source - Comscore: State of Internet India Demographics, % Figures

7. Top activities on the net 62% 68% 94% 74% web search emailing download music job search 44% 47% 61% 53% 56% 47% joined online community social networking Check general news IM/chatting Professional networking PC to mobile SMS Source: Juxt Consult, India Online Landscape 2011

8. Online video reaches 71% of Indian Internet Audience 1.7 B videos viewed in India every month 9.1 B minutes spent on online videos every month 5th largest nation in the world in terms of online video reach Source:Comscore Video Metrix Report, 2011

9. Online buying picking pace 4 out of 5 internet users ‘shop’ online (search or buy online) 70% increase in online buyers from last year Online buyers of ‘non-travel’ products (13.5 million) outnumber ‘travel’ ones (8.6 million) Most bought ‘non-travel’ products were mobile phones & accessories (56%), computer hardware and consumer electronics (35% each) and movie tickets (30%). Most bought ‘travel’ products were train tickets (83%) and air tickets (58%) 50 million strong online ‘Shopper’ base Source: Juxt Consult, India Online Landscape 2011

10. Top websites 2011 Net-Banking/Finance Travel E-Commerce Group Buying/Deals Source: Juxt Consult, India Online Landscape 2011

11. Local language dominates traditional media Source: TAM | Market: All India

12. What about Online? Still a long way to go… Requires content & interactivity in local languages Source: Doubleclick Ad Planner & Juxt Consult, India Internet Landscape 2011

13. Growth of Indian ad industry in last 5 years… Source: Pitch-Madison Media Advertising Outlook 2011

14. A TALE OF 2 TRUTHS

15. Online population growing and engaged withincreased spending Online spend share of overall advertising budgets ridiculously low

16. Online spend share is relatively small Source: Pitch-Madison Media Advertising Outlook 2011

17. But growth is high… 2009 to date, growth in ad spends (CAGR) 19% 20% 21% 22% 42% Television Print OOH Radio Internet That’s double the growth of ad-spends on TV! Source: Pitch-Madison Media Advertising Outlook 2011

19. Selective and contextual targeting

20. Interact and engage, not just sell (CRM)Beware of its 2 current weaknesses – mass reach, women consumers

21. Mobile internet – the inflexion point

22. 15 years ago, there were more computers in this country than mobile phones Today, there are 10 times more mobile phones than computers Food for thought….

23. Internet usage on Mobile Phones All Mobile Users in India 304 million (100%) Rural Mobile Users 146 million (48%) Urban Mobile Users 158 million (52%) Use Internet on Mobile Phone Only 0.8 million (0.3%) Use Internet on Mobile Phone & PC 9.6 million (3.2%) Use Internet on Mobile Phone Only 0.9 million (0.3%) Use Internet on Mobile Phone & PC 0.3 million (0.1%) Use Internet on PC Only 27.4 million (9%) Use Internet on PC Only 9.4 million (3.1%) Not use Internet at all 120 million (40%) Not use Internet at all 135 million (45%) All mobile users using Internet - 15% – 48.4 million Mobile users using Internet on Mobile Phone – 3.8% – 11.6 million Source: Juxt Consult, India Mobile Landscape 2010

24. Mobile web gaining ‘Volume’ 7.3 B Monthly mobile ad impressions Indexed Query growth – Mobile ( top 1000 commercial queries) +50X since 2007 +4X YoY 30 M App downloads a week in India 8X Faster adoption than PC web Source: Morgan Stanley, Mobile Internet Presentation, Feb 2011; Industry estimates, Google Indexed query Data

25. Barriers to growth Lower Device & Data Costs ‘Low entry cost’ will be critical for Mobile / Mobility Devices to add to the next 100m Internet users

26. Our Approach to Digital

27. The client evolution Social Media Presence(FB, Twitter, LinkedIn, Blogs) 2011+ Acquisition / Traffic Generation (Search & Display Media) Integrated Campaigns & Social Conversations (360 approach, mobile, customer support, reputation management, ecommerce) 2009-2010 2010-2011 Brand Campaigns & Product launches (micro-sites) 2005-2008 1999 – 2005 Establishing a presence (Websites)

28. Consumer Journey- Digital Source: http://www.freshtito.com/2011/06/1090/

29. What’s worked for us Case Studies

30. Tata Tea - Jaago Re JaagoRe’sTV campaign and voting website to promote citizens to Vote had already helped to build affinity for the Tata Tea brand. Our challenge was to take the campaign to the next level and initiate a long-term movement that would actually empower people to ‘wake up’ and change India.

31. So we created India’s first Social ‘Change’ Network

32. Bharat Matrimony – Biwi Ho TohAisi (My Kind of Wife) Our objective was to reach out to young bachelors and create greater awareness + preference for Bharat Matrimony – India’s number one matrimonial site.

33. So we created a simple and fun experience on Web + Mobile

34. Our objective was to leverage brand Airtel’s association with Champions League T20 and use the cricket card to engage and interact with the Target Audience in their natural online habitats during the Airtel Champions League T20, 2010. Airtel – Real Fans

35. India’s first Youtube Channel Contest

36. Integrated Campaigns ; 360 degree Approach Online Promotion meets Offline Activation Inclusion of Mobile Social Conversations Co-creation of Content Treat the Internet as an “Individualized” Mass Medium Key takeaways from our experience

37. THANK YOU! For more Creative Showcase visit – www.webchutney.com/playinprogress My mail id is : rahul.nanda@webchutney.net