Key Digital Numbers and Trends in India2016

Internet Penetration in India2016

India trumps USA with close to 300 million Internet Users with 19% penetration with year-on-year growth at 31%. India is expected to reach 560 million internet users by 2019.

The TV viewership in India in close to 850 million and Internet penetration at 350 million. The TV penetration will grow to 3% year on year where as Internet penetration will grow by 18% during the same period

Mobile Internet Penetration in India2016

As of December 2015 there are close to 232 million mobile internet users in India.

Mobile internet users in India will grow at 21 percent from 2014 to 2019

There are close to 200 million internet enabled smartphones in India. The reasons of growth are:

India is expected to reach 30% global milestone in 2016 when total smartphone users will be close to 250 million and India will beat USA to become 2nd largest smartphone market in the world.

Digital Initiatives in India2016

The overall investment for the Digital India initiative is estimated to be around INR 100,000 Cr for the existing schemes and the additional INR 13,000 Cr for the new initiatives.

Some of the world’s biggest tech giants are gearing up to capitalize on the Digital India Initiative. Google, Microsoft and Facebook have expressed their interest in providing high – speed internet technologies.High Speed Internet Access:1. Google – Project Loon2. Facebook – Solar Powered

Drones3. Microsoft–Involved unused

TV spectrum – ‘White Space Technology’

Mobile Apps Domination in India2016

In 2016, 12 Billion apps are supposed to be downloaded in India, more than 7 times the number of apps downloaded in 2012 which was 1.59 Billion at a CAGR of 79%.This is an average of 17 apps per person where 3 are paid apps compared to a global average of 26 apps with 5 paid apps. 90% of the apps downloaded in India are the free apps.

Android has 85% market share with iOS at 10% and windows at close to 5% market share. 18.

Games apps (64%) were the most popular category followed by Social and Communication apps (15%) and next are the music streaming apps.

E-Commerce will shift to Mobile App PlatformsA major lifestyle E-Commerce company (Myntra) draws close to 80% of its traffic and 60% of its sales on mobile app. By year 2016 this will grow to 90% traffic post which web portals may cease to exist.

Digital Media Buying in India2016

The digital advertising industry grew from Rs. 4350/- crores in 2014 to Rs. 6250/- crores in 2015 a growth of around 45% projected to grow to Rs. 8400/- crores in 2016 with 44% increase year on year.

The E-Commerce industry has posted a growth of 338 percent in ad spending, making it top digital spender with INR 495 crores ahead of 2013 spender which was

telecom.

The spending on search dropped from 38 percent of the total digital ad spend in 2013 to 30 percent in 2015 where as spending on display slipped from 29 percent in 2014 to 23 percent in 2015.

2014

2015

On the other hand, better ad performance and greater scope of reach and engagement on mobile, social and video had been instrumental in improving their share to 14 percent, 18 percent and 12 percent respectively in 2015.

Key Media Trends2016

Native Advertising – The blending of contextually relevant messages with mobile/app site content is estimated to result in a 33 percent increase in the engagement time and give 57 percent higher CTR.For marketers, native advertising formats have also resulted in a 9 percent higher lift to brand affinity and 18 percent higher lift for purchase intent response than traditional banner ads.

Remarketing and Retargeting to attract customersRemarketing helps advertisers target users who have earlier visited the company website or the mobile app. This has resulted in delivering customized higher performing ads by adding custom parameters to the advertisers website.

Analytics based Programmatic BuyingReal time bidding and programmatic buying are becoming hot favourite topics for intense discussions. Depending on the kind of demand the search generates, the back end software and algorithm alters the investment of advertisers per bid. This results in generating a better return on marketing investment.

Social Media in India2016

With almost 21 percent internet penetration and 13 percent penetration of social media, India continues to be the fastest growing market for social media in the world. 45 percent of India’s total mobile users are active on social media.India spends around 2 hours and 57 minutes, on an average, on social media everyday.

Rich media content has the strongest pull in social media.1. Tweets with visual content

receive 18 percent more clicks and 150 percent more re-tweets.

2. Facebook posts with visual content result in 87 percent of the total interaction on the website.

3. The number of videos from people and brands and expected to increase by 36 % in 2016.

Mobile advertising become a major contributor to social media revenues90% of users access their social media accounts through the mobile devices. The total mobile ad revenue for Facebook accounts for 66% in Q4 2015Globally, Twitter has about 80% active monthly users coming from Mobile Devices of which 8% reside in India.

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