The year 2014 saw India’s breakthrough in the digital world; topped as the world’s fastest growing smartphone market.
Towards the end of 2014, India had around 116 million internet enabled smartphones and the number is expected to have a breakneck growth to reach 435 Million smartphones by 2019.
The advertisement industry witnessed a significant growth with the ecommerce players cutting out a major pie. Together with the ecommerce giants like Flipkart, Snapdeal, Jabong, Olx and Quikr, the ecommerce industry is said to have spend INR 7.5 to 10 Billion on advertising across the country.
Key pointers

  •  India will have 640 Million internet users and 435 Million smartphone users by 2019
  •  18% growth in internet users compared to 3% growth in TV viewership by 2019
  •  India continue to be topped as the Fastest growing smartphone market in the world with a projection of 200+ million smartphone users in 2016.
  •  The mobile app download is will touch 9 Billion in 2015 with an average of 17 apps per person.
  •  The ecommerce would increasingly shift to mobile app platform.
  •  Ecommerce industry showcased 338% growth in ad spends with INR 495 crores in 2014.
  • 41% of the total mobile users are active on social media- India spends an average of 2 hours 57 minutes a day on social media.

India stands at the brink of an Internet revolution

India became the second largest country in terms of number of Internet users. The ‘Mobile-First’ strategies shored-up with the availability of affordable smartphones and tablets fueled this ‘second screen’ phenomenon.
Initiation of 4G services; the major operators like Reliance Jio, Airtel, Aircel plans to roll-out their 4G services in India. Currently, India has only around 5.5 Million 4G capable devices with just 2% active LTE users.
52 Million New users will login into the digital world by mid 2015 and is expected to reach 640 Million internet users by 2019 in India.
The reduction in 3G and 2G tariffs has boosted the number of 3G users and the 2G adoption by the people in the hinterlands continued. The number of wireless internet connections is estimated to reach 402 Million by 2017 and 528 Million by 2019.
India internet connection FICCI
Even with the expected high-growth in the smarphone adoption, 66% of the urban traffic continues to come from the desktop PCs and laptops while 55% internet access through smartphones.
DEvices used to access internet FICCI
The year 2014 marked a 33% increase in the mobile internet users from that of 2013 i.e. about 173 Million by the end of December 2014.
Mobile internet users FICCIThe number of internet enabled smartphones in India is expected to grow at a CAGR of 30%.
Internet Enabled FICCIThe active internet users in Urban India touched 152 million with 16 million users in Mumbai followed by 12 million in Delhi.
URban-Rural FICCIThough all the figures of Internet users are highly admirable, India still lags behind with 20% of its population having internet access.
Internet Penetration FICCI
Another hindrance is the low Internet speed; the average Internet speed in India stands at 2mbps.
Speed- FICCIThe number of Internet users is expected to have a swift growth compared to the TV viewers by 2019. The CAGR for TV viewership is estimated to be around 3% from 2014 to 2019 whereas the number of internet users would grow by CAGR 18%.
Internet Vs TV FICCI

India Topped as the Fastest growing smartphone market in the world

India is expected to exceed 200 million smartphone users by 2016, beating US as the second largest smartphone market.

Smartphone sales FICCIMArketshare FICCIMobile Apps will continued to be favored

India witnessed wide variety of mobile apps categories in social networking, online games, OTT messaging, VoIP, cloud computing services, location based apps. India contributed 7% towards the global app downloads in 2014 and is expected to grow to 9 Billion in 2015 (an average of 17 apps per person). Per Capita app download in India stood at 1.9 versus a global average of 1.7.
Global APP FICCIIt is forecasted that the mobile app downloads in India will grow six folds by 2015.The Million+ downloads of ‘Made in India’ apps helped india continue to be the fastest growing mobile app market even in 2014.
The ecommerce would increasingly shift to mobile app platform exiting from the web portals. The ecommerce firm, Myntra, had recently reported that 80% of its traffic and 60% of its sales comes from mobile app and is planning to shut down its website from May 1st (going completely app-only).

Ecommerce industry topped the Ad spends

The digital advertising industry showcased a growth of 45% (INR 43.5 Billion in 2014 from that of INR 30.5 Billion in 2013). Of all the other industry it’s the ecommerce that took out the major space of ad spends, a growth of 338% with INR 495 crores in 2014.
The major giants in the ecommerce space have spent INR 7.5 to INR 10 Billion on advertising on various platforms across India. The majority of these came from the ecommerce players like Flipkart, Snapdeal, Jabong, Olx and Quikr.
Ad Spend FICCI

 The fastest growing market for social media

India continues to showcase the breakneck growth in social media market. With 41% of the total mobile users active on social media, India is the fastest growing market for social media in the world.
On an average, India spends around 2 hours and 57 minutes on social media everyday and there is 31% increase of such users since 2013.
# Banking- Facebook’s payment platform-Pockets- enabled the bank account holders to transfer money to anyone in the country, check balance, view previous transaction and recharge mobiles. #ICICIbankpay was the first of its kind to introduce the service in india that makes it possible for the users to transfer through twitter account. Kotak Mahindra Bank launched ‘Jifi’ which uses the concept of #Hashtagbanking.
Adoption by Senoir citizen and Women- Social media networks showed an increase in adoption rates in terms of senior citizens and women users. There was upward boost in the number of social networking and instant messaging apps download by people within the age group 35-65 years.
Gender- App- FICCISpecial Twitter Moments with # in regional languages- Twitter has reached a large number on non-English users with its launch of Hashtags in regional language. The Indian-specific service enabled the users to converse in their regional language reaching out to users who were not into micro blogging phenomenon.
Facebook have 118 million monthly active users in India, of which 55-60 million are daily-active users. Of the total Facebook users 95% of the Indian users are active both on mobile as well as PCs.
Notes from Ashish : While the report does a great job of forecasting numbers (which looks nice with charts), the report is actually a summary of several public data – and lacks depth behind numbers. For instance, looking at only app downloads is a crime – one needs to look at how many apps will a user have in his/her phone. Will that change drastically over the next 5 years? Are people who are more installing more apps also ‘keeping’ more apps? Engaging with more apps?
Recommended Read : 300 million Internet Users in India By Dec? Grossly Wrong [10+ Questions to IAMAI]

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