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INDIA ONLINE 2007 30 million internet users, 20 million online everyday
Internet usage in India continues to grow at a slow but steady pace, both in ‘spread’ and ‘depth’. If there are no visible signs of any sweeping or far-reaching growth on the horizon yet, there are no indications of any slowdown either. The overall internet using population in urban India has grown by a healthy 28% between April 2006 and April 2007 to reach 30.32 million now.
Table 1: Growth in Internet Users in Urban India 2007 Total internet using urban individuals Regular internet users (at least once a month) Occasional internet users (less than once a month) 30.32 mn 25.17 mn 5.15 mn 2006 23.60 mn 21.95 mn 1.65 mn Growth 28% 15% 212%

Of the total 30.32 million urban internet users, 25.17 million (83%) are the ‘regular’ users who log on at least once a month and the balance 5.15 million (17%) are the ‘occasional’ users who use the internet with a lesser frequency than that. From a practical point of view, 20 million internet users are on the net daily. At 30.32 million, the penetration of Internet among the urban Indians stands at 9% now1. Growth got fuelled more by home-based usage this year If last year’s growth was fuelled by the spread and increased usage from the cyber cafes, then this year’s growth has got driven by the increased usage of internet from homes. The usage of internet from homes has gone up +19% to reach 59%. However, place of work (office, school, colleges, etc.) still continues to be the single largest place for accessing internet at 78% (up +16% over the last year’s figure of 63%). The most disappointing phenomenon during this year has been the near stagnation of the cyber cafes as a place of accessing internet. Its usage has gone up only +1% to reach 47% this year.

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The penetration figures have been calculated assuming the total urban population at 336 million.

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An even bigger worry about the usage of internet from cyber café is the fact that only 1.4% of the regular internet using population is accessing the net ‘exclusively’ from a cyber café. This indicates that the relevance of cyber cafés is only ‘secondary’ in nature as of now. This could really throw the spanner in the wheel of rapid growth of internet usage in India, as in a country like India the large-scale (mass) accessibility and affordability of computer at self-ownership level may still be a long way away. Broadband is reaching more and more online urban Indians At least 3 out of 4 regular internet users (77%) who access the net from home now do so using some form of a broadband or superior connection. At least 74% of office-based usage is also on broadband or superior connections. But despite the widespread usage of broadband, the biggest problem faced on the net (by at least 2 out of 3 net users) is the ‘slowness in opening of websites’. Almost 1 in 3 net users (35%) also complains about the ‘difficulty in connecting to the net’ in the first place. Therefore, it appears that a large part of the available broadband connectivity is not really true ‘high speed’ broadband connectivity in practice yet. Net users are ‘heavier’ users of internet from home than of the other mediums Internet users who access the net from home tend to be relatively ‘heavier’ users of the online medium as compared to the offline mediums (TV, newspaper and radio).
Table 2: Duration of Usage of Internet and Offline Mediums from Home Internet Light Users (less than 1 hr. a day) Medium Users (1-2 hrs. a day) Heavy Users (more than 2 hrs. a day) 43% 35% 22% TV 44% 43% 13% Newspaper 46% 41% 14% Radio 72% 19% 10%

Networking and Entertainment activities are the biggest gainers in popularity Communication, networking and entertainment activities stand out as the more popular online activities. In the list of the 10 most popular online activities among the regular internet users, 5 fall in the domain of communication and networking activities (emailing, instant messaging, chatting, e-greetings and dating/friendship) and 4 of the balance 5 fall in the domain of entertainment activities (news, sports, music, and games).

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Table 3: Popularity of Online Activities (Top 10) Rank 1 2 3 4 5 6 7 8 9 10 Online Activity Emailing Job Search Instant Messaging Check News Online Music Chatting E-greetings Check Sports Online Games Dating/Friendship % Undertaking in 2007 95% 73% 62% 61% 60% 59% 58% 57% 54% 51% % Undertaking in 2006 94% 53% 37% 53% 48% 49% 57% 35% 35% 27% Increase 1% 20% 25% 8% 12% 10% 1% 22% 20% 25%

The ‘rise’ of (social) networking and the ‘hype’ around blogging If we combine social and professional networking together, then 56% of all internet users undertake either or both of these networking activities. However, social networking forms the larger part of this pie with 29% of net users undertaking only social networking exclusively. Blogging still remain only a ‘tertiary’ internet phenomenon, with only about 31% of all internet users involved in blogging. While 27% of all online Indians read or check blogs, 15% of them comment on blogs and only 7% of them have a blog of their own. That is, in effect 89% of all net users who are involved with blogging only read blogs. Yahoo is the most recalled online brand but Google is the most used Yahoo once again emerges as the most top of mind recalled online brand of all with 30% of all online Indians recalling it as the first online brand coming to their minds. However, when it comes to actual usage it is Google which emerges the frontrunner with 29% of all internet users preferring to use Google the most among all the websites. However, at the overall level it is neither Yahoo nor Google but Orkut which shows the best recall-to-usage conversion ratio of 1.76.
Table 4: Overall Popularity of Websites (Top 10) Rank 1 2 Website Yahoo Google Top of Mind Recall 29.80% 27.20% Website Usage 26.60% 29.30% Usage/Recall Ratio 0.89 1.08

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3 4 5 6 7 8 9 10 Rediff Orkut Gmail Hotmail Indiatimes Naukri Sify MSN 11.50% 4.50% 2.90% 1.60% 1.00% 0.50% 0.50% 0.50% 10.90% 7.90% 3.90% 1.50% 0.90% 0.50% 0.50% 0.40% 0.95 1.76 1.34 0.94 0.90 1.00 1.00 0.80

In terms of specific online activities, both Yahoo and Google emerge as the most popularly used websites for 14 of the 23 popular online activities surveyed (7 each).
Table 5: Most Popular Websites for Specific Online Activities Online Activity Emailing Instant Messaging Info Search - English Info Search - Languages Job Search Online Travel Online Shopping Online News Financial News & Info Online Share Trading Real Estate Info Matrimonial Search Dating / Friendship Social Networking Online Games Mobile Content Online Music Sports Content Cinema Content Astrology Top Website Yahoo Yahoo Google Google Naukri Makemytrip Yatra Ebay Yahoo NDTV Google Moneycontrol ICICI Direct Google Magicbricks Bharatmatrimony Shaadi Orkut Orkut Yahoo Zapak Yahoo Rediff Raaga Espnstar Yahoo Yahoo % Prefer to Use 53% 63% 75% 74% 37% 17% 16% 34% 14% 12% 13% 13% 36% 17% 14% 29% 28% 36% 64% 18% 17% 14% 12% 22% 29% 11% 22% YoY Increase 16% -2% -13% 7% 16% -4% 4% -1% 1% 3% -4% -5% 32% -13% 17% -8% -10% 5% 5% -2% -

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Online Education Local Language Content Blog Site Google Google Google 34% 12% 21% -

To sum up, while the usage of Internet has shown a slow but steady growth in the last year, online buying, especially of travel products has shown a tremendous growth. Further, internet continues to be the ‘melting pot’ of the big Indian middle ‘mass’ of urban consumers. However, the size of the pot itself is currently becoming the biggest limiting factor in the future growth of Internet usage in India. Accordingly, the call for breaking the barriers of both software limitations (content, especially language content) as well as hardware limitations (wider, speedier and affordable connectivity and access to the net) continues.

METHODOLOGY FOR INDIA ONLINE 2007 Land survey undertaken in April 2007. Sampled 10,000 households in 31 cities (of population sizes 20,000 plus) across all the four regions to estimate Internet user-ship and derive appropriate ‘weights’ to make online survey data representative of the entire online urban population. A large-scale online survey conducted in May 2006. Sampled over 14,200 complete responses capturing net usage behavior and website preferences.

NOTE: Second release on next page

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MOST PREFERRED WEBSITES INDIA ONLINE 2007 Yahoo is the most recalled online brand but Google is the most used Internet usage in India continues to grow at a slow but steady pace, both in ‘spread’ and ‘depth’. If there are no visible signs of any sweeping or far-reaching growth on the horizon yet, there are no indications of any slowdown either. The overall internet population in urban India has grown by a healthy 28% between April 2006 and April 2007 to reach 30.32 million now. Of the total 30.32 million urban internet users, 25.17 million (83%) are the ‘regular’ users who log on at least once a month and the balance 5.15 million (17%) are the ‘occasional’ users who use the internet with a lesser frequency than that. From a practical point of view, 20 million internet users are on the net daily. Yahoo once again emerges as the most top of mind recalled online brand of all with 30% of all online Indians recalling it as the first online brand coming to their minds. However, when it comes to actual usage it is Google which emerges the frontrunner with 29% of all internet users preferring to use Google the most among all websites. However, at the overall level it is neither Yahoo nor Google but Orkut which shows the best recall-to-usage conversion ratio of 1.76.
Table 1: Overall Popularity of Websites (Top 10) Rank 1 2 3 4 5 6 7 8 9 10 Website Yahoo Google Rediff Orkut Gmail Hotmail Indiatimes Contest2win MSN Naukri Top of Mind Recall (2007) 29.80% 27.20% 11.50% 4.50% 2.90% 1.60% 1.00% 0.60% 0.50% 0.50% Top of mind Recall (2006) 35% 21% 15% 1% 5% 5% 4% 1% Website Usage (2007) 26.60% 29.30% 10.90% 7.90% 3.90% 1.50% 0.90% 0.30% 0.40% 0.50% Usage/Recall Ratio (2007) 0.89 1.08 0.95 1.76 1.34 0.94 0.90 0.50 0.80 1.00

In terms of specific online activities, both Yahoo and Google emerge as the most popularly used websites for 14 of the 23 popular online activities surveyed (7 each).

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Table 1: Most Popular Websites for Specific Online Activities Online Activity Emailing Instant Messaging Info Search - English Info Search - Languages Job Search Online Travel Online Shopping Online News Financial News & Info Online Share Trading Real Estate Info Matrimonial Search Dating / Friendship Social Networking Online Games Mobile Content Online Music Sports Content Cinema Content Astrology Online Education Local Language Content Blog Site Top Website Yahoo Yahoo Google Google Naukri Makemytrip Yatra Ebay Yahoo NDTV Google Moneycontrol ICICI Direct Google Magicbricks Bharatmatrimony Shaadi Orkut Orkut Yahoo Zapak Yahoo Rediff Raaga Espnstar Yahoo Yahoo Google Google Google % Prefer to Use 53% 63% 75% 74% 37% 17% 16% 34% 14% 12% 13% 13% 36% 17% 14% 29% 28% 36% 64% 18% 17% 14% 12% 22% 29% 11% 22% 34% 12% 21% YoY Increase 16% -2% -13% 7% 16% -4% 4% -1% 1% 3% -4% -5% 32% -13% 17% -8% -10% 5% 5% -2% -

Yatra, Orkut, Magicbricks and Zapak are the biggest success stories this year, gaining significant popularity in usage on preferred basis. The 4 websites have not only become popular but have almost reached no. 1 or no. 2 positions in their respective activity categories. Yatra has gained 17% usage over last year to have become one of the most popular travel websites along with Makemytrip.com which retains its top slot. Magicbricks in the real ©2007 JUXTCONSULT

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estate space and ICICI Direct in the online trading space have been the biggest gainers as well. Zapak has also done well for itself in the online gaming vertical with 17% user preference. Orkut’s infiltration in the Indian online space continues. The Google owned community has gained market lead with 64% usage preference in the social networking category and has 36% usage preference as a dating/friendship site. Shaadi and Bharatmatrimony continue to fight it out in the online matrimonial space but both have lost preferred usage share compared to last year’s findings.

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