This presentation provides and insight into the growth of Internet in India and the opportunities it has for Marketers/Advertisers.

1. PAST | PRESENT | FUTURE
INTERNET IN INDIA

2. Contents
Introduction
Evolution of Internet in India
Internet Statistics
Penetration |Demography | Age | Gender |Geography
Internet Surfing Habits
Why Internet
Internet Advertising India
Internet Platforms
Social Media – the next catchment area
Future of Advertising – confluence of mediums
Appendix/ Sources
Credentials

3. The Online Medium
The Internet is the only medium that lets us do all this

4. evolution of internet - India

5. 1995 • VSNL introduces internet in India via dialup in 6 cities on Aug 14,1995
• Rediff.com launched by Ajit Balakrishnan.
1996 • India’s first cyber café called “Cybercafe” launched in a Mumbai hotel
• First online banking site launched by ICICI Bank
1997 • Naukri.com launched; this becomes India’s first profitable dotcom
• Sabeer Bhatia’s Hotmail sold to Microsoft for $400 million in USA ; he becomes the poster boy of the Internet age to Indians
• India introduces new ISP policy which ends VSNL’s monopoly on internet
• Sify becomes India’s first ISP
1998 • First major hacking case-teenagers hack data on BARC’s servers
• Cybercafés start mushrooming across Indian cities
• First cyber crime related arrest-2 arrested for hackinggo2nextjob.com
• Indian Railways launches online ticketing site, irctc.com
2001 • India’s first cyber crime police station opens in Bangalore
• Dotcom bubble bursts – some sites close, some go into hibernation
• Dotcoms start exercising exit options
• EBay buys out Bazee.com & Monster.com buys Jobsahead.com
2004 • First Indian Dotcoms IPOs are successful– indiabulls.com &indiainfoline.com
• A high profile cyber crime exposes sheer inadequacy of India’s IT laws - Baazee CEO jailed for MMS scandal
• Youth is a key driver for the growing Internet base in India, with openness and adaptability to change being key factors.
• The office is now the major access points for the Internet this year, having surpassed the popularity of cyber caf?s that were prominent last
2007 year.
• Oniline gaming emerges as a revenue model. online gaming industry in India at Rs 210 million
• Financial cos check online advertising growth at 32%
2009 • Online display advertising industry, grew at 38 per cent in 2008-09 to Rs 325 crore
• Social Media becomes the high point in online engagement

6. Statistics
• India has an active internet population of 52 million
• With a penetration level of 5.2% expected to reach 10% by 2015.
• The country's Internet population has grown 2600% since 2000
• 58% of the Indian online population is in the age group of 19-35
• 36% of Internet users from India are from small towns and rural India
• Sec C/D/E account for 35% of Indian internet users
• 78% of the young audience prefer Internet to television when it comes to
entertainment / information**

7. Internet Penetration

8. Internet Users
> India-China-US-UK

9. Geography

10. SEC Classification

11. Age Break Up

12. Gender Split
32%
68%

14. Daily Traffic Trend
Highest traffic during late evening : 7-8pm
Source: LiveMint

15. Time spent : Websites accessed

17. The Internet Advantage

18. Purchasing Power on the Net

19. Internet Advertising in India

20. Online Ads Market in India
• Online ad market in India is approximately INR 2350 Million in 2007-08.
• expected that reach INR 3500 Million in 2008-09
• Reasons:
– Increase in Internet Penetration
– Increase in the online activities of
the Internet users
– Targeted Niche Advertising
– Branding Power
– Cost Effective
– Behavioural Targeting
– Creative Output
– Online Sales
– Global Reach

21. Size of Internet Advertising
• PWC 's report states that internet advertising will grow 32 per cent over the next five years
and touch Rs 1,100 crore in 2012 from Rs 270 crore in 2007.
• In 2007, the segment grew 69 per cent to Rs 270 crore from Rs 160 crore in the previous
year. This was the highest growth compared with all other segments in the entertainment
and media industry.
• The share of Internet in the overall advertising pie is projected to grow to 2.4 per cent in
2012 from 1.4 per cent in 2007.
• In the US for comparison the online advertising industry contributes around 10% to the total
market size.
• Globally it is estimated that market size is $45 billion for Internet advertising, which is 7.4
percent of the total $600 billion global advertising market

22. Industry wise spend

23. Industry spends growth

24. Internet Ad = effective sales

25. Advertising Opportunities Online

26. Email Banner s Mobile
Advtg.
Website/Microsite Options Search Engines
Content Integration Social Media
Apps / Widgets

27. SOCIAL NETWORK MARKETING
–
THE NEXT CATCHEMENT AREA

28. Social Marketing
• Definition
– It is a platform for connection between like minded people or those that have a
personal connection
– Communities or groups are initially formed on physical connections & social
networks radiate outwards based on common interests between people
(MGM).
– Social networking provides the platform for people to engage & find other like
minded individuals.

29. But Why
Should I Care..?

30. 15,000 Indians watched a
video BECAUSE
1,000 Indians tweeted about their day
8,000 Indians updated their status message
15,000 Indians watched a video In the last 5 mins..

31. SOCIAL-NETWORKING SITES ARE OFFICIALLY
MORE POPULAR THAN MOST SITES!
>100,000,000
videos
Almost
4,000,000
200,000,000 (65,000 new
videos/day)
articles
blogs
45% have started their own blog
73%
1.5 million of active online
users have read a
residents blog

32. IT’S A FUNDAMENTAL SHIFT IN THE
WAY WE COMMUNICATE.

33. The old communication model
was a monologue.

34. The new communication model
is a dialogue.

35. Which means it’s….
TRANSPARENT
INCLUSIVE
AUTHENTIC
VIBRANT
CONSUMER-DRIVEN

36. “Content is the new democracy and
we the people, are ensuring that our
voices are heard.”
Brian Solis, “The Social Media Manifesto”

37. PEOPLE ARE TALKING ABOUT
YOUR BRAND. RIGHT NOW.

38. Tomorrow’s consumers are
today’s “digital natives.”

39. But where does
social marketing
fit in a marketing
context?

40. Consumers expect to see commercials
messaging on portals & sites.
But on social network sites, without
relevance & context, it has the ability to
possibly devalue & detract from a
brands relevance, stature & esteem.

42. Continual rise of social media:
Content creation is mainstream
New influence landscape: the rise of social media
90%
80%
Read blogs / weblogs
70%
Start my own blog/ weblog
60%
Leave a comment on a blog site
% Ever Done
50%
Upload my photos to a photo sharing site
40%
Upload a video clip to a video sharing site
30% Watch video clips online
20% Create a profile on a social network
10%
Social Media adoption over time (waves 1 – 3)
Global Average. Source: Universal McCann Social
0% Media Tracker Power to the People
Wave 1 Sep 06 Wave 2 June 07 Wave 3 March 08
Results from the social media tracker have consistently proved the massive
growth of social media platforms and movement of content creation into the
mainstream.

43. Evolved
Conversation
Prism

44. Visualizing the social network
Legends
Community clusters
Micro social networks
that exist with a set of
communities eg.
Facebook
Interactions between
“community clusters”
Enabled through platforms such as blogs, media sharing, feeds, communities, mobile
technology etc. – people are meeting, connecting, organizing, sharing and collaborating in
unprecedented fashion

45. Five key Social Marketing take outs
• Absolute relevance
– Just because you can, doesn’t mean you should
• Community
– Understand your audience & reason for being
• Involvement
– Offer something your audience wants
• Creative
– If it looks like an ad & smells like an ad, it won’t work in social networking
• Measurement
– What does success look like ? What is the economic value of the campaign ?

46. FUTUTRE OF MEDIA

47. The new Consumer
The TV Generation The Net Generation
• Switch off • Switch On
• I receive • I send & receive
• Couch Potato • Subway Surfer
• Helpless • Powerful
• Monoculture • Multi-culture
• United • Fragmented

48. The New Broadcaster
Broadcasting 1.0 Broadcasting 2.0
– Closed systems – Open Network
– One to many – One to One
– Many to Many
– The Network =Power – Networked = Power

49. Future of Advertising/Media

50. So what is Content, in the Future?
• Professionally produced and traditionally / legally owned
• Created by the Users and sharedalike- commons-public-free-etc
• Meta-Content: the Users’ data and click-streams layered around other (professional)
content
• Pro Content ‘appropriated’ by Users
– The Users themselves
• the Power of the Link Economy
– The Real-Time Web is here
– Following Logic (from Impressions to Followers)
– Filtered & Curated by Pros and Peers
– The shared ‘National’ Experience is back!
– Fragmentation and Aggregation

51. It’s hard to ‘own’ a copy now but You can own the…
Context, the Meaning, the Relevance, the Experience, the Embodiment, the Timing...

52. Open Content
Curation: Exposing and Seeding, Testing,
A lot of Content Producers will expand into becoming
Rating, Tagging, Contextualizing,
- Context Providers, Curators, Aggregators, Packagers... Remixing, (Re-)Framing, Packaging...

53. Open
Mobile
Connected
Collaborative
Interdependent

54. People will consume this way…

55. Future of Advertising/Media

56. Summarizing
• The new content economy has created a huge opportunity
to create new models of communication
• The peripheries of content will rule and not just the content
• Adding value should be the focus, not extracting it
• Focus on the audience, first, and only then on the revenues
• Constant Innovation is the key – there is no handbook to
success !

57. Sources:
• Evolution of Internet in India :
– http://www.amitranjan.com/2005/08/31/milestones-in-indias-internet-journey/
– http://iamai.in/PresCoverage.aspx#
• Internet Statistics
– http://www.internetworldstats.com/asia.htm#in
– http://iamai.in/ (IAMAI- ICUBE 2009)
– http://data.worldbank.org/indicator/IT.NET.USER?cid=GPD_58
– http://watblog.com
• Emergence and Rise of Social Media
– Web2.wsj2.com
• Evolved Conversation Prism
– www.theconversationprism.com
• Visualizing the social Network
– http://darmano.typepad.com/logic_emotion/2006/06/visualizing_the.html
• Future of Media
– http://www.mediafuturist.com
– http://creativecommons.org/weblog/2006/07/page/2

58. Credentials
• Vikram Gupta
– Digital Marketing Professional
– Business Head (Delhi) @ Ignitee Digital Solutions Pvt Ltd.
vikram@ignitee.com | vikram.kr.gupta@gmail.com
http://in.linkedin.com/in/vikramkrgupta