Revenue potential in in-app "Offline Advertising" in India

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Part
01

Online and offline use of apps in India.

Research shows that among people in India who use the internet via their phones, 18.9% of the time they do such occurs online. As a corollary, 81.1% of the time that people in India use their phones for internet occurs offline (calculation below). According to our triangulated calculation (explained below), the average number of advertisements that appear during daily online phone use in India per person is 4.57 (rounded to the nearest hundredth).

findings

  • The average amount of time that people in India use their phones online is 18.9%. As a result, the average amount of time people in India use their phones offline is 81.1% (100(%) minus 18.9(%)).
  • With specific regard to mobile media consumption, the percentage of mobile media time accounted for by apps among people in India is 88%. That figure stands in stark contrast to the mere 12% of time that they spend on the mobile internet.
  • Of the eight countries analyzed, people in India spend the least amount of time using their phones online compared to the two countries that spend the most time with such (China at 65.4% followed by Germany at 61.4%).
  • The primary reason why people in India spend so much more time using their phones offline is because "India lacks in Wi-Fi hotspots." Of the eight countries analyzed, India by far ranks last for such with just 35 hotspots compared to the country with the most, China, which has 5,851.
  • On average, the daily amount of data used by people in India via their smartphones is 1GB. To put that into perspective, the global average for data used per month was 4.1GB.
  • Of the mobile data used by people in India, 65% is accounted for by video content.
  • Of the digital media time people in India partake in, 86% of that time is accounted for by mobile consumption.
  • This report provides many other statistics that are related to the topic of mobile internet usage in India, beyond the statistics we cited from it above.
  • According to our triangulated calculation (explained below), the average number of advertisements that appear during daily online use in India per person is 4.57 (rounded to the nearest hundredth).
  • The average time that people in India spend on their phones is three hours per day. The majority of that time is spent on messaging apps and social media.

your research team applied the following strategy:

One data point we could neither find nor triangulate was the number of advertisements avoided during offline phone use in India. One data point that was necessary for us to triangulate was the average number of advertisements that appear during online phone usage. For both data points, we looked for that information by using three strategies. First, we looked for articles that may have discussed that topic. Some of the sources we checked included The Economic Times (an Indian media outlet) and the industry source comScore. Second, we checked statistical sources including Statista to see if any such statistics were directly available or could be used to triangulate the calculation for such. However, none of the data could have been used for that, as it pertained to topics such as quantity of data consumed, the number of smartphone users, and the like. As a third strategy, we expanded the scope of our research by looking for global data about such, to see if we could find data that applied to a region that encompassed India for example. The only relevant, global data point we found was the average number of internet ads people see each month, which we used in our triangulated calculation for the number of ads that appear during online phone use in India, but which was of no use with regard to the number of ads avoided during offline phone usage.

We calculated the triangulated number of daily online advertisements online per person in India by multiplying the average number of internet ads that a person sees each month globally (11,250) by the digital media's market share in India (15%, for which we entered 0.15 in our calculation), which equals 56.25 (daily number of digital ads). To filter digital ads down to just mobile ads, we found that mobile accounts for 43% of digital ad expenditures in India. We did that because the total number of monthly ads that a person sees is across all channels, not just internet. Accordingly, we multiplied our previous value 56.25 (daily digital ads) by 0.43(%) (mobile's share of digital ad expenditures), which equals 24.19 (rounded to the nearest hundredth). Next, since people in India use the internet on their phones online 18.9% of the time, we multiplied 24.19 by 0.189 (representing 18.9%) in order to determine the number of ads for when they are online with their phone, which equals 4.57. We used the market shares for both digital media generally and mobile specifically in India because those were the best metrics available regarding the reach of digital advertisements in the country. Said another way, our logic was that if digital media ads account for 15% of India's advertising industry across all channels, it stands to reason that approximately 15% of ads would be digital and thus appear on the internet.
Sources
Sources