The document discusses digital advertising trends in India. It notes that the number of urban internet users in India is growing rapidly and is expected to reach 114 million by 2015. Time spent online by Indians is also increasing but still lags countries like the US, China, and Brazil. Online advertising spending in India is growing and reached INR 2851 crores in 2012. Within online advertising, online classifieds receive the largest share of advertiser spending. The document outlines trends in online consumer behavior in India and reviews various digital advertising media channels including display, search, mobile, and social media. It provides data on spending and growth across each of these channels. The document concludes with some key advertising trends in India for 2012 such as the rise of mobile

1. Digital Landscape
Thursday, 13 December 2012

2. Agenda
• Online Advertising in India
• Indian Digital Consumer
• Online Advertising Media Mix
• Latest trends in 2012
Manish Shivani - Confidential 2

3. Online Advertising In India
Manish Shivani - Confidential 3

4. India – A Country Going Digital
Urban Internet Users (In Million)
120 114
98
100
87
82
80 72 73
63 65
60 55
50
46
40 36
20
0
2008 2009 2010 2011
PC Literate Claimed Active
Manish Shivani - Confidential 4
Source - Avendus

5. Penetration set to explode, Attracting
Global Players
450 35.0%
29.5%
375 30.0%
21.7% 25.0%
300
20.0%
225 15.3%
376 15.0%
150 9.8%
273 10.0%
6.6%
3.9% 5.0% 190
75 3.1% 120 5.0%
36 46 55 65
0 0.0%
2008 2009 2010 2011 2012 2013 2014 2015
(E) (E) (E) (E)
Active Users Penetration (%)
Manish Shivani - Confidential 5
Source - Avendus

6. E-Commerce
Local Shops are Open! Global Shops are lined up!
Manish Shivani - Confidential 6

7. Mobile Broadbanda fuel the growth
will
350 Broadband Users (In Million)
300 288
250
196
200
150 120
100
51
50 32 39
15 13 20 26
4 0.1 6 0.1 11 2
0
2008 2009 2010 2011 2012 (E) 2013 (E) 2014 (E) 2015 (E)
PC Broadband Mobile Broadband
Manish Shivani - Confidential 7
Source - Avendus

8. Time Spent is all set to surge!
Average Time Spent Online Per Person Per Day
(Hrs.)
0.8 0 1 2 3 4
0.7
0.7 0.67
0.64 Japan 2.87
0.61
0.58
0.6 0.55
0.53
0.49 China 2.74
0.5
0.4 US 2.27
0.3
Brazil 1.07
0.2
0.1 India 0.61
0
2008 2009 2010 2011 2012 (E) 2013 (E) 2014 (E) 2015 (E)
Manish Shivani - Confidential 8
Source - Avendus

9. Indian Digital Advertising Market
Spends (In Crs.) INR
5000
4391
4000 3535
2851
3000
2277
2000 1623
1000
0
Mar '10 Mar '11 Mar '12 Dec '12 (E) Mar '13 (E)
Spends (In Crs.)
Manish Shivani - Confidential 9
Source – IAMAI, April 2012

10. Online Classified is hot favorite of
Advertisers
Base – FY 2012 Online Spends – INR 2851 Crs.
20% Search
Portals / Vortals
Social
Email
13%
53% Video
Mobile
3% Online Classifieds
2% 5%
4%
Manish Shivani - Confidential 10
Source – IAMAI, April 2012

11. Online classified has earned maximum
investments from advertisers
Spends (In Crs.)
1600
1400
1200
1000
800
600
400
105
200
90
1117
1496
367
499
574
418
571
676
0 838
Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar
'10 '11 '12 '10 '11 '12 '10 '11 '12 '11 '12
Search Display Online Classifieds Mobile
% Denote Y-O-Y Growth
Manish Shivani - Confidential 11

12. Indian Online Consumer
Manish Shivani - Confidential 12

13. Evolution of Indian Online Consumer
Source – Nielsen/Netratings Manish Shivani - Confidential 13

14. A Day in Life of Online Consumer
Manish Shivani - Confidential 14
Source - Avendus

15. Online Advertising Media Mix
Manish Shivani - Confidential 15

16. Display
A B
Technology Size
•Image (GIF / JPEG) •Banners & Leader
•Simple Flash boards
•Rich Media with video •Buttons
•Rich Media Without •Rectangles
Video •Skyscrapers
Manish Shivani - Confidential 16

17. Display
Manish Shivani - Confidential 17

18. Spend As per Technology Format
FY 2012 – Base 676 Cr.
3%
10%
24%
Image (Gif/Jpeg)
Simple Flash
24% Rich Media (W/V)
Rich Media (Wo/V)
Text
39%
Manish Shivani - Confidential 18
Source – IMRB Int, IAMAI – April 2012

19. Top Performing Sectors on Display
FY 2011 – Base 499 Cr. FY 2012 – Base 574 Cr.
0% 5% 10% 15% 20% 25% 0% 5% 10% 15% 20% 25%
BFSI 20% BFSI 20%
Travel 23% Travel 23%
Online Publishers 13% Online Publishers 13%
IT 10% IT 10%
Telecom 9% Telecom 9%
Others 5% Others 5%
Auto 6% Auto 6%
Education 4% Education 4%
FMCG 4% FMCG 4%
Consumer Durables 3% Consumer Durables 3%
Print Media 1% Print Media 1%
Electronic Media 2% Electronic Media 2%
Manish Shivani - Confidential 19
Source – IMRB Int, IAMAI – April 2012

20. Search
Manish Shivani - Confidential 20

21. What does a search engine do?
• A User Perspective
– Ask a question, get an answer!
• A Search Engine perspective
– Find all the answers
– Give you the best ones… RANKED
– Measure the human interaction with its
algorithmic logic.
Manish Shivani - Confidential 21
Source - Dominique Hind, Digital Download

22. SEO vs SEM
• Common Myth – Are they Twins?
– No, They are not
•Optimizing through relevance to query & Previous engagements
SEO • Done by using targeted keyword phrases
•Done by using paid tools like Adwords & PPC Advertising
SEM • Great opportunity to gain traffic
Manish Shivani - Confidential 22
Source - Dominique Hind, Digital Download

23. SEO vs SEM
SEO SEM
Manish Shivani - Confidential 23
Source - Dominique Hind, Digital Download

24. Ad Spends
10%
SEO
SEM
90%
Manish Shivani - Confidential 24
Source – IMRB Int, IAMAI – April 2012

25. Mobile ADs
Manish Shivani - Confidential 25

26. Mobile Advertising Mix
SMS
Bluetooth
Voice
M-VAS
Mobile Marketing Mobile Internet
Mix
Software
Social Networking
USSD
M-Commerce
Manish Shivani - Confidential 26

27. Engagement opportunities in Mobile
Customer
Browsing – App’ns – Other
Call – 20% SMS – 10% IVR – 5% Service
5% 10% Inventories
Actions – 7%
SMS2.0 In Game
Placement Recharge
Contests Cards
A2P SMS
Tagging Billing/
Ad RBT WAP Branded
Apps/ODP Charging
Portals Alerts
P2P SMS
Tagging
Brand Postpaid
Zones Bill/Insert
Mobile TV
Push SMS
Manish Shivani - Confidential 27

28. Roles
Recharge Cards
Ads on Post
High
Paid Bills Games
Ad Tags on
Subscription SMS
Push SMS
WAP Portals Bluetooth
MNO & Others
Medium
REACH SMS 2.0
Ads on IVR Portal
Ad RBT
Life Tools Missed Call Alerts
Low
Device Affnet
Customization
Low Medium High
Manish Shivani - Confidential 28
TARGETING & INTERACTIVITY

29. Spend by Sub-Medium
5%
5%
20% WAP / Browser
In - App
SMS
Others
70%
Manish Shivani - Confidential 29
Source – IMRB Int, IAMAI – April 2012

30. Social Media
Manish Shivani - Confidential 30

31. Few Facts…
• 42 Million Social Media Users
• Indian web user spend 3.7 Hrs. per month on
SNS
• 96% of Indian IT firms forbid Social Media use
at work
• 28 Million FB Users from India (More than
total population of Australia)
Manish Shivani - Confidential 31

32. Types of Social Marketing
Photo
Sharing
Video Bloggin
Sharing g
Micro
Podcast
Bloggin
s
g
Key Social
Platforms
Messag
e RSS
Boards
Chat
Widgets
Rooms
SNS
Manish Shivani - Confidential 32
Source - Dominique Hind, Digital Download

33. Profiles of Companies Involved in Social
Media
Manish Shivani - Confidential 33
Source - Dominique Hind, Digital Download

34. Profiles Elaborated
The
Confused Its interesting, but why I am here?
The
Hopeful Don’t know, but this must be effective
The Eagerness to know and being involved, regardless of
Experimenter impact
The
Participant
Digital congregation point of like minded consumers
The
Insightful Make sense, Fish where the fish are.
Manish Shivani - Confidential 34
Source - Dominique Hind, Digital Download

35. Latest Trends in 2012
Manish Shivani - Confidential 35

36. Trends
Mobile Wallet Online VDO Mobile Marketing Scalability of Apps
Airtel Money In Living Room Social & Local
Manish Shivani - Confidential 36
Source - Millward Brown

37. Thank You!
Manish Shivani - Confidential 37