Rise of Indias Digital Consumer

Kedar Gavane Director, India

kgavane@comscore.com

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comScore is a Global Leader in Measuring the Digital World

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Global Coverage, Local Presence

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comScore Digital Business Analytics

User Analytics
Audience Measurement Site Analytics Vertical Market Solutions Social Analytics

Unified Digital Measurement

Advertising Analytics

Copy Testing Campaign Verification Ad Effectiveness Cross Media

Mobile Analytics

Mobile Audience Measurement Network Analytics & Optimization Customer Experience & Retention Management

Presented by : Kedar Gavane, Director, India

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Unied Digital Measurement (UDM) Establishes Platform For Panel + Census Data Integration

Global PERSON Measurement

Global MACHINE Measurement

PANEL

PAGE TAGS

Unified Digital Measurement (UDM)

Patent-Pending Methodology
Adopted by 88% of Top U.S. Media Properties

Presented by : Kedar Gavane, Director, India

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Broad Client base and deep expertise across key industries

Media Agencies Telecom/Mobile Financial Retail Travel CPG Pharma Technology

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Global Trends
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Global Online Growth Trend

7% 8%
574 617 370 399 206 213 Unique Visitors (in millions)

Jul 11

Jul 12

15+ Age, Home and Work users

3%

11%
120 134

11%
121 134

Asia Pac

Europe

North America

Latin America Middle East & Africa

Worldwide online audience has grown by 7% in the last 12 months Asia Pac markets have added over 40 million users and continues to grow strongly Latin America and MEA have grown faster with over 11% Y-o-Y growth
Presented by : Kedar Gavane, Director, India

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BRIC Nations - Growth Comparison

Unique Visitors (in millions)

Jul 11

Jul 12

5% 41%
322 336 62.6 44.5 59 44.5 62.6

15+ Age, Home and Work users

6%
48.9 52

20%
49.1

Brazil

Russia

China

India

India is the fastest growing online market in the last 12 months Russia and China have added over 10 million users in the last 12 months and continue to grow Indias explosive online growth to continue, as most online categories show below average penetration compared to global averages
Presented by : Kedar Gavane, Director, India

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Digital consumer achieves critical mass

15+ age, home and work Shared, Mobile and others
Unique Visitors (in millions)

Time Spent (in billion minutes)

114 83
44.5

124.7
62.6

36

48

88.5
46.3

56.3

July 2011

July 2012

Pages Viewed (in billions)

57.7 62.1 54.6 69.9

38.5

42.2

Jul 11

Nov 11

Mar 12

Jul 12

July 2011

July 2012

Total internet usage of 124.7 million in July 2012, a 41% growth from last year Engagement metrics have been maintained With 124 million internet users, India is at a 10% internet penetration
*based on July 2011 to July 2012 data

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Demographic distribution - Youth driving the growth

1.3 55+ 1.8 2.4 45-54 yrs 3.6 6.5 35-44 yrs 25-34 yrs 15-24 yrs 7.5
9.7 23.7 21.9

75%
22.5

15.3 13.7 15

Demographic distribution of UVs in %

7.5

15

22.5

30

75% of the audience is below the age of 35 yrs, makes it one of the youngest online population Females form 39.3% of the total audience Highest growth seen among 15-24 male and female segments
Chart based on July 2012 data for15+ Age, Home and Work users

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Online Category Trends

July 2011-12
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Presented by : Kedar Gavane, Director, India

The Super Seven - High growth categories

YoY Growth %
Games News Search Retail Health SN Travel
43 43 43 43 41 44 21.1 21.1 95.5 59.9 59.9 54 60

Jul12 Reach %
41 40 80.3 91.5

Unprecedented growth in Travel, Search, SN and News, surpassing WW averages Growth to continue in Retail, Games and Health, as they are below WW averages Key drivers being content and accessibility Coupons category has de-grown by 38% as players have moved to allied verticals
Graph based on July 2011 and Jul 2012 data for15+ Age, Home and Work users

The Top 10 Sites - Year on Year growth

60 45 30 15 0
Google Facebook Yahoo!

39%
59.7 42.8 35.3 36.9

47%
52.1

15+ Age, Home and Work users

9%
40.3

Jul 11
21%
24.2 29.3

Jul 12

Unique Visitors (in millions)

42%
22.6 15.9

46%
21.9 15

35%
14.9 20.2

19%
16.2 19.3

37%
11.9

-6%

16.4 16.2 15.2

Rediff

Microsoft Times Internet Wikimedia

BitTorrent

Network18

Ask

3 out of the top 10 have kept pace with the overall growth Increased engagement among the top 10 in terms of time spent and pages viewed The frequency of user visits has also increased over 10-40% among the top 10

Presented by : Kedar Gavane, Director, India

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Explosion of News/Info Consumption

News/Info
Unique Visitors (in millions)
50.2 40.8 32.6 32.7 35.1
Yahoo!-ABC News Network The Times of India New York Times Digital HT Media Ltd ONEINDIA.COM Sites India Today Group IBN Live NDTV The Economic Times The Hindu Group INDIA.COM NEWS The Indian Express Group BHASKAR.COM

Jul12 Reach %
20.4 18.7 11.3 11.1 9.6 8.5 7.9 7 6.7 5.7 4.6 3.7 3.2

Jul 11

Oct 11 Jan 12

Apr 12

Jul 12

A 54% growth registered, with multiple access points including mobile and tablets The reach avg is close to global average of 80% and is still growing One of the most engaged categories with 5 min per visit
Chart based on July 2012 data for15+ Age, Home and Work users

Growing NRI consumption among local sites

India
100% 75% 50% 25% 0%
NDTV IBN Live Times of India Manorama Rediff In.com Cricbuzz ICICI Bank 65%

NRI

% of Unique Visitors
35% 22% 78% 64% 47% 36% 53% 17% 83% 68% 45% 32% 55% 12% 88%

Sizable international audience visitation key sites including News, Portals, Sports and Entertainment Regional newspapers have the highest share of international audience and are the best way to reach out to NRI consumers The trafc is growing across categories and we will be looking at reporting it as a separate segment in the coming dayss
Chart based on July 2012 data for15+ Age, Home and Work users

Online Retail - The boom continues

Retail
Unique Visitors (in millions)
37.5 33.3 26.1 27.6 29

10 7.5 5 2.5 0
Jul 11

Unique Visitors (in millions)

Oct 11

Jan 12 Flipkart Myntra

Apr 12

Jul 12

Jul 11

Oct 11 Jan 12

Apr 12

Jul 12

Amazon sites Jabong

Snapdeal Homeshop18

3 out of 5 online Indians visit online retail sites, growth of 43% The category has seen mushrooming of several players across horizontals and verticals A close battle between Snapdeal and Flipkart in horizontal retail and Jabong and Myntra in the lifestyle category respectively Aggressive marketing and consumer need have led to this unprecedented growth
Chart based on July 2012 data for15+ Age, Home and Work users

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Fastest growing Retail categories

YoY Growth %
Apparel Consumer Goods Sports/Outdoor Home Furnishing Retail Food Retail Movies Comparison Shop
119 100 98 90 76 75 1.5 2.1 10 15 362 2.9 2.8

Jul12 Reach %
13.4

Apparel is the fastest growing retail sub-category, reaching 13% of online users Consumer Goods, Home Furnishing and Sports have shown early signs of growth and will only grow faster in the coming months Flowers/Gifts/Greetings category de-grown by 33% Comparison shopping is expected to keep pace with retail reach of 60% Vertical Retail segments will be the fastest growing in coming months
Chart based on July 2012 data for15+ Age, Home and Work users

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Reach in Travel category surpasses WW average

Jul12 Reach %
Indian Railways MakeMyTrip Yatra Online Jet Airways TripAdvisor Media Group INDIARAILINFO.COM CLEARTRIP.COM Expedia Inc Travora Media MUSTSEEINDIA.COM REDBUS.IN

19.2 11.6 8.3 4.6 3.9 3.2 3 2.9 2.6 2.3 2

Makemytrip 11.6% Cleartrip 3%

Yatra 8.3%

Unduplicated reach : 16.4%

1 out of 5 online users visit Indian Railways site High duplication among the OTAs, with customers looking for best fares Alternative travel options like Bus and Car rentals have picked up in last 12 months
Chart based on July 2012 data for15+ Age, Home and Work users

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e-Commerce Transactions in India

Indian Payment Type Transaction Share, Q2! 2012 Direct Debit $204 T M M IRCTC 58% $17 Travel Yatra $166 All Others 2% cash/COD 7% Average Transaction Sizes (Apr - Jun Mastercard 12% Visa 21%
Flipkar t $35

12)

Retail

27 $ i h Yeb Myntra $24

Direct debit or Netbanking is the most popular format of the payment Travel controls the majority of dollars and transactions in the market, driven largely by IRCTC COD/Cash payments are more popular in the retail category IRCTC averages at $17 per transaction and Flipkart stands at $35 per transaction
Chart based on data for the months between Apr to Jun 2012 for Travel and Retail category

Facebooks dominance
47%
52.1 35.3

15+ Age, Home and Work users

Jul 11

Jul 12

Unique Visitors (in millions)

36%
5.8 Facebook 7.9

-69%
12.6 3.8 Orkut

5%
3.8 3.6 Twitter

2%
3.8 3.7 Bharatstudent

Linkedin

Facebook has emerged as the market leader in the SN category The engagement on Facebook is highest among any category Facebook users spent 3.8 hrs on an average in July 2012 and 17.4 visits per person Linkedin has also shown over 36% growth in the last 12 months
Presented by : Kedar Gavane, Director, India

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Entertainment - The blockbuster category

Entertainment
Unique Visitors (in millions)
55.8 40.6 41.1 43.6 47.8
Youtube CBS Interactive SONGS.PK omg!Yahoo! Yahoo! Movies BEEMP3.COM DAILYMOTION.COM ToneMedia IMDb

Jul12 Reach %
53.7 14.8 8.8 8.8 7.7 7.6 7.2 7.1 6.9 6.2

Jul 11

Oct 11 Jan 12

Apr 12

Jul 12

MP3RAID.COM

Entertainment category has 89% reach, still lower than WW average of 94.1% Entertainment added 15 million UVs in the last 12 months Youtube leads the pack with highest reach in the category The growth comes from bollywood video and music content, more sites to come up with the opportunity
Presented by : Kedar Gavane, Director, India

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Mixed growth in other categories

Finance SBI ICICI HDFC Moneycontrol Indian overseas
56.6 9.5 9.2 8.6 7.1 6.7

Real Estate 99acres magicbricks commonfloor indiaproperty makaan

8 1.8 1.8 1.1 1 0.7

Biz/Finance - 35% growth

Career services Naukri Timesjobs Monsters Shine Indeed
43.3 13.3 6.6 6.6 4.7 4.6

Real Estate - 38% growth

Automotive zigwheels Cardekho Carwale Gaadi oncars
17.8 3.6 2.8 2.7 1.8 1.5

Career Services - 30% growth

Automotive - 18% growth

Presented by : Kedar Gavane, Director, India

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Online Video continues to soar

Video Viewers (in millions) Min per viewer
433 373 1.9 32.4 34.8 42.3 44.5 455 459

Videos viewed (in billion)

3.4

Jun 2011

Oct 2011

Mar 2012

Jun 2012

Jun 2011

Jun 2012

Online video viewers in India have grown over 37.3% The engagement has reached 3.4 billion videos every month 52% of the total videos belong to the entertainment category YouTube top channels are related to Bollywood Video advertising has grown proportionally with growing inventory
15+ Age, Home and Work users

Top YouTube Channels

Tseries Vevo YoBoHo Eros Shemaroo Rajshri
13.4 12.9 9 8.4 7.5 7.4

Video Views (Millions)

Mobile Engagement - The Growing Phenomenon

Access Type by OS Mobile Access Wi 45% Market Share of OS
Others 63%

Top categories by % share PC 54% Mobile 25% 74% 24% 75% Tablet 25% 74%

100% 75% 50% 25% 0%

50%

75%

72%

51% 25% Android iOS 28% RIM

55%
iOS 4% Symbian 16% RIM 1% Android 16%

44%

Symbian

Weather Telecom SportsEnt - Music

The pages viewed on mobile has grown from 3% in July 11 to 7% in July 12 Mobile and tablets access contribute to 7% of Indian online pages viewed Food, Travel information, online trading are popular categories on tablets ioS forms 80% of the tablet market share by page requests
Device Essentials - Jun 2012, data based on total pageviews as the universe

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Future Trends in India - A Summary

Smartphones and tablets to drive engagement and usage further through WiFi access Explosive growth expected in Games, Health, News and Retail categories. Entertainment will be the key content growth area across mobile and PCs Categories like Travel, News and Career services to continue steady growth Increase in Cash-On-Delivery market share with great share of transactions from Retail Online advertising to aid brands in reaching younger audiences

Questions?
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Thank you Rise of Indias Digital Consumer

Kedar Gavane Director, India
kgavane@comscore.com