Net Advertising

This is the latest media which has been invented in the fag end of

the last century

Although Marketers are raving about it there are a lot of questions which are still to be answered. It is in the

process of evolution and advertisers are still groping in the dark to find the

right solutions for themselves.

A brief History

• 50’s TV was introduced

• 60’s Mainframe computers came in

• 70’s The electronic chip was invented

• 80’s the first PC came in

• 90’s the internet was evolved

• 00’s E – Com., Internet transactions

NASSCOM Statistics

2000 2008 Target

Total No. of PCs 4.3 million

(5.1 million – 2001)

30 million

Internet subscribers 0.77 million 35 million (26 million)

Internet users 3.2 million

(6.4 million – 2001)

100 million

Cable TV subscribers 37 million 70 million

Fixed Phones 26 million 125 million (50 mill

TV sets 60 million 225 million

Internet Access: capital cities lead the way

• While the capital cities account for 77 % of Internet connections, the other cities and towns have approximately 23 % connections.

• Of the 77%, 55 % are in the top metros.

Global Projections

• Year 2000

Offline advtg 237 billion USD

Internet advtg 10 billion USD

• Year 2004( projections)

Offline advtg 244 billion USD

Internet advtg 61 billion USD

What is the net used for? (2003)

Used for % of users % of time

E-mail 90 35

Information 50 9

Chat 43 9

Education/Academic 41 11

Downloads 38 6

Movie/Music/Games 27 4

Jobs 23 4

Age group of Indians accessing Internet as on 30th June 2000

Age group Percentage

< 18 12

18 - 24 49

25 - 39 28

40 - 54 8

55 + 3

Age profile of Internet users as on 2003

Age groups %

15 -20 25

21 - 25 29

26 - 30 14

> 30 32

% of Males and Females accessing internet in India

Males Females

June 1999 82% 18%

June 2000 77% 23%

June 2001 79% 21%

MHI of Internet users

MHI %

<10000 40

>10000 60

Frequency of Internet use

Frequency Percentage

Daily 48

2 – 4 times a week 31

Once a week 10

Fortnightly 8

Once a month 3

Surfing rates

Days of the week Percentage

weekdays 89

Saturdays 78

Sundays 66

From where Internet accessed (2000)

From where? Percentage

Cyber cafe 30

Office 23

School/Institute 19

Home 15

Friends/relatives 13

From where Internet accessed (2003)

From where? % on working days % on Holidays

Cyber cafe 30 27

Office 29 7

Home 25 47

Other 16 19

Time Spent on the Internet

Time logged (min) % on working day

% on Holiday

<30 21 16

30 - 120 64 71

>120 15 13

Time of Internet Access

Access between % on working day

% on holiday

0900-1500 38 18

1500-1930 28 32

1930-2300 27 41

2300-0900 7 9

Advertising on the netYear Rs. Crores

1998 - 99 6

1999 - 00 14

2000 – 01 19

2003 - 04 42

2004 – 05 162

2006 - 07 218

2007 – 08 900

There has been a over 50% growth in the last three years

A NASSCOM survey determined that the real growth of the

Internet in India would take place through the cable TV than PCs

India has 43 million C & S connections but only 5.1 million PCs

Profile of the Indian Internet user

Category Percentage

Professional/Executive 43

Students 38

Housewifes 4

Others 15

Perhaps the biggest bottleneck for Internet growth today is that enough investment has not been channelised towards e - security

India invests 0.8 % of Web expenditure towards e – security

whereas the international average is 5.4%

“If you want to master the future, you have to invent it.”

- Peter Drucker

Building Internet brands

Vs

Building Brands using the Internet

The Interactive Marketer’s Dream

Delivering the right offer to the right person at the right time on the right

device.

9 predictions

• It is about C2B

• More promotions

• Non – internet companies would catch up

• Internet companies will acquire big offline companies

• Advertising would get more scientific

• The internet will be everywhere

• What will be not bought online?

• Device convergence is a bad bet

• More products and services will be for free