Market Research Report : Local Search Market in India 2010

Local Search Market - India

March 2010

2LOCAL SEARCH MARKET IN INDIA 2010.PPT

SAMPLE

Executive Summary

Market

Drivers &

Challenges

Trends

Competition

�Search engine marketing valued at USD XX mn in 20--; Expected to reach USD YY mn in 20--

� Local web searches constitutes y% of the total web searches

�Search market is evolving to automated voice based search from online search directories

Drivers:

– Proliferation of Internet and extensive

use by young population

– Increasing mobile Internet usage

– Profitable for small and local

businesses

Challenges:

– Search engines acting as default

sites for local information search

– Lack of awareness and language

barriers

– Building database covering local

content

� Increase in PE/VC investments

� Local web directories moving towards mobile platform

�Providing additional services to the users

�Some of the leading players in the local and city based search market:

�Multi City Focus: Online directories which concentrate on a number of cities

�Single City Focus: Online directories which concentrate only on a particular city

•Company 4

•Company 5

•Company 6

Single City Focus

•Company 1•Company 2•Company 3

Multi-city Focus


•Market Overview

•Business/Revenue Model

•Drivers & Challenges

•Trends

•Competition

•Key Developments


Local search has evolved from word of mouth to

professional phone, web and voice-based search services

•Most people relied

on friends and

relatives for local

information

•After a few years,

print directories

and local city guides

emerged as another

mode of getting

local information

• With increasing

telephone

ownership, phone-

based information

support through

call-centers

become

increasingly

popular

Justdial was the first

to launch web-based

search directory

complementing its

phone-based info

support

Word of

Mouth/Print

Directories

Advent of phone-

based

information

services

Online Directories

Automated Voice

Based Search

Mobile Search

SMS/WAP/mobile

portals for

information on-the-

go

Automated voice-

based search system

that process a user

query without

manual intervention

eliminating the need

to enter text queries

Source:


SAMPLE

Local search market is expected to grow rapidly as the

service is becoming increasingly popular

• Online local search involves the use of localized

portals that allow users to search for geographically-

constrained results from a database of local listings

• Major players have multi-channel access including

phone, web, mobile portals

• Convenience, comprehensive databases, and high

penetration of mobiles driving the market revenue

• Revenue, predominantly generated from advertising,

is on the rise and expected to accelerate

Market - Overview

India Search Market Overview

Source:

c%

Other Information

b%Local Information

Total Web Searches in India

M2Unique Searchers ‘000

M3Searches Per Searcher

M1Searches (mn)

Indian Search Engine Market Revenue

0

200

400

600

X

2008

Y

2015e

a%

USD mn


Drivers & Challenges

Profitable for small and local

businesses

Increasing mobile Internet usage

Proliferation of Internet and extensive

use by young population

Drivers

Building database around local

content

Lack of awareness and language

barriers

Search engines acting as default sites

for local information search

Challenges


Trends - Summary

Trends

Increase in PE/VC

investments

Providing additional

services to the users

Local web directories

moving towards mobile

platform


SAMPLE

Online local search market becoming crowded as new

players are entering this space

•Many new start-ups have ventured into local search space as the market witness tremendous traction and growth

•In order to increase database listings and attract more users, all the online web directories have the option of free listings

•Leading players in the market include company A, Company B and Company C

Competition - Overview Total Unique Users (April 2009)

Source:

aCompany A

bCompany B

cCompany C

dCompany D

eCompany E

Total UU’ 000

fCompany A

gCompany B

hCompany C

iCompany D

jCompany E

PV (mn)

Pages Viewed by Users (April 2009)

x% Company A

y%

Company B

z%Company C

u%Company D

v%

Company ECompany F

w%

Preference of Search Sites


Major Players (1/3)

Source:

• Company C was established in 19--

• It initiated the concept of yellow pages and free classifieds paper in India

• The directories include yellow pages/buying guides, industrial guide and business listings

• It is spread over x cities and searches can be filtered with respect to pincode and street name

Company C

• Started in Aug 20-- in Mumbai and provides coverage of over X cities

• Company Z acquired Company B in March 20-- for USD x mn

• In Jan 20-- it became a content partner of Nokia Ovi

• In Dec 20-- it launched a new service by which establishments can be viewed with a 360 degree

view of the interiors

Company B

• Four Interactive launched company A in Aug 20-- in Bangalore

• It has coverage across X cities and delivers consumer-specific local information through multi-

platforms (web, mobile and phone)

• In Oct 20-- it launched a new micro website along with D

• In May 20-- it launched T1 for Yahoo messenger and GTalk

Company A

Business DescriptionCompany

SAMPLE


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Market Research Report : Local Search Market in India 2010

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