20091007 IAB breakfast on MC DC

IAB Breakfast MC DC 09
Gianni Cooreman
InSites Consulting

Today’s breakfast menu
Internet stats
***
Mobile Internet
***
Online identity
***
Future proof brands
***
Emancipated consumers
***
Media & advertising
***
Search
***
Mixed-mode buying

Background and methodology
NorthernEurope
EasternEurope
SouthernEurope
WesternEurope
Belgium
N = 2.119
Poland
N = 2.022
Spain
N = 2.196
Denmark
N = 1.986
The Netherlands
N = 2.038
Romania
N = 2.035
Italy
N = 2.086
Norway
N = 2.016
France
N = 2.000
Hungary
N = 2.010
Greece
N = 1.971
Sweden
N = 2.081
United Kingdom
N = 2.017
Finland
N = 2.005
Germany
N = 2.028
Switzerland
N = 1.996

The medium “Internet”
“Size does matter ... and it continues to grow”

228 million European surfers (*)
60% Internet penetration
Sweden82%
6,2 million
Finland75%
3,3 million
Norway83%
3,1 million
Denmark80% - 3,5 million
The Netherlands85% - 11,4 million
UK73%
36,6 million
Poland44%
14 million
Germany69%
48,6 million
Belgium66%5,8 million
Hungary45% - 3,8 million
France61%
31,6 million
Switzerland73%4,6 million
Romania32% - 5,7 million
Internet penetration > 75%
Spain50%
19 million
Italy52%
26,5 million
Internet penetration 50 - 75%
Greece42%4 million
Internet penetration < 50%
(*) Countries measured in MC DC 2009
Source: MC DC 2009 CATI research and Forrester data

5,8 million Belgian surfers
66% Internet penetration
Source: MC DC 2009 CATI research (n = 1.134)

Increasing Internet intensity
57% is online 7/7
Source: MC DC 2009 CATI research (n = 1.134)

Internet goes mobile
“And Belgium is already lagging behind”

9% ever surfed mobile in Belgium
Only ½ of the European adoption rate
Smartphone adoption
Ever surfed mobile
Possession data plan
Q: Which of the following mobile phone types do you own and use? (n BE = 2.119, n EU = 32.606)
Q: Have you ever surfed on the Internet from another place than your home, work or school using mobile Internet connection on your mobile phone or smartphone?
Q: Do you currently have a subscription to use a mobile Internet connection on your mobile phone or smartphone?
Source: MC DC 2009 online research

Limited amount of 3G networks ( offered no 3G)
Prohibition of combined sales (until recently)
High subscription fees
Lack of flat rate subscriptions

How did we end up in this situation?

Technological barriers (# platforms | # handsets)
Consumer privacy
High subscription fees
Mind the gap

Challenges for marketers

Mobile web 2009 ... In terms of the user experience quality we observed, it was like stepping into a time machine for a quick trip back to 1998.(Jakob Nielsen, Feb 17th 2009)

Functional & social askiller
mobile applications
Q: How often do you engage in the following Internet activities for personal purposes via your mobile phone or smartphone? (n EU = 7.710)

Location based / on-the-go askiller mobile content
50%
Mobile
Both
45%
Get directions/navigation
Weather
40%
Nearest business or service
35%
Tourist / location information
you are at or want to travel to
Breaking news
30%
Food and drinks, restaurants,
bars,...
Travel information
Preference access on mobile phone
25%
General news/current affairs
Local news
20%
Mean all items
Shopping, shops,...
Sports news
15%
TV programs
Cultural news
Economic and financial news
Job vacancies
10%
Health information
Clothing, fashion,
Cooking and recipes
accessories,...
Eroticism
5%
Real estate
PC/laptop
Niche
Mean all items
0%
30%
35%
40%
45%
50%
55%
60%
65%
Preference access on PC / laptop
Q: Suppose you have unlimited use of a mobile phone, which device do you prefer to access the following online content? (n EU = 7.710)

The mobile future: augmented reality

Building an online social identity
“To be online or not to be”

Online identity
Online Identity
Kind of Online Identity
Q: Which of the following activities did you perform on the Internet? (n EU = 8.037, n BE= 530)

5 online identity drivers

Social interactions (communicating with others)
Entertainment
Unleashing creativity
Information search (solving problems)
Escapism & de-stressing

is king
Q: On which of the following social networks do you have a personal profile? (n EU = 3.593, n BE= 530)

Future of social networks

Strong competition for IM and email
Social search (see further)
Data portability
Post-modern nomads

Building future proof brands
“Social influence marketing”

Can brands exist in social networks?
Q: To what extent do you agree with the following statements? (n EU = 3.593, n BE= 530)

Yes, they can...
Q: Have you ever …? (n EU = 3.593, n BE= 530)

Brands have emotional value
Interbrand 08
Best Brands Facebook
(3.5 million fans)
(2.6 million)
(3.2 million)
(3 million)
(2.6 million)

Social media tips for brands

Attitude change among marketers
Facilitate conversations, ask questions later
Give back to consumers
Social advertising

Examples of social ads

Emancipated consumers
“From shouting to building”

The shouting consumer
Positive Experiences
Negative Experiences
Q: In the past 12 months, approximately how many times did you share a positive/negative experience with a product, brand or company on the Internet? (n EU = 8.287, n BE= 556)

Popular shouting channels
Q: Which type of websites would you consider using to voice your experiences with a product, brand or company? (n EU = 8.287, n BE= 556)

How to deal with negative buzz?
% top 2 reported
Q: If consumers post negative experiences with a company on a website, how do you think the company should react? (n EU = 8.287, n BE= 556)

Start building...
% top 2 reported
Q: In the past 12 months, approximately how many times did you share a positive/negative experience with a product, brand or company on the Internet (n EU = 8.287, n BE= 556)

45% of Belgian internauts think a forum with questions and answers of other clients should definitely be present on a corporate website. (MC DC, 2009)

Start building...

Brand identification
Offer a place where consumers can share experiences
Join the conversation (know where to look)

Advertising, targeting and media planning in the 21st century
“How to avoid avoidance ... via personalisation”

The increasing media pressure
7 out of 10 Belgian Internauts are convinced that they are currently confronted with a lot more advertising compared to some years ago.(MC DC 2009)

TV has highest ad irritation
Reducing the gap online / TV
Q: To what extent do you agree with the following statements? (n = 549)

Media consumption is one thing
Advertising exposure another

In 2006, a television spot needed to be broadcasted 150 times on American television in order to reach 80% of Americans. The same result could be achieved in 1987 with 3 broadcasts.(Himpe, 2006)

Advertising as a means for
activation

Simple
Surprise
Concrete
Credible
Emotional
Story telling

Personalisation next to activation
I have no problem watching or receiving advertising if it is tailored to my needs
Characteristics good online ads
Q: According to you, what are the 3 main characteristics of good online advertising? (n = 549)

Openness to provide information
Convince the neutral audience
Q: Companies can use different services to provide you with more personalized information, customized services or product recommendations. To what extent do you find the following services useful?? (n = 549)

The changing media landscape
Q: How long do you use each of the following media on an average weekday / day in the weekend? (n = 549)

The changing media landscape
Q: How do you expect your use of these media to develop in the coming year? (n = 549)

Media planning: 1 +1 = 3
Q: Suppose one of your favorite brands is launching a new product or service. What are the 3 main information channels you would like this brand to use when introducing this new product to you? (n = 549)

The role of search in brand building & lead generation
“Search is still in its infancy”

Internet = search
Ever Used
Topics Searched (% weekly)
Q: Have you ever used an online search engine (e.g. Google, Yahoo!, Windows Live...) before? (n EU = 8.039; n BE = 530)
Q: How often do you use online search engines to find information on the following topics? (n EU = 7.742; n BE = 528)

77% of Belgian surfers always find what they're looking for when using online search engines
62% trust the results they obtain from online search engines

Search is still in its infancy

Finding the most recent information?
Which search result is the most relevant?
Knowing exactly what you are looking for?
Using the “right” keywords to define your search
Deep Web vs. Shallow Web

The surfer’s search cyclone
How we wish they searched ...
the actual search cyclone ...
User enters keyword
Keyword hunting
Category, brand, feature awareness
User processes search results
Product (experience) comparison
User visits
brand/retailer site
Customer experience

Why SEO matters
39% of all surfers believe that companies included in the top search results are market leaders in their domain (Jupiter Research, 2008)
Q: Suppose you enter a search in an Internet search engine but you don't find what you are looking for, at what point do you give up? (n EU = 7.742; n BE = 528)

Sponsored links matter as well
Q: Are you aware that search result pages usually show two different types of links: sponsored links (paid for by the listed company) and natural links (where no payment is made by the listed company)? (n EU = 8.039; n BE = 530)
Q: To what extent do you agree with the following statements regarding sponsored links? (n EU = 5.788; n BE = 381)

Search tips for marketers

Check your online brand identity
Words are key
Exploit universal search
Embrace social media
Invest in paid search

The future of search

Semantic search (e.g. Wolfram Alpha, Kosmix...)
Mobile search
Personalized search
Social search
Local search

Mixed-mode buying
“It’s all about DCC”

Discussion, Comparison, Conversation
Discovery
Conversation

WOM as key information source
70%
Niche channel
Trusted channel
Comparison websites
60%
Websites with expert reviews
Websites with user reviews
50%
E-mail or discussions with relatives, friends and acquaintances
Discussion with a dealer/
sales assistant
40%
Corporate website
Reliability information channels (% top 2 reported)
Mean all items
A paper brochure
Search engine results
Information on TV, in newspapers,
magazines or periodicals
Other websites
30%
Promotions and special offers (offline)
Promotions and special offers (online)
20%
Advertisements/commercials
(offline)
E-mail sent by companies
Advertisements/commercials
(online)
10%
Mass channel
Zap channel
Mean all items
0%
0%
10%
20%
30%
40%
50%
60%
Usage information channels (% used)
Q: In general, which of the following information sources would you consult to select a brand, manufacturer, provider or dealer for a new product or service? (n EU = 8.287)
Q: To what extent do you find the following channels reliable when searching for information on brands, products and services?

The mixed-mode buying frame
70%
Do
Think
Hotel/lodging
60%
Plane, train
or boat tickets
Tickets to events
50%
Digital music
Computer, hardware
and software
Internet opportunity for sales(If purchased, % purchased online)
Movies or TV series
in digital format
Telecom services
40%
Books
Mean all items
Electronic equipment
CD/DVD/Blu-ray
Other product
Toys/games
30%
Clothing/shoes
Household appliances
Personal care
20%
Furniture and
home decoration
Cars, motorcycles, bikes...
Think & Feel
Feel
Mean all items
10%
20%
30%
40%
50%
60%
70%
80%
Internet opportunity for pre-sales(% searched online / Filter: if purchased)
Q: To what extent did you look for information offline (e.g. in a shop, product brochure...) and/or online (e.g. product review website, brand website...) BEFORE the purchase? (n EU = 8.287)
Q: Which products or services have you purchased in the last 12 months for personal use?

Challenges for marketers

Consumer trust and online confidence
“Surfing with a safety net”

4 types of trust

The cautious surfer (1/2)
% top 2 reported
Q: To what extent do you agree with the following statements? (n EU = 7.709; n BE = 484)

The cautious surfer (2/2)
Yes
No
Don’t know
10%> Europe
10%< Europe
Antivirus Software
8%
88%
4%
Use Firewall
15%
76%
9%
Store Passwords
44%
49%
7%
Q: Do you have antivirus software installed on the computer you use the most to access the Internet? Q: Do you have a firewall/firewall software installed on the computer you use the most to access the Internet?
Q: Do you sometimes store website passwords in your Internet browser so you don't have to type them in the next time you want to access these websites?? (n EU = 7.709; n BE = 484)

Trust comes with experience
Online Banking Adoption
44%
No
= 56%
56%
Yes
Q: Do you use 'online banking' applications? (n EU = 7.709; n BE = 484)

Informational trust
% top 2 reported

Trust me, not them
% top 2 reported

Social networks & privacy

Is a privacy policy useful?
Q: Did you know that most websites provide a privacy policy and have you consulted one before? (n EU = 7.709; n BE = 484)

Emphasise a more understandable, less legal jargon based privacy policy to market your legal engagement with the visitor. Maybe it is better not to call it a privacy policy, but an engagement to the visitor of the site.
(Tim Duhamel, CEO InSites Consulting)

Belgian trust in e-commercestill low
E-Commerce Trust
E-commerce Adoption
184
57%
n EU = 8.287; n BE = 556

Trust in online advertising
islow
I find online advertisements or promotions to be more reliable than advertisements on TV, in a magazine, on the radio...

Reasons low trust
online advertising

Bad targeting
Bad translation
Bad goal

Answers to 17 challenges today’s marketers are confronted with
Market Insights
Branding & communication
Digital consumption profiling data
Basic insights for marketers into the Internet population of 16 European countries
Emancipated consumers: from shouting to building
How many Internet users are voicing their opinion on the Internet and how to deal wit them as a company?
1
6
Building future proof brands: social influence marketing
What do surfers expect from brands on social networks? How should you as a brand position yourself in their environment?
The digital world as seen by digital natives, silver surfers and worldwide women
Insights into the role of the Internet from different target groups and viewing angles.
2
7
The P2P online economy
How many people are trading domain names, earning money via advertising on their personal website? Who is into peer-to-peer trading on auction and classified websites?
Building an online social identity
Is online life a replacement or complement to the offline life? And why do they feel the need to exist online? How can brand and companies compose their own online social identity?
8
3
Interactive content on the move: the mobile future
The mobile phone has become smart and offers opportunities for mobile marketing and location based services. What do consumers allow and expect from these services?
Avoid avoidance: advertising, targeting and media planning in the 21st century
What are the key elements of good advertising according to Internet users? Is there an overload of advertising? Is targeted advertising the solutions?
4
9
Digital utility seeking: the Internet and mobile as branding instruments / branded utility
Can you strengthen you brand by offering branded utilities? And which utilities do internauts expect and use?
The medium is the message
How to get your message across as a company? Which channels (e-mail, social networks, SMS,…) to use for which kind of messages?
10
5

Answers to 17 challenges today’s marketers are confronted with
Customer experience
Innovation
Co-created product innovations leading to better brand experiences
To what extent are people open to co-create with a company and how to approach them? What is the impact on branding and sales? Who are the people that diffuse new products and services and how do they share their opinions/influence?
The role of the Internet in the purchase decision process: mixed-mode buying
How important is the role of the Internet in the purchase process within my sector?
17
11
The role of search in brand building / lead generation
How do people use search engines? Do peope use it to search for brands/products? Is it worth investing in SEM?
12
E-commerce drivers: influence of the economical climate
Do people still buy online? What is the impact of the crisis on their online shopping behaviour?
13
Return on information: providing personal data in return for personalized services and information
What kind of information are people willing to share with a company? What is their opinion on behavioural tracking and recommendations based on past purchases / visits?
14
Consumer trust and online confidence
To what extent do people have faith in e-commerce, online applications and services and do they trust online advertising and promotions?
15
16
Enforcing customer loyalty through digital media
What do your consumers think of your corporate website as support for after-sales? What could be improved to make your consumers more loyal?

Hungry for more?
http://mcdc.insites.eu
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Gianni Cooreman
Digital Research Manager
InSites Consulting
T +32 9 269 16 01
M +32 494 521 776
E gianni@insites.eu
http://www.linkedin.com/in/giannicooreman
http://twitter.com/giannicooreman
Digital Media
and Marketing