For the complete report, get in touch with us at : info@netscribes.com Local Search Market in India to grow at a healthy rate as internet penetration increases and local search increases their offerings and spread out in different platforms like mobile and offline. The report begins with an introduction which explains the features of online and offline searches and how they have evolved with time. Further, the advantages of local searches are explained. It also gives a snapshot of global search market and the popular uses of search engine. Global market share for 2011-12 is also illustrated. In the market overview section the market size of local search in India is shown along with the growth rate. It also shows the percentage of successful local searches in India. Next the major offline search modes are described. In the next section the business model for both online and offline modes are explained. In the next section drivers and challenges has been highlighted. Drivers include increase in phone based local searches. Proliferation of internet has also been instrumental in increasing the demand for local searches. Rise of mobile internet is yet another driver for the rise of phone based local searches. It has also been found that local search advertisements are more cost effective for small businessman. Also offline based local search in regional languages will further boost the market for the same. Challenges identified are search engines are acting as default sites for local search as well. Offline searches further face the barrier of ‘paperless environment’ where corporate houses encourage less use of paper. Also a large section of population in India cannot use local search because they are not aware of the concept and also they are not conversant in English whereas bulk of the search results are in English only. Trends identified include increase in PE/VC investments in local search engine sites. Also many local search sites are migrating to other platforms like mobile platform. Some other local search engines are providing other additional services in order to garner a greater market share. In order to increase their offerings some of the local search engines are entering into a JV with other players. The competition section begins with complete traffic statistics of the major players. It includes ranks, audience snapshot, technical details and most viewed sub domains. The summary slide lists the major local search engine brands and their corresponding phone number and websites. The major players in the market have been profiled which includes a financial summary for each of the players. Key ratios and key contacts are also listed. The last section offers strategic recommendations for the players in the local search market. Table of Contents Page 1: Executive Summary Introduction Page 2: Features of local search (Online and Offline) Page 3: Evolution of online a

1. Local Search Market – India
May 2012

2. Executive Summary
•Current Local Online Search market size in India is approximately INR A bn
•Local Online Search players face competition from global players as well
Market •Local players are trying to reach to a wider audience by moving into other platforms
• Increasing database holds the key to be more successful
 Drivers – Online: Proliferation of Internet, Increasing use of mobile internet
 Drivers – Offline: Phone‐based local search to dominate, Offline local searches can be done in
regional languages
 Common Drivers: Profitable for small and local business owners
Drivers &
Challenges
E
 Challenges – Online: Search engines acting as default sites for local information search, lack of
L
awareness and language barriers, building database around local content
P
 Challenges – Offline: Lower acceptance in present corporate culture, global drive towards
M
paperless environment
Trends S A
 Increase in PE/VC investments
 Local web directories moving towards mobile platform
 Providing additional services to the users
 Players are entering into joint venture agreements
 Mobile service providers are entering the domain
Major Players
Competition Player 1` Player 2 Player 3 Player 4
LOCAL SEARCH MARKET – INDIA 2012.PPT 2

3. • Introduction
• Market Overview
• Business Model
‐ Online
‐ Offline
• Drivers & Challenges
• Trends
• Competition
– Traffic Statistics
– Major players
• Strategic Recommendations
• Appendix
LOCAL SEARCH MARKET – INDIA 2012.PPT 3

4. Local searches try to meet specific requirements in targeted
geographies
Local Search Local Offline Search
• This method of searches includes the use of specialized city specific
• Local search relies on geographically guides/books/ journals to find specific city related information
targeted pages to bring searchers
relevant results
• Searches are much more city
specific than other search results Local Online Search
• Often the searches are specific to a
• This essentially means the use of specialized internet search engines
particular zip code and street
E
to find geographically constrained searches
number
P L
Local Online Search
Major Sources
of
Revenue
S AM Registered Users
• Registered users pay an amount for
being listed in site
Pay Per Click
• Advertisers pay an amount to the
site every time the ad is clicked
Local Offline Search
Major Sources Registered Users Advertisement
of
• Registered users pay an amount for • Advertisers pay an amount to
Revenue being listed in yellow page display its logo/message
LOCAL SEARCH MARKET – INDIA 2012.PPT 4

5. Local search market is expected to grow rapidly as the
service is becoming increasingly popular
Market Overview – Online (1/2) Search Engine Marketing Revenue
• Online local search involves the use of localized
portals that allow users to search for geographically‐
constrained results from a database of local listings 15
• Major players have multi‐channel access including A% Y
phone, web, mobile portals 10 T
R
• Local search engines provide information on a wide W E
5 Q
range of topics ranging from company addresses to
food joints, hospitals, movie theatres etc.
• Advertising is the main source of revenue generation
• India is the third largest Internet market and this
LE 0
20-- 20-- 20-- 20--e 20--e 20--e
Top Internet Markets (20‐‐)
MP
gives ample scope for all local search engine to
maximize their business
Local Searches : India
C1
0 100 200 300
S A
400 500 600 Type A Type B
Potential for
local search
C2 options to grow
A% B%
C3
C4
C5
LOCAL SEARCH MARKET – INDIA 2012.PPT 5

6. Business Model – Online
• Sponsored results get greater visibility as they are highlighted and are
Sponsored given preference over the other listings
Listing • Sponsored advertisers also have the option of including video ads to
attract attention and demonstrate a clearer picture of the product
• Players adopt either of the two models for sponsored listings –
 Flat fee structure
Listing Fee  Pay per lead
• Since the listing is free anyone can register and showcase their services
Non‐Sponsored
Listing
E
• Non‐sponsored results get lesser importance than the sponsored listing
L
• The results for these sites appear much later in the listings
MP
• Traditional advertising options similar to any commercial website
• Full range of advertisement inventory including banner ads, videos (ad commercials) etc.
A
Advertisements irrespective of the user search or results
S
• Revenues generated with standardized models such as Cost Per Click, Cost Per Action, Cost Per
X impressions and Cost Per Visitor
• Database sharing or syndication: Some smaller local search companies are sourcing listings or
‘powering’ search results from market leaders with comprehensive databases in return for
Other Revenue payment
Sources • Partnering with global search engines: Major search engines are partnering with local search
directories to integrate listings in results for local search queries
• Contact Database: In return for providing free information, local search directories maintain
contact details of users. User contact database is sold to businesses for marketing activities
LOCAL SEARCH MARKET – INDIA 2012.PPT 6

7. Drivers – Summary
Offline Market Online Market
Common Drivers
Drivers Drivers
• Phone‐based local
search to dominate • Proliferation of
Internet
• Profitable for small
and local business
owners
• Offline local searches
can be done in • Increasing use of
regional languages mobile internet
LOCAL SEARCH MARKET – INDIA 2012.PPT 7

8. Challenges – Summary
Offline Market Challenges Online Market Challenges
• Search engines
• Lower acceptance in acting as default
present corporate sites for local
culture information search
• Lack of awareness
and language
• Global drive towards barriers
paperless
environment • Building database
around local content
LOCAL SEARCH MARKET – INDIA 2012.PPT 8

9. Trends – Summary
Increase in PE/VC investments
Mobile service providers Local web directories moving
entering the domain towards mobile platform
Trends
Players entering into joint Providing additional services to
venture agreements the users
LOCAL SEARCH MARKET – INDIA 2012.PPT 9

10. Traffic Statistics – Summary
The rank is calculated using a combination of average daily visitors to
Global & India Rank the websites and page views on them over the past k months. The site
Global & India Rank with the highest combination of visitors and page views is ranked
accordingly
Reach
Reach
LE
Estimated percentage of global internet users who visit the websites for
a period of abc month
MP
S A
Unique Page Views/Day
Unique Page Views/Day
(%)
(%)
Estimated daily unique page views per user for the particular website
for a period of abc month
Search Engine
Search Engine Estimated percentage of visitor traffic redirected from search engines
Redirection (%)
Redirection (%)
LOCAL SEARCH MARKET – INDIA 2012.PPT 10

11. Public : Domestic Company – Company 1
Company Information Offices and Centres – India
Block ABC
Corporate Address City XYZ
Tel No. 123456
Fax No. 1234567
Website http://www.abc123com/
Year of
Incorporation
20‐‐
P LE City A
Products and Services
Category
Product 1 P1,p2,p3 S AM
Products/Services
Key People
Name Designation
ABC abc
XYZ xyz
MNO mno
LOCAL SEARCH MARKET – INDIA 2012.PPT 11

12. Public: Domestic Company – Company 1
Financial Snapshot Key Ratios
y‐o‐y change
Particulars 20‐‐ 20‐‐ 20‐‐ 20‐‐
Revenue Net Income (20‐‐‐‐‐)
Profitability Ratios
6 x4 0.15 Operating Margin a1 a a2 a3 a4
x3
Net Margin b1 b b2 b3 b4
4 x1 x2 0.10
Profit Before Tax Margin c1 c c2 c3 c4
2 0.05 Return on Equity d1 d d2 d3 d4
Return on Capital Employed e1 e e2 e3 e4
0 0.00 Return on Working Capital f1 f f2 f3 f4
20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets g1 g g2 g3 g4
Financial Summary Return on Fixed Assets h1 h h2 h3 h4
Cost Ratios
• The company incurred a net profit of INR A mn in FY 20‐‐, as
E
Operating costs (% of Sales) i1 i i2 i3 i4
compared to net profit of INR B mn in FY 20‐‐
L
Administration costs (% of
j1 j j2 j3 j4
• The company reported total Income of INR X mn in FY 20‐‐, Sales)
registering an increase of r % over FY 20‐‐
• The company earned an operating margin of d1 % in FY 20‐‐ an
decrease of k % points over FY 20‐‐
MP Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
k1
l1
k
l
k2
l2
k3
l3
k4
l4
A
Cash Ratio m1 m m2 m3 m4
• The company reported debt to equity ratio of g in FY 20‐‐, an
S
Leverage Ratios
increase of r % over FY 20‐‐ Debt to Equity Ratio n1 n n2 n3 n4
Financial Summary Debt to Capital Ratio 01 o o2 o3 o4
Interest Coverage Ratio p1 p p2 p3 p4
Indicators Value (DDD/MMM/YYYY) Efficiency Ratios
Market Capitalization (INR) a Fixed Asset Turnover q1 q q2 q3 q4
Total Enterprise Value (INR) b Asset Turnover r1 r r2 r3 r4
EPS (INR) Current Asset Turnover s1 s s2 s3 s4
c
Working Capital Turnover t1 t t2 t3 t4
PE Ratio (Absolute) d
Capital Employed Turnover u1 u u2 u3 u4
Improved Decline
LOCAL SEARCH MARKET – INDIA 2012.PPT 12

13. Public: Domestic Company – Company 1.
Key Business Segments Key Geographic Segments
C1
6,000 6,000 c1
d b1
c 4,000
4,000 b a1
a
2,000 2,000
0
20‐‐ 20‐‐ 20‐‐ 20‐‐
P
0
20‐‐
LE
20‐‐ 20‐‐
M
Key Recent Developments
Description
Overview
Production facilities
S A News
• It sells product A under the brand name of ‘abg’ & ‘def’
• In India the company has k manufacturing hubs and j marketing offices
Shareholding pattern • Promoters of the company hold j % of the share while k % is held by general public
Clients • Clients are spread across ghj countries spanning across t continents
Investments • The company wants to invest INR K mn in a company through a joint venture in Country 2
producing product a and product b
• So far the company invested INR 0.C mn in company A in country A
LOCAL SEARCH MARKET – INDIA 2012.PPT 13

14. Thank you for the attention
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