Future of SEO & e-Commerce in India

The future of organic SEO looks bright despite muche-commerce and increasing in domain registrations.
hullabaloo about the changing behavior of searchAccording to IAMAI the number of Internet users in
engines to go for PPC. By the time they go for fullIndia reached 38.5 million at the end of 2005 (up 54% in
fledge paid inclusion program, they may loose theirthe last year) and could reach 100 million by 2007.
popularity. You may find verification of this argument inIAMAI findings show the most popular online activities
Overture. There has been a significant shift ofundertaken by Internet users in India in 2005 (as a %
searchers from overture to Google, msn, Yahoo, orof respondents):
other search engines.E-mail and IM: 98%
In 2001, the controversy swirls around aJob search: 51%
revenue-producing aspect of search engines.Banking: 32%
Consumer Alert, a consumer watchdog, filed aBill payment: 18%
complaint with the FTC suggesting search enginesStock trading: 15%oMatrimonial search: 15%
were changing the nature of their results pages.The Indian Internet population is currently over 25 million
According to the complaint, instead of presentingand is expected to grow to 100 million by 2007,
results based solely on objective algorithms, the searchaccording to the Internet & Online Association of
engines were including results found by paid inclusionIndia (IOAI).
and paid placement. Consumer Alert requested thatThe IOAI's figure for Internet users in India falls in the
the Federal Trade Commission (FTC) investigatemiddle of other estimates.oeTForecasts (September
whether these companies are violating federal2004): 37.0 millionoPricewaterhouseCoopers (July
prohibitions against deceptive acts or practices by2004): 30.0 millionoeMarketer (April 2005): 21.3
inserting advertisements in search engine resultsmillionoEconomist Intelligence Unit (February 2005): 15.7
without clear and conspicuous disclosure that the adsmillion
are ads. This concealment may mislead search engineOver 50% of Web users in Indian metropolitan areas
users to believe that search results are based onare between the ages of 19 and 30, with an additional
relevancy alone, not marketing ploys.22% between 31 and 40. Users under the age of 18
Despite the explosion of paid placement sales as aare rare.
source of revenue for search engines, users remainThe Internet has been a key driver of the Indian
largely unaware of these issues. 62% users are noteconomy, helping to make Bangalore a leading
able to distinguish paid and unpaid results while 32%technology center. Outsourcing is bringing billions of
Internet surfers do understand them. But soon thedollars of foreign investment into the country every
figure is going to change. Further, if search engines doyear. Now, consumer purchasing online in India is
not produce relevant results the users trust, they loosebeginning to pick up as well.
their trust and hence their popularity dips down. OrAnnual online consumer purchasing reached
who knows other engines may take advantage ofapproximately US$130 million in 2004-2005, according
their competitor's downfall!to the Internet & Online Association of India (IOAI).
In the earlier Consumer WebWatch findings, if anThe total is expected to grow sharply over the next
engine revealed it was taking fees for placement, 56%two years, reaching US$ 550 million by 2006-2007.
said it wouldn't affect their user of the engine, althoughClick here to know in detail.
almost 1/3 said they would be "less likely to use" suchThe most popular purchases online in India are clothes
a search engine and this ratio will further increase to a(46 percent of shoppers), music / CDs (29 percent of
great extent if major search engines go for PPC inshoppers) and books (26 per cent of shoppers). Some
toto.69 percent of users in India spent up to 500 Rupees
Once we are sure that organic SEO is going to stayonline during the previous four weeks. Further, Online
for long, how do we then predict the future of SEO intravel company MakeMyTrip, which had launched its
a country like India?website for the Indian market in September 2005,
The future prospect of SEO in India depends on theexpects its Indian revenues to surpass contribution
success of e-commerce. So, what does the futurefrom its US operations by 2007-08. The development
hold for e-commerce? According to a report fromcomes at a stage when the Internet in India is
Internet & Mobile Association of India (IAMAI),increasingly becoming a great resource for travel
Internet adoption is growing in India at a record paceplanning.
due to falling cost of broadband, a rising demand for