Digital Media in the EMEALuis Vareta, July 2009

ContentDigital MediaThe EMEAEMEA Online AudienceConclusions & Trends

Digital Media What is DigitalWhat is Digital MediaMarketing Channels in Digital Media

Digital, Digit, Digitus(Latin word for finger)Digital Definition 1

Digital is the opposite of analog_Digital Definition 2

Once recorded_ analog equipment_ cannot copy signals perfectly_Digital Definition 3

Digital breaks everything into numbers, binary representation of ones and zeros. Digital Definition 4

Data can be preserved indefinitely.Digital Definition 5

And multiple identical copies can be made with no loss of information.Digital Definition 6

Plus, we are able to interact exponentially with technology.Digital Definition 7

We passed fromstorage of information on fixed material objects..Digital Definition 8

..to storage of all information in a binary digital format.orDigital Definition 9

With this technological advancement, came the Digital Revolution andDigital Media. Digital Definition 10

The start of the Information Age in the 1980’s.Digital Definition 11

Digital Media therefore involves mixing different elements or tools.Digital Media 12

Elements such..Digital video and film production Interactive multimedia3D modeling Graphic designWeb design Image creation Digital animation Digital photography Interface design Digital sound technology Digital Media 13

To create an experience.. Interactive, engaging, compelling. A new fantastic user experience that cannot be realized with other technologies.Digital Media 14

dig⋅it⋅alme⋅di⋅aadjective, nounCollaborative medium that allows for active participation by the recipient, hence interactivity; Media that establishes a two-way communication.

dig⋅it⋅alme⋅di⋅aadjective, nounCollaborative medium that allows for active participation by the recipient, hence interactivity; Media that establishes a two-way communication.

Which marketing channels define Digital Media?

Social networkingBloggingUser-generated contentMobile MarketingSearch MarketingOnline VideoDigital Channels 18

Social networkingBloggingUser-generated contentMobile MarketingSearch MarketingOnline VideoDigital Channels 19

Social networkingBloggingUser-generated contentMobile MarketingSearch MarketingOnline VideoDigital Channels 20

Social networkingBloggingUser-generated contentMobile MarketingSearch MarketingOnline VideoDigital Channels 21

Social networkingBloggingUser-generated contentMobile MarketingSearch MarketingOnline VideoDigital Channels 22

Social networkingBloggingUser-generated contentMobile MarketingSearch MarketingOnline VideoDigital Channels 23

WidgetsPodcastingEmail MarketingRSSGame MarketingDisplay AdsDigital Channels 24

WidgetsPodcastingEmail MarketingRSSGame MarketingDisplay AdsDigital Channels 25

WidgetsPodcastingEmail MarketingRSSGame MarketingDisplay AdsDigital Channels 26

WidgetsPodcastingEmail MarketingRSSGame MarketingDisplay AdsDigital Channels 27

WidgetsPodcastingEmail MarketingRSSGame MarketingDisplay AdsDigital Channels 28

WidgetsPodcastingEmail MarketingRSSGame MarketingDisplay Ads [ online & offline ]Digital Channels 29

All form today the basis and platforms to work on executing a digital marketing strategy.Social networkingBloggingUser-generated contentMobile MarketingSearch MarketingOnline VideoWidgetsPodcastingEmail MarketingRSSGame MarketingDisplay AdsDigital Channels 30

The EMEAPopulation in the regionOverall Media growth

Europe, the Middle East and Africa is a huge geographical region with a very diverse landscape.EMEA 32

EMEA= 1.8 billion peopleEMEA 33

Top Populated CountriesEuropeRussia 142mGermany 82mTurkey 73mFrance 65mUK 61mEurope = 731 million peopleSource: WikipediaEMEA 34

Top Populated CountriesMiddle EastIran 70mIraq 31mSaudi Arabia 27mYemen 23mSyria 19mME = 188 million peopleSource: WikipediaEMEA 35

Top Populated CountriesAfricaNigeria 148mEthiopia 85mEgypt 76mCongo 66mS. Africa 48mAfrica = 922 million peopleSource: WikipediaEMEA 36

EMEA = 1.8 billion peopleBut not all have equal access to Media. Ethiopia or Iraq for instance have a weak infrastructure. So where is media growing the most?EMEA 37

Overall Media growth in the EMEARegion Highlights

Western Europe averageOverall Media growth in the EMEA3%Norway | 11%Ireland | 13%Source: Stats 2001-2007, Group MEMEA Media 39

Western Europe averageOverall Media growth in the EMEA3%Norway | 11%Stagnant growth in Western Europe.With Norway and Ireland above average.Ireland | 13%Source: Stats 2001-2007, Group MEMEA Media 40

Eastern Europe averageOverall Media growth in the EMEA25%Russia | 40%Romania | 26%Source: Stats 2001-2007, Group MEMEA Media 41

Eastern Europe averageOverall Media growth in the EMEA25%In Eastern Europe media is growing further, well influenced by Russia and Romania.Russia | 40%Romania | 26%Source: Stats 2001-2007, Group MEMEA Media 42

Middle East & Africa averageOverall Media growth in the EMEA16%South Africa | 22%Gulf Cooperation Council* | 33%*Saudi Arabia, UAE, Kuwait, Qatar, Bahrain and OmanSource: Stats 2001-2007, Group MEMEA Media 43

Middle East & Africa averageOverall Media growth in the EMEA16%The most developed Arab world is the core of the media growth in the region. South Africa, within the African continent.South Africa | 22%Gulf Cooperation Council* | 33%*Saudi Arabia, UAE, Kuwait, Qatar, Bahrain and OmanSource: Stats 2001-2007, Group MEMEA Media 44

EMEA Online Audience Internet PenetrationInternet UsageMost Popular Websites

Internet Penetration in the EMEA is absolutely different from region to region.

Internet UsersPopulation 53.8 %EuropeHalf Europeans use the Internet731 m393.4 mSource: Internet world statsEMEA Online 47

Internet UsersPopulation 24.4 % 922 mMiddle East24% in the ME use the Internet188 m 45.9 mSource: Internet world statsEMEA Online 48

Internet UsersPopulation 5.8 % 922 mOnly 5.8% of 922m use the Internet in AfricaAfrica 54.2 mSource: Internet world statsEMEA Online 49

PopulationInternet Users393.4 m 922 m731 m 54.2 m 45.9 m188 mEuropeAfricaMiddle EastSource: Wikipedia, Internet world statsEMEA Online 50

Which EMEA countries have more Internet Users?

Germany |UK | France | Russia EuropeSource: Internet world stats, March 2009EMEA Online 52

Iran | Saudi Arabia | Israel | Syria Middle EastSource: Internet world stats, March 2009EMEA Online 53

Egypt | Nigeria | Morocco | S. Africa Africa Source: Internet world stats, March 2009EMEA Online 54

Most Popular websites Top websites from the top 4 countries above

Most Popular websitesNationalTypeForeignerGoogleFacebookYouTubeWindows LiveYahooEbayWikipediaMSNAmazonLiveJournalBBCSkyRockSpiegelWeb.deOrangeFreeYandexVkontakteMail.ruOdnoklassnikiRamblerNarodNewsSocial NetworkingNewsWeb PortalCorporateCorporateSearch, Web PortalSocial NetworkingEmailSocial NetworkingSearch,Web PortalWeb PortalEuropeGermany, UK, France, RussiaSource: AlexaEMEA Online 56

Most Popular websitesNationalTypeForeignerGoogleYahooMSNYouTubeBloggerFacebookTravianRapidShareWindows LiveWikipediaMicrosoftBlogFATabnakMihanBlogPersianBlogCloobMaktoobSTCWallaYnetNana10Yad2Syria NewsSyrian Education KoooraAksalserBloggingNewsBloggingBloggingWeb PortalNews PortalCorporateWeb PortalNews PortalWeb PortalWeb PortalNewsEducationSportsWeb PortalMiddle EastIran, Saudi Arabia, Israel, SyriaSource: AlexaEMEA Online 57

Most Popular websitesNationalTypeForeignerGoogleYahooFacebookYoutubeWindows LiveMSNBloggerWikipediaRapidShareTravianTwitterSkyrockGumTreeMyEgyMaktoobGoalKoooraNews24Download, StreamingNews PortalSportsSportsNewsAfricaEgypt, Nigeria, Morocco, S. AfricaSource: AlexaEMEA Online 58

Conclusions & Trends

ME & Africa Population Expected to beEurope PopulationExpected to be

OVERALL MEDIA IS STAGNANT in Western Europe.but grows rapidly in EASTERN EUROPE with Russia fueling its growth (40%)

OVERALL MEDIA IS STAGNANT in Western Europe.ME & Africa average 16% growthbut grows rapidly in EASTERN EUROPE with Russia fueling its growth (40%)Source: 2001-2007, Group M

EMEA has 1.8 billion people

only 493 million use the Internet.

only 493 million use the Internet.393 million are from Europe.

TRENDEurope will remain ageing and expected to decrease population. ME & Africa will see increases in population and migrations from rural to city centers.Source: Eurostat, PricewaterhouseCoopers

TRENDMiddle East & Africa will be the fastest-growing regions in the EMEA.(albeit from a relatively low base)

TRENDRussiais the fastest-growing Internet population in Europe and is expected to continue rising.Source: ComScore

TRENDJuly 2009 marks the start of the fiber optic cable bringing high speed Internet access to East Africa.

TRENDThe excessive Internet cost will go down, along with better connectivity, will lead to economic growth.

TRENDFrom 2007 to 2008, Internet use in both ME & Africa grew 20.2%. When the world 10.4% and Europe 6.8%. Mobile phone technology is more widespread than Internet in Africa.Source: Internet world stats

TRENDMobile access to the web will triplicate by 2013.Source: PricewaterhouseCoopers

TRENDDigital TV on demand will be a major digital telecommunications medium.

TRENDInternet advertising spending will increase $7.7 billion in 5 years. Central and Eastern Europe will be the fastest-growing area.Source: PricewaterhouseCoopers

TRENDConsumer spending on video games will grow.DVR’s and game consoles with internet access will emerge as competitors to the PC.Source: PricewaterhouseCoopers

The world is changing fast. Media consumption faster.

Thank you

Digital Media in the EMEALuis Vareta, July 2009