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Table of Contents - The Wall Street Journal & Breaking ...online.wsj.com/public/resources/documents/locallanguage.pdf · Table of Contents Executive Summary ... IMRB International.

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Page 1: Table of Contents - The Wall Street Journal & Breaking ...online.wsj.com/public/resources/documents/locallanguage.pdf · Table of Contents Executive Summary ... IMRB International.
Page 2: Table of Contents - The Wall Street Journal & Breaking ...online.wsj.com/public/resources/documents/locallanguage.pdf · Table of Contents Executive Summary ... IMRB International.

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Table of Contents Executive Summary ....................................................................................................................................... 2

Internet In India ............................................................................................................................................ 3

Local Language Outlook ................................................................................................................................ 4

Local Language content on the Internet ....................................................................................................... 6

Rollout plan for “Adoption of Local Languages Solutions” ........................................................................... 6

Key Drivers of Local Language Content on Internet in India: ....................................................................... 7

Advertisements ecosystem for local language content ................................................................................ 8

The way forward: “Smartphone coupled by Local language content” ......................................................... 8

Methodology ............................................................................................................................................... 10

About IMRB International and IAMAI ......................................................................................................... 11

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EXECUTIVE SUMMARY

Local language user base reached 127Mn in June 2015 growing by 47% YoY at a penetration

level of 47% among Internet users1 in India.

Local language user’s witnessed a high penetration of 57% in Rural India with the overall base of

46Mn. Whereas Urban India base crossed 80Mn growing at a faster rate of 51%.

India has 88% non-English speaking population giving large headroom for local language growth

on the Internet. Hindi is the largest conversed language at 50%.

Increase in local language content on Internet will result a growth of 39% in the current Internet

user base. The growth will be majorly from the rural segment (75% growth) followed by urban

segment (16% growth).

5% of the digital advertising spends belongs to ads in the local language. With the increasing

growth of local language content and hence the user base, this is expected to reach 30% of the

entire market size by the year 2020.

Local language user experience can be enhanced by creating websites and apps with complete

local language content and providing intelligent translations. This will also help in expanding the

user base.

Corporates should rollout holistic local language solutions including website, digital media, call

centers, analytics, logistics and outbound communications.

Key drivers of local language in India are Smartphones, Government initiatives and Political will.

Next couple of years will see higher spend on creating local language content and local language

advertisements; which shall result in opening up of new consumer market segments and

increase the total Internet user base.

1 As of June 2015, it is estimated that there are 352 Mn Claimed Internet users in India. Out of this, there are 269

Mn Internet users accessing at least once a month. This survey has been conducted among these Monthly Active Internet users.

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INTERNET IN INDIA

India’s 1.32Bn population hosts a rapidly increasing Internet Users base of 20% with around 269Mn.

Although there has been substantial growth in the adoption of Internet in the past few years with a

penetration of close to 40% in Urban India and 10% in Rural India, there still remains huge potential to

connect the population through this medium. The Internet usage in Rural is catalyzed by the reach of

mobile phones and the mobile Internet users in Rural India have grown by 60% annually to cross 45 Mn

by the end of 2014. Communication, Social networking and Entertainment are some of the purposes

people access the Internet for. Majority of the Urban users like to access Internet for Communication

whereas the Rural users for Entertainment.

This growth in Internet usage is due to the increased adoption of handheld devices like smartphones

and tablets coupled with Internet connection. The marketplaces have started releasing their offerings in

local languages like Hindi, Tamil etc., mentioning the product features and other information in local

language. With the expansion plans in Rural segment, the local language move will boost the number of

Internet users in India.

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Currently, the local language overall user base is growing at 47% YoY to reach 127Mn in June 2015. Hindi

is the main language of accessing Internet apart from English among 20% of the Internet users.

LOCAL LANGUAGE OUTLOOK With around 125Mn English speaking people in India, close to 88% of Indians converse only in local

language. Hence the local language is a big opportunity in Indian context. Hindi is the most widely

spoken language with 50% population using it.

The local language content penetration on the Internet is

increasing over the time but at a sluggish pace. The Urban

penetration has reached up to 43% whereas the Rural

penetration stands at 57% showing the higher acceptance of

local language content in the Rural Internet users. Thereby with

the growing content in local language the acceptance and shift

towards higher usage of Internet will in turn drive more and

more people towards using the Internet.

The Indian consumers like to consume other media mostly in

local language through the television, newspapers, movies etc.

Considering the main vehicle of the print media, newspapers,

the sales of local language newspaper is much ahead of the English newspapers.

Local languages are a high priority for the well-established old business groups in the country. They look

at local language engagement as a driver to multiply their total addressable market in the Rural base

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after covering the Urban target audience. The non-English speaking audience can open the Pandora box

for their business. Along with that, the new businesses are also developing content in the local language.

Thus, with emphasis on local language content on the Internet is the way to increase the number of

Internet users. Among the Internet non-users in India, lack of local language content on the Internet is

one of the prime reasons for not accessing Internet. Thus, enabling local language content on the

Internet will lead to a growth of 39% in the current Internet user base. Out of this, 16% growth will come

from Urban users and 75% growth from the Rural users.

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LOCAL LANGUAGE CONTENT ON THE INTERNET In the last 2 years, various local languages solutions for Internet applications have been introduced. The

newer Government and corporate initiatives will impart momentum to the creation of such content. The

local language content should seek to cater to the following needs in order to gain mass acceptance:

Need to create Websites/Apps with complete local language content: a vast majority of the

websites / Apps currently are providing partial local language content. The most accessed pages

of website are in local language; but internally all the content in English. Only handful of

websites / Apps provide all pages in local language but still the attachments and documents are

in English.

Need for intelligent translations: the maturity of translation features present should be

enhanced by a bid to provide better user experience. E.g. Camera 16MP: ‘MP’ is translated to

“saansad” in Hindi.

Need to adopt a holistic approach: Current local language deployments are only a part of the

value chain, but not the complete value chain. For instance, advertisements in local language is

incomplete unless the services are completely accessible in local language.

ROLLOUT PLAN FOR “ADOPTION OF LOCAL LANGUAGES SOLUTIONS” Local Language offerings can be classified as

The local languages projects can be planned in the below mentioned phases and should be rolled-out in

a phase wise manner to enhance the user experience:

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KEY DRIVERS OF LOCAL LANGUAGE CONTENT ON INTERNET IN INDIA: Government Initiatives: With the government focusing on creating a framework in which most of

things will be digitized, the execution of several digital projects will be started in many states and

implemented in the local languages. The persistence of government is undoubtedly the biggest

driver. These initiative will drive the following in India to increase the digitization of various activities

and services:

o Broadband connectivity in all Panchayats, Wi-fi in schools and universities and Public Wi-Fi

hotspots.

o Generate huge number of IT, Telecom and Electronics jobs

o Deliver services related to various domains such as health, education, agriculture, banking,

etc.

Increasing reach of Smartphones and decreasing prices: Internet usage is driven by smartphones.

With the ownership of smartphones crossing 110 Mn by June 2015, there is a long way forward for

the Internet consumption. The first time users of the smartphone from this point shall comprise of a

large share of local language content users.

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ADVERTISEMENTS ECOSYSTEM FOR LOCAL LANGUAGE CONTENT To wider consumer base, companies across sectors are adopting to

advertise in local languages. The digital commerce companies are going

multilingual with descriptions of goods and their prices in local

languages.

On Television, irrespective to the channel’s broadcasting language, on

an average 4 out of 5 Ads are in local languages. Even the online

channels like YouTube and online broadcasting sites are producing and

disseminating the Ads in local languages.

The overall digital advertising spends in India will reach INR 3,575 Crores

by the end of December 2015. The proportion of Digital ads spends in

the local language will be 5% of the entire market i.e. INR 179 Crores.

With the increasing availability of digital content in the local language,

this share is expected to reach close to 30% of overall digital advertising

spends by the year 2020.

THE WAY FORWARD: “SMARTPHONE COUPLED BY LOCAL LANGUAGE CONTENT” The combination of smartphone with local language support will enable the pool of non-English literate

population to adopt Internet in day to day life and leverage advantages which as of are limited largely to

English literates creating a digital divide.

Thus, in the next half a decade, we can look at the following in the area of local language content on the

Internet:

High spend on Local Language Content and Ads: Increased focus by the corporates on the local

language strategy by creating the local language content and focusing on advertising in local

language. “Holistic” approach by organizations will be preferred with respect to local language

implementation.

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Open new consumer market segments: Sales will boost by local language implication through

digital marketing as the companies shall be directly able to connect with the customer. This in

turn will help addressing the needs of the rural consumers and provide innovative solutions.

Helping government initiatives through as framework enabler: Local language will be a big

enabler for the government to execute its plans and reach the nook and corner of the country to

provide benefits. Thereby helping the Rural India uplift and upgrade.

Collaborative implementation model between Public and Private sector: The execution of

large scale projects shall be executed by the joint effort of enterprises and government bodies.

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METHODOLOGY The findings presented in the current edition of the report have been derived by conducting both

primary research as well as secondary researches. The current edition showcases the information

captured from various data sources in the years 2012, 2013 & 2014.

Primary Research

The primary research for this research study has been done using various data sources like Individuals &

Industry Experts.

Individuals: Structured Face to Face (F2F) interviews have been conducted with around 65,000

individuals among 19,000 households spread across 35 Cities were surveyed during I-Cube 2014, a

syndicated product of E-Tech, IMRB International.

Industry Experts: In-depth interviews have been conducted with stakeholders of Local Language content

on Internet in India including various developers & publishers..

Secondary Research

Secondary research was done to understand the structure and dynamics of the solutions offered for

developing content for Local Language on the Internet in India. Information from various published

resources was used to perform a data validation check. Information that was collected from secondary

as well as primary researches was thoroughly analyzed and then portrayed in the report.

CITIES BY STRATA

Top 4 Metros Delhi, Mumbai, Chennai and Kolkata

Other 4 Metros Bangalore, Hyderabad, Ahmedabad and Pune

Small Metros

(More Than 1 Million Population)

Coimbatore, Jaipur, Lucknow, Ludhiana, Visakhapatnam, Patna,

Guwahati, Kochi, Vadodara, Indore, Surat, Nagpur

Non Metros

(Between 0.5 To 1 Million

Population)

Aurangabad, Belgaum, Aligarh, Bhubaneswar, Raipur

Small Towns

(Less Than 0.5 Million Population)

Alappuzha (Alleppey), Ujjain, Behrampur, Faizabad, Panipat,

Ranaghat, Baleshwar, Philbit, Amreli, Chickmagalur

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ABOUT IMRB INTERNATIONAL AND IAMAI

About IMRB International

ETech Group | IMRB (a specialist unit of IMRB International) is a research based consultancy offering

insights into IT, Internet, Telecom & Emerging Technology space.

Our continuous link with industry and a constant eye on the pulse of the consumer ensures that we

can decode the movements of technology markets & consumers. To our clients we offer an

understanding of the present market environment and a roadmap for the future.

About Internet and Mobile Association of India (IAMAI)

The Internet and Mobile Association of India [IAMAI] is a young and vibrant association with

ambitions of representing the entire gamut of digital businesses in India. It was established in 2004

by the leading online publishers, but in the last eleven years has come to effectively address the

challenges facing the digital and online industry including mobile content and services, online

publishing, mobile advertising, online advertising, ecommerce and mobile & digital payments among

others.

Eleven years after its establishment, the association is still the only professional industry body

representing the online and mobile VAS industry in India. The association is registered under the

Societies Act and is a recognized charity in Maharashtra. With a membership of 125 Indian and MNC

companies, and offices in Delhi and Mumbai, are well placed to work towards charting a growth

path for the digital industry in India.

Contact Details

Nilotpal Chakravarti – Associate Vice President IAMAI Delhi number Tel: +91-11-40547601 | http://www.iamai.in

Contact Details

ETech Group | IMRB

IMRB International

‘A’ Wing, Mhatre Pen Building

Senapati Bapat Marg, Mumbai

Tel: (91)-22-24233947

www.imrbint.com

Research Team for this Report

Biswapriya Bhattacharjee, Vice President

[email protected]

Abheek Biswas, Insights Director

[email protected]

Rittvik Agarwal, Research Manager

[email protected]

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COPYRIGHT

All material contained in these Inter-Research Journals, including without limitation text, logos, icons,

photographs and all other artwork, is the absolute and exclusive property of the Internet and Mobile

Association of India (‘IAMAI’) and all rights, including any and all intellectual property rights and without

limitation all copyright, vests absolutely and exclusively in IAMAI, unless otherwise specifically stated.

No use shall be made of this material without the prior express permission in writing from IAMAI as the

copyright holder thereof. Any and all use of this material is expressly prohibited and shall be an offence

under the Copyright Act, 1957, unless specifically authorized previously in writing by IAMAI.

Without prejudice to the forgoing any material provided by any third party to IAMAI, including any non-

proprietary material of IAMAI, obtained through links to other sites, which is a part of the Inter-Research

Journals, or is displayed on IAMAI’s web pages, is the property of the original author (as may be

disclosed in such material), or such third party, as the case may be, and a prior written permission for

the use such material in any manner, must be obtained from the author or such third party, as the case

may be.

DISCLAIMER

Internet and Mobile Association of India (‘IAMAI’) has, to the best of its commercial ability, taken care to

compile the information and material contained in this research work. Provided however, IAMAI does

not warrant that the information and material contained in the research work, or any part thereof, is

designed to, or will meet any person’s requirements, or that it will be error free or free from any

inadequacies, incorrectness, incompleteness, inaccuracies, or bug free. IAMAI hereby disclaims any

warranty, express or implied, including, without limitation, any warranty of non-infringement,

merchantability or fitness for a particular purpose, in respect of any information and / or material

contained in the research work. IAMAI will not be held responsible for any loss, damage or

inconvenience caused to any person as a result of any inadequacies, incorrectness, incompleteness,

inaccuracies, or errors contained in these research reports. IAMAI holds and processes personal data, if

any, in accordance with applicable law in force.

All times, all know-how and any Intellectual Property Rights of whatsoever nature in and to any

techniques, principles and formats and in all proprietary materials, software, programs, macros,

algorithms, modules, methodologies and anything else used by or created by IMRB International in the

course of providing the service/ deliverables to IAMAI which are of a generic nature or otherwise not

produced exclusively for the Client shall at all times remain the exclusive property of IMRB International.