In a country where ‘work hard, play hard’ is more than just a mantra, mastering multiple languages has become a career-enhancing necessity rather than a luxury. India gears up for a $7.55 billion surge in its language training market by 2028, tongues are wagging in English, French, German, and Spanish, driven by the thirst for global opportunities and professional edge, as per the global market research firm Technavio. In this multilingual pursuit, cracking open a new language isn’t just about learning vocabulary but being confident to communicate better. Duolingo, a language learning platform, claims to offer a free, gamified approach to language learning with short exercises, points, and rewards. The app is designed to help users develop vocabulary, grammar, and speaking skills across a variety of languages. Created by language experts, it provides courses in popular languages such as Spanish and French, as well as less common ones, and is used by millions of learners worldwide, the company claims.
In a conversation with BrandWagon Online, Karandeep Singh Kapany, regional marketing director, Duolingo, talks about the company’s monetisation strategy, marketing plans, and user retention strategies among others. (Edited Excerpts)
How has the introduction of monetisation in India affected Duolingo’s revenue from subscriptions and advertising?
Monetisation in India market was introduced in last August. Prior to that, it was not available. The current model includes subscription options with various tiers. Starting at just Rs 100 per month, the Super Duolingo plan offers a range of additional features and benefits.
We primarily rely on two revenue streams at Duolingo – subscription and advertising. Globally, about 80% of our revenue comes from subscriptions, which is a healthy ratio for our business. The remaining 20% comes from advertising. This 80:20 split is consistent across most countries. Currently, we do not have any other revenue sources beyond these two main streams.
Duolingo is undoubtedly one of the leading EdTech apps for language learning. While I can’t share exact percentages, it’s clear that we are a top choice for those looking to learn a new language, particularly among the metro audience interested in foreign languages. Since joining three years ago, I’ve seen significant growth in our brand’s visibility. Today, when people think about learning a foreign language, Duolingo is often the first name that comes to mind.
India is a particularly important market for us, given its rapid growth and strong emphasis on education. This makes it an exciting and significant market for Duolingo.
How different is the Indian market from the global and how do you approach it?
Compared to the global market, India ranks among the top countries for Duolingo and is growing rapidly. India represents a significant opportunity for us, especially in terms of English learners. Due to India’s colonial history with the British, English has become integral to business, commerce, and aspirations. Despite being able to speak regional languages, many Indians prefer using English for communication and professional success.
The high demand for English proficiency in India aligns well with Duolingo’s strengths. Our user base in India primarily focuses on learning English, and we’ve recently launched an Intermediate English course aimed at achieving a B2 level of proficiency. Previously, our courses were designed to teach English from regional languages like Hindi, Telugu, and Bengali. The new course teaches English from English, catering to those with some prior knowledge of the language.
This approach allows us to address a broader audience, as many Indians have some familiarity with English but need to improve their proficiency. The new course expands our reach and enhances the effectiveness of our offerings, making Duolingo even more relevant and accessible to a large number of learners in India.
What are your marketing plans for FY25?
For FY 2025, we are planning several significant campaigns, including a major language launch. Our marketing philosophy centers on a social-first approach, aiming to create content that resonates strongly on social media. We want our campaigns to be shareable and engaging, prompting users to share, tag, or interact with our content. With nearly 80% of our learners in India being under the age of 30 years, this approach is crucial as this demographic is highly active on social media.
Another key pillar of our strategy is to be scrappy. We focus on producing impactful content without relying on expensive advertisements. Effective content doesn’t necessarily mean costly production; it should be engaging and thought-provoking. Many of our viral Instagram posts have gained millions of organic views without paid promotions. This scrappy approach allows us to be agile, quickly adapting to trends with simple tools like smartphones, rather than lengthy production processes.
Lastly, our content is tailored for Gen Z. We design our material to align with their interests and trends, such as anime, manga, and K-pop. This focus ensures our content is relevant and appealing to our target audience. These three pillars—social-first, scrappy content, and Gen Z focus—are central to our marketing strategy in India.
What strategies does Duolingo have in place to effectively reach and engage potential language learners who are not active on social media, considering the limitations of digital-only marketing approaches?
Duolingo’s success globally and in India largely comes from word of mouth. Users who love the product often recommend it to friends and family, which is a significant part of our marketing strategy. Additionally, we work extensively with influencers in India to promote our app.
While we have experimented with traditional media such as television, radio, and outdoor advertising in the past, our most effective and efficient strategy remains a social-first approach. We target Gen Z through social media and influencer partnerships, as this demographic is predominantly active online. If Gen Z is not engaging with social media, we rely on their friends and family to spread the word about Duolingo. This combination of user recommendations and social media outreach helps us effectively reach our audience.
What are the key competitive threats Duolingo faces in the language learning market, and how does the company plan to differentiate itself with its features or strategies?
Duolingo’s competitive edge comes from three main factors. Firstly, our app is designed to be fun and engaging. It doesn’t feel like a chore; instead, it’s gamified, which makes learning enjoyable and keeps users motivated. This is especially significant in markets like India, where traditional learning methods can feel burdensome.
Secondly, we’re highly effective. Studies have shown that users learn as much on Duolingo in one semester as they would in two semesters of traditional language courses. This means our approach is not only enjoyable but also delivers substantial learning outcomes.
Lastly, we’re committed to accessibility. While we offer a paid subscription for additional features, the core app remains free. Our mission is to make education affordable and accessible, ensuring that anyone with a phone and internet connection can learn without financial barriers.
What metrics do you use to measure user acquisition and retention, particularly in the Indian market, given the challenge of users trying the app briefly and then abandoning it? How do you make sure that the user stays on your app and actually utilise it?
We use several key metrics to measure user acquisition and retention. Initially, we track the number of new users and then focus on retention metrics like Day 7 (D7), Day 14 (D14), and Day 30 (D30). These metrics help us understand how many users continue to engage with the app after their initial download. Depending on the app, some might use different retention milestones, such as Day 15 or Day 100. It’s also crucial for us to ensure that our messaging clearly communicates what the product offers to keep users engaged.
To make sure users actually stay on our app, we focus on two key aspects to improve user acquisition and retention. First, we ensure that our marketing accurately reflects the app. Whether through performance marketing or influencer partnerships, we use screenshots, videos, and tutorials to clearly show the app’s interface and features. This transparency helps prevent users from being surprised by discrepancies between their expectations and the actual product, reducing wasted marketing spend.
Second, we highlight the app’s engaging and enjoyable nature. By showcasing its user-friendly design and fun learning experience, we align user expectations with the app’s true value. This approach minimises the chances of users abandoning the app, as they are already familiar with what to expect.
If users encounter a mismatch between their expectations and the app’s content, such as downloading an app that doesn’t align with its advertised features, they are more likely to leave. Thus, demonstrating the actual app and ensuring it meets user expectations are crucial for retention.