Understanding digital ecosystem of India and ways to win

1. D E M Y S T I F Y I N G
DIGITAL10th NOV, 2016

2. 1 WHAT IS DIGITAL ?
A macroscopic understanding of the new way of telling the brand story
and how brands can leverage the same to create value proposition
AGENDA
2 INDIA BY NUMBERS
India by numbers and how it is shaping up the way we consume content, react
with technology
3 DIGITAL DISRUPTION IN INDIA
Key factors that is driving the growth
4 WAYS TO WIN
Key examples and opportunities which are relevant to the brand and are
actionable in the near future

3. WHAT IS DIGITAL ?

5. DIGITAL IS ONLY THE OPPOSITE OF
ANALOGUE

6. DIGITAL IS NOT A CHANNEL

7. TV IS
DIGITAL

8. PRINT IS
DIGITAL

9. OOH IS DIGITAL

10. PRODUCT IS
DIGITAL

11. ALL CHANNELS ARE DIGITAL

12. THERE IS NO <DIGITAL> FOR
CONSUMERS

13. THERE IS NO
<SOCIAL> FOR
CONSUMERS

14. ALL CHANNELS ARE SOCIAL

15. THERE IS ONLY
<LIFE>

16. AND DIGITAL IS
A WAY OF LIFE

17. THEREFORE ITS NOT
WHAT CAN BRANDS
DO IN DIGITAL ???

18. …RATHER, ITS
“WHAT CAN
DIGITAL DO
FOR THE
BRANDS ???”

19. INDIA BY NUMBERS

20. By 2020, India will have 790 Million internet
users and 690 Million smartphone users
Smart Wearables Users : ~ 0.8 MN
Tablet Users : ~ 40.4 MN
3G/4G Users : ~ 154 MN
Smartphone Users : 180 MN
Mobile Internet Users: ~ 200 MN
Internet Population : 331Mn
Mobile Connections – 944 MN
(500 MN Unique Users)
Indian Population : 1210 MN
o The number of wireless internet users in
India are likely to cross 790 million by
2020 with more than 60 per cent of
users accessing the internet through
their mobile phones
o 3G and 4G subscribers would constitute
over 40 per cent of the wireless internet
subscriber base by 2020

21. Internet users consume
more media than non-
users
1.6
0.5
0.5
2.2
1.7
Non - Internet User Internet User
Media consumption
(Hours spent per day)
Digital Print TV
150x
Number of times a
user checks
smartphone every
Day
40%
More time offline vs
online on the
phone

22. Mobile continues to be
the most preferred
choice of access
The internet consumption in India
follows 80/20 rule with 80% of the
internet consumption comes from
mobile devices and only 20% of the
connected consumers use PCs or
Laptops
56%
Use
Smartphones
23%
Use feature
phones
Only
20%
of connected
consumers use PCs or
Laptops

23. Rural and small
towns are now
driving growth
o Non metro user constitute 69% of
the total internet users in India
o By 2020, there will be 500 Million
Indic language users in India
33% 29% 24%
11%
9%
7%
16%
14%
14%
21%
27%
21%
19% 21%
33%
2009 2011 2015
Distribution of Internet users across
India
Top 8 metros Other Metros
5-10 Lakh towns other metros < 5 Lakh towns
Rural

24. Male
61%
Female
39%
MALE VS. FEMALE
3%
6%
16%
38%
37%
3%
6%
15%
38%
38%
3%
6%
16%
38%
38%
55+ Years
45-54 Years
35-44 Years
25-34 Years
15-24 Years
AGE WISE BREAK UP
Total Male Female
Indian male constitute 61% of the internet
population in India with 15 to 34 years being
the dominant group
Source: ComScore,

25. App usage in India is dominated by male
users with 18-24 years contributes 52% of
the app universe in India
Male
89%
Female
11%
GENDER WISE SPLIT
Less Than 18
years
11%
18 - 24 Years
52%
25 - 35 Years
29%
More than 35
Years
8%
AGE GROUP WISE

26. Students and part-time job holders constitute 41% of the
total App users in India with 45% usage coming from top
metros
Top Metros
45%
5-9 Top
Cities
19%
Other 1
Million+
Towns
24%
Other
Twon class
12%
LOCATION WISE SPLIT
Business
12%
Self
Employed
8%
Full Time
Job
34%
Part Time
Job
12%
Student
29%
House
Wife
2%
Currently
not
working
3%
OCCUPATION WISE SPLIT
Illiterate
3%
Primary-Middle
School (Up to 9
Years)
3%
High
School (10
~12 Years)
24%
Under
Graduate
24%
Graduate
32%
Post
Graduate
14%
EDUCATION WISE SPLIT

27. 81.1
113.6
153.3
199.3
255.2
16.2 28.4
46
69.8
102.1
2015 2016 2017 2018 2019
Digital Advertisement spend (INR Billion)
Total Spends (INR Billion) Mobile Spends (INR Billion)
Search and
Display
47%
Video
25%
Classifields
15%
Social
8%
Others
5%
Digital advertisement spend by segment
Digital advertising spending is
getting more prominent with
Mobile is already the third-largest
advertising medium in India
o Digital advertisement spend has grown by almost 38.2%
over 2014 to reach INR60 billion and It is expected to
cross INR255 billion in 2020.
o Mobile advertisement spend in 2015 is estimated to be
at INR9 billion and is expected to grow at a CAGR of
62.5 per cent to reach INR102.1 billion in 2020
o FMCG and auto sectors are expected to be the largest
spenders on overall advertisements in 2016 driven by
new product launches and E-commerce shall continue
to be a key driver in advertisement

28. DIGITAL DISRUPTION IN INDIA

29. FACTORS OF
DIGITAL
DISRUPTIONChanging user habit will disrupt existing mediums as
content providers and the brands will need to match
consumer expectations.

30. INFRASTRUCTURE

31. Infrastructure
Rollout of 4G will be a key enabler in providing mass quality
internet access
o The number of wireless internet users in India are likely to
cross 790 Million by 2020 with more than 60% of the users
accessing the internet through their mobile
o By 2020, 3G and 4G subscribers would constitute over
40 percent of the wireless internet subscriber base
o The growth of 4G devices and cost effective data plans
are a key enabler for growth.

32. Infrastructure
Evolution and acceptance of Online payment models is likely
to strengthen the monetization potential
o The Rise of Mobile
wallet
o Evolution of banking
application

33. Infrastructure
Government initiatives will supplement internet penetration
and digital adoption
o “Digital India” Initiative
o Progress in IPv6
implementation
o Machine to machine
communications (M2M)

34. ANALYTICS

35. Analytics
Driving actionable insights from analysis to predictive to the
next best action
AUDIENCE
ANALYTICS
OPERATION
ANALYTICS
EVENT DRIVEN
ANALYTICS
PREDICTIVE
ANALYTICS
CAMPAIGN
ANALYTICS
TARGETING AND
CONSUMER INSIGHTS
To target specific customers
with the most relevant
content
TIMES BASED CONTENT
OPTIMIZATION
To understand when customers
more likely to consume specific
genre of content and with what
device
LOCATION BASED
OPTIMIZATION
Relevant and Personalized
messaging based on location
CUSTOMER JOURNEY
To be present across all possible
stages of consumer journey with
relevant communication and
value addition with the help of
big data
DISCOVERY ENGINES
Leveraging new avenues for
monetization based on data
insights, new trends

36. MOBILITY

37. Mobility
A mobile first ecosystem.
o India is the second largest mobile subscriber market in world with
over 500 million unique mobile - 36 per cent penetration
o Mobile internet connections are expected to cross 500 million in India
by 2020, representing 40 per cent of the total mobile connections
with 40% 3G and 4G connections
o Asia Pacific witnessed a 104% year on year growth in app installs and
India stood fifth in terms of percentage of application downloads at
6 per cent compared to 15 per cent in China
o Mobile app shopping contributed 19% of all app downloads in India
behind gaming at 25%
o Mobility can fuel the disruption caused by IoT - India is the third
biggest market in IoT in Asia Pacific and is expected to grow at a
CAGR of 40 per cent for the period of 2014-20 APPS INSTALL CATEGORY

38. Mobility
Unlocking the potential of smartphones as a truly disruptive force
o There are 180 million Smartphone users in India
o Traditional voice calling accounts for a mere 9 per
cent of the total time spent on smartphones
o Users begin replacing ‘phone calls’ as we knew
them, with Voice over Internet Protocol (VoIP) and
other internet-based communication methods,
including chat.
HOW CONSUMERS SPEND TIME
ON THEIR DEVICES

39. Mobility
Unlocking the potential of smartphones as a truly disruptive force
o Social networking apps like Instagram and
Snapchat are rapidly gaining favor, particularly
among the youth and metro city dwellers.
o YouTube to be the most popular destination.
o Users also prefer consuming live event telecasts or
even pre-programmed content on demand on
their mobile devices.

40. Mobility
Unlocking the potential of smartphones as a truly disruptive force
o Dial C for Convenience - Rise of specialized
app
o From window to screen shopping: Shopping
on the smartphone has seen a meteoric rise
from 39 per cent in Q4 2014 to 69 per cent in
Q4 2015
o Smartphone as the mobile wallet – growing
comfort with transecting on smartphones

41. CONTENT
CONSUMPTION

42. “Personal escapism” as opposed to “group escapism” is
driving the online video consumption as well as change the
type of content consumed
The average length of video viewed
in India is
< 20 Minutes
~ 62%
of content consumed on YouTube is
short form content

43. Omni platform content consumption - we are entering an era
where all screens will work seamlessly together
DEVICE USE BY TIME OF DAY

44. Content ConsumptionContent economics to achieve equilibrium and monetization models to
evolve and become more favorable
o Smartphone penetration and rise of
wearables will drive the next wave of
content consumption preference
o Technology is making it possible for
delivering a differentiated experience to
the end users where they can consume
content which is closest to real
experiences
o Storytelling would need to change to
leverage on the advantages of VR and
AR technologies
o The use of digital assistants can impact
how content is consumed

45. Content ConsumptionContent economics to achieve equilibrium and monetization models to
evolve and become more favorable
o Second Screen content consumption
• 67 per cent users switch to another channel
when commercial advertising comes on
• 48 per cent engage with social media and
58 per cent browse the Internet while
watching live TV shows
• 49 per cent watch video programs more if
they have social tie-in.
o Increase in mobile video based consumption -
Mobile video will grow at a CAGR of 62 per cent
between 2015 and 2020

46. Content ConsumptionContent economics to achieve equilibrium and monetization models to
evolve and become more favorable
o Mobile gaming content consumption - On an
average Indians spend 186 minutes per day on
their devices of which 30 minutes were spent
playing mobile games
o Regional content for India’s rural - In rural India
there are 81 million users of which 46 million users
use the internet in local languages and this user
base has grown 47 per cent year on year
o Short duration content consumption on mobile
are on the rise

47. Over the top (OTT) video services
and the rise of mobile video
MOBILE TRAFFIC SHARE BY CONTENT CATEGORY
o Mobile data traffic grew 50 per cent in 2015,
driven by 85 per cent surge in 3G data traffic
– it grew faster in town B and C category than
metros
o 40 per cent of mobile data traffic being
driven by video and audio consumption.

48. YouTube continues to lead with maximum
share of the online video
o Total viewing duration has grown 80 per cent over the
past year in India with ~55 per cent of YouTube’s watch
time coming from mobile devices
o Hours of content uploaded from India growing by 90 per
cent 40 per cent of mobile data traffic being driven by
video and audio consumption.
o Entertainment-related content (film, TV and music
videos) continue to take the lions share, contributing 90
per cent of viewership on the Top 100 YouTube
channels.
YOUTUBE TOP 100 CHANNELS CATEGORIES BY
VIEWERSHIP

49. NETFLIX
Subscription based VOD currently offering
three packages for INR500 (single device,
SD content), INR650 (2 devices, HD
content) and INR800 per month (multiple
devices, UHD content)
LUKUP MEDIA
Lukup Media, launched its video
on demand and Broadband
services priced at INR990 per
month in
2016
HOOQ
A joint venture of Singtel, Sony
Pictures, and Warner Brothers
entertainment, was launched as
a subscription-only VoD platform
in India in May 2015
YUPP TV
Provider for Indian content
across the world, launched its
internet-based TV steaming
service in India in Oct 2015
YUPP TV
Made-for-digital content
producer The Viral Fever
launched its own platform TVF
Play, marking a shift
from its YouTube only policy.
OZEE
Launched in February 2016.
The platform will have content from
Zee’s TV channels as well as exclusive
content from award shows, movie
premieres and music concerts
VIU
Vuclip launched its
OTT platform Viu in
India in March
16, 2016
VOOT
Viacom18’s free ad-funded VOD
platform VOOT is expected launched
in April 2016. The platform offers
content from its existing channels and
original content
BALAJI TELEFILMS
Balaji Telefilms’ digital subsidiary ALT Digital is
expected to launch its own VOD platform
soon.
Competition in
the OTT space
continues to rise
and gaining
critical mass

50. Traditional TV and
film content on OTT
platforms driving
adoption
o GEC content is the most popular genre on OTT platforms as well,
with catch up TV being the most common reason for users to view
online.
o Mobile is becoming the first screen for sports given the importance
of watching matches with live zero delay
o Consumption of sports via smartphones and laptops/tablets by fans
at least once a day stood at 52 per cent and 54 per cent
respectively
o Online consumption pattern of sports is similar to TV with the top
three most followed sports online in India being Cricket (79%),
Tennis (47%) and Football (45%)
Hotstar managed to reach
~19%
of the TV reach for IPL on Sony
during April ~ June 2015 in the Top
Six metros

51. The rise of digital
only original video
content on OTT
platforms
o Online video viewers in India value freshness of
content as the most important feature with over
65% choosing this as the most important criteria for
watching videos online
o Contemporary stories, new-age story telling and
fresh actors and Low censorship are driving the
popularity of web series.
The Viral Fever (TVF) – Permanent
Roommates and Pitchers, the
latter especially going on to
become hugely popular
Y-Films, the youth content
division of YashRaj Films, also had
relative success with two web
series in 2015 – Man’s World and
Bang Baaja Baaraat (BBB)
Star India tied up with India
Bakchod (AIB) for 20-episode
news comedy series
With each episode released first
on Hotstar, and then aired on TV
channels

52. SOCIAL MEDIA

53. Social Media is
mass medium now
143 MN
Active social media
users in India -
increase of 100 per
cent in rural
areas
Average daily
usage of
2 HOURS &
36
MINUTES
– More than TV
Indian user
base
aged
≤23 YEARS
Facebook
and
WhatsApp
dominate the
social media
usage
rankings
42 BN
messages daily
from India
through
WhatsApp and is
the highest photo
sharing country in
the world
72%
Users access
social media
through mobile
22.2 MN
Active
Monthly
Twitter Users
12.2 MN
Active
Monthly
Instagram
users

54. Evolution of Social media
o Facebook is about opening up to the world and
empowerment. It has moved from a platform to
connect with friends to an ecosystem it self.
o Twitter is now positing itself as Real time News app.
o LinkedIn now covers the entire professional spectrum
from education, training to job market
o Instagram is about moments and celebration of life.
Real time
marketing,
Influencer
marketing, Image
management,
Voice of the
brand
Brands are using
LinkedIn for
recruitment, B2B
marketing, Lead
generation and
Training
PR channel,
product launches,
feedback
mechanism,
image
management

55. Social Media is
the new CRM
tool and driving
Brand
Preference
71%
Indians used social media
to get a customer
response
56%
of the user share
information about
service experiences
50%
of the user ask others
about how to get
better service
47%
use social media to
raise concern about
service issue
47%
shares their great
service experience
in Social media

56. Social Media defines the
celebrities of tomorrow
o Instant recognition, limitless possibilities
and ample room for experiments has
enabled the users to create amazing
content become a star overnight.
o These internet celebrities are shaping the
way we consume content - Online or
Offline

57. Transiting to a
Ecosystem : The emergence
of Dark Social
o WhatsApp is extensively used for
business transections, grievances
addressal channel and for nurturing
brand evangelists
o Facebook Messenger, WeChat full
blown ecosystem around it with
integrated payment systems, taxi
service apps, shopping apps, news
and entertainment apps etc.
o Snapchat, Instagram is used by users
to share that truly interests them with
others they share a deeper
connection
adidas is using
WhatsApp to build
hyper local
communities in cities
across the world
User can now ask for a
ride on Uber, order Pizza
through Dominos , enjoy
all Goal.com content
through Facebook
Messenger
People can now arrange
an exchange with ASOS
via Facebook Messenger
and pay a utility bill on
WeChat
Instant article features
are extensively used by
content publishers to
reach out to the right
audience
Kotak Mahindra
introduced #tag
banking through
Tweets with a
predefined #tags

58. Social media are
influencing product
/ Service design
o Flexibility is targeting, Relevance, context and
discovery are the key USPs of social media. Brands are
using extensively not only for promotion but product
and services are also designed keeping social sharing,
virtual identity in mind.
o The front cameras in Mobile are getting more
prominence.
o Smart Devices are designed accordingly keeping
social bragging habits into consideration.
o Startups are using social media tracking social media
habits, personal interests to tweak their services
offering. Twitter APIs is extensively used to automate
service deliveries.
By scouring eBay and Amazon reviews, C&A marketing has
developed products that answer the frustrations of consumers
and include the most requested features.

59. From Sporadic reach to Enduring Relevance :
Marketing of moment
Scottish musician Caitlin McNeill posted
a picture of a dress on micro-blogging
website Tumblr asking for color of the
dress
…AND THE INTERNET
BROKE DOWN ON THIS
DEBATE
#TheDress
21 MN+ Views on the post
22.8 MN + Page views on Buzzfeed
800K + Tweets
1 Mn Searches in less than 24 hours

60. WAYS TO WIN

61. 1. FROM DESTINATIONS TO INFILTRATION
INFILTRATE FANS STREAMS, “FISH WHERE THE FISH ARE”.
FOCUS ON
DISTRIBUTION
Tapping into networks, interest
graphs and publishing to drive
engagement.
REAL TIME
COMMUNICATI
ON
News and trends
based relevance.
Real-time content.
MICRO-
CONTENT
Content that is focused
on driving
conversations, where
and how social
consumers enjoy it.
UGC VS. BGC
Embrace the idea of being
the host, not the leader.

62. 2. FROM IMPRESSIONS TO CONTEXT
CREATE MORE DIGITAL CONTEXT FOR THE BRAND
AND FANS TO CO-EXIST
FIELD & PHYSICAL
Tie hyper-local product experiences to
digital connections. Move beyond
organic conversations
MOBILE
Drive fan connections content sharing
via mobile.
PRODUCT
Find ways to position the
product as a gateway to
digital action

63. 3. FROM CONNECTIONS TO BEHAVIOR
INVEST IN UNDERSTANDING AND GROWING
POSITIVE BEHAVIORS
LISTENING & DATA
Mine connections, behaviors
and conversations. Tie key
“signals” to business metrics.
CONVERSATIONS
Drive deeper
conversations. Identify
and activate key players
COMMUNITY
Grow a community,
through ambassador/VIP
programs, opt-in rewards
and more.
REWARD
Incentivize, recognize and
reward behavior.

64. 4. FROM STATIC TO REAL TIME
ADOPT A NEWSROOM STYLE APPROACH TO CONTENT
INTELLIGENCE
Develop an approach to real-time data against the brand’s
objectives.
NEWSROOM
Commit to a team and approach which can drive
results in real-time, through just-in-time content and
rapid editorial cycles.

65. Thank You