GlobalWebIndex - GWI.6 trends - February 2012

G W I . 6 T R E N D S

GWI.6 CONTINUES EXPLORATION OF THE EVOLUTION OF THE INTERNET The GlobalWebIndex has evolved significantly in 2011, for the first time providing three waves of data. We surveyed almost 80,000 people in 27 KEY GWI.6 TRENDS key internet markets, providing the most detailed and current perspective ever compiled on the global impact of the internet. We’re clearly filling a market need, with our client base growing over 300% across the year. GLOBAL INTERNET BENCHMARK The most interesting aspect of GWI.6 (fieldwork conducted in November 2011) is the growing localisation of internet behaviour. Far from driving a singular pool of global information and culture, the internet is enabling further localisation and differentiation, this is being driven by social media STRUCTURAL IMPACT and being spearheaded by growth markets outside of the US and Europe. We also bring a further perspective on the continuing dominance of DIFFERENTIATION GOOGOPOLY Google across our access points to the internet and further updates on the saturation of Facebook growth and continuing falls in user engagement. It CHINA V EVERYONE FACEBOOK THE $100bn QUESTION is vital for the industry that an independent source of data provide this perspective. In addition it generates crucial insights for marketers, brands MOBILE PARITY SOCIAL BRAND and agencies. DEATH OF DIGITAL The other key area is the death of the “digital” concept. The internet now supports all content across multiple platforms. The view of the internet as a website sitting in a browser is now dead. This focus broadens the impact of the internet and requires us all to re-evaluate how we build our approach to online strategy and product development. These insights will be reflected in how we build our product in 2012, with a new multi-platform social tool scheduled for role out in Q2. Stay tuned.

VIEW FROM THE TEAM Tom Smith Brett Petersen CEO Senior Strategy Consultant “For me the most interesting aspect is “GWI.6 provides us with ever more convincing the extent to which users are data to justify our arguments that brands consuming internet delivered services need to build localized strategies for online and content across multiple devices and social, rather than diving in head-first.” and platforms, rendering the concept of the internet as a separate media type, completely redundant. We need to rapidly redefine how we think and approach the internet.” Jenny Armshaw-Heak Sebastian Hedencrona Group Client Director - APAC Group Client Director - Global “Consistently the APAC region driving user “The growing demand for a tailored growth and yet internet marketing spend understanding of consumer motivations and here generally still lags. I find that clients behaviour and the delivery of expert online here are hungry for GlobalWebIndex insight such as GWI.5 & GWI.6 Trends has insights that help them bridge that gap in a provided a platform for introducing a range of fast, seamless and meaningful way across new services including: GlobalWebIndex the entire region.“ Consulting, Bespoke Research and Omnibus.”

GET THE FULL DETAIL The Full Report Data Pack Tool Consulting The full PPT report contains over New for GWI.6 we will be Our online tool provides a very Engage our consulting team on a 70 slides of detailed data and provided raw data packs, which simple visual point and client project of retainer basis to develop analysis , providing a provide full access to key analysis that enables you to analytical projects that answer key unprecedented upstanding about questions by wave and market. explore the full data set and business questions on how you the state of the internet in 2012. These provide non-subscribers customise by over 1500 audience should develop and approach the Integrate the insights and ideas with an instant way of accessing definitions, tailoring the data to internet. Recent projects include, into your strategy and trend detailed global internet data to your clients, category or business. identifying the future opportunities presentations. integrate directly into any for news distribution, developing analysis or output. Find out more an organisational framework for You can source from here, or if and download from here. global social media approach and you are a client from the reports providing a full segmentation homepage. analysis exploring the complete view of how their consumers behave across all platforms.

THE DATA SOURCE – ONGOING AND CUSTOMISABLEThe GlobalWebIndex is the world’s most detailedon-going research project covering the consumer Client Re-contactsadoption of the internet across all platforms Core Survey 3/yearIn 2011, the study expanded to 27 markets, 3 • Detailed client studieswaves of research and 122K surveys providing the Februarymost complete view of the global internet evercompiled. We interview between 2250 and 6000 June November Omnibus Re-contacts16-64 internet users per market per year, 3/yearproviding a representative reflection of theinternet as defined by age, gender and educationcriteria. • Audience Definitions • Special interest topics • Online Behaviour • Client brand trackingIn 2012 we will expand to 36 markets and provide • Motivations • Media Studiesfurther opportunities for clients to customise the • Marketing Implicationsdata set by adding custom questions or branddata. • Client SegmentationsThe world’s leading agency, corporate, media andmanaging consultancy brands use our data to fueltheir insight, strategy and delivery across allaspects of the internet.Find out more: globalwebindex.netEngage: globalwebindex@trendstream.netFollow: @globalwebindex

COVERING EVERY FEASIBLE MARKET 5M+ Annual Sample size by market • 6,000 respondents • 3,750 respondents 2012 ROADMAP Asian markets European markets Latin American markets • Taiwan • Belgium • Columbia African markets • Thailand • Hungary • Venezuela • 3,000 respondents • Egypt • UAE • Switzerland • Vietnam • 2250 respondents

Global Internet Benchmark “social networking will overtake ecommerce activity at a global level in 2012, highlighting the importance that social holds for brands worldwide.”

SOCIAL NETWORKING AND MICRO-BLOGGING HAVE GROWN FASTER THAN ANY OTHER ACTIVITY Social driving change Watched a video clip Used Webmail The GlobalWebIndex has been tracking online Used internet banking activity since July 2009. In just the two and a half Purchased a product online years since we began, our survey has continued to Reviewed a product or brand online change along with the online environment. Managed social network profile Uploaded photos online Used Instant Messenger As we can see from the chart to the left, social Used online office applications media is playing an increasingly important role in Commented on a story the lives of internet users around the world. Social Posted on a forum/BBS networking and micro-blogging are, in fact, the onlyBought an offer on a group-buying site e.g. Groupon two online activities that have grown significantly Written your own blog over the past two and a half years. Uploaded a video online Asked or answered a question on a Q/A service However, passive behaviours still lead with Edited/managed own website watching video, webmail and internet banking Used a microblogging service continuing to outstrip any social behaviours. It’s Used a social bookmark service also very interesting to see that consumer reviews Used VOIP/online phone are in fact the lead form of consumer contribution Written a news story/article globally. Subscribed to an RSS feed Used an aggregator This is changing though and looking forward into 0% 10% 20% 30% 40% 50% 60% 70% 80% 2012 and beyond, it looks as if social networking activity will overtake ecommerce activity at a global GWI.6 GWI.1 level, highlighting the importance that social holds for brands worldwide. Which of the following have you done online in the past month? – Have Done (% of internet users globally, GWI.1 V GWI.6 – some behaviours added to GWI.3 and GWI.4)

OVERALL, SOCIAL ENGAGEMENT HAS MATURED China 90% Japan Russia 80% The shifting sands of social 70% Germany Brazil 60% One of the most interesting trends that we’re seeing is the significant growth of social 50% networking and micro-blogging worldwide. France 40% India When this growth is taken in context with 30% other social media activities such as blogging 20% and forum usage, however, we can see that the growth in social networking has come at 10% the expense of these. GWI.1 Netherlands 0% Mexico GWI.6 In other words, the overall level of social engagement has not changed significantly in any market from GWI.1 in July 2009 to GWI.6 USA Italy in November 2011. What has changed is the way that users are engaging with social media, making it ever more important to understand these changes and how it impacts brand Australia Spain engagement. Canada South Korea UKWhich of the following have you done online in the past month? – Combined Aggregate of SocialNetworking, Blogging, Video Uploading, Photo Sharing Micro-Blogging and Forum Visitation(% of internet users by market GWI.1 to GWI.6)

MARKET MAPPING: THERE ARE DISTINCT BEHAVIOURAL CLUSTERS FORMING Clustering is becoming tighter We’re moving from the four broad clusters of markets in GWI.5 to six more compact market clusters in GWI.6. The clusters are formed from analysing overall social media behaviour vs. E-commerce participation. We can see immediately that China stands alone as the social shopping star of the world, proving once again that China strategy needs to be completely bespoke from any other multinational brand or marketing strategy. Following on from that, we see that there is a best fit parabola that shows how E-commerce activity falls as social media activity increases, but then, it begins to rise with extremely high levels of social media activity.Purchase a product online in the past month versus an aggregate score of Manage a Social Network, Write a Blog, Comment in a Forum, Upload a Video, Use a Microblog(% penetration by country. GWI.6, November 2011)

#1 – Think Local Growing market fragmentation“Growth markets will increasinglyshape the evolution social media and online services around the world.”

BIGGEST CHANGE DRIVEN BY SOCIAL BEHAVIOURS Social driving market divergence 40% When exploring the growth of social media Used a microblogging service Written a news story/article Written your own blog behaviours from GWI.1 to GWI.6 in the original 16 Uploaded a video online Uploaded photos online Managed social network profile markets, we can see clearly that the growth 30% markets, such as China, Brazil, Mexico and India, are driving adoption. 20% China leads growth in all forms of behaviour, in particular the adoption of micro-blogging and social networking, where Sina Weibo, RenRen, Kaixin and 10% Qzone are driving a massive shift from forums and community blogging platforms. 0% The growth rates in mature markets are far smaller, particularly outside of social networking -10% The compound factor is that these markets are also growing the internet universe at a spectacular rate, shifting the balance of power away from the US. -20% South Korea is the one exception where community news platforms such as Ohmynews and blogging have lost out to gaming platforms and communitiesWhich of the following have you done online in the past month? – Have Done(% of internet users globally, % point change from Wave 1 – Wave 6)

NON SOCIAL: CHANGE IS SMALLER Passive activities not driving change Used VOIP/online phone Used Webmail Watched a video clip When exploring non social actions online, this 15.0% difference in growth trends is far less marked and Used online office applications Subscribed to an RSS feed there is no clear differentiation between growth 10.0% and mature markets. 5.0% The other key observation is that growth rates are far lower than for social activities and there are no clear global trends. 0.0% For example “watched a video clip online” has -5.0% grown in Russia, Mexico, Germany and Australia, but stagnated everywhere else. -10.0% Again, South Korea shows large net declines in -15.0% behaviour. This is, again, due to the growth of mass market social gaming. -20.0% This data shows how open social platforms are key when driving global change and differentiation. -25.0%Which of the following have you done online in the past month? – Have Done(% of internet users globally, % point change from Wave 1 – Wave 6)

GROWING MARKET DIFFERENTIATION Localised strategy more important Increasing relevance for social and online in all markets IMPACT Growth markets defining new platforms Influencers online are increasingly outside of the USA Social enabling consumers to transform their lives

#2 – China V Everyone “Sina Weibo has twice as many active micro-bloggers than Twitter on a single market user base. This is a staggering example of how China willincreasingly sit alongside the rest of the world.”

CHINA INCREASINGLY DOMINATES ONLINE BEHAVIOURS China up to 50% of active users 1200 Rest of World Estimate Looking across a broad selection of behaviours and 1000 25 Surveyed Markets the number of users on a global basis we see a USA fascinating trend. 800 ChinaMillion Users For example, when looking at “watched a video 600 clip”, we benchmark that over 1.1bn internet users aged 16-65 did so via a PC in the month of 400 November 2011. Of that 1.1bn China made up a massive 288m. This dwarfed the US with 149m and not far behind the other 25 surveyed markets, 200 which collectively made up 484m. 0 In the case of video, China made up 26% of global user base. However, in active social channels such as micro-blogging, China represents over 50% of the global user base. This is a trend that is only increasing as the Chinese internet user base continues to explode in scale. We also see a proliferation of highly sophisticated social services in the market.Which of the following have you done online in the past month? – Have Done(million users, GWI.6)

CHINA’S SCALE PROPELS SINA WEIBO TO NO.2 Scale plus massive involvement500 The result of this massive scale means that Chinese social platforms are now competition in450 terms of scale with international players.400 For example, Sina Weibo has twice as many active350 micro-bloggers than Twitter on a single market300 user base.250 This is a staggering example of how China will200 increasingly sit alongside the rest of the world.150 The key question here is whether Chinese services100 will internationalise. In one sense, they don’t need 50 to as their home base is huge, growing and frequently protected from international players (at 0 least officially – however access through VPN usage is rife). Sina is set to launch a English language version in Universe (millions) 2012 that will be a key indicator of how Chinese social media can move outside its home market.Where do you have a profile? Active Social Network / Micro-blogging Users(million users, GWI.6)

TWO INTERNETS WILL EMERGE Global brands need a separate China strategy China has the most competitive social internet on the planet Officially, Facebook, Twitter & Google+ are banned in China; unofficially, via V.P.Ns and IMPACT mobile, they are growing. Can they impact local players? Looking for social innovation: follow China. Copy cat platforms will reverse from China to R.O.W Social platforms in China make money. Investors will follow

#3 – To Mobile Parity“Within the next 5 years,mobile device activity willoutstrip fixed PC usage in emerging markets”

YOUR FAVOURITE BROWSER? MASSIVE DEMAND BEYOND PC 0% 1% 2% 2% 5% 14% 14% 9% Tablet device 14% Mobile phone Personal PC/laptop Work PC/laptop 18% E-reader Through my TV 47% 74% Current One Year From NowWhich of the following is your favourite device to access the Internet? Now / One year from now (% of Internet users globally, GWI.6)

MOBILE INTERNET CONTINUES TO GROW & USAGE IMPACTS HOME70% When Accessing the Internet via Your Mobile, Which Asia Pacific is Your Primary Location? Europe60% Latin America North America Whilst50% Travelling or Roaming 23%40% At home 33%30% Public Place 28%20%10% At Work 17%0% Wave1 Wave2 Wave3 Wave4 Wave5 Wave6 (% of mobile internet users globally, Wave 6)Which of the following have you done on the internet via your mobile phone in the past six months? –Browsed the internet(% of internet users globally, GWI.6)

MASSIVE GROWTH IN BRIC 450 Wave1 Wave2 Wave3 Wave4 Wave5 Wave6 400 +31% MOBILE INTERNET BEHAVIOUR 350 +105% 300 +89%Million Internet Users 250 +173% +134% 200 +158% 150 100 50 0 Which of the following have you done on the Internet via your mobile/tablet in the past month? (million Internet users)

MOBILE: SLIGHT SEASONAL DECLINES IN THE US 170 160 Wave1 Wave2 Wave3 150 Wave4 Wave5 Wave6 140 130 120 110Million Internet Users 100 90 80 MOBILE INTERNET BEHAVIOUR 70 60 50 40 30 20 10 0 Which of the following have you done on the Internet via your mobile/tablet in the past month? (million Internet users)

APPLICATIONS CONTINUE TO GROW Apps continue to rocket 50% Asia Pacific Europe Mobile users in all markets continue to download 45% an ever increasing volume of applications. Latin America 40% North America Asia Pacific users continue to lead and now over 47% of mobile users download an app on a 35% monthly basis. 30% After stagnation between GWI.3 and GWI.5, internet access via mobiles in Latin America is on 25% the rise once again. 20% The other key interesting observation is how continued platform phones (particularly iPhone) 15% has propelled the US above Europe for the first time. 10% In general, the continued shift to consuming 5% internet delivered content and information via apps over browsers is changing the shape of the 0% internet. We have tracked this “Packaged Wave1 Wave2 Wave3 Wave4 Wave5 Wave6 Internet” shift over time. Which of the following actions have you performed on your mobile phone in the past month? - Installed an application (% of mobile users globally, GWI.6)

MOBILE DEVICES WILL REACH PC Mobile should be a central part of comms or product strategy In the next 5 years mobile device activity will outstrip fixed PC usage in emerging markets Websites will be replaced by multi-platform IMPACT content and services Tracking behaviour with cookies/URLs is losing value in the era of multi-device usage Mobile will increasingly drive real-time social media usage i.e. uploading photos, video, updates, etc. on the go

#4 – Death of Digital “The fashion in which theInternet and technology haveevolved has created a world in which the Internet is infused with much of our everyday lives.”

THE OLD MEDIA MODEL IS DYING: BUT MEDIA THRIVES New thinking is needed When the Internet emerged, it was frequently positioned as a separate media because it was a text driven ecosystem dominated by PC access and websites viewed in a browser; this, in a sense, was true. However, as our research continually demonstrates the internet is now dominated by video, cross-device usage, packaged web services, portable content and consumer created and distributed media. TV Radio Press Despite these trends, this thinking remains today, with “Digital” or “Internet” siloed in most organisation structures, budget lines and business models. This may sound trivial or a matter of semantics, but consider the Outdoor Digital following. From a marketing point of view, thinking of internet platforms as a singular media form restricts the opportunities that the Internet presents and focuses thinking on activities like banners, search, etc and underestimates the transformative impact of internet technology. The internet in its various forms will increasingly deliver all content, information and services. And this is precisely the reason why it cannot be considered a separate medium any longer. There is no such thing as a digital business or non digital business. Are you prepared?

TV EXAMPLE: THERE IS NO “DIGITAL” LINE. JUST CONTENT Packaged Internet Internet Social Internet Analogue Digital Platform e.g. Smart Browser Platform Application TV Linear TV Programming On Demand Streaming TV Downloads UGC

CONSUMERS GLOBALLY ARE TRANSITIONING TV CONSUMPTION ACROSS PLATFORMS Watch TV 1+ hour of Watch On-Demand TV Stream Live TV Online Stream Live TV Mobile TV per day OnlineUSA 194m 58m 21m 7m (90%) (27%) (10%) (3%)BRAZIL 47m 17m 15m 5m (89%) (32%) (28%) (11%) Which of the following have you done online in the past month? – Have Done (% of internet users globally, GWI.6)CHINA 259m 211m 161m 56m (65%) (53%) (40%) (26%)

NOT JUST TV: FILMS, RADIO AND MUSIC ALL GROWING ONLINE Rich content consumption increasing Downloaded free TV shows/film Most forms of rich content, such as TV, film, sports Watched a full length film programming and music are growing online. Listened to LIVE radio online The most dramatic observation is that TV and film Listen to music on now both lead listening to radio online and streaming service streaming music. Watching on demand TV is nearly Watch on demand TV shows online at parity with streaming music. Listened/Watched a podcast This demonstrates how multi-platform TV Downloaded music via consumption has become and how the internet has P2P transitioned from the written word, to audio and Streamed a LIVE TV show now video. Paid to download legal music The other key aspect in this data is how much piracy Watched a sports program is over played. Downloading of TV or music via P2P all lag legal streaming and downloading services. Paid Download TV show/film via P2P for downloads are still smaller than free, however the Paid TV show/film demand for streaming demonstrates how future download revenue models will exist. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% GWI.6 GWI.5 GWI.4Which of the following have you done online in the past month? – Have Done(% of internet users, GWI.4 > GWI.6)

THINKING BEYOND DIGITAL Think content types not media channel “Digital” thinking underestimates the impact of the internet Agencies and budgets should be arranged in IMPACT “content types” Content should be platform agnostic In the future, the internet of things will put every object online. New business and marketing opportunities will emerge

#5 – Googopoly “Never before has onecompany controlled thedistribution of so much information”

GOOGLE CONTINUES TO CEMENT ITS SEARCH POSITION 90% Google is the leading global web property 80% The number of users who visit Google on a monthly or higher frequency continues to climb and by GWI.6 it reached over 85% of global internet users. 70% Facebook and Twitter are also growing substantially, 60% however they significantly lag Google in terms of monthly reach and as an access point to the internet. 50% Wave1 Wave2 As a testament to the ubiquity of the web brand in 40% Wave3 everyday life. The term Google has become more Wave4 than a brand in itself. It is now a commonplace verb 30% throughout the English language world; as opposed Wave5 to saying “search for it online,” we now say “Google 20% Wave6 it.” 10% Even the second most visited property in GWI.6, YouTube, is owned by Google and shows just how 0% dominant the search giant is online. The question that we’re beginning to ask at GWI is what effect Google’s dominance is having on the market and how will this play out in the future?On average how often do you visit the following websites / services? Daily OR Weekly OR Monthly (% of internet users, GWI.1 > GWI.6)

CHROME LEADS IN THE KEY GROWTH MARKETS Chrome dominates key growth markets100% Every market has a very different distribution of90% browser usage with varying levels of adoption .80% Chrome dominates in some leading growth markets,70% particularly the Philippines, Turkey, Argentina, India, Brazil and Malaysia. Based on the breakdown by60% market, we can see that Chrome leads in some of the50% countries that are newer to the internet. IE tends to dominate in countries where there is entrenched40% legacy behaviour online.30%20%10% 0% Internet Explorer Firefox Google Chrome What browser do you use on your main computer to access the web? (% of internet users globally; GWI.4 to 6) Data collected automatically – not survey based

ANDROID HAS EXPLODED – TRANSFORMED THE MOBILE MARKET Android transforming the mobile market35% Android has shown dramatic growth and effectively made the smartphone market a two horse race. In30% the 4 months between GWI.5 in June and GWI.6 in November, Android penetration grew by 8 percentage points, an immense shift in such a short25% time period.20% This growth has clearly been at the expense of Symbian, Blackberry and Windows platforms. Furthermore, a very large proportion of smartphone15% users still have no idea what operating system they run.10% iOS, despite the hype, has not shown any growth in the same time scale. This is a great vindication of Googles position of building an open operating5% system that multiple manufacturers can adopt.0% With the huge growth in mobile internet and tablets, MeeGo webOS Windows Other BlackBerry iOS (for Symbian Dont Android Android is critical to Googles future and give it Phone 7 OS iPhone) Know control of the other main access point to the internet. Wave5 Wave6 What operating system runs on your mobile? (% of smartphone users globally; GWI.5 – 6, June and November 2011)

GOOGLE+ IS ALREADY THE NUMBER 2 SOCIAL NETWORK 70% 60% 50% 40% 30% 20% 10% 0% On which of the following social networks do you have an active profile? (% of active social networkers globally; GWI.6, November 2011)

ALL ACCESS POINTS TO THE WEB BECOMING GOOGLE Search Browser Location Social Mobile Googopoly Our data shows that Google is growing in all the key access points to the The other potentially larger concern is the growing personalisation of search Internet, from their dominate position in search, web browsers, operating results to the individual, which mean that no one user sees the same internet. systems and now social. The simple fact is that no other organisation has ever In this increasingly personalised web, there is greater potential to impact the had so much control over the flow of information, content or data at such a flow of information. No longer will there be any shared context or shared global scale. While this is a position that has been driven by products that information, but we’ll be increasingly living within our own bubble of work and internet users love, there are some growing concerns about such an information that is unique to us, thus removing us from that shared media aggregation of control over the online experience. experience that has persisted for centuries. The obvious concerns relate to how Google integrates its services into its We at the GlobalWebIndex believe that social curation, when your friends’ search results, a point that particularly became clear when Google+ results recommendations, likes, bookmarks, etc. guide you to content, should be the were integrated into search results with the “Google Plus My World” initiative. way forward rather than an omnipresent Google algorithm deciding what you This makes you realise how easy it would be to dictate the flow of information would like to read. and services that any given internet user can gain access to.

PLAYING THE GOOGOPOLY Google+ is a must for brands. It is already a key social platform Google will likely be embroiled in anti-trust investigations for the foreseeable future Paid search will be more important to guarantee IMPACT reach In more personalised web distributable content will be key to drive mass exposure and shared experience Expect war against Google to be increasingly carried out in the courts

#6 – Facebook The $100bn Question“Facebook Fatigue is something that could derail even the best made plans and will be a key trend to watch throughout 2012.”

USER GROWTH NOW DEPENDENT ON EMERGING MARKETS. US PEAKED AND DECLINING 120 100 80 GWI.1 GWI.2 60 GWI.3 GWI.4 40 GWI.5 GWI.6 20 0Which of the following social networks do you currently have a profile? – Facebook(Universe Figures of Social Network Users (via PC) with accounts on Facebook. GWI.6) (China data still in validation phase)

GROWING COMPETITOR PRESSURE: GOOGLE+ ALREADY NO.2 GLOBALLY PROPORTION OF SOCIAL NETWORKERS WITH ACCOUNTS 70% 60% 50% 40% 30% 20% 10% 0% On which of the following social networks do you have a profile? (% of active social networkers globally; GWI.6, November 2011)

FACEBOOK FATIGUE SPREADING BEYOND EARLY ADOPTERS Most marked in the US Global USA US College Educated >3010% In GWI.5 (June 2011) we saw that declining Facebook activity was most pronounced 5% among US college educated 20 to 30 year olds. While there is still significant declines in 0% most activities for that segment in GWI.6 (Nov. 2011), the broader “Facebook Fatigue” trend is spreading away from the early -5% adopters towards the general US population.-10% Declines in social networking activity among Facebook users in the US is much more-15% pronounced from GWI.1 to GWI.6 than it was when comparing GWI.1 to GWI.5. This proves-20% that Facebook Fatigue is a real phenomenon and is not limited to early adopters.-25% Furthermore, it looks as if the trend is even spreading beyond the US to markets that adopted Facebook later in the cycle. In the GWI.1 to GWI.5 comparison, nearly all social networking activities were still growing at the global level. In GWI.6, we can see growth of most activities has stagnated as well.Which of the following have you conducted on your social network service in the past month? – Facebook Users(% point change in active social networking penetration from GWI.1 (July 2009) to GWI.6 (November 2011))

USER BASE IS INCREASINGLY MULTI PLATFORM Mobile usage exploding We calculate that mobile access to Facebook is now a significant portion of total activity, with 307m users visiting on a monthly basis from across the 27 GWI markets. These are consistent with Facebook’s internal figures when scaled beyond GWI markets. As Facebook have referenced in their IPO filing, mobile access currently represents a challenge to their future revenue growth as they don’t currently have a display advertising offer on their mobile product. What they can’t tell from internal data is the level of crossover between platforms. Our research confirms that the vast majority of mobile users are still accessing from a PC/laptop as well. However, there is a movement towards mobile, particularly in emerging markets which are also Facebook’s main growth markets, so it will be crucial for Facebook to build their mobile advertising capabilities.On average how often do you visit the following websites / services in the past month?(% of internet users via PC, Mobile, Tablet device GWI.6)

THE $100bn QUESTION: THE CHALLENGES AND ADVANTAGES FOR FACEBOOK IN 2012 The Future of Facebook CHALLENGES ADVANTAGES The data in GlobalWebIndex represents the most Saturation of user growth in most detailed and comprehensive independent view of the Complete Domination of the Social platform ever compiled. This data provides a unique markets. User growth only in low Network market perspective to assess Facebook’s market position. value advertising markets Big shift in usage to mobile devices Facebook has many strengths from a social media point Growth in markets where is was of view, but from a business point of view, it seems as if which are more difficult to previously weak i.e. Russia it will be hard for the social network to realise its monetise potential within its current business model. We don’t believe that Facebook can generate the advertising Facebook Fatigue is very real: Most Recent shift to “advertiser revenue necessary to justify its $100 billion valuation, present in high value advertising friendly” focus on entertainment particularly with the shift to mobile. Display advertising rates are in decline and consumer opposition to markets and professional content advertising in social environments is growing. Besides, brands primarily benefit from the earned media value of Decline in contribution and sharing Facebook, which is near impossible to monetise. Continual consumer adoption and questions the value of the usage of third party applications consumer data The only way we see Facebook truly capitalising on the size of its user base is if it starts to charge brands to Decline of local networks and literally set up shop within its ecosystem. Furthermore, it Competitive Pressure: Growing should give brands more tools to build presence on the failure of Twitter to break the mass consumer adoption of Google+ network. Facebook Fatigue, however, is something that market could derail even the best made plans and will be a key trend to watch throughout 2012.

#7 – Social Branding “No matter where you go or who you speak to about what drives them to engage brands on socialI HEART BRANDS networking, they always respond that it is getting something back from brands.”

CONSUMERS ARE INTERACTING WITH BRANDS ON AN UNPRECENDENTED LEVEL Websites are still key for brands 70% 60% No matter how enveloped brands become in social media, the one thing they have to 50% remember is that their own websites are still going to be the first point of online interaction 40% with most consumers. Interaction with brands via social media is growing quickly, however, 30% particularly in emerging markets. 20% Nonetheless, branded websites are critical 10% because it is one of the only online properties of which brands have full control. Brands should 0% use social media as an extension of their website rather than driving consumers to their social properties in the first place. When it comes to social engagement online, there are nearly a third of users worldwide that have like a brand or product online and a quarter that have visited a branded page/group. Which of the following brand related actions have you done in the past month? (% internet users globally, GWI.5 (June 2011 and GWI.6 (November 2011))

SOCIAL IS AN EXTENSION OF THE BUSINESS BUT CONSUMERS WANT SOMETHING IN RETURN Give something back 16 to 24 25 to 34 35 to 44 45 to 54 55 to 64 No matter where you go or who you Discounts for future purchases 63% 66% 65% 63% 58% speak to about what drives them to engage brands on social networking, they Customer service 44% 49% 47% 50% 48% always respond that it is getting Personalised purchase recommendations 40% 38% 32% 27% 19% something back from brands that is most A feature that enables me to track my delivery 31% 31% 28% 29% 28% important to them. The answer option Access to new products prior to release on the main that we ask in the GWI survey relates site 31% 31% 28% 28% 22% specifically to discounts, but the idea The ability to interact and talk to people at the holds that consumers know that brands company 28% 29% 26% 29% 26% benefit from them when they engage Exclusive insight or information about the them online and they want them to give retailer/brand 25% 26% 23% 22% 17% something back. Being able to connect with other fans of the shop 24% 24% 17% 14% 10% Details of what my friends have bought 23% 22% 16% 13% 8% Of course, this induces lots of “hit and run” consumers that will be unwilling to Competitions 23% 23% 20% 17% 12% engage and participate in branded Be asked to come up with ideas for products or 22% 23% 22% 23% 18% conversations after getting their discount. services Nevertheless, there are still a large The ability to purchase products without visiting the 22% 22% 19% 18% 14% proportion of consumers, nearly half, that main site do expect more from brands on social Details of what my friends would like to buy (wish list) 20% 19% 13% 10% 7% networks, and it is important that brands No interest in any of the above 9% 8% 13% 17% 24% indulge these expectations.Motivations to follow a branded page on a social network?(% of each age group; GWI.6, Nov. 2011)

EMERGING MARKET CONSUMERS ARE MORE MOTIVATED TO FOLLOW BRANDS ON SOCIALNETWORKS 80% 70% 60% 50% 40% 30% 20% 10% 0% Be asked to come up with ideas for products or services Customer serviceMotivations to follow a branded page on a social network?(% of each age group; GWI.6, Nov. 2011)

NEW BRANDING Don’t neglect brand websites; they are still the main engagement point for consumers online and should be the hub of any brand’s online activity Social media is continually increasing in importance and there are four distinct levels of social engagement for them online Determining which of the four levels of brand IMPACT interaction your target consumers associate with should be the cornerstone of social strategy Another key element is determining the best way to reward those consumers that engage with brands in ways that foster lasting relationships Thus, it is necessary to understand what your consumers value most about your brand and turn it into something that is tangible to be shared

WANT MORE?The Full Report Data Pack Tool ConsultingThe full PPT report contains over New for GWI.6 we will be Our online tool provides a very Engage our consulting team on a70 slides of detailed data and providing raw data packs, which simple visual point and click project or retainer basis to developanalysis , providing a provide full access to key analysis that enables you to analytical projects that answer keyunprecedented view about the questions by wave and market. explore the full data set and business questions on how youstate of the internet in 2012. These provide non-subscribers customise by over 1500 audience should develop and approach theIntegrate the insights and ideas with an instant way of accessing definitions, tailoring the data to internet. Recent projects include,into your strategy and trend detailed global internet data to your clients, category or business. identifying the future opportunitiespresentations. integrate directly into any for news distribution, developing analysis or output. These are also an organisational framework forYou can source from here, or if available to clients. Find out more global social media approach andyou are a client from the reports and download from here. providing a full segmentationhomepage. analysis exploring the complete view of how consumers behave across all platforms.

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GlobalWebIndex - GWI.6 trends - February 2012

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GlobalWebIndex - GWI.6 trends - February 2012 — Presentation Transcript