App supports regional languages
Alphabet’s (GOOGL) Google has launched its Neighbourly app in more markets in India. Google’s Neighbourly app allows users to source location information from their neighbors. The app initially rolled out in Mumbai and Jaipur earlier this year, and Google has expanded its availability to five more Indian cities.
People in India have used Neighbourly to source information on a wide range of topics, including local shopping and tuition centers. The Neighbourly app launched in India with support for English and eight regional Indian languages.
830 million Internet users in India
Neighbourly appears to be the stone that Google could use to kill two birds in India. Firstly, the app allows Google to address the local information needs of Indians, which may help its efforts to win its next billion Internet users.
Secondly, Neighbourly is viewed as Google’s latest challenge to Facebook (FB) for Internet users and advertisers in India. Facebook operates several social apps in India. According to a study by Cisco Systems, the number of Internet users in India could increase to ~830.0 million in 2021 from 373.0 million in 2016.
According to consulting firm Kantar, spending on online advertisements in India could reach $1.7 billion this year, up from $1.3 billion last year.
Advertising revenues increased 23.8%
Google and Facebook generate the majority of their revenues from offering online advertising services. Google generated $28.1 billion in advertising revenues in the second quarter, representing a YoY (year-over-year) increase of 23.8%.
Facebook’s advertising revenues rose 42% YoY in that period. Baidu (BIDU), Twitter (TWTR), and Snap (SNAP) increased their advertising revenues by 25.0%, 23.0%, and 48.0% YoY, respectively, in the second quarter.