a quarterly report by - Technopak

perspective
a quar terly repor t by
•Twitter
and LinkedIn observed a growth of 2,681% and 90% respectively in numbers between May’08-
May’09
•YouTube
adds 25 Mn visitors a month on an average
•Facebook
is growing with an average of 5 Mn users every week
Increase in Time Spent
The rise of social media is not about how people can collaborate on wikis or join in social networks. All of
these are just pieces of the story. The bigger point is that it has become a part and parcel of their daily lives.
The time spent on social network and blogging sites is growing at over 3 times the rate of overall internet
growth which increased by 18% between Dec’07 and Dec’08. In the same period, however, the amount of
time spent on ‘Member Community’ sites rose by 63% and on Facebook by a massive 566%.
The numbers indicate the shift from the offline to the digital world; whereby social media has become a
global phenomenon. The prevalence of networking sites is increasing with rising numbers of internet users
as shown in Exhibit 3.
Exhibit 3
Internet Users 1.6 Bn users currently to grow to 2.2 Bn by 2013
Social Media Users
Facebook: 250 Mn
MySpace : 127 Mn
Twitter : 25 Mn
LinkedIn: 45 Mn
GLOBAL INDIA
While the number of internet users is expected to reach 2.2 Bn by 2013, according to a study by Forrestor
India is projected to have the 3 rd largest internet population growing at an average annual rate of 10%
to 20% 3 . This surge in internet population will further push social media to newer heights in the Indian
market.
Transforming the Business Landscape
The increase in penetration and usage of internet in developing countries has led to the emergence of a
new trend - the growth of social media. Today, people are spending a significant part of their internet time
on social networking/ blogging sites. They use social media to communicate with others, express, gather
information and share their opinion and even rate products and services. Before buying a refrigerator, one
first tends to find information on the product through the internet and understand what others are saying
about a perticular brand. Peer opinion is considered more ‘genuine’ compared to what the marketer says;
and purchases are made based on the testimony of other consumers.
Not only this, the consumers are not mere ‘listeners’ any more. They are now engaging in a two-way
communication with the brands, marketers and companies - creating a huge repository of brand related
content. The balance of power is shifting towards the consumer with their voice becoming more powerful
than marketers. J&J experienced the power of this media when it’s marketing campaign for the launch of
‘Motrin’ brand (pain relief product) failed miserably; due to the public outrage of mothers on Twitter and
Facebook – two very popular social media platforms.
As a result of the ever increasing popularity of the medium, the nature of consumer-business relationship
is getting redefined. It offers unparalleled access to unfiltered customer opinion and creates opportunities
for businesses to leverage user-generated content in innovative ways. Many companies, especially in the
developed economies (where the social media originated and became a phenomenon much before), have
recognized the value of consumer generated content and built their presence on social media, where the
3. Global Online Population Forecast
A Snapshot of User Levels
Volume 02 / 2009
52 Mn users projected to grow to 80 Mn by 2010 & 100 Mn by
2012
Orkut: 17.1 Mn
Facebook: 4 Mn
LinkedIn: 2 Mn
| Volume 02
Social Media : An Emerging Medium for Business Growth | 78