India Online Study 2009 - A Snapshot By Juxtconsult

India Online 2009 Understanding Online Indians and their Net Usage Behavior and Preferences

Study Overview •

Most recent estimates of Internet user-ship in urban and rural India. Estimates based on a land survey conducted between Dec 2008–Jan 2009 among 135,000 individuals from 16,000 households in 40 cities and over 12,000 households in 480 villages spread across all the 4 regions of the country

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Insightful understanding of net usage behavior and preferences of regular online Indians. Findings on ‘net usage dynamics’ based on a sample of over 50,000 ‘active’ online panel members with JuxtConsult, and findings on ‘popular online activities and website preferences’ based on an online survey among more than 12,500 of these ‘active’ panel members in Feb-Mar 2009

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Understanding of online Indians as ‘consumers’ and not just as faceless net users. Includes their socio-economic status, online shopping behavior, and website and media preferences reported on the ‘most used’ basis

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Website preferences captured for over 32 online verticals/domains

Methodology ¾

A land survey was conducted to profile and estimate the users of internet. The survey covered ‘towns’ and ‘villages’ of all population strata, and ‘households’ of all socio-economic classes (SEC) within each of these towns and villages

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Net usage dynamics, behavior and website preferences were captured from the ‘actual’ internet users form JuxtConsult’s own Internet User Panel (www.getcounted.net)

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Demographic ‘weights’ derived from the land survey were then used to make the online panel and survey data representative of the entire online urban population (and not just of the online panel members)

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Representation ‘weights’ were derived based on 6 demographic parameters - town class, SEC, region, gender, age and preferred language of reading

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Only authentic Govt. of India data (NSSO/Census/RGI) were used for estimation of user-ship and derivation of representation ‘weights’

Topline Findings

Pond gets smaller, but livelier… ¾ ‘All’ internet users down at 47 million (39 million urban, 8 million rural) ¾ Drop of 6% from last year (lapse of around 3 mn occasional users) ¾ Just 10% growth in ‘regular’ users base*, reaching 38.5 mn (33 mn urban) ¾ +3.5 mn regular ‘urban’ users over last year, +0.4 mn regular ‘rural’ users ¾ 15% growth in ‘daily’ internet users (+4.2 mn in last 1 year to reach 32 mn)

*

Regular internet users = internet users who use the internet ‘at least once a month’

** All internet users = Regular + Occasional internet users who have ‘used the internet in last one year’

Lapsers predominantly Cybercafe users ¾ Exclusive cybercafé user base shrink to become just 6% of all internet users ¾ Lapsers from cyber cafe account for most of the internet lapsers in last one year ¾ Office continues to be the place from where internet is accessed the most (68% at ‘multiple’ access point level) ¾ Average place of access per user is 1.9 ¾ On preferred access point basis, home tops at 37%

Affordability & language holding it back… ¾ 1 out of 4 computer user still not using internet ¾ Most new broadband connections are ‘replacement’ connections ¾ Still only 4 mn internet users access it through mobile phones ¾ Only 13% of existing internet users prefer to read in English ¾ More importantly only 20 mn Indians (<2% of all) prefer to read in English

Catching the ‘classes’ across the country… ¾ 4 out of 5 online Indian are in the ‘prime’ of their life (19-35 years) ¾ 3 out of 4 of them belong to the ‘consuming’ and ‘aspiring’ class (almost half of them belong to SEC ‘A’ and ‘B’) ¾ Half of all Internet users are employed ¾ Their average monthly family income is 3.2 times the national average ¾ 3 out of 4 of them come from the non-metro towns and nearby villages

Household Assets

% Internet Users Owning

Color TV

78%

Mobile Phone

72%

Bank Account

68%

Computer/Laptop

71%

Fridge

53%

Life Insurance

46%

2-Wheeler

51%

Credit Card

25%

Air Conditioner

13%

4-Wheeler

10%

Invested in Shares

14%

What they do when online… % Undertaking

Change from 2008

Search for travel products

84%

-

Job search

71%

-0.3%

Search for non-travel products

68%

-

Instant messaging/chatting

67%

-3%

Check general news

62%

-1%

Dating/Friendship

55%

+5%

Check cricket content/score

53%

+3%

Check sports other than cricket

52%

-

Matrimonial search

49%

+0.4%

English info search engine

49%

+0.6%

Top 10 Online Activities*

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On an average net users undertakes 13 activities online (2 less than last year)

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Main gainers are dating/friendship, check cricket content, PC to PC net telephony and downloading mobile content. Main losers are download music, check business & financial news, check sports other than cricket, check cinema content and professional networking

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42% use a local Indian language website (+8% over last year)

* Emailing not included as all panel members are email users by default

Most net users ‘window shop’ online ¾

89% of all regular online Indians ‘shop’ online (search or buy)

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20% have also bought online in last 1 year, i.e., ‘active’ online buyers base of 7.6 million

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65% of online ‘buyers’ have bought a travel product online and 50% have bought a non-travel product online

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74% of travel buyers have bought train tickets, 34% air tickets

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Credit card is the most popular mode of online payment at 50%

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Less than 1 in 5 ‘non-buying’ online shoppers cite ‘fear of misuse of credit card’ as a reason for not buying online

Google continues to be the most used website of all! Website

% Use it the Most

Change from 2008

Google

35%

+7%

Yahoo

25%

-3%

Gmail

11%

+3%

Orkut

7%

-1%

Rediff

4%

-5%

Indiatimes

1%

-0.1%

Moneycontrol

0.7%

-0.1%

Hotmail

0.6%

-0.4%

Youtube

0.5%

+0.3%

Sify

0.5%

-0.2%

Most Used Website for Specific Activities Vertical

Top Website

% Use Most

Vertical

Top Website

Emailing

Yahoo / Gmail

45% / 44%

Matrimony

Bharatmatrimony

37%

Instant Messaging

Yahoo

38%

Friendship/Dating

Orkut

38%

Job Search

Naukri

44%

Share Pictures

Orkut

26%

Online News

Yahoo

21%

Social Networking

Orkut

53%

Info Search – English

Google

76%

Professional Networking

Orkut / Linkedin

Info Search – Local language

Google

34%

Video Sharing

Youtube

32%

Online Travel Buy

IRCTC

43%

Non-cricket Sports

Espnstar

19%

Games

Zapak

41%

Cricket content

Cricinfo

27%

Online Buying (Non-Travel)

Ebay

25%

Cinema content

Youtube / Yahoo

Real Estate

Makaan

23%

Listen/stream Music

Raaga

16%

Business & Financial News

Moneycontrol

22%

Financial Info & Quotes

Moneycontrol

24%

Online Share Trading

ICICIdirect

28%

Buy/Rent Movie CD

Rediff

27%

PC to PC Net Telephony

Yahoo

29%

Mobile content

Yahoo

18%

PC to Telephone Net Telephony

Yahoo / Skype

28% / 26%

Cinema Tickets

Google

19%

PC to Mobile Messaging (sms)

160by2

21%

Astrology

Astrology

25%

Net banking

ICICI Bank

31%

Download Movies

Torrentz

35%

% Use Most

24% / 24%

18% / 17%

Report Details

List of Reports • The India Online 2009 package of reports has an ‘Overall Report’, which presents the broad level findings on various aspects of net usage (on the base of ‘all internet users’) • In addition there are a series of Supplementary Reports • Each supplementary report presents a specific ‘category level’ or ‘user segment level’ findings. Here the sample base is the ‘subset’ of internet users belonging to a specific user segment, or undertaking a specific online activity, and the report outlines their internet usage behavior and preferences

List Of Reports 1.

Overall Report

User Segment Supplementary Reports: 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

Women on the net Youth on the net (teenagers and young adults) Urban versus Rural net users Net users by their socio-economic (SEC) profile Students on the net Corporate employees on the net IT professionals on the net Heavy online spenders on the net Bloggers on the net Car owning net users Two-wheeler owning net users Credit card owners on the net Net users by place of access (homes, place of work, cyber cafes) Net users by type of connection (broadband, dial-up, etc.) Net users by city/town type (metros, urban uptowns, emerging towns, and others...) Net users as financial investors Vernacular language net users

Category Supplementary Reports: (profiling users of top 5 websites) 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46.

Online Shopping Emailing Instant Messaging / Chatting PC to Mobile Messaging Job Search Matrimony Info Search – English Travel Booking Social Networking Professional Networking Friendship / Dating Sharing Pictures Sharing Videos Online News Business/Financial News Financial Info (quotes, rates, indices, etc) Online Share Trading Net Telephony (PC to PC, PC to Telephone ) Cinema Content Book Cinema Tickets Buy / Rent Movie CD/DVD Sports Content (cricket, other sports) Online Music Online Games Online Real Estate Mobile Content Download Astrology Online Education / Learning

Note: Completion of any supplement report is subject to collection of sufficient sample responses in the survey.

Pricing of Reports Report

Price (Rs.)*

Price (USD)

* 12.36% service tax extra

Main Report

100,000

3,500

Supplementary Report

100,000 each

3,500 each

Main + 1 Supplementary Report (list price)

200,000

7,000

Main + 2-4 Supplementary Reports

Less 15% of list price

Less 15% of list price

Main + 5 or more Supplementary Reports

Less 25% of list price

Less 25% of list price

Note - only supplement reports cannot be bought in isolation (without the main report).

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Payment Terms

: 50% advance, 50% after delivery of all reports

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Delivery Timeline

: Main Report – First Week of April 2009 : Supplementary Report – 1 week per report thereafter or from date of order, whichever is later

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Report Delivery Format

: PDF

Information Coverage ¾ Demographic and socio-economic profile of online Indians 9

Gender, age, city (village), city type (village type), region

9

Educational qualification, current occupation, industry of occupation, preferred language of reading, status in the household

9

SEC (urban, rural), monthly household income, most expensive vehicle owned

9

Household and financial asset ownership – home, land, TV, fridge, washing machine, AC, microwave, music system, DVD player, Ipod, camera, video recorder, tube well/pump, landline phone, mobile phone, computer, cable TV connection, bank account, demat account, fixed deposits, chit fund deposits, life insurance, medical insurance, debit card, credit card, mutual fund, shares, etc

9

Currently running loan liabilities if any

¾ Net usage status and dynamics 9

Years of experience in using the net

9

Place of access (home, place of work, cyber café, transit, choupal/gram panchayat)

9

Net usage details by the most preferred place of access - type of connection, ISP subscribed to, frequency of usage, duration of usage, usage by day parts

9

Daily time spent on net vis-à-vis on computer usage, watching TV, reading newspaper and listening to radio

Information Coverage ¾ Online activities undertaken and most used websites 9

Popular online activities and their usage penetrations

9

Most used websites at the overall level

9

Most used websites for 30 popular online activities: 9 Emailing

9 Instant Messaging/Chatting

9 Info Search (English)

9 Info Search (Local Language)

9 Job Search

9 Astrology

9 Travel Booking

9 Online Shopping (other than travel products)

9 News

9 Financial Info (rates, quotes, etc.)

9 Online Share Trading

9 Real Estate Info

9 Matrimonial Search

9 Dating/Friendship

9 Social Networking/Communities

9 Sharing Pictures

9 Sharing Videos

9 PC to PC and PC to Phone based Net Telephony

9 Professional Networking

9 PC to Mobile messaging (SMS)

9 Gaming

9 Listen/buy Music

9 Sports (cricket & non cricket)

9 Cinema Content

9 Buy/Rent Movies

9 Downloading Mobile Content

9 Net Banking

9 Online education/learning

Information Coverage ¾ Online shopping behavior 9

Penetration of online shoppers (search) and buyers (search and buy)

9

Travel products bought and searched in last 1 year, search-to-buy ratios, frequency of buying and average monthly spends

9

Non-travel products bought and searched in last 1 year, search-to-buy ratios, frequency of buying and average monthly spends

9

Modes of online payment used

9

Motivations of buying online and problems faced while buying online

9

Reasons for not buying online (for those who search only)

¾

Online marketing stimulus responded to (banner ads, search ads, virals, contest, e-mailers, newsletters)

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Internet usage in local Indian languages 9

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Popular languages of internet usage, most used websites for each of these languages

Blogging & online community membership 9

Proportion of internet users reading, commenting and owning blogs

9

Proportion of internet users as members of online communities

Main problems faced while surfing the Internet

Contact Details • Address

:

3, Kehar Singh Estate, 1st Floor, Westend Marg, Lane 2, Said-ul-Ajaib, New Delhi – 110030

• Telephone

:

+91-11-29535098, +91-11-32451093, +91-9811256502

• Contact Person

:

Sanjay Tiwari

• Email

:

[email protected]

• Website

:

www.juxtconsult.com

Thank You!