Digital life south africa event jan 2012 mark short

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Mark Molenaar's presentation at Digital Life South Africa event 25/26 January 2012

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Digital life south africa event jan 2012 mark short

  1. 1. © TNS 2011 Digital Life
  2. 2. Digital Life © TNS 2011 The most comprehensive view of consumer attitudes and behaviour online
  3. 3. Digital Life South Africa Report © TNS 2011 Realising the opportunity 3 Engage with the 'Digital Consumer', understand:  How are consumers interacting with brands online?  Should I build friends and fans on social networks?  What brand opinions are consumers forming through digital? Identify & cultivate the 'Digital Advocate', understand:  What is the level and influence of buzz for my category?  Who is talking about my category and who is listening?  What„s the impact of negative conversation online? Convert the 'Digital Customer', understand:  What is the role of online and offline channels throughout the path-to- purchase, for researching and buying products?  Are my customers using the Internet to purchase products? Reach the 'Digital User', understand:  What‟s the reach, size, structure of the digital channel?  Can I get my message to users in new markets?  How do I communicate with my target group? Advocates “I tell others online about brands” Customers “I use online prior to and for purchase” Consumers “I engage with brands online” Users “I am online”
  4. 4. Digital Life © TNS 2011 Africa has the fastest internet growth in the world 2000 2011 Mobile subscriptions Internet subscriptions 4.5 million 120 million 11.5% penetration X 4327% X 2527% 15 million 649 million65% penetration Sources: Internet world stats GSMA ITU
  5. 5. Digital Life © TNS 2011 5 Internet Penetration Internet penetration (%) Using daily (%) Source [Internetworldstats; Digital Life] Base: Total Market Population; Min 500 …but, internet penetration is still low, and hence low frequency of use, limiting what internet is used for Tanzania Ghana India Uganda Kenya Pakistan SouthAfrica Indonesia Egypt Thailand Nigeria Philippines Peru Vietnam Mexico Ukraine Romania China Brazil Colombia Morocco Russia SaudiArabia Turkey Argentina Greece Portugal Italy Chile Poland Malaysia Hungary Spain Ireland Cz.Republic HongKong UAE France Taiwan Israel Slovakia Austria Estonia Singapore Belgium USA Australia Japan Canada Germany Switzerland SouthKorea UK NewZealand Luxembourg Finland Denmark Netherlands Sweden Norway
  6. 6. Growth in internet access in the region offers big opportunities for brands and marketers… 6 …but, Digital marketing is wasted if not tailored to the local market Or worse, can actively create brand-resistant consumers Consumers hold the power Need to understand how consumers are using the internet and where they are in their digital evolution
  7. 7. With strong internet growth in Africa, most users are new to the internet and still becoming acquainted – usage will be different to developed countries 7 0 10 20 30 40 50 60 Tanzania Ghana India Uganda Kenya Pakistan SouthAfrica Indonesia Egypt Thailand Nigeria Philippines Mexico Peru Vietnam Ukraine Romania China Brazil Morocco Russia SaudiArabia Turkey Greece Portugal Italy Colombia Chile Poland Malaysia Hungary Spain Ireland CzechRepublic Argentina HongKong UAE France Taiwan Israel Slovakia Austria Estonia Singapore Belgium US Australia Japan Canada Germany Switzerland SouthKorea UK NewZealand Luxembourg Finland Denmark Netherlands Sweden Norway Internet Penetration % Started using the internet less than two years ago Sub-Saharan Africa
  8. 8. Mobile is key to Digital strategy in Sub-Saharan Africa Nigeria Tanzania Uganda Kenya Ghana South Africa Global 36 82 61 31 65 77 68 97 64 75 97 82 64 60 Different countries within SSA have different development paths – Mobile is key in SSA Access internet via…
  9. 9. 39 23 6 7 4 68 1 1 PC at home PC at work PC at school/university PC at Internet café PC elsewhere Mobile phone Tablet Internet TV Games console 9 Question: S5; Device use for Internet access in past 4 weeks Base: All respondents; Used to access internet in last month (%) 1000 Mobile is emerging as the key access point for internet users in South Africa
  10. 10. Accessed the internet via… 85% 15-20 years 21-24 years 25-34 years 35-44 years 45-54 years 55-65 years Mobile Phone PC 24% 50% 90% Younger and older internet users experience the internet differently – take this into account when designing digital strategies
  11. 11. 11 “I would be happy doing all my Internet surfing via my mobile” “I would like to access the Internet more on my mobile phone, if it were more convenient, or had higher speed or connectivity” Question: H4, A2; Mobility attitudes, Internet attitudes Base: Mobile users; Mobile internet users prefer mobile as an internet access point - and this will increase as access speeds increase 68% 57%
  12. 12. 12 68 59 50 29 21 6 TV Internet for leisure Radio Internet for work Newspapers Magazines Question: M1; Media use Base: All respondents; Size Daily users (%) 1000 Once adopted, digital media is close to traditional media in terms of daily users on board
  13. 13. Offline activities done whilst also online (%) 13 35 30 21 7 6 18 53 57 12 10 22 16 Find out more information just seen advertised Listening to radio Watching TV Reading magazine/newspaper Playing video games Shopping (not on the Internet) Find out info about product in-store PC Mobile Question: [H3]; [Device use for Internet access in past 4 weeks] Base: [All respondents];605,686 And there is a strong incidence of people engaging in entertainment media (TV & radio) whilst accessing internet on mobile
  14. 14. 0% 10% 20% 30% 40% 50% 60% 70% Tanzania Ghana India Uganda Kenya Pakistan SouthAfrica Indonesia Egypt Thailand Nigeria Philippines Mexico Peru Vietnam Ukraine Romania China Brazil Morocco Russia SaudiArabia Turkey Greece Portugal Italy Colombia Chile Poland Malaysia Hungary Spain Ireland CzechRepublic Argentina HongKong UAE France Taiwan Israel Slovakia Austria Estonia Singapore Belgium US Australia Japan Canada Germany Switzerland SouthKorea UK NewZealand Luxembourg Finland Denmark Netherlands Sweden Norway Social networking is seen to be the most important online activity in most of Africa 14 Internet Penetration % Most important online activity – social networking Sub-Saharan Africa
  15. 15. 58 18 13 4 3 Global SSA 32 26 10 9 6 In contrast to Global internet use, Social is far more relevant than e-mail Key activities on internet (% use)
  16. 16. Facebook is visited weekly by three quarters of internet users Visit daily: Visit weekly: 54% 73% 30% 59% 5% 10% 3% 10% Question: [B6]; [Frequency of visiting websites] Base: [Total];1000
  17. 17. 18 60 58 22 21 19 16 14 14 11 Write a post / message / status update on my social network Comment or respond to other people on my social network Use online chat / instant messaging Post comments on, or rate other people's blogs, forums or reviews Upload photos Write my own blog Upload video or music Forward / share a link Post Status updates or messages on a micro-blog 56 19 18 15 13 13 10 9 Check my social network accounts Visit / check / read other people’s blog or forum Stream music Download videos / movies / TV shows or music Stream video Download photos or look at pictures at photo sharing websites Download an “App” or application Visit / read / other people´s micro blog Active Passive Question: B12; DL Sub-activity usage Base: All respondents; Weekly users (%) 1000 Social networking users are highly active online, but it is all about communicating with their network – brands need relevance to become a part of the conversation
  18. 18. 81% 59% 8% 7% 30% Internet Penetration 30% 14% 84% 68% 33% 47% 81% Go online daily Are brand fans on SN Write about brands online Research brands online % of internet users that: % of internet users that: While a significant proportion of internet users in SA go online daily, interaction with brands is still quite limited, with researching brands being the main brand-related activity 19 Global South Africa Are part of Social Network
  19. 19. The higher the internet penetration, the more likely internet users are to read about brands on the internet – In Africa, brand presence on the internet is still under-developed 20 Internet Penetration % reading about brands Sub-Saharan Africa Tanzania Ghana India Uganda Kenya Pakistan SouthAfrica Indonesia Egypt Thailand Nigeria Philippines Mexico Peru Vietnam Ukraine Romania China Brazil Morocco Russia SaudiArabia Turkey Greece Portugal Italy Colombia Chile Poland Malaysia Hungary Spain Ireland CzechRepublic Argentina HongKong UAE France Taiwan Israel Slovakia Austria Estonia Singapore Belgium US Australia Japan Canada Germany Switzerland SouthKorea UK NewZealand Luxembourg Finland Denmark Netherlands Sweden Norway
  20. 20. Messages are not in the control of brands Even a stranger on the other side of the world is trusted more… “What other people say about brands can be trusted more than what the brand says themselves” “I trust the comments my friends write about brands” “I trust the comments people I don‟t know write about brands” 57% 54% 41% % Agree
  21. 21. 22 xx % Agree Question: [I8a]; [Attitudes to comments & reviews] Base: [All Writers]; “Posting comments online is an effective way to influence companies” “I expect companies to contact me if I write something about them” 73 Very few consumers write about brands, but those who do believe their interaction influences the brand 68% 34%
  22. 22. 23 To praise a brand To criticise a brand Ask advice Offer advice Share answers/opinions Share opinions w/communities To share cool stuff brands produce To receive customer service Because I‟m rewarded for doing so Question: [I8]; [Reasons to write about a category] Base: [All Writers]; 48 28 45 25 31 45 42 15 2 73 Though there are many reasons to express the opinion online, main causes are to praise, to seek advice and to share opinions *base size for this demographic is between 30 and 74. Results are therefore for illustrative purposes only *
  23. 23. 10 8 15 7 5 5 9 6 7 6 14 9 4 7 Promotion/special offer Competitions/prizes More information about products/services Information about brand ethics Connect with people behind the brand Access brand content Passionate about the brand Show that brand is important to me Give brands input Receive customer service Friends doing the same Connect with other fans Use specific apps/games Support a cause 24 Further Research Brand Interaction Giving & Receiving Feedback Friend Interaction What’s in it for me? Miscellaneous Question: [I3a/I3b]; [Reasons to join a brand group/community] Base: [Social Networkers & Micro Bloggers]; (%) 891 Information on products and peers as reference groups motivate consumers to join a brand community
  24. 24. Global SSA TV ad Product review website Expert review website Consumer opinion blog Price comparison website Recommendations from friends/family Recommendations from sales assistant 38 28 28 27 27 26 24 TV Ad 39 Recommendations from friends/family31 Ads in newspapers/magazines22 Digital needs to play a supportive/complementary role to traditional media in Sub-Saharan Africa Consumer journey touchpoints – influence on product choice
  25. 25. Nigeria Tanzania Uganda Kenya Ghana South Africa Global 62 17 17 7 28 13 28 79 6 22 8 25 15 43 Mobile PC Pre-purchase browsing is relatively low in SSA compared to global norms. Lower incomes and cost of internet access are holding back interest Ever browse or pre-purchase shop via…
  26. 26. Nigeria Tanzania Uganda Kenya Ghana South Africa Global 50 4 5 5 19 5 10 73 6 4 5 16 4 18 Mobile PC Online shopping is still under-developed in Sub-Saharan Africa. But, mobile shopping likely to play a bigger role in online shopping in future Ever shop via…
  27. 27. 5% 5% 4% 4% 2% 1% 1% 1% 1% 1% 1% 1% Bought online Question: E6; Purchased on or offline Base: Category Purchasers;, 29 43% 10% 36% 20% 7% 52% 54% 57% 78% 9% 12% 11% Bought offline Music Travel Movies Software ISP Cosmetics Skin Care Hair Care Clothes & Shoes Insurance Policy Banking PC 1000 Preference for offline purchasing is strikingly high compared to online across all categories
  28. 28. The Digital Growth Index utilises these four components to provide a single KPI to describe the size of the opportunity in each market 30 The Digital Growth Index Size of audience Opportunity to engage A single number KPI score Brand Building Consumers Scale, Motivations, Behaviours Users Brand Buzz Advocates Path to Purchase Customers
  29. 29. The Global Digital Growth Index 31 High Growth Index High Internet Penetration Low Growth Index Low Internet Penetration Low Penetration, High Index – Drive growth through engaged early adopters Low Penetration, Low Index– Tap into latent demand, plan for future opportunity High Penetration, Low Index – Utilise large reach, engage outliers High Penetration, High Index– Major opportunity, invest heavily South Africa
  30. 30. Developing markets 32 Argentina Peru Egypt Philippines Ghana Romania Indonesia South Africa Kenya Tanzania Morocco Thailand Nigeria Uganda Pakistan Digital Growth Index InternetPenetration Low Low  These markets are held back by either low access to digital, poorer infrastructures or low incomes reducing the relevancy of a brand conversation  Yet aspirations run high, and huge latent demand exists  Mobile has provided a gateway to access in many of these markets. Marketing communications must also be delivered through this channel  The desire to communicate, and join social networks is a key driver in these markets  Give them the means to talk about your brand; being seen as a brand that directly empowers users by partnering with these social networks / content providers and sponsoring access
  31. 31. To sum up… • Internet growth and evolution offers new opportunities for marketers to engage with consumers • But, internet penetration in SA still low and growth behind the rest of the continent. For most people the experience of the internet is new, is different to what it was before, is mobile and is social • High costs and barriers of access mean internet penetration and usage is still low and other traditional media still play a dominant role • The future of internet in South Africa is clearly mobile and marketers need to focus on interactions in the mobile space, with different strategies for mobile internet and fixed line, targeting different audiences and needs • Brand interactions via internet in SA are still very low. What works elsewhere will not necessarily work here.
  32. 32. and… • Digital marketing in SA has to incorporate social media and traditional media • Encouragement and incentivisation need to be used to overcome barriers to experiment and expand use of internet via mobile (other than social networking) – “whats in it for me” should be asked of any digital campaign • Social networks can have a big influence on brand perceptions and people trust comments people say about brands online – need to ensure brands have an active social media and Customer Experience Management strategy • Online purchasing still low in SA – need to make people more familiar and confident in using internet – need to bring down data costs before this can happen …and online pre-shop and shopping is likely to be predominantly via mobile phone in future – need to be thinking mobile in terms of design and consumer interaction

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