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Profile Distribution of the Smartphone Panel INDEX Executive Summary Report Findings a. Overview b. Popular online activities c. Detailed findings from the survey and the smartphone panel i. Messaging ix. Cab Aggregators ii. Video Streaming x. Online Ticket Aggregators–Entertainment iii. Music Streaming xi. Online Ticker Aggregators – Travel and Hotel Booking iv. Online Retail xii. Food Delivery v. Social Media xiii. E-mail vi. Digital Payments xiv. News vii. Gaming xv. Mobile Browsers viii. Navigation Recommendations from CERC a. Smartphone landscape: Then and now b. Recommendations Annexure a. Research methodology b. Labels for charts c. Terms and abbreviations 01 Executive Summary 01 Executive Summary The mobile app usage in India has outpaced the global growth. According to the App Annie report1, India has the second-largest number of mobile app downloads in the world, overtaking the US and trailing only China. The report further states that, the app downloads grew by 215% in 2017 and, on an average, Indians use more than 40 apps in a month, while having a total base of close to 80 apps. In India, the access to the internet is driven by mobile and there is intense competition amongst the internet content providers and app developers to provide, to Indian consumers, different types of content and services ranging from audio and video streaming to online ticketing to navigation services and more. Some of these apps come pre-loaded on the mobile devices, while others are downloaded from the various app stores and sometimes even sideloaded2 by consumers themselves from other sources. An analysis of the consumer behaviour highlights the ease of downloading and sideloading - consumers frequently download or sideload their preferred apps from the various app stores, the internet or by sharing apk files with their friends and family. It is clear from the survey that users choose apps on the basis of utility / relevance, and NOT necessarily because it’s pre-loaded. This report is based on a consumer survey designed to understand the app preference of Indian consumers and the reasons driving these preferences. The report captures consumer preference based on top apps identified by Nielsen and does not necessarily represent the entire app universe for Indian consumers. Disclaimer - Unless specified otherwise, data cited in the report has been derived from the survey and the smartphone panel. The data applies to the survey sample that has been cited in Annexure (a)(vi). 12017 Retrospective – Report by App Annie 2 Sideloading” refers to downloading of an app through a website as opposed to a mobile app store. 02 The key findings of the survey are: 01 The openness of the Android ecosystem has created an extensive and competitive mobile app ecosystem that provides a plethora of choices for the Indian consumers. The consumers exercise informed choice when selecting the mobile application. There is a significant degree of overlap in categories like browsers (50%), online retail 02 (42%), messaging (48%) and cab aggregators (28%) and consumers often use multiple applications for the same activity. 03 Indian consumers frequently download competing apps and multi-home, based upon the quality of the apps and services. In terms of preferences, even when presented with both options, there is almost an equal 04 distribution between pre-installed and downloaded apps, signifying that the Indian consumers use apps that they find most useful and relevant. There is high awareness and usage of third party apps. Consumers download these apps 05 from different app stores, web or even sideload them. 86% users stated that peer reviews and word of mouth are key influencers for choosing an application. 06 69% consumers want enhanced memory on their phones. 03 Online Activity Preferred Application Pre-installed/Downloaded Messaging Video Streaming WhatsApp YouTube Pre-installed/Downloaded Pre-installed Social Media Mobile Browsers Facebook Google Chrome Pre-installed/Downloaded Pre-installed Music Streaming Gaming Saavn Candy Crush Downloaded Downloaded Online Retail E-mail Amazon Gmail Downloaded Pre-installed News Navigation UC News Google Maps Downloaded Pre-installed [Figure 1 - Snapshot of most popular apps and consumer preference] The Indian consumer is an informed user and exercises choice in selection of apps 02 Report Findings 04 a. Overview India is a mobile first country. At the end of February 20183, the number of total wireless subscribers in India was 1,156.87 million . The wireless subscription in urban areas stood at 650.03 million and for rural areas at 506.84 million in February 2018. As the mobile devices and data plans become more affordable, internet in India also becomes more accessible. The total number of internet subscribers in India grew by over 23% between 2016 and 20174. The mobile application usage in India has far outpaced the global growth5. According to the App Annie report1, India has the second-largest number of mobile app downloads in the world, overtaking the US and trailing only China. The app download grew by 215% in 2017. India topped the list for highest monthly average number of apps used and installed. On an average, Indians use more than 40 apps in a month, while having a total base of close to 80 apps. The Indian app market offers a plethora of choices to Indian consumers. In India, peer-to-peer transfer is very popular and apps like ShareIt are often used to share apk files and download apps from multiple app stores and through sideloading. This report was commissioned to understand: 01 If and how Indian consumer exercises choice in selection of apps? 02 What is the attitude of Indian consumers towards pre-installed apps? 03 What are the challenges faced by Indian consumers when using apps? The report is based on primary survey, draws data from a smartphone panel and secondary sources. The detailed methodology is cited in the Annexure. 12017 Retrospective – Report by App Annie 3Highlights of Telecom Subscription Data as on 28th February, 2018 - TRAI 4Telecom Statistics India 2017 – Report by Department of Telecommunications 5Evolving Behaviour of Indian Consumers on Mobile – Whitepaper by Consumer Voice 05 b. Popular Online Activities In order to understand the consumer preference and behaviour, we reviewed most popular online activities, as observed from the survey undertaken by Nielsen (Figure-2) Figure 2 – Most popular online activities as observed from the survey (in %) 16 Navigation 23 22 News 27 24 Online Retail 34 31 E-mail 36 44 Gaming 51 55 Music Streaming 62 66 Mobile Browsers 71 68 Social Media 72 75 Video Streaming 80 90 Messaging 92 Messaging has emerged as the most popular online activity, with users spending over 30 minutes on average every day on messaging applications. Over 90% of the consumers use some kind of messaging application regularly to stay in touch with friends and family. Other popular activities include video streaming, music streaming, social networking and browsing the internet. 06 Figure 2.1 – Most popular online activities as observed from the ODM* panel (Reach in %) Mobile Browsers 99 Messaging 98 E-mail 89 Video Streaming 86 Social Media 77 Online Retail 74 Gaming 70 News 68 Navigation 59 Music Streaming 45 c. Detailed findings from the survey and the smartphone panel In this section, we discuss in detail the findings from the survey and ODM panel regarding most popular online activities. An analysis of the consumer behaviour highlights the ease of downloading and sideloading - consumers frequently download or sideload their preferred apps from the various app stores, the internet or by sharing apk files with their friends and family and that users choose apps on the basis of utility / relevance, and NOT necessarily that it’s pre-loaded. *ODM: On-device metre, for a complete understanding on Nielsen’s smart phone panel, please refer to Annexure (ii). 07 i. Messaging Messaging is the most popular online activity for the Indian consumers. Over 90% of the consumers use some messaging app regularly to stay connected with friends, family and co-workers. On an average, the consumer spends more than 30 minutes daily on messaging applications. The most preferred applications for messaging are highlighted in Figure 3. [Figure 3 – Awareness and Regular Usage for Messaging Applications] Skype 2 14 IMO 5 16 Hike 4 21 48 Facebook Messenger 71 96 WhatsApp 99 Data from the smartphone panel indicates that there is significant overlap between popular messaging apps i.e. consumers use multiple apps to stay connected. As seen in Figure 4, while almost 50% of consumers used both WhatsApp and Facebook Messenger, about 20% used both WhatsApp and Hike. [Figure 4 – Reach and Time Spent for Messaging Applications: ODM Data] Using both applications Using both applications WhatsApp only Reach – 51% Hike only Reach – 19% Reach – 48% Time spent on WhatsApp – 33 mins/day Time spent on WhatsApp – Time spent – 22 mins/day Reach – 1% Time spent – 12 mins/day Time spent on Hike – 8 mins/day 31 mins/day Time spent on FB Messenger – 2 mins/day WhatsApp only Reach – 80% FB Messenger only Time spent – 25 mins/day Reach – 1% Time spent – 6 mins/day 08 ii. Video Streaming Rising online audio and video6 content consumption is driving the growth of the internet in India. Video consumption increased more than six times since the first half of 2016. From watching sport events to latest entertainment shows, consumers are moving towards the on-demand digital streaming services. On an average, consumers spend 15 to 20 minutes daily watching videos. The online video content is seeing a lot of changes in India with independent creators going mainstream and big broadcasters launching their own OTT platforms. The Indian consumers have rapidly adapted to this change and popularity of players such as Hotstar, Netflix, Amazon Prime etc. is growing.
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