Wave 3 - Studies for Universal Mac Cann

Slide 1: Mar.08 Power to the PeoPle SoCIAl MeDIA trACKer v .3

Slide 2: Power to the people - Social Media Tracker Wave 3

Slide 3: 3 Welcome to Wave 3 04 Introduction 06 Methodology 10 What is Social Media? 12 Global Snapshot 18 Blogging 34 Social Networking 48 Sharing Content 56 Consuming Content 76 Final Word

Slide 4: Introduction Welcome to Universal McCanns global research into the This latest report demonstrates the continued growth of social impact of social media. This project is an ongoing commitment media, the impacts of this are huge. by Universal McCann to measure consumer usage, attitudes and • The vast majority of users are producing content and there interests in adopting social media platforms and is the largest is an ongoing shift towards participation. exploration of its kind. It aims to provide the facts behind the hype. • Media consumption is internationalising along language lines thanks to global social platforms. The first study was published in September 2006 (Wave 1) and the second study in June 2007 (Wave 2). This report (Wave 3) • Consumers are moving to on-demand media such as video brings together the latest results from Wave 3 as well as tracking clips and podcasts. the evolving trends since Wave 1. Wave 3 surveyed 17,000 internet users in 29 countries and was completed in March 2008. • The role for advertisers and brands has never had so much potential – branded applications, content and services all Since Wave 1 in September 2006 the research has created offer huge potential in social media. genuine insights on the patterns of usage, such as China having more bloggers than the US, emerging markets leading take up and • Emerging internet markets are leading the way in usage, Japan shunning photo sharing. closing the gap with developed countries. Tom Smith Tom.smith@universalmccann.com Wave 3 Wave 1 29 Countries 15 Countries 17,000 Internet Wave 2 Users 7500 Internet 21 Countries Users March 10,000 Internet 2008 September Users 2006 June 2007 Power to the people - Social Media Tracker Wave 3

Slide 5: Wave 3 Highlights 5 • ocial media is a global phenomenon happening in all markets regardless of wider economic, S social and cultural development. If you are online you are using social media • sian markets are leading in terms of participation, creating more content than any A other region • ll social media platforms have grown significantly over the three Waves A – Video Clips are the quickest growing platform, up from 31% penetration in Wave 1 to 83% in Wave 3 • 7% have joined a Social Network, making it the number one platform for creating 5 and sharing content – 55% of users have uploaded photos – 22% of users have uploaded videos • The widget economy is real – 23% of social network users have installed an application – 18% of bloggers have installed applications in their blog templates • Blogs are a mainstream media world-wide and as a collective rival any traditional media – 73% have read a blog • he blogsphere is becoming increasingly participatory, now 184m bloggers world-wide T – The number one thing to blog about is personal life and family • hina has the largest blogging community in the world with 42m bloggers, more than the US C and Western Europe combined • Social media impacts your brands reputation – 34% post opinions about products and brands on their blog – 36% think more positively about companies that have blogs

Slide 6: Methodology: How we did it The research has retained a consistent methodology throughout Wave 1, 2 and 3. All surveys have been scripted and hosted on Universal McCann’s in-house online research system, Intuition. All surveys are self completion and the data collected is entirely quantitative. Every market is representative of the 16-54 Active Internet Universe. In this Wave 17,000 internet users in 29 countries were interviewed. To be included you need to be using the internet everyday or every other day. 6/ 70 93 95 /3 rk a m lt e s/a ot o /ph co m www.fickr. THE ACTIVE INTERNET UNIVERSE = I use the internet everyday / every other day Power to the people - Social Media Tracker Wave 3

Slide 7: 7 Why the Active Internet Universe? • As they are the key leaders of social media and drivers of In the past Waves there has been occasional mis-understanding adoption, they are the most important consumer to about what the results represent, due to the fact that smaller less understand. economically developed countries lead the way. • They are the most important consumer to understand the The reason lies in the focus of the study, which is to understand adoption of social media who are key to growing the internet. usage of social media among internet users. Emerging Internet markets tend to have a demographical profile that fits the early • They make up the vast majority of social media adopters. adopter as opposed to the mature internet markets such as Japan If you’re not using the internet regularly, you’re not blogging. and the US. This can be a factor in lower levels of adoption in • Over time, all users increase the regularity of usage. penetration terms. Eventually everybody will be an active user, as they have It must also be considered that emerging markets have lower levels been with television. of internet penetration, so the impact of social media among the country as a whole will be more measured. Internet Penetration by market Internet Penetration, all adults. Figures sourced from Internetworldstats.com % .9 % N rali % 2% Au n 5 .7% 49 Au 71 a 7 9% U h K g 6 2% Br ico .8 4% .8 Ta 66. 5.9 % nd % So g K d 6 % ee y 3 4% e 3 2% st .4 0. 87 ai 54 lic SA or 9. ut on 9. 9 . iw 4% % ili 2. % H ani .6% K 6 6 an Re % rla 2.9 on an .8 rm .0 % De an 6 .4% Ro nd .5% az 21 % Tu il 2 .3% ex 1 5 Sw ma .7% Sp ce pub Ru ppi 3% U da 64. Po ey 2 4% Ita ria 5% Gr gar 31. Cz ce 5. M sia s 1 Ph a 1 .3 Fr ch 5.5 s 57 .7 H zerl 68 Ca an % ki 3% he 7 e in n 7 m 29 56 p 67 la 2 s ne rk 2. st 6. n 8 na y et a it rk un a Pa 5. Ch sta Ja an a ly di Ge In 100 % Online (All adults) 0

Slide 8: Methodology: Universe sizes – putting it into context Estimated worldwide 16 - 54 active internet universe = 475m users 11 5 6 12 2 13 14 7 8 15 1 USA 17 16 100m 9 10 18 19 3 3 North America Europe Asia & Oceania 1 USA 100m 5 UK 17.8m 21 Pakistan 0.26m 2 Canada 7.8m 6 Netherlands 6.1m 22 India 17.8m Central & 7 France 12.8m 23 China 61.0m 4 8 Switzerland 1.3m 24 Hong Kong 1.8m South America 9 Spain 10.9m 25 Taiwan 5.4m 3 Mexico 6.7m 10 Italy 10.2m 26 South Korea 13.7m 4 Brazil 13.8m 11 Denmark 1.3m 27 Japan 29.8m 12 Poland 3.6m 28 Philippines 3.7m 13 Germany 18.8m 29 Australia 5.1m 14 Czech 1.9m 15 Hungary 1.2m 16 Romania 2.2m 17 Austria 1.2m 18 Turkey 5.0m 19 Greece 1.2m 20 Russia 8.6m Power to the people - Social Media Tracker Wave 3

Slide 9: 9 20 Putting the results into context To help provide a more complete picture, the analysis in this report puts the results into context in two ways; 23 China 1. Market by market universe estimates 61m 26 27 2. Penetration of usage among all 16-54s. Both these figures are estimates based on 21 the above universe sizes. When estimating 24 global usage figures of different social media 25 technologies we make the fair assumption that the vast majority of users will be active 22 28 users and between the ages of 16-54. How did we get to these universe figures? Local market data from TGI, Simmons or equivalent provided penetration figures for 16-54s by market and levels of active usage. These were correlated with Internet World Stats, CIA World Factbook and Comscore. 29 The general rule is the more developed a market is, the higher in home and at work internet connections are, which leads to higher levels of active usage.

Slide 10: What is social media? www.fic r.com/phot Social media is an important k Social media represents shift, as it summarises the a big improvement over os/ importance of interaction, the consumer pi cc Web 2.0 as a term to lly wi ls o adi and the community. The term emphasises n/6 876 describe the changes that have 6 1 3 2/ the idea that as a collective it can have as much impacted the internet. The idea impact as any traditional media platform. that we switched from Web 1.0 to In truth, to claim social media as “new” is slightly misleading. From the 2.0 beginning, the internet was founded on message boards, chat rooms and was always a touch crude. peer to peer communication. What has changed is the mass involvement that modern social platforms inspire. Contributing to the internet has never been as accessible and less technical. Innovations in web development, computing technology and the proliferation 4787692/ of broadband have come together in drive monumental consumer take up. This is why the phenomenon of social media is important now – it has the s/45 e cat potential to impact on all our media consumption therefore shifting the /le s o to ph ckr. co m/ emphasis from professional content producers to the consumer. www.fi The definition “Online applications, platforms and media which aim to facilitate interaction, collaboration and the sharing of content” Power to the people - Social Media Tracker Wave 3

Slide 11: 11 Photo Blogging Sharing Micro Video Blogging Sharing Key Podcasts Social RSS Platforms Message Widgets Boards Chat Social Rooms Networking

Slide 12: Global snapshot: Wave 3 Reach rk ite wo bs et we “Thinking about using the Internet, which of the ln g ia following have you ever done?” Active Internet Users rin c so a e sh sit g s in og o ws ite ist ot og bl bs ex ph ne g ed bl we lo e we bs o a fe an lin t a a eb a s/ as ite n n to og on s we t S g /w dc on to to og g lip RS rin bl os og s po bl en en in c le a