An early entrant, Google’s offering has big numbers—7.1 mn and makes money but user growth is slipping over privacy and pornography issues
Its many applications, ability to protect privacy and to connect with US audiences are the draw for its 1.6 million users, most of whom are upmarket and include many women. User growth is galloping.
Has 1.7 mn users and supports ads; is aimed at college communities, has launched an online campus TV
Oldest desi player, claims 1-1.5 mn users; targeted at young, working Indians, has a paid premium dating service
Launched with a high-decibel TV campaign, seeks to take networking to the masses; 1.4 mn users, has recently introduced advertising
This new player in the college-focused space has been growing fast to touch 6,45,000 users; hasn't opened up to advertising
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Late last year, Facebook had to offer an opt-out option to its users when all hell broke loose over its Beacon programme, which shared details of a user’s purchases online (from external websites) to relevant Facebook friends. There are other issues as well: recent data indicates that US audiences are spending less time on such sites, and in fact resent advertising. In India too, while social sites generate high page views, advertising is priced lower than niche sites—because the response (or clicks) is lower. Says Harish Bahl, CEO of ad network Tyroo: "While there’s great potential, we haven’t been able to crack a great way to make money out of social networking."
This is not to suggest the space isn’t rocking: there are an estimated 10 million Indian users on social sites and it’s growing fast. Networking is second nature to Indians, observes Rajnish, head of Microsoft Digital Solutions, "They’ve always been great networkers in their neighbourhoods, colleges, communities—and now they’ve taken to it in its digital format." Google’s Orkut is the largest such site by far, in terms of users (7.1 million) and engagement. But its user growth has steadily fallen—thanks to Facebook, which has galloped to 1.6 million users in less than a year, and now looks set to be India’s most desired site. "Facebook is the rage," says Tyroo’s Bahl, "as of today, there’s no other place online catering to such an upmarket audience." Microsoft manages Facebook’s advertising sales worldwide: Indian advertising is already visible on Facebook, and direct selling from India will begin soon. Says Rajnish, "Most of our clients are asking when Facebook inventory will be made available (from India)." In general, advertisers from the consumer, lifestyle and banking segments are hot on the young demographic profiles on social sites.
That leaves a clutch of homegrown sites, differently positioned and eager to get into the space with unique Indian offerings. Their logic: as most of the content generated is Indian, a social network with Indian "sensibilities" stands a better chance of striking a chord with users. Navin Mittal, business head, Fropper.com, a networking and dating site aimed at young adults, points out: "People can easily manage a couple of social networks...users are not restricted to one site."
While none of the local players have the engagement levels of Facebook and Orkut, many, such as Bharatstudent.com, Minglebox and Reliance Entertainment’s bigadda.com are trying to discover niches (see box). Says Siddharth Roy, Big Adda’s COO, "About 48 per cent of our users come from non-metros."
Other players—like Sulekha, Ibibo, and Rediff’s iShare—are hedging their bets by making social networks a part of an overall package that includes blogs, gaming, picture sharing and so on. Clearly, the Indian players are building their user bases—ad revenues, they say, will follow. And it helps that Indians are perceived to be more receptive to advertising. The search, then, is for a platform—be it linked to content, transactions, platforms like video or experiential—that will not put off users. Says Kavita Iyer, CEO, Minglebox: "Sites have to create an environment conducive to advertising. And at the same time, not kill the user environment." That’s easier said than done.
