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Demystifying digital

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Demystifying digital

  1. 1. D E M Y S T I F Y I N G DIGITAL10th NOV, 2016
  2. 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
  14. 14. THERE IS ONLY <LIFE>
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 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,
  24. 24. 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
  25. 25. 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
  26. 26. 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. 28. FACTORS OF DIGITAL DISRUPTIONChanging user habit will disrupt existing mediums as content providers and the brands will need to match consumer expectations.
  30. 30. 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.
  31. 31. 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
  32. 32. 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)
  33. 33. ANALYTICS
  34. 34. 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
  35. 35. MOBILITY
  36. 36. 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
  37. 37. 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
  38. 38. 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.
  39. 39. 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. 41. “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
  42. 42. Omni platform content consumption - we are entering an era where all screens will work seamlessly together DEVICE USE BY TIME OF DAY
  43. 43. 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
  44. 44. 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
  45. 45. 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
  46. 46. 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.
  47. 47. 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
  48. 48. 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
  49. 49. 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
  50. 50. 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
  51. 51. SOCIAL MEDIA
  52. 52. 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
  53. 53. 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
  54. 54. 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
  55. 55. 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
  56. 56. 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
  57. 57. 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.
  58. 58. 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
  59. 59. WAYS TO WIN
  60. 60. 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.
  61. 61. 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
  62. 62. 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.
  63. 63. 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.
  64. 64. Thank You