Digital India - The Growth Story

BRIC Nations - Growth Comparison

• 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• India’s explosive online growth to continue, as most online categories

show below average penetration compared to global averages

Digital consumer achieves critical mass

• 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

Time Spent (in billion minutes)

Cities Active Internet Users

Mumbai 6.2 Mn

Delhi 5.0 Mn

Kolkata 2.4 Mn

Chennai 2.2 Mn

Hyderabad 1.8 Mn

Bangalore 1.7 Mn

Ahmedabad 1.7 Mn

Pune 1.2 Mn

Rest of India Active Internet User

Small Metros 11.6 MN

Non-Metros 7.4 Mn

Small Town 7.5 Mn

Towns with less than 2 lac population

16.1 Mn

Small is Not small Anymore!

Source

Demographic distribution - Youth driving the growth

• 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

The Super Seven - High growth categories

• 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

YoY Growth% Jul’12 Reach%

The Top 10 Sites - Year on Year growth

• 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

15+ Age, home & Work users

Online Retail - The boom continues

• 3 out of 5 online Indians visit online retail sites, growth of 43%• A close battle between Snapdeal and Flipkart in horizontal retail and Jabong and

Myntra in the lifestyle category respectively• Growth Factors: Aggressive marketing and consumer need

Fastest growing Retail categories

• 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 &

will only grow faster in the coming months

e-Commerce Transactions in India

• Direct debit or Net banking 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

Facebook’s dominance

• 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

15+ Age, home & Work users

Entertainment - The blockbuster category

• Entertainment category has 89% reach, still lower than WW average of 94.1%• Entertainment added 15 million UV’s 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

Mixed growth in other categories

Online Video continues to soar

• 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

Mobile Engagement - The Growing Phenomenon

• 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

Take Aways…• Smart phones and tablets to drive engagement and usage

further through internet • 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