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March 29, 2012

8% Powering Indian Internet Growth Story: Boom or Bubble

Even with just 8% of its 1.2 billion population online, India is outranked by only the USA and China in the list of countries with the most Internet users. A
nd Google thinks that the proliferation of high-speed third- and fourth-generation telecom networks in the country, coupled with the spread of low-cost smartphones, will further the spread of Internet use in India.

Even so, the online advertising market in India is only worth $200 million of the $80 billion global market, with Google’s share of $100 million being an almost negligible percentage of its worldwide revenue of $29.3 billion dollars last year.   Most Indian advertisers continue to pour billions of dollars in traditional newspaper and television advertising, online ads in India seems to be slowy becoming Mainstream, and with Mobile coming of Age across Countries and India, It is one of the Fastest growing sweet spot for Digital Advertisers as  Web-enabled phone less than about $80.and a  good smartphones cost at least $140. Google has been working closely with manufacturers to bring out low-cost phones in India that use its Android operating system.

According to research by ViziSense, Google Search is used by 65 million Internet users in India and YouTube by 23 million. India is among the top nations by number of users on Google+, with 3 million Indians already having signed up for the new social network. Orkut, the company’s other social network, continues to be used by 11.1 million Indian users, though the service is in decline. Facebook, by comparison, boasts of 42.7 million users in India

Even e-commerce, which has seen a significant boom in the country in recent times, is in its nascent stages yet, with online ticket sales bringing in $5 billion annually, which is only a small amount compared to the $80 billion market for ticket sales in neighbouring China