Market Research Report : Mobile engagement and promotional services market in India 2013

Mobile Engagement and Promotional Services Market in IndiaFebruary 2013

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MOBILE ENGAGEMENT AND PROMOTIONAL SERVICES MARKET IN INDIA 2013.PPT

Executive Summary

Drivers:

MarketOverview

Drivers & Challenges

Market Trends

Player Profiles

Mobile engagement market in India was valued over INR xx mn as on Oct 2012

Mobile Ad market in India as on Sep 2012 was estimated at INR yy bn

Infotainment and mobile social media constitute the major types of m‐engagement activities which the companies in India have been predominantly indulging over the recent years

Location Specific Consumer Engagement and Promotion

Interactive Platform

Analytic Tools

Challenges:

Major Players

Low Smartphone & Tablet Penetration in Rural Areas

Affordability of Next Generation Mobile Networks

Low Awareness Levels amongst Commercial Users

Rise in Mobile Device Adoption

Wireless Subscriber Base

Introduction and Availability of Next Generation Cellular Networks

Increased Usage of Mobile VAS, Applications & Online Contents

3MOBILE ENGAGEMENT AND PROMOTIONAL SERVICES MARKET IN INDIA 2013.PPT

•Introduction•Market OverviewEcosystems and Frameworks

•Drivers and Challenges •Opportunities•Market Trends•Competitive Landscape•Recent Developments•Consumer Insights •Case Studies•Strategic Recommendations•Appendix

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Global Mobile Ad Servings

Note: The demarcations of the regions on the map is indicative Data taken as on Nov 2012

Americas Europe Africa Asia Pacific

Region Ads Served Region Ads Served Region Ads Served Region Ads Served

United States UK South Africa India

Mexico France Kenya Indonesia

Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx

Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx

Total Xxx Xxx Xxx Xxx

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India Mobile Ad Serving Scenario

India’s share in global mobile Ad servings as

on Nov 2012

19%

74%

7%

Above xx

Xx‐xx

Under xx

Demographics – Age Distribution (2011)

Demographics – Gender Split (2011)

15%

85%Def

Abc

Steady rise in mobile phone uptake and rise in demand for mobile content has positioned India amongst top

countries when it comes to mobile Ad servings

Mobile Ad Serving India – Overview

Mobile Ad Servings India – Key Drivers

Cap on SMS and USSD marketing by the Government of India

Falling data rates and increasing mobile internet usage

Increased reach and better service delivery by telecom operators

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Mobile Ad Market in India

Mobile Ad Market India – Size & GrowthINR bn

d

c

b

a

0

Xyz%

2016e2015e2014e2013e2012*2011

Mobile Ad Type Revenue Split ‐ 2012

6%

22%

72%

Z Type

Y Type

X Type

Mobile Ad Type Share Split ‐ 2012

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8

INR bn2012 XYZX Y Z

X Type

Y Type

Z Type

*Data taken for the year 2012 are as on Sep, 2012

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Location Based Services Market in India

INR bn

C

B

A

0

Xyz %

2016e2015e2014e2013e20122011

Popular Location Based Services & Providers ‐ India

LBS Market India – Size & Growth

Services Service Providers

Information services BookMyShow, Getit, The Times of India app

Navigation, point of interest & city guide MapmyIndia, Localbeat for India, Sygic GPS Navigation

Public services Medical and police services

Charging services Canvas LES

Assets management Polaris Wireless LBS services

Traffic monitoring Sabka Traffic, Ericsson’s LBS services

Mobile yellow pages Justdial, Zomato

Location based advertising AdNear, LocationPoint

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Mobile engagement market spending is expected to grow to more than 6 times its present value by 2016

M‐Engagement Market Overview ‐ India

INR mn

f

e

d

c

b

a

0

2012

Xyz%

2016e2015e2014e2013e

•Nearly xxx% of the total internet users in India use mobile as primary device to access the World Wide Web• Large mobile users’ base in the country and burgeoning adoption of the same in the rural areas make m‐engagement more efficient than other channels of consumer engagement

• Infotainment is the prime m‐engagement category largely due to better user response

Market Potential of m‐Engagement – Market Spending

•Mobile engagement or m‐engagement market in India was valued over INR xxx mn as in Oct 2012• Share of m‐Engagement in the total mobile ad spending will be around yyy% in 2016, up from nearly zzz% in 2012

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Nearly half of all the companies which discovered m‐engagement services found so via search engines

Sources of m‐Engagement Platform Selection (2011‐12)

• Enterprises of all form and size use multiple means or sources to discover m‐engagement services and its delivery

platforms

• Search engine has been the prime source of platform discovery and selection

• Although telephonic discovery stood second, over the years it has been falling steadily whereas usage trend of

email as a source of m‐engagement platform accelerated

•Other sources of m‐engagement platform discovery includes call center, business conference and promotional

offers or trial offers

%

e

d

c

b

a

0 Others

Commercial E‐mail

Online Advertisement

Commercial SMS

Third‐Party Reference

Telecalling

Search Engine

Note: Base – Total number of companies which found m‐Engagement platform

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Large number of users are discovering m‐engagement platforms via search engines and mobile devices

•Unique users who found m‐engagement platform via search engine more than doubled between quarter‐ending Mar 2011 and quarter‐ending Jun 2012

•Number of unique users who found m‐engagement platform via mobile devices increased to around four times during the same time

•Quarterly addition of unique users discovering m‐engagement platform via mobile devices project growing trend of awareness

Apr‐Jun 2012Jan‐Mar 2012Oct‐Dec 2011Jul‐Sep 2011Apr‐Jun 2011Jan‐Mar 2011

Xyz%

Unique Users

b

a

0

M‐Engagement Platform Discovery via Search Engine

M‐Engagement Platform Discovery via Mobile Devices

Unique Users

b

a

0

Xyz%

Apr‐Jun 2012Jan‐Mar 2012Oct‐Dec 2011Jul‐Sep 2011Apr‐Jun 2011Jan‐Mar 2011

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Smartphone App – Highest Activity / Usage

Mobile applications are one of the most promising delivery medium for interactive mobile contents and media in India

•Mobile application usage in India is witnessing a speedy growth Lower data subscription tariffs and increasing awareness amongst people is boosting the market

•Some of the major trends in the Indian marketAA% of smartphone users feel that mobile applications assist them in their lives

– A1% use it at home– B4% use it during travel– C0% use it at work

AA% of smartphone users in India have an average 30 apps in their phone

– A0% use most of the applications– B4% use all applications– C3% use non of the applications

AA% users access the mobile apps often while BB% of the users access the apps once in two or three weeksAA% use mobile apps at home while BB% users access the apps while at work AA% of the app users download free apps from online stores such as the Ovi store, Google Play and Apple App Store

Mobile Application Usage ‐ India

%

ihgfedcba0

Games

Photo/Personalization

Business

SocialNetworking

Music

Social Networking

h

%

gfedcba0

Games`

Utilities

Business

Music

• Business‐focused apps like email and expense management apps have rapidly gained popularity in India

• 36% of all smartphone owners in India belong to the '18 to 29 years' age group, while 1A% fall in the '30 to 49 years' age group

Smartphone App – Maximum Downloads

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Social Media Domain – Brimming with Opportunities (2/2)

Social networking websites have become the one‐stop platform for players when it comes to targeting end‐consumers across age groups in India

Average Time Spent on Social Networking Websites – Age wise (2011)

bn minutes

c

b

a

0

55+45‐5435‐4425‐3415‐24

61.5%

38.5%

defabc

39.2%

60.8%

59.9%40.1%

60.0%40.0%

58.1%41.9%

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Public: Domestic Company – Geodesic Ltd. (1/3)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Category Products/Services

Service

Name Designation

Note: The list of products and services is not exhaustive

Head OfficeMumbai

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Financial Snapshot Key Ratios

Financial Summary

• The company incurred a net profit of INR 2,737.19 mn in FY 2011, as compared to net profit of INR 2,237.01 mn in FY 2010

• The company reported total income of INR 8,927.40 mn in FY 2011, registering an increes of 37.55 per cent over FY 2010

• The company earned an operating margin of 35.05 per cent in FY 2011, a decrease of 2.99 percentage points over FY 2010

• The company reported debt to equity ratio of 0.85 in FY 2011, a decrease of 4.39 per cent over FY 2010

Key Financial Performance Indicators

Indicators Value (dd/mm/2013)Market Capitalization (INR bn) 2177.4Total Enterprise Value (INR bn) 1870.1EPS (INR) 16.82PE Ratio (Absolute) 1.33

Improved Decline

Net Profit/LossTotal Income

8927.46490.4

6735.6

0

5000

10000

0

1000

2000

3000

RevenueINR mn

ProfitINR mn

201020092008

3286.1

2011

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin ‐2.99 35.05% 38.03% 47.29% 49.95%

Net Margin ‐3.81 30.66% 34.47% 39.25% 45.23%

Profit Before Tax Margin ‐2.07 31.01% 33.08% 38.38% 49.98%

Return on Equity ‐0.50 23.82% 24.33% 38.05% 31.21%

Return on Capital Employed 1.34 17.73% 16.39% 23.84% 16.70%

Return on Working Capital 0.41 18.62% 18.21% 24.31% 19.18%

Return on Assets ‐0.53 12.87% 13.40% 18.29% 14.25%

Return on Fixed Assets 156.69 296.80% 140.10% 232.55% 173.54%

Cost RatiosOperating costs (% of Sales) 7.62 17.84% 10.22% 16.89% 16.51%

Administration costs (% of Sales)

‐1.24 11.68% 12.93% 8.55% 5.13%

Interest costs (% of Sales) ‐1.67 4.27% 5.93% 6.09% 2.32%

Liquidity RatiosCurrent Ratio ‐40.67% 5.05 8.52 10.97 13.98

Cash Ratio 1.02% 3.54 3.51 5.06 11.04

Leverage RatiosDebt to Equity Ratio 4.39% 0.85 0.82 1.08 1.19

Debt to Capital Ratio ‐10.53% 0.35 0.39 0.48 0.52

Interest Coverage Ratio 28.66% 8.40 6.53 8.02 22.36

Efficiency RatiosFixed Asset Turnover 137.15% 9.47 3.99 5.74 3.69

Asset Turnover 7.52% 0.41 0.38 0.45 0.30

Current Asset Turnover 4.02% 0.48 0.46 0.55 0.38

Working Capital Turnover 14.45% 0.59 0.52 0.60 0.41

Capital Employed Turnover 9.64% 0.76 0.69 0.94 0.66

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Key Business Segments Key Geographic Segments

Key Information

Description Details

Overview

Extended Product Portfolio

96% 98% 98% 97%

0%

50%

100% 2%

2008 2011

3%

2010

2%

2009

4%

xyzabc

0%

50%

100%

100%

2011

abc

Company filed revenue under single business

segment

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Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Name Designation

Private: Domestic Company – ACL Mobile Ltd. (1/3)

Head Office

Category Products/Services

Service

Noida

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Financial Snapshot Key Ratios

Financial Summary


• The company incurred a net profit of INR 49,770.5 mn in FY 2010, as compared to net profit of INR 75,668.5 mn in FY 2009

• The company reported total income of INR 583,550.5 mn in FY 2010, registering a decrease of 14.7 per cent over FY 2009

• The company earned an operating margin of 36.02 per cent in FY 2010, a decrease of 4.41 percentage points over FY 2009

Particulars y‐o‐y change (2010‐09)

2010 2009 2008 2007

Profitability RatiosOperating Margin ‐4.41 36.02% 40.43% 13.07% 42.09%

Net Margin ‐2.53 8.53% 11.06% ‐12.88% ‐8.32%

Profit Before Tax Margin ‐9.15 10.22% 19.37% ‐19.05% ‐6.58%

Return on Equity ‐5.45 10.56% 16.00% ‐12.64% ‐12.11%

Return on Capital Employed ‐22.22 60.59% 82.82% 17.97% 55.89%

Return on Working Capital ‐2.71 26.40% 29.11% ‐47.59% ‐31.94%

Return on Assets ‐5.70 10.24% 15.94% ‐12.63% ‐8.36%

Return on Fixed Assets ‐40.98 60.09% 101.07% ‐83.15% ‐45.35%

Cost RatiosOperating costs (% of Sales) 5.66 62.71% 57.05% 86.70% 57.88%

Administration costs (% of Sales)

6.96 28.30% 21.34% 31.10% 12.63%

Interest costs (% of Sales) 0.00 0.11% 0.11% 0.82% 1.94%

Liquidity RatiosCurrent Ratio ‐17.28% 2.36 2.85 1.92 2.08

Cash Ratio 50.15% 1.56 1.04 0.64 0.18

Leverage RatiosDebt to Equity Ratio N.A. 0.01 N.A. N.A. 0.43

Debt to Capital Ratio 149.73% 0.01 N.A. N.A. 0.30

Interest Coverage Ratio ‐12.44% 333.61 381.02 16.20 21.72

Efficiency RatiosFixed Asset Turnover ‐20.90% 6.81 8.60 6.34 5.45

Asset Turnover ‐14.51% 1.16 1.36 0.96 1.00

Current Asset Turnover 7.02% 1.72 1.61 1.74 1.99

Working Capital Turnover 20.66% 2.99 2.48 3.63 3.84

Capital Employed Turnover ‐12.24% 1.20 1.36 0.96 1.45

Improved Decline

Profit / Loss

Revenue

583,550.5

684,310.5

461,555.3

290,525.1

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

‐60,000

‐40,000

‐20,000

0

20,000

40,000

60,000

80,000

ProfitINR mn

2010

RevenueINR mn

200920082007

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Key Information

Description Details

Overview

Extended Product Portfolio

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Case Study xx

Business Situation

• Re‐vamp lead generation process and effectively connect with target audience •Mainly focus on urban India and leverage the high mobile density

Client Organization Industry

xxx yyy

Outcome

• xxx

Strategy Adopted

• xxx

20MOBILE ENGAGEMENT AND PROMOTIONAL SERVICES MARKET IN INDIA 2013.PPT

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Market Research Report : Mobile engagement and promotional services market in India 2013