Tech in Rural India - A Kantar & GroupM Report - 240315 - 150453

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Communicating with

many Bharats

Assessing the Power of 'Voice'


Communications

GroupM: M.A. Parthasarathy, Tushar Vyas, Niraj


Ruparel, Tariq Chandnani, Arun Varghese, Averill
Sequeira
Kantar: Puneet Avasthi, Aditya Roongta, Nandita
Sharma

Industry Report
October 2023
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Understanding Rural Marketing
Spends and Priorities

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We reached out to 35 marketers for their opinion,
~2 in 3 belonged to either Media & Entertainment or FMCG industry;
~4 in 5 were in middle management or higher designations

Industry mix of the marketers Designation mix of the marketers

6% 3%
6% Media and Entertainment
6% FMCG 20% Senior Management
34%
Education and Training
9% 43% Middle management
Construction
BFSI
Senior Executive
9%
Agricultural Products and Services
Automobile Industry C-Suite (CEO, CMO, etc.)
11% 34%
20% Ecommerce

Base (All marketers): 35

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Advertisers acknowledge that Rural India needs separate planning, with an
emphasis on winning in media dark markets

We plan for rural markets seprately 69%

It is very important for my business to reach media


63%
dark markets of rural India

We have a strong understanding of rural markets 57%

We are repurposing Urban advertising for Rural


31%
India

• Creatives are being created for rural markets, it is important to test and track their effectiveness in context
Base (All marketers): 35

Q. We have listed down a few statements below. Please rate each of the statements regarding rural marketing. 4
Scores above are ‘Any Agree (Top 2 Box)’ scores on a 5-points scale
Voice tech and WOM are perceived as critical for messaging in Rural

Word of mouth recommendation is vital in


89%
rural India.

Voice tech is a vital option to reach rural


77%
consumers.

Distribution is the best way to create


49%
salience in Rural India

Base (All marketers): 35

Q. We have listed down a few statements below. Please rate each of the statements regarding rural marketing.
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Scores above are ‘Any Agree (Top 2 Box)’ scores on a 5-points scale
To communicate with Rural Markets, advertisers relying on Mobile (Voice Tech
and Unicode SMS); Rural influencers could be utilised much more given the
high preference amongst marketers
Channels used and considered effective by marketers for rural marketing

26% Voice tech


Channel most preferred

21% Rural Influencers (Sarpanch, Head of a


Community, etc.)

Print Outdoor
16%

11%

2% 12% 22% 32% 42% 52% 62% 72%Unicode SMS 82% 92%

TV Ads 6%

Digital advertisement (social media, OTT


Store Merchandising /Promotion
channels, etc.)
1%
Kiosk Radio

-4%
Channels utilised

Base (All marketers): 35

Q. Which of the following channels have you utilized to promote or activate your products and services in rural marketing?
Q. Of the channels you have used in Rural Marketing, rank up to top 3 most effective mediums.
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Brands are also developing intelligent Interactive Voice Platforms for rural
customers, allowing consumers to have a two-way communication with
marketers.

Whether setup any interactive voice platform

14%

37% Yes

No, but planned for


43% 17%
near future FMCG Media &
No, not planned for Entertainment
near future

49%

Base (All marketers): 35


% in the industry using IVP

Q. What percentage of your budget for rural marketing efforts is allocated to the following mediums? 8
Voice tech dominates Advertiser preference and share of spends

• Influencer Marketing needs to be dialled up in line with advertiser preferences. Clearly, an opportunity for
agencies to address through capability build and ROI assessment
Spends share vs. preference of channels

26% Voice tech


Channel most preferred

21%(Sarpanch, Head of a
Rural Influencers
Community, etc.)

Print Outdoor
16%

11%

-4% 1% 6% 11% 16% 21% Unicode SMS 26% 31%

TV Ads 6%

Digital advertisement (social media, OTT


Store Merchandising /Promotion
channels, etc.)
1%
Kiosk Radio

-4%
Spends share

Base (All marketers): 35

Q. What percentage of your budget for rural marketing efforts is allocated to the following mediums? 9
Q. Of the channels you have used in Rural Marketing, rank up to top 3 most effective mediums.
2
The Rural Consumer
and factors impacting
Reach

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Many Bharats…defined by media reach

Media Reach by Rural States

High Internet: High TV & Internet:


Maharashtra
Karnataka Haryana
Kerala

Internet Penetration
Gujarat Andhra
Rajasthan Pradesh
Telangana Tamil
Nadu Punjab

Odisha Chhattisgarh
West Bengal

Jharkhand
Uttar Pradesh Madhya Pradesh

Bihar

Media Dark
TV Ownership

U.P, Bihar and West Bengal represent 38% of Rural India


Media Dark High Internet High TV & Internet
- Laggard regions (SCRs) within these states account for 27% of Rural Population of India

Source: ICUBE Rural 2022;


Mobile Phone Ownership include individuals who own either Smartphone or Featurephone or both 12
Media dark states covered in Voice of Rural study
Media dark states represent 38% of Rural India; the laggard regions (SCRs)
within these states account for 27% of Rural Population of India

State SCR State SCR


Bhojpur Maru Pradesh (N)
Bihar Bihar Jaipur
Magadh Mewar
Rajasthan
Oudh Mewat
Braj-2 Bhilistan
Bhojpur Maru Pradesh (S)
Uttar Pradesh Bundelkhand Desh (S)
Rohelkhand-2 Desh (N)
Braj-1 Konkan
Maharashtra
Rohelkhand-1 Marathwada
Ganga Delta Vidharbha
Rahr Khandesh
West Bengal
Darjeeling Old Mysore
Duars Kanara
Karnataka
Eastern Haryana Malnad
Haryana
Western Haryana Karnataka
Andhra Telangana Telangana
Andhra Pradesh
Rayalseema

Media-dark regions covered in Voice of Rural India study


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Other regions covered in Voice of Rural India study
Understanding the Rural Consumer
And how are they different from their urban counterparts?

Who are they? What is the kind of content they like? What are their lifestyles, attitudes and opinions?
̶ Highly indexed to be older age groups (45- ̶ Shopping: Upbeat and interested in shopping online.
55Yrs.) ̶ Comedy is the dominant genre on
They feel it makes life easier, is safe.
OTT followed by Reality and Action
̶ Come from low affluence households (NCCS ̶ Personal Appearance: Give significant importance to
content; news, family drama and
CDE) how they look (visit beauty parlours, prefer styling
Hindi movies dominate on TV (like
̶ Low education levels (median schooling 6-9 urban) products, consider grooming as essential for success)
years) Low education is more prominent ̶ General:
amongst females ̶ They are significantly more inclined
̶ Religion (both genders) and faith (females) holds
towards political content (on both TV importance in their life
Where to reach out to them? and online sites) than urban. This is ̶ Women are family oriented (enjoy time with family) and
̶ They have lower traditional media observed more amongst Females. selfless (feel duty is more important than living for
exposure (avg. 0.75x on all media types themselves)
versus urban), however, they rely and trust ̶ Men are career oriented (look at work as career than
newspapers much more than their urban just a job, would sacrifice time with family to get ahead)
counterparts.
̶ The mobile device has 1.2 X reach vs TV
and is the one which bridges the gap on
traditional media exposure.
̶ However, feature phones* are as much
prevalent as smartphones; smartphone
ownership is much lower than in urban
markets (0.44 x).

*Resistance to smartphone upgrades in India is due to price, battery life, digital illiteracy, and network issues. INR 999 smart feature phones face limited adoption
due to low penetration and data affordability challenges. Resistance to upgrading to smartphones is due to price, battery backup, digital illiteracy, and network 14
issues.
Source: Article from IDC
TV reaches only 1 in 3 individuals in UP & Bihar (less than half that of other 7
states), mobile makes up for it in these media dark states (combined TV +
Mobile reach being at par with other 7 states)

88%
80%
74%
69% 65%

33%

TV Penetration Mobile Phone Ownership TV + Mobile Penetration

UP+Bihar Other 7 States

Advantages of communicating on mobile in media dark states:


a) ~2.1x reach vs TV for UP & Bihar
b) Always on and at hand
Source : TGI 2023 H2
Base : UP+BH:1851| Other 7 states: 2334

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However, ownership of mobile doesn't mean internet access, particularly in
U.P\Bihar...Devices are basic and voice driven. Clearly, Voice tech is critical for
brand communication via voice platforms

Mobile Mobile
Ownership Ownership 80% Male: 81%
65% Female: 79%
69% Male: 55%
46%
Female: 36%

Access to Internet Access to Internet

UP & Bihar Other 7 States


Source : TGI 2023 H2
Base for Mobile Ownership (All Individuals): UP+BH:1851| Other 7 states: 2334
Base for Internet Access (All Mobile Owners): UP+Bh: 1261| Other 7 states: 1493
Base for Mobile Ownership (Internet non-users): UP+BH:684| Other 7 states: 308
Base for avg. frequency of internet usage (All Mobile Owners): UP+Bh: 1261| Other 7 states: 1493

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More than 1 in 4 individuals in UP & Bihar use voice-based search, more so
amongst older age groups and amongst males

Incidence of voice-based search has


Incidence of Voice Based Search
been found to be significantly higher
than state average in these segments
28% in UP & Bihar:
23%
32%
More than 44 years age

31%
Males

UP & Bihar Other 7 States

Source: Kantar’s ICUBE


Base (All respondents): UP+BH: 85 Mn| Other 7 States:166M Significantly Higher at 95% confidence interval

Q1. Have you done any voice -based activity on your phone in last 1 year? 18
Bihar is not only over indexed on voice penetration, also their usage of voice-
search is quite diverse

Activities Rural Bihar UP

Finding
69% 75% 72%
music

Online
information 33% 42% 30%
search

Listening 29%
to news 36% 26%

Call
someone 17% 23% 25%

Navigation
in Maps 16% 8% 11%

Making
shopping list 12% 8% 6%

Source: Kantar’s ICUBE


Base: ICUBE 2022, Voice: Overall 97 M, Bihar:8M, Uttar Pradesh: 13M, West Bengal: 5 M

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Access and affordability are the key barriers to internet usership
Affordability is more pronounced in UP and Bihar

21%
20%
18%
16%
15%

12% 12%

9%
8%
7%

Access to internet at home Affordability Difficult to navigate Lack of knowledge Lack of medium

UP & Bihar Other 7 States

Source: Kantar’s ICUBE


Base (All respondents): UP+BH: 293 M| Other 7 States:301M

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Internet non-users in UP & Bihar dominated by housewives...drives home the
need for Voice based engagement with this critical decision-making segment

Working Status- Internet Occupation Profile- Internet


non-users non-users

2% 4% 2%
2% 3%
5% 5% Part time (less than 8 4% 7% Artisan / Craftsman like
4% hours a week) 4% potter, carpenter, etc
14% 4% 6%
12% 10% Officer / Executive
Part time (8 – 29 hours a
week) 22%
15% 10%
27% Semi-Skilled Worker
Full time student / in full
time education
18%

33% 28% Shop Owner / trader


Unemployed 10%

Businessman
49% Full time home maker /
Housewife 33% 38%
29% Zamindar / Landowner
Working Full time
Agricultural labourer /
Other 7 states UP & Bihar Other 7 states UP & Bihar
Farmer but not landowner

Unskilled worker
Base: Internet non–users:UP+BH): 606 | Other 7 states: 940

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3
Voicetech: What works
and how?

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Voice-based communication is a high engagement medium in rural, more so in
media dark states (UP & Bihar)

Listen to Communication Completely

UP + Bihar Other states

3 out of 5 66% 57%

Mobile phone users in rural India listen to the


communication completely
Voice becomes medium of higher
reach in states of UP and Bihar

Base( All respondents) : UP+BH: 1602| Other states:2398

Q. Do you listen to the message being conveyed through the communication completely or leave it in between? 23
Communication in local language and the one having humour are the most
preferred kinds of communications; younger audiences in UP & Bihar prefer
communication from celebrities significantly more than other states

Over-indexed for Females No significant Males 15-24 Y Females 25-34 Y 15-24 Y


UP & Bih. vs. Other 25-34 Y skews 15-24 Y 35-44 Y
7 states on → 35-44 Y 25-34 Y 45+ Y
35-44 Y
45+ Y
28%
24%
22%

16% 16%
15%
Kind of
11%
communication 9%
preferred → 8%
6% 5% 5%
3%
2%

A communication in Communication which A communication A communication that A communication which Communication which Communication which
which your local has humorous/ comic regarding a serious has a great voice over is narrated very well has a very catchy tune. includes a well-known
language is used references in it social/community issue celebrity

UP & Bihar Other 7 states


Base (All respondents): UP & Bihar:86| Other States:259

Q. Listen to the message being conveyed through the communication completely or leave it in between 24
Power of voice communication is optimal when messaging is not daily. ~3 in 5
listening to it completely when done few times a week

Listen to the communication completely


85%
67%
61% 62% 63%

61% 60%
58%
52%

40%

Less than once a Once in a month Once in 15 days Few times a At least once a
month week (2-6 times a day
week)

UP & Bihar Other states

Base (respondents who could recall receiving any communication of product category ) UP+BH:541| Other 7 states: 839 | less than once a month:41|Once in a month:226| Once in 15 days:410| Few
times in a week: 384| At least once a day:60

Q. Listen to the message being conveyed through the communication completely or leave it in between
Q. If Yes, How often do you receive the communication of product category/ brand through calls on your phone? 25
Voice messaging works best amongst older age groups, farmers and among
basic/feature phone users in UP and Bihar

Voice Tech Vs SMS Preference for Voice tech been found


Preference to be significantly higher than state
average in these segments in UP &
Bihar:

54%
More than 45 years age

54%
Farmers
56%
44%

50%
UP & Bihar Other 7 states Basic/ Feature Phone
Voice Calls SMS
Base(All respondents): UP & Bihar: 1602| Other 7 states: 2398| Farm Activities(UP+BH): 160| Basic/feature phone (UP+BH): 682| More than 45 years (UP+BH): 169 Significantly Higher at 95% confidence interval

Q. What type of communication of product category/ brand would prefer on your phone for sales promotion? 26
Voice messaging gives a platform for sharper consumer targeting – higher
recalls for female specific campaigns amongst women and male specific
campaigns amongst men
Recall receiving a Recall of communication for any household category in UP &
communication in UP+ Bihar
Bihar - by gender

Cement category 8% 2%

34% Agri input products 5% 2%

Banking and Finance 5% 4%

Automobile category like two wheelers, four-wheeler,… 4% 3%

Household cleaning products 1% 8%

Cosmetics and personal care products 1% 8%

Personal cleaning products like soaps, handwashes,… 2% 7%


Yes No Beverages like Tea/ Coffee/ Health food drinks 4% 11%

Females Males

Base : UP+BH:1602
Base (Individuals who recalled receiving communication in UP+ BH): Male : 875| Females: 727

Q. Do you recall receiving any communication of product category/ brand through calls on your phone in the last 6 months? 27
Q. If Yes in question 9, Have you ever received a call/ communication on your phone for any of the following household categories in the last 6 months? *
Summary (1/3)

Understanding the view of the marketers


̶ Voice-based marketing is the extensively used (95%) as well as considered the most effective medium (41%) for
rural marketing in India.

̶ Voice-based marketing gets majority share (32%) of rural marketing budget. The potential of voice-based marketing
is realised better by organisations allocating higher share of marketing budget for rural.

̶ Usage of voice-based marketing in rural also results in better results, marketers who use voice-based marketing
extensively also express higher satisfaction with their organisation’s efforts in rural marketing.

̶ Utilisation of rural influencers ranks the lowest relative to its preference, companied need to build their rural
influencer marketing eco-system

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Summary (2/3)

Understanding Media-dark states in Rural India Understanding the power of voice tech in these markets
̶ India has significant diversity across states when it comes to media ̶ Mobile usage surpasses TV, particularly in regions with limited
penetration. While the four southern states, Haryana, Punjab and media access. Mobile bridges this gap in media reach.
Maharashtra have great media exposure; Bihar and Uttar Pradesh ̶ Voice-based communication is a high engagement medium, as
are the two most media dark markets in Rural India. access to internet is significantly lower amongst people in UP &
̶ With low affluence and education levels, they have significantly lower Bihar
traditional media exposure. Mobile (feature phone) makes up for this
̶ Access, Awareness and affordability remain the most pronounced
gap.
barriers to using internet by UP and Bihar.
̶ Comedy is the dominant genre, and they are also inclined towards
political content. ̶ Voice based search is more prominent in UP and Bihar; especially
amongst older age group and males.
̶ They are upbeat on online shopping, give significant importance to
personal appearance. ̶ Voice based communication offers high engagement in UP & Bihar
̶ Religion is important to them; women are family oriented; men are – 2 in 3 pre-disposed to listening to the entire message, especially
career oriented when message is conveyed in local language or talk about a
community issue.

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Summary (3/3)
Key Learnings for marketers
̶ Feature phones are here to stay. Focus on reaching feature phone users.
̶ ~46% of India's 1 billion mobile subscribers are in rural areas, primarily using basic feature phones.
̶ Price, battery backup, digital illiteracy, and network issues primary barriers for smartphone
upgradation.
̶ Low priced smart feature phones face low penetration and data affordability challenges.
̶ Tech powered usage of feature phones is the way ahead
̶ Voice calls / generative AI on low-priced smart feature phones can help in seamless consumer
journeys.
̶ Voice and text broadcasts remain effective communication modes for these users: Customized
voice content for better engagement; Using more of local language and talking about
community for better reach; Gratification-based calls (e.g., mobile recharge), response
monitoring, and analytics are effective strategies.
̶ Developing intelligent IVRS for rural customers, allowing consumers to simply speak to their
phones to receive responses

̶ Key guidelines for marketers


̶ Optimize frequency of calling: 2-3 times a week
̶ Reach out on platforms focusing on regional content: Platforms like MX Player, Hello Jio, etc.
̶ Need to build their rural influencer marketing eco-system.

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Thank you

Kantar | India | www.kantar.com

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