UM report wave 5: the socialisation of brands-report

The Socialisation of Brands Social media tracker - 2010

Contents Executive summary 5 Introduction 7 • The continuing Wave story 10 Methodology 15 The social challenge for brands 18 The new social landscape: means and motives 23 • The gravitational pull of social networks 28 • The rise of microblogging 42 The future face of social media 45 The Socialisation of Brands 51 The impact: summary 67 3

Executive Summary Social media is an incredibly dynamic environment. Terms like “friend” and “influencer” are no longer adequate to describe the array of social activity and interaction that is occurring amongst the vast communities now being built online. A deeper understanding of consumer needs and motivations is the key to unlocking a real understanding of social media and its users. Social networks are becoming powerful hubs of interconnected communities but it’s not just people that are connecting in the social media space. There is huge demand for a more social and interactive relationships with brands. Almost half of the Active Internet Universe has already joined a brand community. These communities are also clearly having a huge benefit to the brands involved, driving brand loyalty, endorsement and sales. However, understanding the nature of social demand for each consumer, category and market is the key to creating a successful social media experience. This report barely scratches the surface of the rich insight and detail available. Wave 5 – The Socialisation Of Brands contains information for 20 categories in more than 54 countries. You will find contact details if you require further information at the end of this report. 5

Introduction

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Hello Welcome to Wave: The largest and longest running dedicated social media study in the world. When Wave started as a project in 2006 we were aware that there was much debate but few facts behind the social media phenomenon. Therefore we initiated Wave with the aim of measuring the scale and impact of social media across the globe. In this time, we have researched more than 95,300 internet users in 59 countries and, if Wave has taught us anything, it is that social media stands up to the hype. Growth has been unprecedented and our tracker has demonstrated how new platforms have sprung up and reached critical mass with blinding speed across vast geographies. Figure 1: Internet penetration by market 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Ecuador Colombia Philippines Czech Republic Norway Sweden Estonia Taiwan Latvia Malaysia Spain Hungary Portugal Turkey Kuwait Romania Mexico Lebanon Algeria Slovakia Netherlands Bahrain Denmark UK South Korea Germany Japan Belgium Singapore Canada USA UAE France Hong Kong Republic of Ireland Argentina Lithuania Poland Qatar Italy Chile Russia Oman KSA Brazil Tunisia China Thailand Egypt South Africa India Australia Austria Figures sourced from internetworldstats.com 9

The continuing Wave story Five years is a lifetime in the world of social media and over the course of our five Waves of research we have come to a deep understanding of the complex and dynamic nature of social media behaviour. Our first two Waves demonstrated that social media was enabling a large and active community to create content and share this content with others. In the process the medium moved from being a primarily text-based medium to a fully audio visual one. Our third Wave charted the democratisation of influence, how social media was driving ever greater means and opportunity for consumers to influence their peers. Influence that was becoming an integral part of many consumers decision making processes. In Wave 4 we examined the reasons behind the huge growth in social media by understanding the motivations behind the use of different social media platforms. This clearly demonstrated that you cannot treat all social media the same, consumers engage with a platform because it meet’s specific consumer needs and all platforms meet these needs differently. What the Wave project has shown us is that far from being hype, social media is a an explosively dynamic phenomenon that is changing the way we interact and that this is having a fundamental effect on our thoughts, feelings, attitudes and behaviour. However, with a few exceptions, brands and companies are still not social. They are struggling to find a way to intelligently, sensitively and effectively engage with consumers in this space. Therefore, with our fifth instalment of Wave, Wave 5 – The Socialisation Of Brands, we have brought together all our understanding of usage, behaviour , influence and motivation, done this across more than 50 countries and added the missing piece of the puzzle. The data, insight and analysis that will help brands create successful social media programmes. The Socialisation of Brands

15 markets 21 markets 7,500 respondents 10,000 respondents 29 markets 17,000 respondents 38 markets 23,200 respondents 53 markets 37,600 respondents 11

The expanding Wave universe The Socialisation of Brands

Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Australia Australia Australia Australia Algeria China Brazil Austria Austria Argentina France China Brazil Belgium Australia Germany France Canada Brazil Austria Italy Germany China Canada Bahrain Korea Greece Czech Republic China Belgium Philippines India Denmark Colombia Brazil Russia Italy France Czech Republic Canada Spain Japan Germany Denmark Chile UK Korea Greece Ecuador China US Malaysia Hong Kong Finland Colombia Mexico Hungary France Czech Republic Pakistan India Germany Denmark Philippines Italy Hong Kong Ecuador Russia Japan Hungary Egypt Singapore Korea India Estonia Spain Mexico Italy France Taiwan Netherlands Japan Germany Thailand Pakistan Korea Hong Kong UK Philippines Latvia Hungary US Poland Lithuania India Romania Malaysia Italy Russia Mexico Ireland (ROI) Spain Netherlands Japan Switzerland Norway Korea Taiwan Peru KSA Turkey Philippines Kuwait UK Poland Latvia US Portugal Lebanon Romania Lithuania Russia Malaysia Singapore Mexico South Africa Netherlands Spain Norway Sweden Oman Turkey Philippines UK Poland US Portugal Qatar Romania Russia Serbia Singapore Slovakia South Africa Spain Sweden Taiwan Thailand Tunisia LIKE Turkey UAE UK US 13

Methodology

Methodology The Social Media Tracker has retained the same methodology from Wave 1 through Wave 5, enabling comparison between data sets. All surveys have been scripted and hosted on UM’s in-house online research system, Intuition. All surveys are self-completed and the data collected is entirely quantitative. Every market is representative of the 16-54 Active Internet Universe. For Wave 5, 37,600 internet users in 54 countries were surveyed with many new markets joining, including the Middle East Who are the active internet universe and why do they matter? • Active internet users are those people who use the internet every day or every other day • Social media is driven by active internet users, if you don’t use the internet regularly you are unlikely to sign up for tools such as blogging or set up a social network profile. • Active internet users drive adoption of platforms and tools and they will determine which tools and platforms become dominant in the social media space. • They are the best proxy for the future, over time all internet users will increase their usage. Eventually everyone will become an active internet user, just as consumers made the transition from occasional to regular TV watching in the 1950s and 1960s. The Socialisation of Brands

An increasingly active universe Figure 2 : “Thinking about the internet, which of the following have you ever done?” 100 Read blogs / weblogs Start my own blog / weblog Leave a comment on a blog site 80 Upload my photos to a photo sharing site Upload a video to a video sharing site Watch video clips online Create a proﬁle on a social network 60 % ever done Manage a proﬁle on a social network Visit a friend’s social network page 40 20 0 Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Sep 06 Jun 07 Mar 08 Mar 09 Jul 10 17

The social challenge for brands The web is changing. It’s no longer just a place for information seeking and shopping but a platform where connections are made, friendships formed and information and opinion exchanged. The new social web makes different demands on both consumers and advertisers. Consumers are not merely finding, they are contributing; writing, uploading pictures, videos, creating regular status updates and livestreaming their every day happenings. Social networks have become more embedded in our everyday lives, whether it’s Facebook, Orkut or LinkedIn, we now contact more people in our personal life through our social networks (our research shows that on average we stay in contact socially with 52 people via these networks) than we do through any other means including face to face contact, email and phone. It’s essential for brands to understand why and where different groups of consumers participate in this new world. It’s not merely a question of identifying the best places to target – the classic media planning/buying approach – but truly knowing what motivates them to be part of it. Understand that and brands can create campaigns, messages and communities that consumers want to be part of, spreading the message far and wide much more effectively than simply buying banners and buttons in these spaces. When we started tracking the growth of social media with our Wave study in 2006, these platforms were merely a seed of what they have since become. The Socialisation of Brands

Fast forward to 2010 and Facebook is no longer the new, new thing but a legitimate rival to Google for ownership and domination of the digital space. What we have discovered in every iteration of our research is that social media participation among active internet continues to vary widely, in some countries blogging is or was top of the tree, in others it is or was uploading video, for example. In all markets the use of social networks has been rising steadily – and in some cases very rapidly indeed. Similarly this latest research project finds that the motivations for blogging, joining a social network, uploading a video or a photo are not only very different at a global level but that individual countries and regions also have a different take on the value, appeal and utility of each platform. Wave 5 – The Socialisation Of Brands – and the detailed data that lies behind it – will help brands understand what they need to do to connect with consumers on the social web. 19

The Socialisation of Brands With Wave 5 we have created a roadmap that will help brands create the right social media experience. We know that people are more than willing to join social communities online and are doing so in their millions, but do they want to interact with brands in these spaces? The results from Wave 5 – The Socialisation Of Brands answer that question with an emphatic yes and this is true across a broad range of categories. The Socialisation of Brands

The challenge then is to identify the kind of social relationship consumers want and we do this by following four steps. Map the Understand social landscape Identify how and, more of the category you are Identify the the platforms importantly, why operating in and where social needs that best meet people use your consumer fits in of the consumer those needs social media that landscape The combination of social demand and platform understanding will give us the clear insight to create successful social media programmes. 21

The new social landscape Means and motives

Means and motives It is our belief at UM that brands should first concern themselves with why people engage in social media, and their motivations, before we try to understand the platforms themselves. When consumers engage socially online they do so to meet certain needs. It could be to promote themselves, to share new experiences with others or just to have fun and waste time. It is a community peopled by a broad range of users, everything from career builders and money makers to community creators and story tellers. So social media definitions such as “friend”, “fan” or “follower” cannot really describe the complex interactions and relationships that exist in this environment. Social media are often lumped together too. Sometimes the term is used synonymously with social networks but Facebook and its brethren are merely major players in a diverse eco-system. In fact the social media universe includes a wide range of different platforms ranging from IM, blogging to photo and video sharing sites. Social networks are trying to offer many of these functions in one place but the reasons why consumers use them, whether they are on a social network site or a separate platform vary widely. Therefore looking at why people engage in social media and how effectively each social media platform is able to meet these needs becomes of paramount importance. We can see that blogs, message boards and video sites (see Figure 3) deliver specific needs. Video sites are great for having fun and being entertained, message boards are great for seeking alternative opinions and changing those of other others and blogs are powerful platforms for self expression and self promotion. This is the challenge of understanding the complex eco-system of social media. The Socialisation of Brands

Figure 3: “Which of the following do a good job when you want to...” Stay in touch Be creative Change opinions with friends Share new Earn respect experiences Share Explore the knowledge world around Seek other Express people’s yourself opinions 0 10 20 30 40 50 Feel like Promote you belong yourself Meet new Hang out or people waste time Manage my Have fun / life better Be entertained Make money Keep up to date Make contacts Learn for work something new Blogs Video sites Message Boards Instant Messenger 25

Means and motives Social networks enable us to create a network of digital friends that may or may not correlate with our “real world” friends. So it’s no surprise that meeting people, staying in touch and sharing experiences are key motivations for signing up to these platforms; acquiring a sense of belonging is another reason to be part of it. What is more surprising is how effective social networks are at meeting so many other need states, ones traditionally better serviced by more specialised platforms, like blogging. They are also great for changing opinions, promoting yourself, keeping up to date and earning respect. Split the motivations by country, and once again there is a dramatic split. In China members of Renren, 51.com and Kaizen001.com are looking for fun, in France consumers are hoping to advance their careers while in Germany the search is for a community that participants can be part of. The US and the UK also stand out, driven by the need to self-promote and influence others. The Socialisation of Brands

Figure 4: “Which of the following do a good job when you want to...” Stay in touch Be creative Change opinions with friends Share new Earn respect experiences Share Explore the knowledge world around Seek other Express people’s yourself opinions 0 10 20 30 40 50 Feel like Promote you belong yourself Meet new Hang out or people waste time Manage my Have fun / life better Be entertained Make money Keep up to date Make contacts Learn for work something new Blogs Video sites Message Boards Instant Messenger Social Networks 27

The gravitational pull of social networks It is, perhaps then, unsurprising that social networking is causing the most fundamental shift in social behaviour seen since the invention of email. They have moved from being places to meet friends and stay in contact to multi-faceted platforms capable of delivering a wide variety of social needs. What is a social network? A site designed to allow users to meet, communicate, share content and build communities. The Socialisation of Brands

LIKE 29

As a result we see them fast becoming Figure 5: “Thinking about the internet, which of the following have you ever done?” a ubiquitous tool for social interaction and you’d wrong to think that this is only an activity for the young. Create a proﬁle on a social network Manage a proﬁle on a social network Although penetration amongst 16-24 Visit a friend’s social network page year olds remains highest it is in the 25-34 year old bracket that we have 100 seen the greatest increase in usage, from 52% to nearly 70% in the last 3 years. 80 However, in all age brackets, we are seeing a similarly spectacular rise. Currently, nearly 3 quarters of the 60 active internet universe claim to % ever done have ever managed a profile on a social network. If the current trends continues, a social networking profile 40 will become as fundamental part of our daily lives as our telephone number. 20 0 Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Sep 06 Jun 07 Mar 08 Mar 09 Jul 10 The Socialisation of Brands

A truly global movement 80 61.4% 60 51.4% 45.1% 40 20 Global 79.3% 68.4% 66.1% 64.8% 58.1% 51.4% 48.3% 47.4% 33.1% USA China Russia 74.5% 72.5% 63.6% 62.8% 55.5% 58.6% 53.4% 53.9% 51.4% UK Brazil India 53.9% 55.5% 46.2% 34.4% 36.6% 37.8% 24.0% 29.9% 27.2% Italy Germany Spain 53.2% Figure 6: “Thinking about using the internet, which of the following have you 43.4% done in the last 6 months?” - Manage a profile on an existing social network 26.3% Wave 3 Wave 4 Wave 5 France 31

A pull of people and activity We aren’t just seeing a large rise in the number of people joining social networks. They are also using them for a broader range of activities. A ready made, audience combined with increased site functionality means that they are, for example, sharing videos, organising groups and events, sharing photos and dating (see Figure 7). In fact, in 2009 they were using them for 6.4 activities. In 2010 this has now risen to 8. Again, this trend is decidedly upwards. S O OT PH The Socialisation of Brands

Figure 7: “Which of the following have you done with your social networking profile?” - Amongst those who have used a social network in the last 6 months 80% Message friends Find old friends 70% Find new friends Dating 60% Update my proﬁle 50% 40% 30% 20% 10% 0% Wave 3 Wave 4 Wave 5 2008 2009 2010 33

We are seeing a large rise in social connections via all digital means but leading the way are the social networks. They have become the largest source of social interaction, finally outstripping face to face contact in 2009. As finding friends old and new still remain the most highly participated activities it’s a trend clearly set to continue. This is community growth on an phenomenal scale (See Figure 9). Figure 8 : “Approximately how many people do you stay in contact with in your personal life through the following means?” 60 Face to face Phone Text message 50 Email Instant Messanger Average number of people Social Network My personal blog 40 Forum / message board 30 20 10 Wave 3 Wave 4 Wave 5 2008 2009 2010 The Socialisation of Brands

Growth on a phenomenal scale Number of people 52 38.8 29.7 Global 53.0 50.0 47 39.5 36.3 31.2 31.8 16.7 15.6 USA China 74.0 Russia 57.0 57.5 57.9 58.0 40.6 50.5 43.2 30.7 UK Brazil India 66.0 47 41.0 34.7 34.6 25.2 17.6 14.1 16.5 Italy Germany Spain 40.0 Figure 9 : “Approximately how many people do you stay in contact with in 23.8 your personal life through the following means?” - Social Network (average) 11.7 France Wave 3 Wave 4 Wave 5 35

Content sharing starts to migrate How is the growing power of social networks affecting other social media platforms? We are certainly seeing content creation and sharing via photo sharing and video sites continuing to grow. However, we are seeing growth occur at a much slower pace than we have seen in past Wave studies (see Figure 10). Figure 10 : “Thinking about using the internet, which of the following have you done in the last 6 months?” 100% Upload my photos to 90% a photo sharing website 80% Visit a photo sharing website 70% Upload a video clip to a video sharing website 60% Watch video clips online 50% 40% 30% 20% 10% 0% Wave 3 Wave 4 Wave 5 2008 2009 2010 The Socialisation of Brands

But the ease with which social networking platforms have incorporated content sharing functionality into their sites, particularly in the mobile space, means that users are clearly adopting these platforms for sharing at a much faster pace than dedicated photo and video sharing sites. Figure 11: “Which of the following have you done with your social networking profile?” - Amongst those who have used a social network in the last 6 months 80% Upload photos Upload videos 70% 60% 50% 40% 30% 20% 10% 0% Wave 3 Wave 4 Wave 5 2008 2009 2010 37

Specialisation of blogs & forums As social networks keep growing we also see them begin to dominate discussion about personal topics. People are moving away from reading and discussing personal topics on both blogs and forums. At the same time we see a corresponding rise in social networks as the key platform for personal blogs (See Figure 12). The Socialisation of Brands

Figure 12 : “When you read blogs, which of the following types of blogs do you read most often?”- Amongst those who have read a blog in the last 6 months, “Which of the following have you done with your social networking profile?” - Amongst those who have used a social network in the last 6 months 50% Personal blogs (diary sites) 45% Family / friend blogs 40% Write a blog on a social network 35% 30% 25% 20% 15% What is a blog? 10% A blog is a website that is created by a user in order to update others with 5% regular commentaries, opinions or share content. 0% Wave 3 Wave 4 Wave 5 2008 2009 2010 39

As a result, we are seeing them become more orientated towards specialised topics. They may no longer be the platform of choice for personal expression but they are clearly seeing some success in their battle to become legitimate rivals to the traditional media outlets by building specialist credibility. Figure 13 : “When you read blogs, which of the following types of blogs do you read most often?” - Amongst those who have read a blog in the last 6 months 40% News / Current A airs Product recommendations 35% Music Technology Business (general news & opinion) 30% Business news (relevant to my job) A company/brand blog 25% Science Sport Film / TV 20% Gaming Travel (holidays, destinations) Celebrities 15% 10% Wave 3 Wave 4 Wave 5 2008 2009 2010 The Socialisation of Brands

Blogging 100 80 Declining or stabilising in Western countries, 60.6% 64.5% 55.3% but growing in others. 60 40 20 Global 74.9% 75.7% 79.6% 59.3% 63.4% 50.2% 54.6% 45.6% 46.7% USA China Russia 74.5% 72.4% 62.2% 63.1% 63.3% 50.7% 41.3% 40.8% 40.9% UK Brazil India 61.9% 63.6% 60.3% 51.0% 55.9% 51.5% 35.2% 36.3% 29.6% Italy Germany Spain Figure 14: “Thinking about using the internet, which of the following have 45.6% 50.2% 46.7% you used in the last 6 months?” - Read blogs / weblogs Wave 3 Wave 4 Wave 5 France 41

The rise of microblogging Microblogging is a great example of a new form of social media that has, within an incredibly short space of time, become a mass market activity. Figure 15 : “Thinking about using the internet have you used a microblogging service like Twitter or Jaiku in the last 6 months?” 40% 35% 30% 25% 20% What is a microblog? 15% A blog on which updates are restricted in length 10% (usually to less than 140 characters) 5% 0% Wave 4 Wave 5 2009 2010 The Socialisation of Brands

It’s certainly the fastest growing social media platform that we track within our study (see figure 15) and as it has grown we have seen a significant move towards a more female profile amongst the community (see Figure 16). Figure 16 : Age and gender profile of people who have used a microblogging service in the last 6 months 45-54 45-54 8% 8% 34.6% 42.6% 34-44 65.4% 34-44 57.4% 19% 16-24 20% 16-24 41% 39% 25-34 25-34 32% 33% Wave 4 Wave 5 2009 2010 Clearly, the fact that it doesn’t require an enormous amount time spent creating content, but still allows you to maintain a constant stream of news, updates and opinion has much appeal. But it is also its position as an undiluted way to communicate with audiences, without the need to engage with a sometimes difficult or prohibitive mass media, that gives it real potency. This has been clear during recent news events when people sent regular updates on, for example, the Iran protests or the Mumbai bombings that added a more personal and visceral dimension to the ensuing events. For the same reason it has been adopted wholesale by the marketing fraternity, in particular many high profile celebrities. There is still much debate about how many people are actually tweeting vs following, however, with its integration into a number of simple mobile applications its growth will continue. 43

The future face of social media

The mobile engine of social media The most significant shift in social media over the last few years has been the ability of users to engage in social media via mobile. The availability of powerful handsets and tablets with flexible operating systems, such as Google’s Android and Apple’s O.S. combined with flat rate data charges has created a fertile environment for the growth of mobile social media. Alongside these has been the development of a range of easy to use first and third party applications that allow users to engage with their social media platform of choice, such as Facebook or Twitter, using a simple to use interface. As a result our Wave 5 data shows clear correlation between smartphone ownership, mobile internet access and engagement in social media (See Figures 18 and 19). Not only are smartphone users more likely to engage in a wider variety of platforms (see Figure 19) they do more often too. They visit their social network profile on average 3.5 times a day, 18% more often than the average social network user. The Socialisation of Brands

Figure 18 : Percentage of people who access the internet via a mobile device and the % of people who access the internet via a mobile device and have a smartphone 60% Mobile internet users 50% Mobile internet users with smartphones 40% 30% 20% 10% 0% Italy Spain GLOBAL China Russia UK US India Germany Brazil France Figure 19 : “Thinking about using the internet on your mobile device, which of the following have you done in the last 6 months?” - Amongst all who have accessed the internet via a mobile device and smartphone owners 0 10 20 30 40 50 Use Instant Messenger Watch video clips online (e.g youtube.com) Read blogs / weblogs Visit a friend's social network page Visited an official company / brand websites Visit a photo sharing website (e.g flickr.com) Visit a message board / forum Upload my photos to a photo sharing website Shared a music file / mp3 with a friend Started a topic on a message board/ forum Post / write stories for my own blog / weblog Manage a profile on an existing social network Leave a comment on a blog site Share a video clip with a friend Used micro blogging service like Twitter/Jaiku Joined an online community around a brand/prod Upload a video clip to a video sharing website Create a video to upload online Joined a professional social networking site Created an online community around brand/prod All respondents Smartphone owners 47

The connected generation One of the most interesting things about the mobile social media user is not just the range and frequency of their activity but who they are. You might be forgiven for thinking that the people at the forefront are just the youngest adopters but, in fact, our research shows the higher cost of smart phone ownership and usage means that this audience is certainly at the higher end of the socio-economic scale. They have a broader age range, more like to be aged 25-34. They are more likely to be male (63%), married (53%), have a medium to high income (62%), have a high level of education (65% have a degree or post graduate qualification). Not only are they a wealthy consumer they are also highly influential. They are more likely work in senior decision making positions within companies(25%) and are more likely to try products first (index 172) and influence others in regard to their purchases (index 157) It is clearly a significant audience and one which not only represents the future face of social media usage but a very interesting and influential audience today. The Socialisation of Brands

Understanding means and motive is everything • Social media is an incredibly dynamic environment • A deeper knowledge of consumer needs and motivations is the key to unlocking our understanding of social media • Understanding these motivations explains much of what is happening • Why people engage in social media is an important starting point but there is still a missing piece of the puzzle • What kind of social experience are people looking for with brands? 49

The Socialisation of Brands

Is there a social demand for brands? There is much debate about the role that brands can or should play in social media. The big question is do people actually want a social relationship with them at all? We have found over the last three Waves of research a decline in the number of people saying that they have visited an official company website (See Figure 20). Does this mean that there is less appetite to engage with brands in their “official spaces”? Does the increasing power of peer to peer recommendation and the huge number of spaces that facilitate this recommendation, the burgeoning influence economy, mean that people no longer feel the need to engage directly with brands to find the information they want? Well, we can certainly see a trend towards consumers engaging with brands in social media. When we look at the numbers of people who are becoming fans with brands on their social networking platform we see a huge rise in the last year (See figure 21). Clearly, just by being present in a space socially relevant to the consumer means that they are more than willing to engage. The Socialisation of Brands

Figure 20 : “Thinking about using the internet, have you visited an official brand/company website in the last 6 months?” 86% 84% 82% 80% 78% 76% 74% 72% 70% Wave 3 Wave 4 Wave 5 2008 2009 2010 Figure 21 : “Which of the following have you done with your social networking profile?” -Amongst those who have used a social network in the last 6 months” 50% Wave 4 (2009) 40% Wave 5 (2010) 30% 20% 10% 0% A liate with or Join a group become a fan of a brand 53

The answer is a resounding “Yes” But it’s not just on their social networking profile that people are affiliating themselves with brands. Our Wave 5 research shows that, globally, nearly half of the active internet universe claims to have joined a brand community at some point (see figure 22). This clearly identifies a demand for brands in the social space. Figure 22 : “Have you ever joined a brand community online?” 100% 50% 0% Ecuador Philippines Colombia Czech Republic Malaysia Portugal Turkey Taiwan Mexico Spain Romania Hungary Sweden Kuwait Norway Estonia Lebanon Latvia Algeria Slovakia GLOBAL Thailand Chile South Korea China South Africa Argentina Brazil Hong Kong Singapore India Poland Russia UAE ROI Lithuania Egypt Qatar Bahrain US UK Denmark Austria Australia KSA Tunisia Italy Netherlands Canada Belgium Oman Germany Japan France The Socialisation of Brands

Is social demand true for all categories? Well, we asked people if they wanted an interaction with brands beyond a simple transaction across a number of categories (see figure 23). These included a range of interactions from getting access to advance news of products to being able to access decision makers and influence product development. It’s clear from the results that, even though the level of social demand differs by category, there are significant numbers of people who do want to engage with brands in all categories (even if this engagement was more superficial, like just having access to breaking news). Figure 23 : Amongst those who show an interest in an category, how many want an interaction with companies in that category (i.e. At least one or more interaction). These included a range of interactions from getting access to advance news of products to being able to access decision makers and influence product development Health Movies Music Travel Telecomms 75% 74% 73% 71% 71% Software Food Cars Finance 71% 70% 67% 63% 55

Brand communities So why are people joining brand communities? Although many are saying that they have joined a brand community online to gain access to free content (69.6%), the highest motivations are to learn (78.6%) and get access to advance news of products (76.1%). In the influence economy, information is clearly a very valuable commodity. These motivations are prevalent across all markets but when we look regionally we can see that there are nuances (See figure 24). In Latin America brand communities are more likely to be driven by the desire to associate themselves with something (to support a cause or even something they think is cool). In Asia they are more likely to join if it was recommended to them by their peers and in the Middle East it is about feeling part of a like-minded community. The Socialisation of Brands

Figure 24 : Agreement with the descriptions of why they joined a brand community amongst those have ever joined a brand community online by region. To support a cause To get advance To share my news on products appreciation with others Because it was To associate recommended with something to me I think is cool 0% 20% 40% 60% 80% 100% To ﬁll time / To learn more have fun about it To get free To feel part of a content like-minded community Europe North America Latin America Asia & Oceania Middle East & Africa 57

What’s the benefit to brands? The other big debate in social media is identifying the value of brand community engagement and interaction. Of those people who joined a brand community, 72% said they thought more positively of the brand as a result, 71% said they are more likely to buy the brand, 66% said they felt more loyal to the brand and 63% said they recommended others to join. So clearly there is an opportunity to build brand equity, drive sales, increase loyalty and create brand endorsement all of which sounds a lot like the holy grail of marketing communications. Of course, things are not so simple or easy. In order to create a social media experience that will benefit the brand in these ways we must first understand what kind of social media experience consumers want. Figure 25 : “As a result of joining a brand community, please indicate how much you agree with the following statements?” 72% 71% 66% 63% “I thought more positively “I am more likely to “I felt more loyal “I recommended of the brand” buy the brand” towards the brand” others to join” The Socialisation of Brands

Mapping the right social media experience There are four steps to identifying the right social media experience for brands: • Understand the social landscape of the category • Identify where the consumer fits in this landscape • Identify the social needs of the consumer in the category • Map them to social media platforms that can best deliver them 59

The social landscape of categories The first thing we need to understand is the level of social activity in each category. We do this by mapping involvement across a spectrum of social engagement. From those actively creating content and collaborating with others to those simply seeking information. What we see is that certain categories with very broad appeal, like music and movies, have large numbers of people engaged in collaboration, creation, sharing and seeking. Conversely, categories like sport or fashion have a much smaller number of people engaged in the category but a higher proportion of those are actively collaborating. However, in all categories there are significant numbers of people already actively engaging with brands and companies. The reason why it is important to understand the consumers current level of engagement with the category is because it has a fundamental effect on the depth of social interaction they want. The Socialisation of Brands

Figure 26 : “Thinking about how you seek and share information regarding different products and services, which of the following statements best describe how you seek and share information in each of the following categories?” Numbers of consumers (in 000’s). Note: consumers can be active in more than one segment within a category. Wine, spirits & alcohol Non-alcoholic drinks Luxury goods Cosmetics Console/PC Gaming Sport Cars Portable technology Fashion Energy & environment Computer hardware Personal ﬁnance Household products Home technology Travel Mobile phones and services Computer software Food Health & wellbeing Music Movies 600,000 400,000 200,000 0 200,000 400,000 600,000 800,000 I create content and collaborate with I share opinions, content and people and companies in this category information in this category I often seek information in this I sometimes seek information category to keep up to date in this category when I need it 61

Different categories, different audiences, different needs We can see that different categories have different social media needs. Analysis of the movie and health categories, for example, show that access to fun content is key for the movie category (unsurprisingly in a very visual and content rich medium) whereas learning is the dominant need in the health category (see Figure 27). Figure 27 : “Thinking about companies Access to fun and entertaining content in the following categories, which of following statements describes the kind Contact employee decision makers and Access to of interaction you would like to have with inﬂuence product breaking news these companies?” amongst those who development show an interest in the category Tools help express creativity and An opportunity make something to learn worth sharing something new 0% 10% 20% 30% 40% 50% An opportunity Access to to develop unique events my skills or competitions A personal response Communicate to my issues / complaints and share experiences with others Movies Health & Wellbeing The Socialisation of Brands

And it’s not just the category differences that we have to take into account. We also need to consider current category behaviour as this has a significant impact on their social needs and expectations. When we look at people actively engaged in the Computer Software category, for example, we can see that the demand for customer service (a personal response to issues and complaints) is equally important to both content creators/collaborators and seekers of information (see Figure 28). However, in all other regards creators/collaborators want a much deeper and more diverse social relationship but in particular we see that learning and skills development are the key social needs. An opportunity to Figure 28 : “Thinking about learn something new companies in the computer Access to unique events An opportunity to software category, which and competitions develop my skills of following statements describes the kind of interaction you would like to have with these companies?” Contact employee decision makers and Access to amongst those who create inﬂuence product breaking news content or seek information development in the category. 0% 20% 40% 60% 80% 100% Tools help express creativity and Free coupons / make something money-o vouchers worth sharing Access to fun and A personal response entertaining content to my issues / complaints Communicate and share experiences with others I create and collaborate with people I often / sometimes seek information and companies in this category in this category to keep up to date 63

Mapping needs to platforms Clearly, understanding the social needs of the consumer is the key to creating a successful social media programme. If all the consumer wants is access to information and news there is no point in creating an all singing, all dancing interactive content sharing platform. On the other hand if they want to be involved directly with product development then access to new news is unlikely to be involving or compelling. Since these needs differ widely by country, category and audience it is essential to have a granular view of the social dynamics at play. The other important factor is an understanding of which platforms and forms of communication best meet these needs. Wave 5 – The Socialisation of Brands also contains a wealth of information that can help identify the most influential platforms at both macro and micro level. We believe that the combination of social need state and the ability of platforms to meet these needs gives us the crucial insight required. The Socialisation of Brands

Share experiences with other customers Portable Technology Cosmetics Home Technology Personal Finance Wine, Spirits & Alcohol Sponsored link on a search engine Recommendation from a friend Ad on a blog Sponsored music / video player Energy & The Environment Luxury Goods Travel Sport Music Movies Access to unique events Sponsored link on social network page Food Fashion Opportunity to develop d skills an my m a br Console / PC Gaming Cars tur ing fea C Computer Software Personalised ad on social network pageonline age o cl ip Vide Inﬂuence product development website Mobile Telecommunication Brand Comm Instant Messenger Expert recommendationn o Widge unicat Resocial netwo Access to y emperie news Tools to help / Brand BLOGG f a Com nline bran t on a e m breaking Spo O pan nsor ed l Company ink o y / B ded video clip co na web xm site rand expreLO en nces da B ss tio rk 65

The impact Summary

The impact Social media is an incredibly dynamic environment. Terms like “friend” and “influencer” are no longer adequate to describe the array of social activity and interaction that is occurring amongst the vast communities now being built online. A deeper understanding of consumer needs and motivations is the key to unlocking a real understanding of social media and its users. Social networks are becoming powerful hubs of interconnected communities but it’s not just people that are connecting in the social media space. There is huge demand for a more social and interactive relationships with brands. Almost half of the Active Internet Universe has already joined a brand community. These communities are also clearly having a huge benefit to the brands involved, driving brand loyalty, endorsement and sales. However, understanding the nature of social demand for each consumer, category and market is the key to creating a successful social media experience. The Socialisation of Brands

What does this mean for your business? Wave 5 – The Socialisation of Brands is an in-depth study and there are many other aspects that we are unable to cover in this report. If you want to know how to operate in the new social media landscape and what this means for your business please contact:- EMEA APAC Glen Parker Natalie Pidgeon Research Director - EMEA Director IQ and Insights - APAC Glen.Parker@umww.com Natalie.Pidgeon@umww.com North America LatAm Heidi Browning Mario Mejia EVP Global Digital Officer Strategic Director - Colombia / LatAm Heidi.Browning@umww.com Mario.Mejia@umww.com Huw Griffiths EVP Global Director of Research Huw.Griffiths@umww.com 69

About this report Wave 5 - The Socialisation of Brands is part of UM’s ongoing research programme aimed at exploring the massive changes occurring in communication technologies. The studies have been conducted annually since 2006. The research is conducted by the UM EMEA research team in collaboration with the UM global network of agencies. If you have any questions about the research or future Wave projects please contact the EMEA research team Glen Parker Research Director EMEA Glen.Parker@umww.com Lindsey Thomas Research Executive EMEA Lindsey.Thomas@umww.com © UM 2010 The Socialisation of Brands

This report is printed on Cocoon Offset: a paper produced using eco-sensitive technology from 100% recycled and de-inked fibres (FSC certified) Designed & illustrated with love by

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