The social-media-report-2012 nielsen

STATE OF THE MEDIA:THE SOCIAL MEDIA REPORT 2012

SOCIAL MEDIA IS COMING OF AGE Social media and social networking are no longer in their infancy. Since the emergence of the first social How is social media impacting marketing? media networks some two decades ago, social media has continued to evolve and offer consumers around the world new and meaningful ways to engage with the people, events, and brands that matter SOCIAL WORD-OF-MOUTH to them. Now years later, social media is still growing rapidly and has become an integral part of our Social media enables consumers to generate and tap into the opinions of an exponentially larger daily lives. Today, social networking is truly a global phenomenon. universe. While word-of-mouth has always been important, its scope was previously limited to the people you knew and interacted with on a daily basis. Social media has removed that limitation and What’s driving the continued growth of social media? given new power to consumers. MOBILE HYPER-INFORMED CONSUMERS More people are using smartphones and tablets to access social media. The personal computer is still Social media is transforming the way that consumers across the globe make purchase decisions. at the center of the social networking experience, but consumers are increasingly looking to other Consumers around the world are using social media to learn about other consumers’ experiences, find devices to connect on social media. Time spent on mobile apps and the mobile web account for 63 more information about brands, products and services, and to find deals and purchase incentives. percent of the year-over-year growth in overall time spent using social media. Forty-six percent of social media users say they use their smartphone to access social media; 16 percent say they connect OPPORTUNITY FOR ENGAGEMENT to social media using a tablet. With more connectivity, consumers have more freedom to use social Consumer attitudes toward advertising on social media are still evolving. Though roughly one-third media wherever and whenever they want. of social media users find ads on social networking sites more annoying than other types of Internet advertisements, research suggest that there are opportunities for marketers to engage with consumers PROLIFERATION via social media. More than a quarter of social media users say they are more likely to pay attention to New social media sites continue to emerge and catch on. The number of social media networks an ad shared by one of their social connections. Additionally, more than a quarter of consumers are ok consumers can choose from has exploded, and too many sites to count are adding social features or with seeing ads on social networking sites tailored to them based on their profile information. integration. While Facebook and Twitter continue to be among the most popular social networks, Pinterest emerged as one of the breakout stars in social media for 2012, boasting the largest Nielsen and NM Incite’s 2012 Social Media Report provides some insight into what is driving our year-over-year increase in both unique audience and time spent of any social network across PC, collective, global obsession with social media. In the following pages, you’ll get a more detailed mobile web, and apps. snapshot of what is helping to power the continued growth of social networking around the world, how consumers’ social media behavior is evolving, and how these changes impact the way brands and consumers engage through social networks. How is consumer usage of social media evolving? -Deirdre Bannon THE GLOBAL LIVING ROOM Social Media Practice Lead Social TV is on the rise. The skyrocketing adoption and use of social media among consumers is transforming TV-watching into a more immediate and shared experience. As of June 2012, more than 33 percent of Twitter users had actively tweeted about TV-related content. Some 44 percent of U.S. tablet owners and 38 percent of U.S. smartphone owners use their devices daily to access social media while watching television. In the Latin America region, more than 50 percent of consumers say they interact with social media while watching TV; in the Middle East / Africa region, more than 60 percent do. From global events like the Summer Olympics, to regional events like the Presidential debates in the U.S., consumers around the world used social media to engage with everyone from close friends to complete strangers, revolutionizing the television viewing experience. SOCIAL CARE Social Care is transforming customer service. Social media has emerged as an important channel for customer service, with nearly half of U.S. consumers reaching out directly to brands and service providers to voice their satisfaction or complaints, or simply to ask questions. In fact, one in three social media users say they prefer to use social media rather than the phone for customer service issues.1 2

More and more people are connecting to the Internet—and for longer TOTAL MINUTES SPENT amounts of time ON MOBILE AND PC Whether through a computer or mobile phone, consumers continue to spend increasing amounts of time on the Internet. Time spent on PCs and smartphones was up 21 percent from July 2011 to July 2012. App time more than doubled during this period as more smartphone owners entered the market and the number of available apps multiplied. Total Minutes, U.S. JULY 2011 | JULY 2012 Overall Unique U.S. Audience JULY 2011 JULY 2012 MOBILE 58.8 B APPS 129.4 B 120% MOBILE 23.0 B WEB 28.1 B 22% MOBILE WEB 82% MOBILE APPS 85% 52,435,000 | 95,176,000 55,001,000 | 101,802,000 348.6 B PC 362.7 B 4% TOTAL 430.4 B 21% 520.1 B 17 213,253,000 | 204,721,000 4% % People continue to spend more time on social networks than any of consumers’ PC time is spent on other category of sites—20% of Facebook, the most popular PC their time spent on PCs and web brand in the U.S. 30% of their mobile time.3 © Nielsen 2012 © Nielsen 2012 4

TIME SPENT 85.8M SOCIAL NETWORKING 81.1M ON SOCIAL MEDIA IS ALL ABOUT MOBILE 5.7B 40.8B 74.0B 121.1B JULY 2012 Total 5% Minutes JULY 2011 88.4B 43.0M 44.8M 4.4B 23.2B 59.5B YOY CHANGE Social Networking Time per Person in HH:MM When it comes to accessing social content, its all about mobile—particularly apps. App usage now accounts for more than a third of social networking time across PCs and PC MOBILE WEB & APP mobile devices. Compared to last year, consumers increased their social app time by 76 percent, spending more than seven times MALE 6:13 6:44 more minutes on apps than the mobile web. FEMALE 8:37 9:43 While the social media audience via PC AGES 18-24 11:01 10:15 declined a slight ﬁve percent from a year ago, time spent increased 24 percent over AGES 25-34 9:04 11:05 MOBILE MOBILE the same period, suggestinging that users APPS WEB AGES 35-44 8:12 8:46 are more deeply engaged. AGES 45-54 8:34 5:20 AGES 55-64 6:57 4:06 Distribution JULY 2011 | JULY 2012 AGES 65+ 4:18 3:42 of Social Media Unique U.S. Audience for WHITE 7:24 7:47 Time 34% Social Networking AFRICAN-AMERICAN 8:07 8:20 Spent 61% HISPANIC 7:19 11:13 5% 163.6M | 171.8M ASIAN 7:49 6:425 © Nielsen 2012 © Nielsen 2012 6

A LOOK AT THE TOP SOCIAL NETWORKS Unique U.S. Audience (in millions) TOTAL The list of most-visited social networking sites is pretty much the same whether people are MOBILE APP MINUTES SPENT going online through a PC browser, through their mobile web browser or using an app. Mobile usage once again proves to be a key component of social as each of the top networks via mobile AUDIENCE (000) YOY CHANGE web saw signiﬁcantly greater growth compared to its PC audience over the last year. Facebook 7 8 3 8 8 88% Top 5 U.S. Social Networking Apps Ranked on Total Minutes UNIQUE PC VISITORS, U.S. YOY CHANGE Twitter 2 2 6 2 0 134% (AUDIENCE 000) Total Minutes YOY % Change foursquare 1 0 3 8 8 118% Facebook 27.0B 61% FACEBOOK 1 5 2 2 2 6 -4% Google+ Pinterest 9 7 1 8 4 9 4 6 86% 1,698% Twitter 3.6B 48% foursquare 1.9B 154% BLOGGER 5 8 5 1 8 -3% MOBILE WEB Pinterest Google 721.0M 6,056% Latitude 599.2M -2% TWITTER 3 7 0 3 3 +13% Facebook AUDIENCE (000) 7 4 2 7 4 YOY CHANGE 85% 3 0 9 4 5 Top 5 U.S. Social Networking Sites via Mobile Web Twitter 4 2 3 6 6 140% WORDPRESS +10% Ranked on Total Minutes Blogger 1 9 9 7 9 100% Total Minutes YOY % Change Pinterest 1 4 3 1 6 4,225% Facebook 2 8 1 1 3 4.1B 9% LINKEDIN 0% Wordpress 1 1 9 9 5 96% Twitter 486.2M 139% Linkedin 9 6 7 1 114% Blogger 170.0M 89% PINTEREST 2 7 2 2 3 +1,047% Tumblr 8 5 1 2 162% Tumblr 164.6M 78% Wikia 5 3 2 5 n/a Reddit 138.0M 342% GOOGLE+ 2 6 2 0 1 +80%* Reddit Myspace 4 2 7 5 3 5 0 1 153% 57% 2 5 6 3 4 Top 5 U.S. Social Networking Sites via PC TUMBLR +55% Ranked on Total Minutes Total Minutes YOY % Change 1 9 6 8 0 Facebook MYSPACE -13% 2012 62.2B 23% Tumblr 2.1B 65% Pinterest Twitter 1 2 5 9 4 Mobile Web 1.8B 72% WIKIA +20% 2011 Pinterest Pinterest 1.3B N/A Mobile Web Blogger 816.1M -17% *Google+ is July 2012 v. Sept 2011, the ﬁrst month the site became public7 © Nielsen 2012 © Nielsen 2012 8

A SPOTLIGHT ON PINTEREST Pinterest has experienced exponential growth since bursting on the scene last year. Although WHO IS USING PINTEREST? that growth has leveled over the last few months, Pinterest had the largest year-over-year increase in audience and time spent of any social network, across PC, mobile web and apps. U.S. Audience Composition Unique U.S. Audience 30,000,000 27,223,000 25,000,000 PC 20,000,000 14,316,000 15,000,000 MALE 30% 16% 28% 10,000,000 MOBILE WEB FEMALE 70% 84% 72% 5,000,000 4,946,000 0 MOBILE AGES 18-24 14% 22% 20% APPS JUL 11 AUG 11 SEP 11 OCT 11 NOV 11 DEC 11 JAN 12 FEB 12 MAR 12 APR 12 MAY 12 JUN 12 JUL 12 AGES 25-34 24% 37% 31% 31% 33% 31% 2012 Total Minutes Spent AGES 35-49 AGES 50-64 24% 5% 18% AGES 65+ 7% 4% 1% HISPANIC 8% 22% 22% WHITE 86% 79% 74% 1,255,225,000 120,486,000 720,973,000 AFRICAN-AMERICAN 6% 5% 10% ASIAN 3% 7% 7%9 © Nielsen 2012 © Nielsen 2012 10

HOW, WHERE AND WHY WE CONNECT WHY WE CONNECT While the computer is still the primary device used to access social media, the last year saw It may be fun to follow celebrities, but actually knowing someone still matters when deciding significant increases in usage, most notably through tablets and Internet-enabled TVs. to connect on social networks. 63% 60% 65% 50% 52% 48% 42% 41% 44% HOW WE CONNECT 2011 | 2012 13% 16% 10% 8% 10% 6% 97% 94% Know person Interested in Mutual Acccess to Quality of in real life keeping up friends business profile photo networks 46% 9% 14 4% % 37% 5% 7% 4% 6% 8% 4% 6% 7% 4% TOTAL MEN 16% Person’s Person’s number Want to increase Always accept 7% 7% of connections WOMEN 3% 3% 4% 4% 2 3% physical connection count all requests 2% % attractiveness GENERAL FEELINGS AFTER PARTICIPATING COMPUTER MOBILE PHONE TABLET HANDHELD MUSIC PLAYER GAME CONSOLE INTERNET ENABLED E-READER IN SOCIAL NETWORKING TELEVISION CONNECTED ENGERGIZED WHERE WE CONNECT 76% INFORMED EXCITED AGES 18-24 AGES 25-34 positive AMUSED CONTENT HAPPY JEALOUS 24% 51% INDIFFERENT ANGRY neutral WASTED TIME OVERWHELMED SAD US R TMI? Nearly a third (32%) of More than half of people aged 25-34 use GE EA O 21% people aged 18-24 use social social networking in the office, more XI networking in the bathroom. than any other age group. AN negative11 © Nielsen 2012 © Nielsen 2012 12

SIMULTANEOUS SMARTPHONE AND TWITTER DRIVES SOCIAL TV TABLET USAGE WHILE WATCHING TV Twitter has emerged as a key driver of social TV interaction. During June 2012, a third of active Twitter users tweeted about TV-related content, an increase of Having a mobile device on-hand while watching TV has become an integral part of consumer 27 percent from the beginning of the year. routines—41 percent of tablet owners and 38 percent of smartphone owners use their device daily while in front of their TV screen. Not surprisingly, social networking is a top activity on both devices, but people aren’t just chatting with their social connections, they’re also % of Active Twitter Users Tweeting about TV, U.S. shopping and looking up relevant program and product info. 33% Simultaneous TV/Mobile Device Usage, U.S. 30% 28 % 29% 26 % 27% 22 % 45 % Shopping 38% 44% 23% 35% Visited a social Looked up information networking site during related to the TV program the program being watched JANUARY FEBRUARY MARCH APRIL MAY JUNE SPOILER ALERT TALKING TV 15% 26% 12% 24% Nearly a quarter of people aged Adults aged 35-44 are 18-34 use social media to the most likely to comment on what they discuss television Looked up product Looked up coupons or like/dislike about a storyline programming with their information for an deals related to an while watching TV social connections advertisement seen on TV advertisement seen on TV13 © Nielsen 2012 © Nielsen 2012 14

SOCIAL CARE SOCIAL CARE VS Social care, i.e. customer service via social media, has become an immediate imperative for CUSTOMER SERVICE BY PHONE global brands. Customers choose when and where they voice their questions, issues and complaints, blurring the line between marketing and customer service. Brands should consider this evolution and ensure they are ready to react on all channels. ON AVERAGE, 47% OF SOCIAL MEDIA USERS ENGAGE IN SOCIAL CARE TOTAL 30% P 18-24 P 25-34 37% 35% One in three social media users P 35-44 P 45-54 31% 26% prefer social care to contacting a P 55-64 24% company by phone P 65+ 17% CHANNELS USED TO ACCESS SOCIAL CARE Consumers turn to a wide variety of social media platforms for social care. Social media users are most likely to comment on or ask a question about a company’s product or service on Facebook, both on the company’s page (29%) and on their personal page (28%). 29% Facebook | Company’s Page FREQUENCY OF SOCIAL CARE USE 28% Facebook | User’s Personal Page Ofﬁcial Company Blog AMONG USERS 15% 14% Twitter | Personal Handle (no @ mention of company) Twitter | Company’s Handle (tweet from user’s personal handle 9% Daily 13% including an @mention of company) 21% Weekly 12% YouTube | Company’s Channel 11% YouTube | User’s Personal Channel 70% Monthly 11% Non-company Blog15 © Nielsen 2012 © Nielsen 2012 16

ACTIONS TAKEN ADVERTISING ON SOCIAL MEDIA TO TA L HIS PA N IC WH ITE AM AFRI ER CA ICA N- AS IAN AFTER SEEING N SOCIAL ADS Brands and advertisers looking to share their message on social might consider this: While a third of people ﬁnd ads on social networks to be annoying, more than a quarter of people are more likely to pay attention to an ad posted by a friend. 15% 21% 13% 18% 26% SHARED ADS AGREEMENT WITH STATEMENTS 26% 32% 24% 29% 41% LIKED ADS ABOUT ADVERTISING 14% 22% 12% 18% 31% PURCHASED PRODUCTS 33% 26% Agree that ads on social Are more likely to pay networking sites are attention to an ad that has more annoying than been posted by one of their U.S. ASIAN CONSUMERS ARE other online ads social network acquaintances THE MOST ENGAGED White consumers are the least likely to take action WITH SOCIAL ADS after seeing ads on social networks This audience is by far the most likely to share, like or 26% 17% purchase a product after seeing an ad on social networks Are okay with ads that Feel more connected to are IDd based on their brands seen on social proﬁle information networking websites MADE A PURCHASE HIS WH AS AFTER SEEING SOCIAL ADS TO AM AFRI TA PA ITE ER CA IAN L N IC ICA N- N Made a purchase over the Internet for 10% 16% 8% 14% 19% a product that was advertised SOCIAL LIKES 8% 12% 7% 10% 18% Made a purchase at a store for are the most common action taken after seeing a social ad a product that was advertised and can be a great way to raise a brand’s visibility. Purchased or obtained a coupon 18% 19% 16% 18% 28% (i.e. through a daily deal site, retailer, etc)17 © Nielsen 2012 © Nielsen 2012 18

THE CONSUMER DECISION JOURNEY FREQUENCY OF SOCIAL ACTIVITIES Percent of social media users participating at least once a month The days when companies could tightly control brand messaging and progress consumers along a linear purchase funnel have long ended. Social media has fundamentally changed the consumer decision journey. Consumer decisions and behaviors are increasingly driven by the opinions, tastes and preferences of an exponentially larger, global pool of friends, peers and inﬂuencers. 70% Hear others experiences 65% Learn more about + brands/products/ services 53% Compliment brands _ 50% Express concerns/complaints about brands/services 47% Share money incentives19 © Nielsen 2012 © Nielsen 2012 20

THE GLOBAL SOCIAL CONSUMER A recent Nielsen survey of more than 28,000 global consumers with Internet access explored social media’s INTERNET global reach and impact. From how consumers connect and interact with social media to social’s ENABLED influence on what people buy, there are TV noticeable differences across regions, which are highlighted in the following special 9% ASIA-PACIFIC section focusing on the global social consumer. 4% EUROPE 9 % M. EAST/AFRICA HOW DO YOU ACCESS SOCIAL 4% LATIN AMERICA NETWORKING SITES? COMPUTER GAME ASIA-PACIFIC 93% EUROPE 96% CONSOLE M. EAST/AFRICA 91% LATIN AMERICA 96% 5% ASIA-PACIFIC 3 % EUROPE 2% M. EAST/AFRICA 3 % LATIN AMERICA HANDHELD MOBILE PHONE TABLET MUSIC PLAYER ASIA-PACIFIC 59% ASIA-PACIFIC 28% 5% ASIA-PACIFIC EUROPE 33% EUROPE 8% 2% EUROPE M. EAST/AFRICA 48 % M. EAST/AFRICA 10% 2% M. EAST/AFRICA LATIN AMERICA 33% LATIN AMERICA 6% 2% LATIN AMERICA21 © Nielsen 2012 © Nielsen 2012 22

ARE YOU INTERACTING THE GLOBAL CONSUMER WITH SOCIAL MEDIA 63% DECISION JOURNEY WHILE WATCHING TV? MIDDLE EAST/ AFRICA 52% LATIN AMERICA The role of social media in the consumer followed closely by: Travel/Leisure (60%), decision journey extends beyond North Appliances (58%), Food/Beverages (58%), 47% America, and indeed is even more Clothing/Fashion (58%) and Restaurants ASIA-PACIFIC pronounced in other regions. (57%). These categories were also the most discussed products/services via Social media’s influence on purchase social networking. intent is strong across all regions, but strongest among online consumers in the Social media represents a huge Asia-Pacific, Latin America and Middle opportunity for brands to gain positive East / Africa markets. Thirty percent of favor with consumers. With growing online consumers in the Middle East / disposable income in emerging markets, Africa region and 29 percent in Asia-Pacific savvy marketers can harness the growing use social media on a daily basis to learn adoption and influence of social media to 38% more about brands/products/services, impact business. EUROPE with one-third of respondents in both regions connecting on a weekly basis. Across all regions, social media has the potential to influence consumers’ entertainment and home electronics YES NO purchase decisions. These categories are23 © Nielsen 2012 © Nielsen 2012 24

BEAUTY/ THE GLOBAL SOCIAL CONSUMER RESTAURANTS COSMETICS In the next year, how likely * are you to make a purchase based ASIA-PACIFIC 69% ASIA-PACIFIC 62% 37% EUROPE 33% on social media websites/online product reviews for each of EUROPE M. EAST/AFRICA 56% M. EAST/AFRICA 43% the following products/services? LATIN AMERICA 55% LATIN AMERICA 48% HOME FINANCIAL ENTERTAINMENT PRODUCTS/ AUTOMOBILES ELECTRONICS BANKING ASIA-PACIFIC 74% ASIA-PACIFIC 75% ASIA-PACIFIC 63% ASIA-PACIFIC 55% EUROPE 46% EUROPE 48% EUROPE 29% EUROPE 32% M. EAST/AFRICA 67% M. EAST/AFRICA 63% M. EAST/AFRICA 52% M. EAST/AFRICA 51% LATIN AMERICA 69% LATIN AMERICA 67% LATIN AMERICA 46% LATIN AMERICA 47% TRAVEL & JEWELRY/ APPLIANCES TOYS LEISURE ACCESSORIES ASIA-PACIFIC 72% ASIA-PACIFIC 69% ASIA-PACIFIC 48% ASIA-PACIFIC 48% EUROPE 48% EUROPE 47% EUROPE 25% EUROPE 20% M. EAST/AFRICA 57% M. EAST/AFRICA 57% M. EAST/AFRICA 41% M. EAST/AFRICA 41% LATIN AMERICA 61% LATIN AMERICA 62% LATIN AMERICA 38% LATIN AMERICA 29% FOOD/ CLOTHING/ BABY CARE DATING BEVERAGES FASHION ASIA-PACIFIC 72% ASIA-PACIFIC 74% ASIA-PACIFIC 47% ASIA-PACIFIC 43% EUROPE 38% EUROPE 39% EUROPE 19% EUROPE 18% M. EAST/AFRICA 59% M. EAST/AFRICA 58% M. EAST/AFRICA 32% M. EAST/AFRICA 42% LATIN AMERICA 56% LATIN AMERICA 56% LATIN AMERICA 25% LATIN AMERICA 28%25 *Combined likely and somewhat likely responses © Nielsen 2012 © Nielsen 2012 26

SOURCES ABOUT NIELSEN Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement 3-10 Nielsen NetView (July 2012), Nielsen Smartphone Analytics (July 2012) company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile 11-12 Nielsen U.S. Social Media Survey 2012 measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit www.nielsen.com. 13 Nielsen Mobile Connected Devices Report (Q2 2012) 14 NM Incite’s Social Guide (Twitter 2012 Social TV), Nielsen U.S. Social Media Survey Drives ABOUT NM INCITE NM Incite, a joint venture between Nielsen and McKinsey, provides social media software, research and advisory solutions to global Fortune 1000 marketers 15-16 NM Incite State of Social Customer Service Report 2012, Nielsen U.S. Social Media Survey 2012 looking to build strong, differentiated and emotionally-engaging brands. As one of the largest global leaders in applying social media to solve marketing 17-18 Nielsen U.S. Social Media Survey 2012 problems, NM Incite operates in over 30 markets, including the United States, Canada, United Kingdom, Germany, China, India Japan and Australia. 20 Nielsen U.S. Social Media Survey 2012 For more information, visit www.nmincite.com. Copyright © 2012 The Nielsen Company. All rights reserved. Nielsen and the 21-26 Nielsen Global Survey of Social Media Usage (Q1 2012) Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 12/5420. ABOUT NIELSEN’S U.S. SOCIAL MEDIA SURVEY 2012: The Nielsen U.S. Social Media Survey 2012 is based on a representative sample of 1,998 adult (18+) social media users who were recruited from the Nielsen Online Panel to take an online survey. “Social media user” is defined as participating, talking, and networking online through various platforms to share information and resources. This includes Internet forums, blogs, Facebook, Twitter, video sharing, consumer rating and other social networking websites. The survey fielded from July 19 to August 8, 2012. ABOUT NIELSEN’S GLOBAL SURVEY OF SOCIAL MEDIA USAGE: The Nielsen Global Survey of Social Media Usage was conducted between March 23 and April 12, 2011 and polled more than 28,000 consumers in 51 countries throughout Asia Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on their Internet users, and is weighted to be representative of Internet consumers and has a maximum margin of error of ±0.6%. This Nielsen survey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 percent Internet penetration or 10M online population for survey inclusion.27 28

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The social-media-report-2012 nielsen

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