Current Internet Status and Web Analytics Oppurtunities in India

April 26, 2008 by Anil
Filed under: Web Analytics, Web Analytics India 

This has been due for some time now! It was a while ago Girish, wrote about how web analytics scope in India is related to online (internet) penetration in India.

This post focuses on current state of Indian internet and also current status of Web Analytics Industry in India.

Post1 is an overview of current status of internet in India, followed by a small research to understand the status of web analytics industry in india.

India Internet Overview

With a Population of 1.2 billion, 22 states 5 union territories , 22 official languages, GDP of 10% and above, and being worlds largest English speaking nation, India internet population is growing at a fast pace. According to the latest from IMNAI, internet user base grew by a whooping 40% to reach 46 million.

People have started to realize the importance of Internet in their lives where it is not just a communication mode to email, chat and get information but has become an enabling tool to perform various tasks over Internet like learning, networking, shopping, gaming and expressing themselves in the form of blogs to the extent of establishing a virtual world for themselves

Looking at the Indian population from the perspective of Internet usage,

  • Urban population forms the relevant mass. As most of the content available over the Internet is           in English, familiarity with English acts as a major factor driving Internet usage.
  • India being a home for 22 odd regional languages, Internet is largely limited to those familiar with English.
  • This opens an opportunity for vernacular content to increase and thus tap the non English speaking literate people.

 

More and more people are now experiencing Internet.

  • 70% of the people who know computer have used Internet in their life which is a very healthy sign for Internet in India.
  • It shows that people are becoming aware of the Internet and are moving ahead to experience it.

People have started realizing that Internet can serve as a one stop point for all their needs. Be it

  • Communication
  • Entertainment,
  • Shopping,
  • Information search

Internet serves as a panacea for all their requirements. This has led 70% of the ever users to glue themselves to the Internet and access it on a regular basis.

Internet Penetrating to Non Metro Areas

People from non metro and small towns are increasingly experiencing their tryst with this new medium. This is evident from the fact that their contribution to Internet user base is increasing. As more users from, the non metros show their interest in becoming a part of the Internet Community the digital divide is poised to reduce in the years to come. This change is due to increasing computer literacy and awareness and good word of mouth of this medium.

 

Continious Growth of PC Owners and Internet Subscribers

 

The above information sums up the current state of Internet in India. With Internet growing at great pace. So where’s India internet heading? Here’s an overview

  1. Single Platform: Internet will (rather is) become most powerful platform for marketing and communication. 
  2. Brand Reach: More marketing efforts to establish brand and reach millions of customers, a paradigm shift from offline to online! 
  3. Entertainment: India Film Industry (a.k.a - bollywood), will have a huge online presence!
  4. Video: Video dedicated sites will increase as “broadband” increases in India. 
  5. Cricket: Cricket takes over internet! ( it already is, is’nt it?). 
  6. Localization: Local Search Engines and for enhanced results 
  7. Regional Language sites: With over 22 official language, More regional content would be seen soon. 
  8. Social Media: This will need a separate mention!, With youth driving the internet in india, conversation using social media platforms (social networking,blogs, wiki,podcast etc..) will grow and form a key “marketing” sector. 
  9. Mobile Internet: India being one of the nation with “highest” mobile users, internet penetration is bound to increase and so will “mobile marketing” 
  10. Digital Platforms: IPTV would be the next big thing ( still a long time to see this) but will be the next in internet revolution in India. 
Undoubtedly Web Analytics will play a “key role” in all above!, Imagine the amount of data and the insights one can get and how Marketers can leverage this to obtain maximum outputs. 
To make it simple and to understand the opportunities for web Analytics firms and analysts in India, let’s segment the market into 7 verticals, it certainly helps giving a clear picture of where India internet is heading.

Travel, Finance, Media, Retail, Automotive, Finance and Lead Generation. 

So the next posts will help one understand the current status of Web analytics in respect to these verticals. 

If you belong to any of those verticals and would like to input your views, feel free to reach out to me to help make the information as acurate as possible. 

What do you feel about internet growth and it’s relation to Web Analytics? am i missing something? feel free to add on via comments.

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Comments

24 Comments on Current Internet Status and Web Analytics Oppurtunities in India

  1. N on Sat, 26th Apr 2008 9:03 pm

    2. Hi Anil

    Great insights on the penetration of Internet in Urban India! With the growing popularity of computers in the Tier II and III cities of India, Internet has finally reached these cities.

    Being a person connected with Social Media, I have to say that even the Indian corporates have started using Social Media to tap a segment of their market. Most of the
    corporates have started their blogs and wikis (but, how successful they have been is a separate issue!). Most of these blogs serve as a marketing tool for the companies, where they give a glossy picture of their company. However, the focus should be “the customers” and not just them! phew…!!!

    Undoubtedly, with this high Internet penetration rates in urban India, and use of Social Media, Web analytics has a major role to play, where it would be imperative to study the actions of your visitors and the driving factors of the visit.

    Web Analytics in India is still in its infancy state, however in a couple of years, it would be the buzz word!!!

    Cheers!

  2. Anil on Sun, 27th Apr 2008 4:43 am

    3. Hi There
    Thanks for you comment! Your right and i agree with you, social media is a powerful platform and every marketer should leverage such medium and as u rightly said it’s started in India.

    Thank you
    Anil

  3. Ravi Pathak on Tue, 29th Apr 2008 8:13 am

    4. Super post and great info !!

    Few comments :
    1. 46 Mn users ! agree, but doesnt we need to get more info abt the intensity with which they use internet. My belief is more than 60% only uses it for messanger and may be email at the max !
    2. Should we also not consider bandwidth availability ? as more data is allowed and bandwidth costs comes down, then richer content and ads can be served.
    3. Moreover, most of Brick and mortar firms traditionally maps online business similar to as offline business where culture of analytics exists only within handful of companies. So, not having that culture of taking decisions based on data is a major hurdle for web analytics to really add value. But , that will change I am sure. When, not sure ?!

  4. Anil on Tue, 29th Apr 2008 8:28 am

    5. Ravi!
    Agree! yes there was another report ( i should have included that) shows the share of “where people access” internet from!, cybercafe, home and office. It’s observed that share of people using cybercafe is been decreasing, this ofcourse is due to increase in broadband population.
    And usually people using internet from cybercafe are those who use it for mail/messenger ( not that others dont).
    2.) Agree and that’s happening, leading from front is BSNL!
    3.) Yes! i think that’s one thing which you will see quite often! and iam also sure it must have happened in early days of internet is other countries, firms tend to replicate their offline business! but i guess the way internet is growing in india, that’s changing soon.

    Thanks for your time
    Anil

  5. Phani Bhaskar on Mon, 12th May 2008 2:38 pm

    6. Interesting !!!!!

  6. Bhaskar Anand on Sun, 18th May 2008 12:22 pm

    7. Nice and very informative post.
    The data and analysis looks quite impresive.

  7. Naveen on Mon, 2nd Jun 2008 2:08 pm

    8. Anil,

    I agree on the fact that WA is still in infancy stage, remember the reaction we got in BarCamp, Anil? I think it’s because of lack of awareness too. How may know that a ROI can be increased with a good WA team and tool.

    I hope it all changes in near future.

    However as per bandwidth availability there is hope….

    Government has announced a $2-billion public-private partnership to provide broadband and internet connectivity in country’s rural areas….. Yes!! Not kidding! Read below…

    http://www.siliconindia.com/shownews/42202

  8. Anil on Mon, 2nd Jun 2008 5:26 pm

    9. that is excellent news! thanks for the article
    Yes certainly! it will take time and it’s happening for sure

    cheers
    Anil

  9. Vamsi Krishna on Fri, 6th Jun 2008 9:03 am

    10. Why do you think there was a drop in the % of PC owners with Internet from 05-06 to 06-07?

  10. Anil on Fri, 6th Jun 2008 9:23 am

    11. Vamsi, that’s right! there has been “decrease in % owners” but the absolute numbers has increased.

  11. Vandana Krishna on Mon, 29th Sep 2008 11:34 am

    12. Anil,

    Would have any information on how many Internet users / connections does Indian have city wise.

    I am looking for some info for total users in Bangalore, Chennai and likewise about 20 cities.

    Trying quite hard, but unable to get this info. Can you direct me to some place where I can get this data.

    Vandana

  12. Anil on Mon, 29th Sep 2008 11:39 am

    13. Vandana
    Thank you for your comment.
    I’ll check my documents and get back to you on the same.

    anil

  13. Arun on Fri, 14th Nov 2008 9:51 am

    14. Vandhana,

    U just need aggre % or actuals.

    Thanks

    Arun

  14. Daven Kandos on Tue, 25th Nov 2008 12:30 pm

    15. i wanted to know, Whats the bandwith Capacity we have in India, can we see T.V in near futhure can we expect 5Mbps 20Mbps and More Bandwith for a commom user, as in USA and Other Country Have Not Issue with The Pipe Line How long will have to wait in Indian to see these Changes in India?

  15. Roshini on Fri, 16th Jan 2009 6:01 am

    16. Hi! Great info.
    I would like to know what the statistics are for the number of internet users in India that pay their bills online or shop online or book their travel online. Do you have this info? Or know where I can get it?

    Thanks,
    Roshini.

  16. Faisal on Tue, 3rd Feb 2009 5:00 am

    17. Out of all internet users in India, does any body have any idea how many are USB modem users??

  17. Anil on Tue, 3rd Feb 2009 6:09 am

    18. Faisal
    that’s a great question, but i guses the right people where you can get this information is the service providers (Airtel/indicom/reliance). I’ll see if i can get that information for you

    thank you for your comment

  18. Faisal on Tue, 3rd Feb 2009 6:26 am

    19. Anil,

    Will wait for the data..

    thanks,
    Faisal

  19. Ashish on Tue, 24th Feb 2009 9:54 am

    20. great search anil …. I would like to know about the internet users who uses Internet for investment purpose and for getting financial information from the ineternet… if u r interested or if u hav any type of related data plz forwad me… this only used for academic purpose only

  20. sourav on Fri, 27th Feb 2009 3:20 pm

    21. i m also looking for no. of internet users per city….
    can anybody help me out …….

  21. Jagpreet Singh on Mon, 2nd Mar 2009 10:38 am

    22. Great research. Its pretty Informative.

    keep the good work Rolling!!

  22. Anil on Mon, 2nd Mar 2009 10:48 am

    23. Jagpreet
    thank you for your kind comment, look forward for more updated info on internet status in India in couple of weeks.

    thanks again!

  23. kamal on Mon, 29th Jun 2009 11:11 am

    24. hi anil,

    nice insights you have got. Grt !!!

    Was thinking, to sort of get a better micro picture, do u have any anlysis which talks of how the internet usage categories are performing; for example what is the % of ppl using internet for email, surfing, shopping, online education, blogging, etc, etc

    kindly share if you got any thing on this.

    cheers
    kamal

  24. Anil on Mon, 29th Jun 2009 12:27 pm

    25. Hey Kamal
    I do not have that data at this moment, but look out for updated post on internet in india with more reports and analysis. I will try and look if i can get that information included in the next posts.

    Anil

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