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Digital Media in India - Moving from 2010 into 2011
Vishal Jacob, Business Director, GroupM Maxus
16 Comments
An interesting and eventful year has just gone by, while another very promising year has just begun, holding great potential for the digital media scene in India. The following article attempts to portray some of the key highlights of the year 2010 and expectations in 2011.

1) Social Networking More Popular Than Email

In 2010: Communication on the web was clearly redefined by social networking sites. Six out of the top ten sites accessed by Indians were social sites. As per comScore data, social networking surpassed email as the preferred activity on the web for the first time ever in May 2010. Among internet users, social networkers rose to such levels so as to even surpass the number of people using services such as email and chat.

In 2011: With the unprecedented growth in interest in social networking, we just might witness social networking equal or overtake ‘search’ in becoming one of the most preferred activities on the internet. While social sites like Facebook will grow to greater heights, smaller niche social sites focusing on a specific topics or communities are expected to gain higher ground.

2) Facebook Vs Google

In 2010: In January 2010, Orkut and YouTube (both a part of Google) were the top social sites in India. By November 2010, Facebook had entirely changed the picture. It not only overtook Orkut and YouTube but also overtook Yahoo which was well accepted as the number one portal in India.

In 2011: What will be interesting to watch out for is Google’s battle with Facebook to retain top spot. Despite considerably larger numbers on Google, Facebook’s aggressive performance is expected to ensure the gap declines over time. Google has begun to enhance search results to incorporate social content such as tweets, blogs, videos and social profiles. Its attempt to make a serious impact in the social space with Orkut and Buzz, however, has not given impressive results. Facebook, on its part, has tied up with Bing to display search results from the web for all queries made on its site. It has already launched its email service. Both Facebook and Google are also investing heavily in strengthening their offerings on mobile.

3) Diminishing Line of Difference between Search and Social

2010: The year 2010 saw the line of difference between ‘search’ and ‘social’ become rather negligible. No longer were search queries limited to search engines alone. While the maximum numbers of search queries still occurred on Google, social sites like Facebook, YouTube and Twitter also witnessed a considerable number of search queries on their sites. The other interesting point to note is that a large number of queries (24% in the case of Google) were posed on mobile phones. All sites mentioned above, as a result, increased investments to create engaging product experiences on mobile.

2011: Given that ‘search’ queries are no longer restricted to search engines it will become critical for advertisers to start optimizing content across different platforms and not restrict to optimization on search engines. Mobile search is expected to see a sharp increase in 2011 as the number of people accessing the internet through smartphones is already on the high, and expected to increase steadily.

4) Mobile Browsing and Mobile Internet

2010: The estimated number of active mobile internet users in India grew considerably in 2010 and was in the range of around 70 to 80 million. With smartphones becoming more affordable, this number is expected to grow much larger in 2011.

2011: With the coming launch of 3G in India (expected in early 2011), internet access through mobile is expected to become a richer experience. This will directly contribute to the overall increase in mobile internet usage (mobile browsing and mobile broadband). The implications are that content like multiplayer games, utility applications, social media services, email, search, online radio etc., which were earlier primarily accessed on a PC, will now be accessed more frequently on mobile.

5) Crowdsourcing ORM (Online Reputation Management) and IM (Influencer Marketing) as a part of Overall Media Mix

2010: Blogging and micro-blogging, with their gaining popularity in India, have opened avenues to consumers where they can react to products, services, brands, people and more. 2010 saw Twitter spark one of the greatest controversies in Indian Cricket (Lalit Modi Vs Shashi Tharoor). Given the increasing need to monitor and track such conversations, a number of tools were introduced that would help marketers track these conversation clusters and address them.

2011: This year, we would also see a number of brands reaching out to people with significant influential power in the social space, engaging with them, and using them as a channel to create positive word of mouth. We might also see structured measurement metrics and benchmarks being introduced to track and measure buzz on the internet.

6) Gaming

2010: After the launch of the Nintendo Wii, the year 2010 saw other platform holders also launch motion controls - the Xbox Kinect and Move Wand for PS3 took the gaming industry to an entirely new level. The success of Wii Fit Plus, one of the highest selling games of 2010, may just have given health clubs a run for their money! 2010 also witnessed an increase in the number of people playing games on social sites like Ibibo and Facebook and a decline in users accessing Second Life and other 3D virtual games.

2011: While cloud computing games are possibly the future of gaming, 2011 will be a good testing ground for the same. With the launch of OnLive and Sony’s ‘PS Cloud’, cloud computing could just be the next big thing in the gaming industry. Mobile gaming is also expected to become a richer experience with 3G launching in India in the first quarter.

7) QR Codes and Augmented Reality

2010: Augmented reality can be understood as a live view of a real world environment whose elements are augmented by virtual computer generated sensory inputs such as sounds or graphics. In the year 2010, many brands took to creating QR codes across media like print and outdoor where people could scan the QR code using their mobile phones to get additional information on the phones.

2011: While the very basic forms of AR have already been initiated, it is safe to say that the best is yet to be seen. In 2011, we may see more brands creating real engaging content which will go beyond creating brochures and 3D images.

8) Mobile Commerce and Social Commerce

2010: It is estimated that close to 7 per cent of the overall internet users in India are active shoppers, i.e. who had bought something through an online shopping site in the last year or so. While most of the online transactions were made through an online site there were a few sites that created multiple platforms such as mobile and Facebook applications which allowed people to transact.

2011. The ability to buy and transact through phones is expected to gain popularity. More platforms like Oxigen, which facilitate transactions through mobile and Capillary, a mobile based loyalty program, may come to market. Social commerce is also expected to grow substantially as it could prove to be a key revenue model for social sites. This can be achieved either by creating a universal social currency or through social apps that will either help people transact or provide consumer feedback about a specific product or brand.

9) Content Distribution

2010: One of the key digital milestones in 2010 was the streaming of IPL matches on YouTube. This triggered many TV channels into creating their respective channels on YouTube to use them as delivery mechanisms and retain user engagement. Large production houses like Balaji Telefilms as well as startups like CoolDose.com began creating exclusive videos for the web.

2011: Entertainment might take a whole new meaning as more channels are expected to create and produce content specifically for the web. The ‘Subscribe to View’ model may also finally come into existence. TV sets may transform into internet devices with the ability to navigate and access ‘On Demand’ content. We might even see an Indian version of Hulu.

10) Tablets

2010: 2010 was clearly the year of the ‘Tablet PC’. Gadgets like iPad and Samsung Galaxy revolutionized consumption of content. While these devices saw great success in the west, the adoption rates have yet to make a mark in the country.

2011: The number of people accessing content on the Tablet is expected to increase in India. The west will see an increasing number of publications creating exclusive content adapted for the tablets. In fact, Wired magazine and Adobe Digital Publishing are known to have entered into collaborations to create richer digital magazine experiences for iPad, Kindle and other mobile devices. This is further expected to enhance the user experience and increase the adoption rate of Tablets.

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Nitish
29 Jul 2011

very nice article

Simran
20 May 2011

Quite an interesting read. Good job Vishal.
@ Neil & Internetdude the two jokers who seem to know a lot, why don't you share something which you have written instead of taking pot shots at others

Neil
17 May 2011

What is ‘search’? Case of copy pasting gone horribly wrong, is it? Do you realise half the things you said are not applicable to Indian Digital Media. Example - Augmented Reality, Tell me how many people use smart phones in India, How many out of them actually buy applications compared to unlocking/jailbreaking phones. Let me ask you what augmented reality applications do you have on your phone??

Social Commerce - Let's sort out ecommerce first and then talk about social commerce. I was talking to a mobile phone manufacturer (Delhi based) and suggested a facebook shop for them, however my proposed idea was shot down by the Head of Marketing on the basis of driving away traffic from their main website and fear of facebook charging them per transaction (in the future) and here you are talking about Social Commerce in India in 2011 - Too soon to say such things, don't you think so??

The point you made about crowdsourcingORM is not to the point at all! Crowdsourcing and ORM are 2 different things all together mate! I suggest you read up on Crowdsourcing and please do not pitch the same to your clients without understanding what the terms really mean.

I am quite shocked to read your article to be honest. It's very generic, badly researched article as a Director of Maxus you should be better informed.

Eurostar Deals
14 May 2011

I appreciate your article content that you have used. Really it is very informative article.

Guest
04 Apr 2011

Insightful... Gud job Vishal

Sunish
21 Mar 2011

Articulate stuff...great insight portrayed with deep understanding...wait for more such stuff from you ..nice job VJ

Internetdude
02 Mar 2011

Dude,

stop shoting bullets on air for shiva's sake.

1. The utilities of email and social networking site [ more specifically facebook] will be redefined. Comparing both is basically a "beginner" mindset
2. Yep.. Facebook will beat the shit outta Google. But, both of them building something "out of the world" on mobile space is very unlikely. It'll be a WAP and apps game
3.Search will remain search.. social will redifine "recommendations" and will be "like" "re-whatever" driven
4.Try and understand whats 3G. 3G will push users to consume content that they otherwise avoid , because of the bandwidth issues. Personally , all you guys who rant 3G 20 times a day, need some tution of what the hell is 3G
5. Barring few organisations , none of the corporate uncles seem to understand the importance of ORM and IM. None of the traditional agencies [ both digital and mainstream] wil understand this space. Is the small start-ups who'll drive this space
6.MMORPG is probably one promising space and as of now, none of the Indian players have the mojo to take the chinese/taiwanese competitors. I personally see few chinese gaming orgs doing a killing in India this year. Your gyan here is too kindergardenish.
7. Cut the crap.. Give us one case study for heaven's sake.
8. 7% of Indian nterne users are shoppers and not active shoppers. Active shoppers are someone who transacts at least once in a month and not in a year. Moreover, Mobile commerce is a domain thats likely to be controlled by Telcos
9.Pay per view?? You have any idea on the cost matrix of this space. There are costs like Media rights cost , CDN cost , DRM cost etc are involved. This domain will be lucrative if your friendly neighbourhood pirated DVD dude stops selling DVDs for INR 20 and if torrents are banned in India. We are at least 3 years behind
10 Tablets will rock if they are available belw 10K and thats a 2012 game brother.

Shridhar Mishra
02 Mar 2011

Very Nice article VJ, Keep posting
Shridhar Mishra
Jagran Digital

Geo
28 Jan 2011

structured and well documented article from Vishal,but missing some vital facts and figures to substantiate the claims.

should have defined active internet users in india with a source and then break every aspect social users , search users, emails mobile , overlaps etc- discussed as % numbers.

In a country where the active internet reach at 90-95 million [certified numbers at 60 million] itself is a BIG? a 70 million active mobile internet access is not supported by any facts and figures. if its believable then high time our interactive agencies change the digital mix.- apart from sms marketing the % of monies parked here will be < 10% of the digital mix.

Also from a marketers perspective its high time we redefine an active user as some one who logs once in 7 days for a minimal 60 minutes and not atleast once in 30 days.

Reena Mishra
27 Jan 2011

Good Insight in the mobile medium and trends to watch for.
Good stuff

Sumeet
26 Jan 2011

Gr8 insights VJ. nice article

Abhilash
25 Jan 2011

Superb VJ !! Nice & simple :)

Edmund
25 Jan 2011

Great stuff! Well Done Vishal

Hemant Soreng
25 Jan 2011

Nice article VJ....way to go...do connect with me...

Santosh
25 Jan 2011

Good article. Nice job done Vishal

Ajay
25 Jan 2011

Great article...very insightful!!