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Mobile Advertising

Overview of the Indian market


India – Essential Facts

• Over 700 million people below the age of 30!


– First internet experience for this generation will be through the mobile

• 350 million+ mobile phone users estimated to double to over 700


million in 3 years!
– 8 to 10 million new users added a month

• Mobile internet users outnumber broadband users by 19 to 1!


– 38 million mobile internet users as of Oct 2008
– Mobile internet users doubled in the last 12 months

• Most of the handsets sold in India are internet enabled

• India is the largest consumer of mobile internet in Asia!!!


India’s mobile population is expected to double by 2012!

800
Actual* Forecast 715
700 iSuppli Forecast 650

580
600
612
480 555
500
500
Subscribers (M)

384 450
400 354 Business Monitor Int’l Forecast
328
276
300
232
196
200

100

0
Dec-06

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12
Jun-07

Jun-08

Jun-09

Jun-10

Jun-11

Jun-12
* Reported by Telecom Regulatory Authority of India
Leading research firms forecast a burst in growth of data revenues

• Pyramid Research says that, by 2012, India will be the fourth-largest


market for mobile data revenue, behind US, China & Japan
– Pyramid reported $2.2 billion in mobile data revenues for India for ’07
Actual 2007 Mobile Data Projected 2012 Mobile
Country Estimated Growth
Revenue ($B) Data Revenue ($B)

Germany 6.1 6.8 12%

Korea 5.1 11 116%

Mexico 2.1 4.8 128%

France 4.9 6.7 137%

US 26.3 70 166%

India 2.2 14.1 536%

• Juniper estimates content revenues (a subset of data revenues) in the


Indian region hit $8.3 billion by 2013
– The researcher estimates that revenues will hit $3 billion in 2008 and
predict the arrival of 3G in 2009 will boost an already buoyant market
for ringtones, games & music
Entertainment dominates mobile internet consumption in India

Top Mobile Internet Website Categories – BRIC, US, Europe *

India Brazil Russia China US Europe

1 Games (38%) Email (57%) Entertainment (34%) Entertainment (55%) Email (65%) Email (46%)

2 Email (33%) Music (27%) Search (29%) Games (36%) Weather (41%) Search (25%)

3 Entertainment (21%) Entertainment (25%) Email (24%) Music (31%) Search (29%) News/Politics (24%)

4 Music (18%) Games (18%) Music (24%) News/Politics (26%) News/Politics (26%) Weather (24%)

News/Politics & Business/Finance City Guides/ Maps


5 Sports (15%) Games (24%) Sports (22%)
Movies (tied 12%) (18%) (24%)

* Nielsen, Mobile Media Marketplace Report, 2008


Insights on India from the mKhoj network

• India’s mobile Internet traffic grew by over 90% in the fourth


quarter of 2008
– In the past 6 months alone the traffic has grown by over 500%

• Content Downloads, Portals and Communities are the three


most often visited site types for India
– Over 47% of the India traffic was driven by content download sites
– Communities overtook Lifestyle & Entertainment as the third largest
traffic category
69% of the handsets in India are Nokia

• Nokia was the market leader for handsets and occupies all the
top 10 spots. The top model in India is the Nokia 3110 Classic
– Nokia phones make up 69% of the overall traffic followed by Sony
Ericsson, Samsung and Motorola
– Advertisers and publishers should ensure that their sites or ads display
well on the top models
Model % of Traffic
Nokia 3110 classic 7.1%
Nokia N70 5.3%
Nokia 6233 5.2%
Nokia N80 4.7%
Nokia N73 3.3%
Nokia N90 3.3%
Nokia 6300 2.9%
Nokia N72 2.4%
Nokia 2626 2.3%
Nokia 3500c 2.3%
Top 10 38.9%
47% of the traffic is looking for content downloads

• The top 5 carriers make up over 89% of the overall traffic


– Airtel is the leading carrier in India with over 66% of the share
– The next four are BPL, Idea, BSNL and Vodafone
– Carrier tie ups are critical for content download sites

Carrier Share of Traffic - India


1%
1% 5%
5%
3%
4%

14%

66%

Airtel BPL Idea Vodafone Essar BSNL Reliance Other Spice


Why mobile advertising in India is a winning bet

• Mobile enjoys a higher market penetration than fixed internet


– In emerging markets like India the mobile phone, rather than the PC, is
the primary connected device

• This gives mobile a great opportunity for being one of the


main advertising mediums, especially in a more digital future

• Catalysts for industry growth


– Dropping data charges
– Increasing recognition amongst agencies
– Advertisers increasingly focused on measurability
– Increasing capabilities of mobile devices
– Better connectivity and user experience

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