2. Indian Online Media & Social Networking
Source: India Online Landscape Report 2010, Juxt
94%
72%
56% 56% 55% 54% 52% 50% 50% 50%
Online activities of Indian Internet user
Indian Internet Usage Statistics
Number of actibe Internet users 51 mn
Urban user base 40 mn
Rural user base 11 mn
% of Indians with internet access 4.40%
Mobile internet users as % of internet users 25%
Daily users 79%
% of household with internet access 10%
% of internet households with multiple users 66.67%
• Over half of internet users are employed, half of whom are
corporate employees
• 2/3rd of those employed are head of the household
• 25-35 years forms the single largest age group among internet
users
• Average claimed monthly family income is 3 times the national
average
• Female user-ship inching upwards, housewives as a user base
starts emerging
Internet user profiles in India
3. India: State of Social Networking
0
5
10
15
20
25 20.87 19.9
4.32 3.5 3.34 3.26 3.2 2.96 1.8 1.55
Subscriberbaseinmns
Top SN site in India with user base
India Total Unique Visitors (000)
Jul-09 Jul-10 % Change
Social Networking 23,255 33,158 43
Facebook.com 7,472 20,873 179
Orkut 17,069 19,871 16
Bharatstudent.com 4,292 4,432 3
Twitter.com 984 3,341 239
Zedge.net 1,767 3,206 81
Ibibo.com 1,562 2,960 89
Yahoo! Buzz 542 1,807 233
Shtyle.fm 407 1,550 281
Growth of SN sites in India
Insight
Social Networking has exhibited tremendous user base growth in India with Facebook’s
popularity soaring to overtake Orkut as India’s no.1 Social Network
% reach of web
population
Average Minutes/
Visitor/month
Average Visits/
Visitor/month
68.5 130.1 13
Facebook
48.6 167.2 17
Social Networking Stats
Insight
The time spent on social networking and
frequency of access id still low in India
but is going to increase in future
Demographics
Indian SN user
base
Age group
15-24 (48%) 25-35(26%)
Education
High School or less (14%)
Pursuing graduation (26%)
Graduate (32%)
Gender
Male (80%)
Female (20%)
Income
< 2lakhs (59%)
2-6 lakhs (25%)
Source: comScore
4. India: State of mobile internet & smart phones
Facts about mobiles & smart phone
Total mobile Phones 471 mn
Number of Smart Phones 8-9 mn
Internet Capability 127 mn
Mobile Internet users 12 mn
Y-o-Y unique user growth of mobile internet 40.8%
Y-o-Y page view growth of mobile internet 402.8%
Smart phones as % of total phone sales (2010) 5.25%
Smart phones as % of total phone sales (2014) 18%
Quarter-on-quarter growth of smart phone sale 6-10%
Insight
India has a decent smart phone user base & the
user base has a healthy future growth
60%
2%
7%
23%
8%
Active Internet Users using Mobile
Internet
Communication Ecommerce Entertainment
Info Search Online Services
11%
35%
33%
10%
7% 3%
Active Internet Users using Mobile
Internet School going kids
College student
Young men
Older men
Working women
Non-working
womenSource: I cube 2008, IMRB Syndication
Insight
• Most active internet mobile user
segment is college student aged
b/w 18-24
• Mobile Internet usage among
women is still very low in India
• Any new SN service must appeal to
the young Indian male to grow its
user base
• College going students in India are
quite tech savvy and follow tech
trends actively
5. Great potential for Indian brand promotion on SNs
0
50,000
100,000
150,000
142,060
89,945
33,515 26,286 23,307 20,556 18,859 16,492 15,065 13,693 10,793 8,821
Top Indian Brands on Twitter (with followers)
0
200,000
400,000
600,000
800,000
1,000,000
853,286
729,782
547,770
414,938 401,340 385,752 367,364
324,977 322,962 299,214 264,091 263,826
Top Indian Brands on Facebook (with followers)
InsightGreatpotentialtoleverageSNtopromoteIndianbrands
Source: comScore
6. Insight
Status of US Location based Social Networks
56%
12%
8%
8%
6%
5% 4%1%
A couple of times a week
Once a day
Every hour
A couple of times a month
31%
30%
26%
13%
Frequency of "check-in"
0% 20% 40% 60% 80%
Home
Work
Restaurants
Gym
Events
77%
16%
3%
2%
2%
“Check-in” locations
Usage pattern is healthy and people
are using the location aware apps
Insight
Users are not using these
apps on the go or outside.
Need to make apps more
engaging to encourage
users to make use of
location based features
7%
30%
22%
22%
19%
Age profile of users
>=55
35-54
24-25
18-24
13-17
Insight
More popular among older age group of 24-54
than among teens may not have freedom to
move about around city as much
Source: Report from myxer
7. 0% 10% 20% 30% 40% 50% 60%
Not Interested
My phone doesn't have the ability
Privacy concerns
Other
56%
23%
14%
7%
Reasons for not using a location based SN
45%
31%
18%
6%
Number of location based services used
1 2-4 5-6 >6
Insight
Unlike common perception,
privacy is not the top concern
regarding the non-use of these
services. The larger majority
(56%) say they're simply "not
interested." This engagement
hurdle is what location-based
applications and games have to
overcome.
58%
42%
Primary Reason for use
Share your
location
with their
friends
Finding
locations
of friends
0% 20% 40% 60% 80%
Using apps more than
before
Decreasing their use
74%
27%
Trend in usage of apps
Status of US Location based Social Networks
Source: Report from myxer
8. Location based SNs: Opportunities & Challenges in
India
Scenario of location aware services in India
• Social Networking is growing at a tremendous pace
in India. Segments such as non working women with low
current user base share are also growing exponentially
• Mobile internet has a large user base of 12m. India is
the 2nd biggest consumer of mobile internet after US
with highest growth rate in the world. Mobile Internet
Penetration is higher than broadband penetration & is
also growing at a much higher pace.
• GPS usage is low in India but usage is growing at a high
pace and many GPS service providers are offering
services in Indian cities. Also, alternative location
tracking technologies like cellular triangulation are
being offered by firms.
Opportunities
• SN is growing but frequency of usage is still low with a
high % of users only accessing once/week. E.g.: 23% of
Twitter users in India have registered but never twitted.
• Same trend exists in mobile internet usage also with
only 2 out of 12mn are active users.
• There are issues of software compatibility and quality
of GPS and other location services in India
• Low numbers of smart phones in India is an issue as
most location aware apps work only for smart phones
like iphones, android phones, etc
Challenges
Essentials for any location aware app
1. App must be engaging enough to appeal to
India users to ensure high usage levels, so
it must be designed to cater to Indian
tastes and needs.
2. A location based app can not be build
exclusively to run on smart phones. It must
be designed to run smoothly on medium
range phones. Also some features using
only SMS has to be developed to cater to
low end phones.
3. The service must offer strong incentives in
form of rewards like coupons, free gifts
,cash redeemable points, etc in order to
ensure that users just don’t stop using the
service after registering for it.
9. Existing feature set: location aware Social Networks
Add messages, photos, videos
Check-in
to a
location
Locate your friends
Leave tips, ratings, reviews
about places visited
Status, photos & videos
automatically uploaded
to Facebook, Twitter a/c
Share status with friends
Receive badges & medals
Communities
Form location-based communities
Share schedules within community
Targeted promotions, games for
communities
Places,
Promotions
& Coupons
Info about surroundings such as
ATMs, bars, restaurants, gas stations
with ratings, reviews, prices, distance
Tie ups with stores, restaurants, bars
to offer discounts, coupons to users
Tie ups with firms to location based
promotions of brands or products
Share reviews within community
10. Existing feature set: location aware Social NetworksGames,Utilities,Recommendations
Recommend new locations to visit based
on past activity & what's popular at the
moment
Entire SN around games like completing
challenges at each check-in(scvngr),
monopoly using real places (myTown)
Recommend new friends based on common
interests such as same locations, type of
places visited (bars, theatres, etc)
Utilities such as listing of nearby taxi
services with tariffs, ratings, reviews;
booking of tables at nearby restaurants
Recommend cool local places, events,
things to do, and great deals, even
coupons and special offers
Tag the friends to be a part of your update
Locate your nearby friends on map
Pull in contacts from Facebook
Interact
with
friends
Browse status updates of friends checked in
Facilitating face-to-face interaction
with friends by providing directions
to reach nearby friends
Push notifications on your mobile in
form of free text messages alerting
you when your friends check in
anywhere even if app is not running
11. Great potential to offer new features in an Indian location
based SN to fill gaps in existing feature set
Checked-in friends can only interact
by sharing status updates &
uploading video, photo to web &
SNs like Facebook over GPRS/3G
Offer new ways for
friends to interact to
Increase engagement
levels b/w SN users
Develop a feature in your SN app to
enable users to chat, download
photos, videos from friends’ mobile
when nearby
No games, trips, promotions,
etc designed specifically for the
Indian market
Offer content designed
to engage the Indian user
base
Develop games, trips for the Indian
market. Tie up with Indian
businesses for product promotions
Lack of an easy way to create
schedules and share schedules with
friends and within community
Offer an easy way to create
and share schedules to
build a thriving SN
Provide a calendar feature similar in
look & feel to MS Outlook to enable
users to create & share schedules
Analytics of past user data such as
locations frequented, favourite
recreation, etc not used enough to
provide better recommendations
Offer relevant
recommendations of
events, places, etc based on
interests of users
Employ data analytics extensively to
gauge likings of users to make
relevant suggestions and also for
lead generation
Gaps New FeaturesPotential
12. A new location based SN with a difference for Indian
market
Browse
content on
your friends’
mobile &
download
free of cost
Embark on a trip of
your city &
discover best
eating joints
historical marvels
&much more
Create &
share
schedules
with friends
Notifications of latest
events like food festival,
new play, etc in your
city
Receive best
recommendations
of places, activities
& friends based on
your past activity
& what’s hot now
Services to help out
in any emergency
like flat tyre & also
to suggest
transportation
options
13. Feature set of our location based service
• Concept of check-ins to locations. Sharing updates with friends &
uploading videos, photos of a place
• Powerful notification systems to inform you when someone of
interest is nearby
• Leave tips, ratings, reviews about a place. Receive information
about surroundings like ATMs, bars, theatres, events, etc
• Very strong incentive systems such as discounts, coupons,
etc to ensure popularity of the app
• Privacy settings to allow users to control level of detail to share
Common Features: Also offered by other location aware apps
Must have features Nice to have features
• Push notification system to update your location even when the
app is not opened & phone is in your pocket
• Hook into popular SNs like Facebook, Twitter to share updates,
upload videos & photos with web at large and pull in contacts
• Game like features such as receiving badges, medals, power ups
or ownership of the virtual place
• Utilities such as listing of nearby taxi services with tariffs, ratings,
reviews; booking of tables at nearby restaurants, etc
• Allowing users to form communities based on common interests
New Services Offered: Our app to be positioned as Indian app for Indian users
Calendar service for users to create schedule of next
week or month’s activities along with locations & share
with friends, community or everyone
Push notification of upcoming event on user’s calendar
USP3
Features to differentiate our app from other location based services New Features will be the USP of our service
Run analytics on data generated by users such as past
check-ins, etc to suggest places, activities with friends,
Data analytics could be sold to corporate to help them
understand interests, recreations of target segments
USP4
Feature to enable users to interact with their nearby
friends over the blue tooth network
Blue tooth connectivity is available on all medium to high
end mobile phones
USP1
Offer content specifically designed for Indian market
Tie up with local businesses in cities such as stores,
restaurants, theatres to send notifications of upcoming
events such as a sari sale, diwali sale, etc
USP2
Source of Competitive Advantage
Nullify competitor’s advantage
USP5 (Feature for catering to low end mobiles): A basic location reporting service working on SMS
14. USP1: Improved interaction b/w friends
Browse content on your friend’s mobile on a file explorer & download songs, videos & pictures
Share their SN personal profiles for others nearby to view: share dislikes, thoughts, actions, emotions
View profiles of anyone nearby who has shared his/her profile and chat with them
Make announcements - all users in your range will get to know what you have to say
Our app will have a feature that will use the bluetooth network to allow nearby users to do
Value
Proposition
for users
Data transfer over bluetooth network does not cost anything unlike over GPRS/3G
network, so users can interact free of cost
Users checked in at same location or nearby are close enough to connect over blue tooth
network. Bluetooth devices can interact with each other over a distance of 100 metres
Enabling
Factor
Feasibility
Adding such bluetooth features into our mobile app should be easy.
The link http://beta.bluxone.com/ is a free to download app BluXone
providing all mentioned features & has been around from 2007
15. USP2: Offer content for the Indian market
New movie release
New offers & sales
Saree sale @ a Nalli storeNew food festival @ a BBQ outlet
A new play in your city
On registration, a user have an option to receive event notifications & also needs to select his interests
Theatres Shopping Movies Eating out Educational Events
A user will only be sent notifications of upcoming events in his city of his interest
Form relationships with local businesses in Indian cities like restaurant chains, movie hall chains,
theatres, stores etc to send regular notifications about upcoming events such as
Create trips catering to Indian taste for our app users to embark on: Trips centred around Indian
festivals, historical places and street markets in Indian cities
• Festivals: Trips covering places to visit like pandals during Durga Puja, Ganesh Chaturthi, ram lilas
organized during Dushera, fairs during Janmashtami & shops with product listing & discounts during
Diwali, etc
• Heritage Trips: Trips covering places of historical importance in your city
• Food Trails: Trips listing eateries & locations such as Chandni Chowk in Delhi famous for traditional
Indian food
•Shopping Trails: Trips covering street markets like Janpath in Delhi, second hand books markets like
College Street in Kolkata, city centres like Connaught Place in Delhi, etc
16. USP2: Offer content for the Indian market
Our SN should offer some community themes/templates meaningful for
Indian market which users can use to form their own communities
Car pool community: Car pooling is quite common in Indian cities
Co-Commuters community: Co workers, students, etc who travel together in public
transports like Metro, Chartered buses, local trains, etc
Ladies Chit Fund: Women in Indian cities form chit fund clubs and have
regular social interactions such as kitty parties
Residents Welfare Associations (RWA): People living in apartment complexes in Indian
cities form RWAs to deal with issues related to their apartments and often meet together
Festival Associations: People belonging to a community come together to organize
festivals like Durga Puja associations, Ganesh Chaturthi association, etc
Monetization
Opportunity
Targeted event notifications, advertising & promotional campaigns,
recommendations can be sent to such communities. E.g.: an upcoming saree sale at
a popular sari store in the city can be sent to chit fund club of women
17. USP3: Calendaring service for users to create & share
schedules & app to push event notifications
Calendar
Feature
Users can create schedule of activities along with locations of future activities and share them with
friend. Will receive a notification whenever friends schedule activities at same time and location
The look, feel and functionality of the calendar should be similar to MS outlook as it is a widely used
software so users will be comfortable creating the schedule
Notifications about upcoming events in
his city can also be placed on the user’s
calendar so that he gets a sense of how
the event fits into his schedule
Provide different access levels to
enable the user to share his schedule
with only his friends, community or
with entire user base
18. USP4: Extensive data analytics to make better
recommendations & run more effective promotions
Run analytics on past data generated by users at regular interval to recommend the following
• Send notifications of upcoming events only for those areas of city which is frequently visited
• List places at a location in order of frequency of visits. For e.g.: if a user checks-in a lot into bars or
movies, then list movie halls or bars at a location at the top
Places
• Suggest nearby users for company who are not friends based on common places visited in past
and common interests (eating out, movies, theatre, etc) specified
• Suggest things to do for friends nearby like watching a movie again based on past activities
Friends
Match paid promotions and marketing research surveys for Indian brands with their target
segment in order to make promotions more effective for businesses and more meaningful for SN
user
A market research survey for a new brand of UB group could be sent to users who regularly
check-in at bars &pubs. Such users should be offered some incentive to fill the survey
A movie promotion for a new YRF release could be targeted to people who regularly
check-in at cinema halls
A food festival or a new buffet plan at a Taj hotel could be promoted among users who check-in
regularly at fine dining restaurants. Similarly any deals for stay at a Taj hotel can be promoted
among users who have checked-in at five star hotels
A discount offer for a CAT preparation course or commencement of a new batch for CAT
preparation can be promoted among college going students
A promotion for a fast food joint can be targeted who check-in from fast food joints with a
frequency greater than or equal to a threshold value
19. And some additional services
Check-ins along with photos, videos uploaded
will be displayed on a time line based widget:
Users can click on any portion of the time line
to view places visited, comments, etc on a
particular date.
Memories stored on a unique travelogue
Listing of nearest emergency services like tow away services for flat tyres, emergency healthcare
facilities like ambulance on call, etc
Emergency Services
Suggest alternate means of commuting available from a location like nearby auto stands, taxi
stands, bus numbers with major bus stops, etc.
Suggestions on transportation options
Users can send in a query using an SMS to a number specified by our service and receive locations of
friends, listing of places at their current location, etc .
Basic Location Tracking Service for low end mobiles
Maintain a chat bot that users can interact to get info about surroundings, help with any feature, etc
Chat Bots to help users with queries
20. Generate awareness about the Service
Achieve a target user base of 10 million by 2015
Become the top ‘Location based Social Network’ in India
Become the most popular Mobile based Social Network
Become the most preferred Social Networking platform
businesses use to reach their TG
Promotional Objectives
22. Online Marketing
Google Adwords to do contextual advertising
Social Media Marketing
E- mail marketing
Viral Marketing (games, quizzes etc)
Display / Banner Advertising
Video Advertising on Online Video Streaming Websites
Ezine advertising and Podcasting
Extensive blogging on Sulekha, Wordpress etc
23. Tie -ups with leading online
portal of India to leverage on
their popularity.
•Link exchange
•Advertising on portal
Online Tie-ups
24. Google Adwords
Google Trends
Google Adwords/Trends
• AdWords ads are displayed along with search results
when someone searches Google using one of your
keywords
• Contextual targeting is used to match ads that
include keyword targeting
• Choose from a variety of ad formats, including text,
image, and video ads, and easily track your add
performance using the reports available in your
account.
• Using it to find hot keywords to bid for
• Hot Keywords found – social games, facebook apps,
maps, promotions
25. Games (Treasure hunt on map service, Car racing)
Social Media Marketing: Building
communities and applications in Facebook
/Orkut /Flickr
Quizzes (Know your city): Exciting quiz which will
attract attention of user and force him to check into
app again and again
Buzz generating content on Youtube: Video is
shared across vast number of people
Mobile Marketing:
•SMS promotions
•Place ads on WAP webpage such as m.yahoo.com
•Place icons to download app in Airtel / Vodafone
Live
Viral, Social and Mobile MarketingVIRALMOBILESOCIAL
26. Sponsorship of events – Getting coverage by
sponsoring events by artists, college festivals,
cultural events
Merchandise (Mugs, T-shirts): Logo of app
product printed on products
Tickets (IRCTC e-tickets, Metro/Bus, Cinema):
Ads of app printed on back side of tickets
Outdoor Advertising in bookstores and coffee
joints: Getting traction from young crowd by
advertising at these places
Radio Marketing: Advertising on well known
channels like FM 98.5, Radio Mirchi etc
Offline Advertising
27. •Getting reviews of service published in well known journals
and newspapers
•Encouraging user feedback and highlighting user experiences
and reviews on site homepage
•Organize Contests and Sponsor events, fests in colleges
•Maintain a blog regularly about our app, features and
request well known bloggers to review our mobile app
•Highlight celebrity users of our service
Public Relations
28. Advantage:
• Monetization of App: Charging clients for pushing their
special offers, deals, discounts, advertisements etc
•Advertising App: Giving coverage to location based
application in cinemas, restaurants
Retailers: Apparel shops, electronics shops, Florists, etc promoting our app by in-store
ad displays of our service, distributing printed pamphlets of our apps, etc
Restaurants: promoting our app by printing a short description of the app on menus,
bills, etc
Cinemas(PVR,WAVE,ADLABS ..): promoting our app by telecasting ads of the service
during movie intervals
Tie Ups with businesses
29. Distribute app through Apple App Store, Nokia’s Ovi.com, Vodafone App Store & Airtel App
Central to enable users to freely download the app from these sites
Negotiate with OEMs to get the app pre-installed on handsets
Tie up with Web Browser: Negotiate with browsers like Opera, Mozilla to add a button in
browser toolbars to provide a quick way to download app
Tie Ups with handset manufacturers, browsers
30. Cost Benefit Analysis of marketing media
Online Marketing: Maximum emphasis
Cheapest form of advertising
Attracts the tech savvy target audience
Tie Ups: High emphasis
Can be done free of cost by carrying out promotions for
partners on our app
Mobile Marketing: High Emphasis
Effective medium to reach mobile internet users
SMS promotions have wide reach with low cost
Offline Advertising: Moderate emphasis
Costly as promotion involves branded marketing media
Public Relations: Moderate emphasis
Necessary to generate trust among users
Promotes goodwill of the brand
TV and Print advertisements: No
33. Partner with businesses to push notifications of
upcoming events, promotions to users
Our app will serve as a marketing and promotional medium reaching out
to a huge user base for them
•Event organizers, retailers, restaurateurs, etc do not have a large identified set of target segment customers
•Businesses are not able to reach out directly to their target segments while conducting special events and
promotions beneficial to their customers
•E.g.: Ladies clothing store with a 10% sale in next week wants to promote this event among large number of
women in the age group of 25-55 in their city, however doesn’t have a forum to reach this segment
Problem
Identification
Solution
Our app to the rescue: Match event organizers, store owners, retailers with their target segments
1. Form permanent tie-ups with businesses to send their event notifications, promotional messages, etc to
their target segment from our app’s user base. Charge them fees on an annual/monthly basis.
2. Businesses will specify their target segment as Sex: Male, Age: 15-35, City: Delhi, User Activity: Eats out
frequently. Our service will identify such users on basis of user details, his specified interests and analytics
of past data.
3. User will receive event notifications if he has registered to receive them and for events which match his
specified interests (Eating Out, Theatre, etc as mentioned in previous slides)
Value
Proposition
for businesses
Users will receive info about latest things of their interest area happening
i in their cities. E.g.: enthusiastic theatre audience will remain updated
about any new plays in their city
Value
Proposition
for users
34. National
Partners
(India
wide)
Seamless integration into the App
Event notifications, Promotional messages pushed regularly to users
Local
Partners
(City
Level)
Location based presence
Partner is charged annual fees based on its desired reach (region, city, countrywide)
Pubs
Metro
Stations
Cinemas
Malls
Amusement
Park
Continuous Presence in the App
Integration based on User’s need
Restaurants
Form permanent relationships with both National and Local partners
Partner’s IMC and App Integration used while designing campaigns
Theatres
Tie-up with local and national partners
35. Criteria for charging partners annual fees
Partners to be charged annual subscription fees for the service. Fees charged will be based on:
Regions within a city that notifications will be sent to or promotions will be done. When registering
for our service, users will have to select their region, like Rohini in Delhi. So, if a store owner can only
afford subscription fee for covering Rohini, then notifications will be sent only to users who had
selected Rohini as their region. Higher the number of regions a retailer wants to cover, the higher
he will have to pay.
Number of regions
Subscription fees will also depend on type of business of retailer or event organizer. For example,
subscription fee charged to theatres should be less than that charged to large retail chains like
Big Bazaar. Mc Donalds etc. as theatres can’t afford large promotional spendings.
Type of business of client
Some more criteria like the amount of analytics done to identify target segment for a
promotional campaign can be a basis for determining subscription fees
36. Promotions for Indian brands
Promote location features of app as highly effective for online & viral marketing. Some examples
of promotional campaigns leveraging location features are:
Top Indian brands will only use our service as a promotional platform when it becomes a highly
popular SN (like Facebook) with a thriving user base
MTV roadies has communities & viral campaigns such as games on Facebook, Orkut.
Our service will be a great medium for viral marketing campaigns like a treasure
hunt covering places in the city which users can play and also refer to friends
Travel agencies like SOTC, Thomas Cook can float city trips (covering best places to visit
in the city). Users could embark on such trips, refer the trip to friends, win goodies on
completing trip & user reviews about trip can be displayed on the trip’s profile page
Career Launcher can launch promotional campaigns which will be floated only for student
users like ‘CL in your campus’ in which students can attend a workshop/talk of CL and get
a free T shirt delivered to their home on checking-in to our app from the CL stall/centre
Cinema hall chains like PVR can launch promotional campaigns on our service like check-in
to PVR halls and leave a slogan about the PVR experience. The user with best slogan will
be rewarded with some discount on next ticket purchase
37. Target User: Retailers
Promotions
Events
Advertisements
Target User: Corporate
New Products and Services
On - Ground Activations
Promotions
Target User: Event Organizers
Theaters, Art Exhibitions
Target Group
Time
Location
Demo-
graphics
Advanced Targeting Features
Demographics
Time
Location
Assures richer, deeper and louder
impact
Pricing Strategy: Cost per TG
USP: Cost Effective way of
reaching the TG
“AIM SMALL MISS SMALL”
Ads will be placed
here
Mobile Advertisements
38. •User Account Creation
•Demographics
•Areas of interests
•User Behavior
•Shopping Habits
•Hangout Places
•Online Transactions
•Friend’s Transactions
Consumer Profiling
•Consumer Preferences
•Upcoming Trends
•Feedback system for businesses
•Lead Generation
Analytics
•Trial Suggestions
•Products
•Services
•Events
•Places
•Based on past data
Recommendations to users
Analyzing
Visitor
Patterns
Who are
your
visitors?
Where
they come
from?
What do
they think
of your
Business?
Popularity
and
Reputation
Consumer
Preference
Social
Similarity
and Social
Interaction
Recommenda
tion
courtesy: Li and Hsiao:
Recommender Service for
Social Network based
Applications
Analytics and Recommendations
Sell data analytics to corporate to help them gauge changing consumer trends
39. •Banner, Ads on the site webpage
•Tag favorites from web on to mobile app
•Charge per 1000 views , per click or tag
Online Advertising
•Offer premium A/Cs to user for annual
fees
•Extra storage for videos, photos
•High data transfer speeds
• Preference for limited discounts
Premium Account
•Surveys floated to users
•Users paid with virtual gifts/currency or
Merchandise for filling it
•Survey results sold to company for a fee
Surveys
•Branded Cups, T shirt etc for consumers
•Banner, Posters and Magnets for businesses
Merchandising
Visit us on
Other avenues for revenue
40. Current Statistics
• Smart phone Owners 8-9 million
• Urban Mobile users 270 million
• Serious M Internet Users 2 million
• Mobile Internet Users 12 million
• Internet Users 127 million
Future Projection
• Smart phone expected to increase 5 times
by 2014
• Urban market Saturated
• Internet Users 15% YoY increase
• High growth Mobile Internet Users
Smart Phone
Owners
Mobile Internet
Users
Social Network
Users
Urban population
TargetGroup
Revenue Projections
41. Revenue Model - Assumptions
Time of Launch: March 2011
Percentage of Serious Mobile
Internet users using the app
Smart Phone Owners
Serious Mobile Internet Users
2011 2012 2013 2014 2015
1% 3% 9% 24% 35%
2011 2012 2013 2014 2015
18 m 26 m 36 m 48 m 65 m
2011 2012 2013 2014 2015
5 m 8 m 12 m 16 m 25m
Cost till Setup of Service: Rs 10mn
Revenue
Expected ARPU per year from Ads: Rs 5
National Partners Fee: Rs 2,00,000 per annum
Expected Number of National Partners: 12
Local Partners (City Based Charging)
Number of Cities - 6
Annual Membership Fee - Rs 4,000
Average Number of Regions - 30
Number of Partners per Region - 10
Expected Revenue: Rs 7.2mn
A1 Grade City
*A-1, A, B-1 and B are Government ranking of Indian cities based on City Compensatory Allowance and HRA it pays to its employees
Number of Cities - 11
Annual Membership Fee - Rs 2,000
Average Number of Regions - 25
Number of Partners per Region - 7
Expected Revenue: Rs 3.85mn
A Grade City
Number of Cities - 21
Annual Membership Fee - Rs 1,000
Average Number of Regions - 15
Number of Partners per Region - 5
Expected Revenue: Rs 1.58mn
B1 Grade City
Number of Cities - 23
Annual Membership Fee - Rs 1,000
Average Number of Regions - 10
Number of Partners per Region - 3
Expected Revenue: Rs 7.2mn
B Grade City
42. Revenue Model – Calculations and Analysis
Revenue Flow 2011-2015
Particulars 2009 2010 2011 2012 2013 2014 2015
Mobile Internet Users using app - - 1% 3% 9% 24% 35%
Serious M Internet Users (millions) 2 3 5 8 12 16 16
Expected App Users (millions) 0.05 0.24 1.08 3.84 5.6
Revenue based on ARPU from Ads INR 0.25 INR 1.20 INR 5.40 INR 19.20 INR 28.00
Revenue from Partners
National Partners INR 0.60 INR 1.20 INR 2.40 INR 2.40 INR 2.40
Local Partners
A1 Cities INR 0.72 INR 2.88 INR 7.20 INR 7.20 INR 7.20
A Cities INR 0.39 INR 1.54 INR 3.85 INR 3.85 INR 3.85
B1 Cities INR 0.16 INR 0.63 INR 1.58 INR 1.58 INR 1.58
B Cities INR 0.07 INR 0.28 INR 0.69 INR 0.69 INR 0.69
Total Revenue INR 2.18 INR 7.73 INR 21.12 INR 34.92 INR 43.72
Expected Costs INR 10.00 INR 12.00 INR 14.00 INR 16.00 INR 18.00
NPV (millions) INR (7.82) INR (3.72) INR 5.38 INR 12.44 INR 14.71
Effect of Average Revenue Per User (ARPU)
•ARPU has a significant effect on project NPV
•ARPU can be increased by
•Targeting of Consumers with relevant advertisements
•Creation of Merchandise, Virtual Currency and Gifts
•Possibility of Premium accounts to be explored
Sensitivity Analysis
ARPU NPV(millions)
INR 1.00 INR 27.85
INR 2.50 INR 129.30
INR 5.00 INR 298.40
INR 10.00 INR 636.58