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  • 1. Annual Report 2011:Welcome to Social Entertainment The most detailed set of data on your online audience ever 2011: 90K web users | 26 markets | 3 Waves of Data
  • 2. globalwebindex - Annual Report 20112010: Welcome to the Social Entertainment Age The first year of the GlobalWebIndex has revealed three clear trends in the consumer adoption of the internet. In combination they are driving a new age of social entertainment through internet platforms. In this report, we analyse the current global situation and the opportunities for the future for professional media, content producers and brands: Social media has reached mass maturity. Today it’s no longer about massive growth but a shift of already active social consumers to ‘real-time’ technologies, such as status updates or tweets. The old view of text-based social media, defined by blogs and forums, is being surpassed, moving the impact of social media, from creating content and publishing to sharing other people’s content and ‘live’ opinions about real-world events. In short ‘real-time’ is re-orientating consumer from creator to distributor and moving the focus to traditional media and professional content. The open browser-based web is losing out to packaged internet platforms such as mobile apps, internet connected TVs, tablets, e-readers, pc apps, gaming and video platforms. These packaged platforms are re-engineering the internet and destroying the notion of the internet being a singular entity. Crucially for the entertainment revolution, they provide professional media with the means to create sustainable internet business models, something the economics of the browser-based web totally failed to enable. Professional “traditional style” content is now a core part of the consumer online experience. Internet platforms, for hundreds of millions of consumers, are increasingly the entertainment platform of choice. This is due to continual growth of professional content in video sites (legal and illegal), the rise of ‘real-time’, and the growth of packaged platforms. Tom Smith Founder of the GlobalWebindex @globalwebindex |
  • 3. globalwebindex - Annual Report 2011 2010: Welcome to the Social Entertainment AgeThese trends will revolutionise our view of the internet. In particular, the packagedinternet will transform the way we get online, the content we consume, and the ways Rise of thewe can create, share and communicate. Going forward five years it is clear that manypeople’s internet experience will not be through a browser, but through some form of packagedpackaged platform. While many ‘internet purists’ will bemoan their lack of openness,the creation of barriers to entry, and shift in control to small numbers of gatekeepers, internetpackaged platforms crucially enable professional media to create sustainablebusinesses online without having to change the way that the open web works.This is as important, if not more important, for a healthy society as enablingconsumers to publish and share their opinions or content. The open browser basedinternet has failed to create the economics to deliver professional media businessonline, as advertising could not demand the premiums needed and consumers areunwilling to pay for content delivered through a browser. These changing commercialopportunities will capitalise on the consumer demand for social entertainment online.They will however have to change the way that they create and deliver content andmake sure they integrate social technologies into their product. Professional Social Content EntertainmentIncreasingly ‘real-time’ social will be integrated with the traditional content experience.Imagine live Twitter style messaging around major TV events or programming Explosionrecommended by your social network. This will extend the impact of social mediaoutside of the browser as well as surpassing the old models of delivering media, suchas cable TV, satellite, radio or newspaper2011 and beyond is a promising to be an extremely interesting period of innovation.Next year the GlobalWebIndex will track these shifts through 26 countries, 3 waves ofresearch and 90,000 surveys. Real-time Social
  • 4. globalwebindex - Annual Report 2011 The Data Source: GlobalWebindex• The GlobalWebIndex tool is powered by the most detailed set of data ever compiled on global internet behaviour, social technologies, digital content and the role for brands online. All of our trends are sourced from this data set.• Such a regular and detailed view of changing internet trends has never been compiled before at a global level.• The release of the third set of data covering 51,000 consumers globally over the last 12 months paints a unique picture of changing internet behaviour and, more importantly, what it means for your audience, category and brand.• There is a minimum sample of 2,250 per market over 12 months, to enable deep analysis, and over 500 variables to define audiences specific to your business.• All of this analysis is primary research data. The data set is based on a representative sample of web users’ primary research data collected via online surveys from Lightspeed Research global online panels.• The GlobalWebIndex tool was created by Trendstream, a company who create data-driven applications to aid decision making. All insight and analysis in this document is provided by, Trendstream Consulting, a dedicated team of experts on the global adoption of internet, social technology, marketing communications and paid content, who help their clients to understand the opportunities of the changing internet ecosystem. Wave 2 Wave 3 Wave 1 Jan 2010 Sept 2010 July 2009 Year 1
  • 5. globalwebindex - Annual Report 2011Social Media: The Move to “Real-Time” Creator Network
  • 6. globalwebindex - Annual Report 2011 Social Media has reached Mass MaturityOverall social engagement across social networking, micro-blogging, videouploading, news writing or blog production has reached massive levels in all markets. Figure 1: Combined monthly involvement of social network users, micro-blog users,Even in the least engaged markets, nearly 50% of consumers participated in some video uploaders, news writers and blog writers. PC internet. Wave 1 to 3.form of social contribution in the last month. This is a significant indication of the totalimpact of social media. It has, in the last 5 years, redefined all internet markets. Japan 90% SpainWhen we look at the combined reach in markets such as Brazil and India, this almost Brazil 80%reaches 90%, showing mass saturation. This a clear indication that the massiveperiods of growth are over. 70% Netherlands India 60%This view of total social engagement reveals a smaller gap between fast growing 50%emerging markets and older developed web markets than is often reported. Forexample, the US and China have the same level of social engagement, although if you Russia 40% Francelook at individual platforms (see Figure 3) China will lead the US in everything. This 30%shows us that social users in China tend to do more across more platforms, while 20%users in the US are more fragmented. 10% China 0% Germany USA South Korea Canada Australia UK Italy Mexico Wave 1 (July 2009) Wave 3 (Sept 2010)
  • 7. globalwebindex - Annual Report 2011 From “Static Social” to “Real-Time” SocialDespite the overall saturation, there has been major shifts in the last 12 months among This shift into micro-blogs and social networks means that the majority of consumerexisting social consumers from creation platforms to networked ones and social involvement in social media is related to providing real-time opinions, links or sharednetworks and micro-blogs which have both grown a huge 20% year on year. content through status updates. This radically changes the impact of social media, by primarily creating an ongoing shared agenda and conversation, that steers consumerSocial media used to be defined by long form primarily text-based content, whether involvement towards reacting or interacting with live events and discourse, rather thanthat be forums, websites or blogs. But not anymore; blog writing has declined by 4% creating their own agenda or content.and forum contribution has shown an 11% decline. There is also a clear embracement of the entertainment agenda and there is a significant 16% increase in uploading video online, again a clear shift away from the old model of text and commentary. Figure 2: Online behaviour % of monthly access/usage – Global Data. Waves 1 – 3. Professional / Rich content Live “Real-Time” Social Creation Social 70% Online services / productivity 60% Change (last 12 months) 50% 40% 30% 20% 10% 0% -10% og e l ip e ed d e g ns t te e ic te s te e IP e le te er r ai as to lm re lin in lin cl lin in oa us ofi cl si si si si ng O m io fe bl a rti l nk dc rf on on on on /fi eb eb /V nl eg lm eb o at g pr ng sa /a n S fo de ba in w po ic w w ow RS gr W os o o o s gi es k e ga ar do e pl w di e de vi or y lin n or ag og et a ar ot id tm sh or d o le ow ap ra ur an w a vi e on rn se ed sh ftw /v ph y bl st an ar et yo d ed eo or VE an te a e U ro to ch ed oa TV tw ll ln s TV so fic d st in d ch d id ca st n w ic LI de at ed ag nl de se of ia te of tv ne VE a m in d d e at to /w w e oc rs rit oa ib se fre an U de oa on W on e si d a do LI n W cr d lin rs se fo U pl Vi /m oa te pl d ed e d ph t d bs se en U to on en U U de rit u id e nl en yo ch Su d e U W m Pa id st ow oa d ad ite st m at Pa Li se ed nl Li D Ed M co W U ow ag a an /d ft M Le am re St
  • 8. globalwebindex - Annual Report 2011 The “Real-Time” Shift is GlobalLooking at the global distribution of “real-time” versus traditional social platforms, we Interestingly, developed web markets such as the UK, the US or Canada, while notsee an interesting distribution in monthly consumer involvement. The Asian markets leading the way, are far more skewed towards real-time platforms, due to lowerare still very focused on personal publishing, with China, Japan and South Korea consumer engagement in blogs and forums and the mass adoption of socialhaving a strong focus on social blogging platforms. networks.The fast growing web markets of Brazil, India, Malaysia, Poland and Russia lead theway in social networking and micro-blogging involvement. However, they also havevery high levels of involvement in blogging and forums, showing that there is a two-tierinvolvement between real-time and old time social platforms. Figure 3: Active monthly behaviour. Wave 3. 80% Manage your own social network profile Used a microblogging service 70% Written your own blog Contribute to a forum 60% 50% 40% 30% 20% 10% 0% K lia na o SA nd s e l a a ia in an y a ly i a ic nd az U c ad si an re di ss ra a hi Ita an la U p ex ay Sp Br Ko rla In an m st C Ja Po Ru Fr M al Au er he C th M G et u So N Source: Wave 3, September 2010
  • 9. globalwebindex - Annual Report 2011 “Real-Time” – Mass InvolvementSocial Networks have been transformed by real-time involvement. Once upon atime (when MySpace was big) they were static places focused on consumer Figure 4: Frequency of updating social network – status updates. Global Dataprofiles. Now thanks to inspiration from Twitter, they are real-time as pioneered byFacebook news stream and being replicated across the world, in-particularservices like RenRen in China. The impact is clear, already 10% of all web users areupdating their social network profile on a daily basis and 24% on a weekly basis.Micro-blogs, remain smaller, are still updated daily by 5% of all web users. Twittersgreatest impact is by creating the concept of real time contribution, not necessarilydirect usage of the service. +10% - DailyThis is a massive volume of interaction, conversation, opinion and content sharing +24% - Weeklythat is reshaping the way the web works: +32% - Monthly• These platforms depend on shared focal points and events. These are frequently live real life ones or mass media. +55% - Ever Done• The light nature of interaction focuses users on sharing content over creating. This means that consumers can no longer shape the agenda through long form content and expressed ideas and opinions. Links, great content and light commentary on external events are what define consumer involvement.• The bottom up dynamic, that defined early social platforms is being eroded. This is particularly stark with micro-blogs, as we all seek to connect and follow with people in the public eye. Its no surprise that celebrities, politicians, sports people, journalists and musicians dominate the rankings on Twitter Figure 5: Frequency of updating micro-blog – status updates. Global DataThis is a major change. For years the web has been seen as a threat to the old orderof media giants, big brands and the political elite. Now, as clearly shown in this +5% - Dailyresearch, changing trends in social participation are reinforcing and promoting the oldhierarchical model. A major shift in the perception of social media. +9% - Weekly +12% - Monthly +29% - Ever Done
  • 10. globalwebindex - Annual Report 2011 Who is Driving “Real-Time”?The “real-time” revolution is being driven by younger demographics. Almost 17% of16-24s are updating their social network on a daily basis. Figure 6: Percentage of web users who update their social network on a daily basis Wave 3 September 2010. Global DataWhen we delve into the demographics we can see distinct differences in the type of 0% 5% 10% 15% 20%web user who is embracing real time.Taking “Category of Work” as an example, we can see that people who work in Male Demographicsadvertising and marketing are the most likely to be contributing to the real-time Femalerevolution. This is followed by people in IT, then retail and healthcare. This showsthat the industry is leading the curve in adoption. 16-24 25-34 35-44 45-54 55-64 Financial Services Category of Work Retail Professional Services (Law, Accounting, Architect etc) Healthcare/Medicine Manufacturing, Engineering Construction Education Government (excluding Education & Health) Police oArmed Forces Agriculture oMining IT, Internet, Software, ComputeServices Transport, Logistics, Distribution Travel, Tourism, Leisure Services Advertising marketing omedia
  • 11. globalwebindex - Annual Report 2011 The Synergy between “Real-Time” and Professional ContentWe can clearly see how micro-bloggers are driving this new era of entertainment. Figure 7: Micro-blog frequency versus consumption of TV content online.If we take the example of consumption of TV content via internet platforms, frequent Wave 3 September 2010. Global Datamicro-bloggers are far more likely to consume professional content. 0% 10% 20% 30% 40% 50% 60% 70% 80%Over 70% of users that post more than once a day have streamed a TV show ondemand or live in the last month. Then, as frequency diminishes, consumption of TVcontent falls. Every other dayTraditionally we think of “hard core” social media users as turning their back ontraditional media or professional content. This is not true and, as we can see, people Every 3-4 dayswho have never used a micro-blog are very light consumers of TV content online, withonly 25% streaming TV or watching live TV online in the last month.It’s this relationship between traditional content and real-time social that demonstrates Once a weekhow the two are interlinked and are driving a new social ecosystem. Twice this month One time only this past month Havent Used in the Last Month Never Used Watch TV shows on demand via online service Watched Live TV / Video online
  • 12. globalwebindex - Annual Report 2011 We are the Network – not the CreatorThe changing social ecosystem can be seen through the way that users are adopting This is contrary to the impact of when social media emerged. For example, when blogsmicro-blogs. Figure 8 shows current behaviour on a micro-blog and also growth rates arrived they were seen as a publishing revolution and one that opened up the mediabetween January and September, clearly indicating a shifting dynamic from personal world to consumers. Today, these creation platforms are in decline and thecontent to professional content. Personal pictures, while still the number one action on professionals are back in the driving seat when it comes to content. This makes thea micro-blog, fell by 5% in the period, while links to external news stories increased opportunity for brands and media companies even more 17%. This is a pattern that is repeated on social networks and video sharingplatforms, which are orientating away from being places to share personal content. “‘real time’ technologies such as Twitter are increasingly orientating us towards the professional, rather than driving a bottom up dynamic” Figure 8: Activities on a micro-blog. Monthly percentage by active micro- blog users and Wave 2 v Wave 3 percentage change Links to news stories An opinion on a product / brand A link to your blog Personal photos 0% 10% 20% 30% 40% 50%
  • 13. globalwebindex - Annual Report 2011 The Impact of the Consumer-Driven NetworkWhile professional content grows massively, the consumer rises in influence. Figure 9 This shows how important the synergy between professional content and thelooks at the change in perception of “trusted product recommendations”, with a huge consumer distributor will be into the future. Increasingly, we turn to the consumergrowth in trust for social network or micro-blog contacts. network to drive our consumption trends. Figure 9: % change from Wave 1 to Wave 3 data. Scored 4/5 from a 5 point scale, where 5 = strongly trust. 5 from 21 sources of recommendation shown Newspaper Blogger A Social Network Contact Television Radio Microblog Contact +47.5% +16% +21% +3% +8% +2.5%
  • 14. globalwebindex - Annual Report 2011 Entertainment is Driven by the Consumer NetworkIt is clear how this consumer network is impacting content distribution, when we It’s this increase for entertainment-driven content that demonstrates how importantexplore the importance of “friend recommendation” in sourcing content online. When the consumer network will be in guiding our content consumption and choices as welooking at news, only 17% of respondents choose this as the key motivation. move into the future.However, when we look at video, this rises to 28%. Figure 10: Key factor in sourcing a news story online. Wave 3. Global Data Figure 11: Key factor in sourcing an online video. Wave 3. Global Data News Video 16.5% 32.9% 36.8% - Familiar Site 39.2% - Familiar Site 18.0% 36.8% 18% - Answers a search query 16.5% - Answers a search query 28.2% 17.0% 17% - Friend Recommendation 10.6% 28.2% - Friend Recommendation 11.8% 11.2% 11.2% - Quality of Design 11.8% - Quality of Design 18.0% 18% - Recently Produced 10.6% - Recently Produced
  • 15. globalwebindex - Annual Report 2011The Rise of the Packaged Internet Games Consoles TV E-Readers/Tablets Mobile Devices Apps
  • 16. globalwebindex - Annual Report 2011 The Death of the Internet – Hail the internetIn 2010, we have seen a massive growth in “packaged internet” platforms, such as This growing trend thoroughly undermines the concept of “the internet” as a media orapplications, games consoles, mobile (technically allows open web usage but typically singular entity. More crucially, they are bringing back “traditional media” economics,focused on repackaged sites and apps), and now television sets and e-readers into included barriers to entry for consumers’ content and a more limited and dictatedthe mainstream. They are moving interaction away from the open browser-based choice for consumers. In the future, connecting to the internet may look more likedelivery of content that people think of the internet. We can already see that 4% of switching on your web users have accessed the web through their TV, 10% through a gamesconsole and 2% through an e-reader. As our research shows, these “packaged platforms” will grow massively. While they’re not open, or consumer driven, they work. You only have to look at the success of the iPhone and app platforms. If it works, we embrace. Disconnected, open browser-based platforms tend not to work as well as packaged ones for delivery of a seamless entertainment experience. Figure 12: Monthly access to the packaged internet. Global Data TV 4% Mobile Apps 25% Mobile TV Streaming 35% On-Demand 27% E-Readers Gaming 2% 10% Browser-based Web Packaged Internet
  • 17. globalwebindex - Annual Report 2011 The Impact of Mobile: Entertainment EverywhereInternet access via mobiles has exploded (Figure 13) in the last 12 months, rising from Today (Figure 14), mobile devices are being primarily utilised for services. However,25% of web users to 33%. While you can use your mobile device to access the open updates to a social network service now stand at 38% of web users, while an updateweb, the large areas of growth are due to applications or mobile formatted sites, which to a micro-blog service stands at 14%. This will grow massively. This light sociallimit user experience or provide a smaller section of content. The mobile drives the involvement will define the future of consumer contribution as more and more of webshift into the packaged internet. access is via mobile and portable devices. Mobile is also bringing in an age of entertainment, despite small screens. Just over 17% have watched live streamed TV in the last month, while 26% have watch an on-demand video. Figure 13: Percentage of PC internet users who access via mobile in the last month. Figure 14: Mobile internet actions/behaviour last month. Percentage of mobile Global data internet users. Global data Read news Used mapping service / search for directions Searched for local services / places to go 33% Searched for a product / service to buy Updated your social network profile 25% 27% Wave 3 Checked sports scores Used an online banking service Wave 1 Wave 2 Uploaded a photo to a website Watched an on-demand video Wrote and uploaded a blog post Bought a product on a retail site Watched live streamed TV Update your microblog status Access live travel information Check stocks and financial information 0% 10% 20% 30% 40% 50% 60%
  • 18. globalwebindex - Annual Report 2011 The Future of the InternetIf we think about the internet in 10 years, it is clear that the browser will seemantiquated. Already, many new TV sets integrate internet-enabled content and “In 10 years,services. In a decade, there will be a mass market global internet delivered contentnetwork that links straight to your TV. It may look more like your cable service, but tomany it may be their primary internet experience.While many ‘internet purists’ we bemoan their lack of openness, the creation ofbarriers to entry and shift in control to small numbers of gatekeepers, packaged it is clear that the browser will seemplatforms crucially enable professional media to create sustainable businesses onlinewithout having to change the way that open web works. antiquated”This is as important, if not more important, for a healthy society as enablingconsumers to publish and share their opinions. The open browser based internet hasfailed to create the economics to deliver traditional media business online.This shift will infuse social dynamics into traditional media environments. The contentwe consume will be dictated by other consumer recommendations, live Twitter-stylemessaging will bring programming to life and social networks will allow us to shareand consume content as a shared experience. This is a true revolution in mediadelivery and one that makes “real time-social” one of biggest opportunities ever .This growth will cannibalise internet usage in open browser-based environments.More importantly, packaged internet platforms will start to replace traditional mediadelivery platforms, such as terrestrial, cable or satellite TV providers. Rather thanbeing a threat to the content producers, the social entertainment landscape is a threatto the distributors and the networks.This is already happening in developed markets, where commercial gains and budgetsare bigger and investments have been made to bring the packaged web to the livingroom. This we expect to continue, and the upcoming launch of the BBC-backedYouView in the UK, which integrates traditional broadcasting delivery with on-demandonline content and social applications into one mass market-friendly box, underlinesthis.Markets like the US, the UK and Japan will be dominated by the packaged internet,while markets like Brazil and China will be slower to move from the open webenvironments, due to lack of commercial development and the proliferation ofnon-copyrighted (legal or illegal) content available on the open web.
  • 19. globalwebindex - Annual Report 2011 The Packaged Web brings New Commercial DynamicsThis change will bring dramatic impact to the way we look at and talk about the This is why news websites have not managed to drive the revenues of their offlineinternet and how it enables traditional media, entertainment-driven models. It will counterparts. It is also why social networks have struggled to drive value fromchange the economic models that underpin the internet and will enable content advertising and attract big brand advertisers. They had almost unlimited inventory,producers to extract value from their content online. without any content context. It could only be sold on response basis. Facebook’s social ads are a step in the right direction, but ultimately it’s conversations and notBy looking at advertising, we can understand the dynamics more clearly. Advertising advertising that brands relish in the social space.on the open web has long been priced and benchmarked on response and clickthrough, due to the almost unlimited supply of inventory. This pure price approach that This will change. The packaging of the internet is a huge opportunity for weboccupies the majority of the market has driven costs in an ever decreasing spiral. companies to monetise their advertising assets more effectively, by channelling usersAdvertising offline has always maintained its value through a scarcity of supply, through a more traditional environment, offering limited choice, high quality content, acontext to content and by associating with “watercooler” moments, that drive out shared consumer experience and creative and inventive advertising solutions that gooffline conversations. beyond banners. Figure 15: The dynamics of the packaged internet Open Web Packaged Internet Experience Unique & Singular Shared Consumer Navigation Search / Query driven Guided / Limited options Contribution Creation Distribution Access No barriers to entry Barriers Content Lead Creator Consumer Professional Popularity Long tail Chart / Hit models Access Point Singular Entity Multiple platforms Web Platforms Scale As big as possible Targetted Commercial Model Build it & then work it out Profit model from Day 1 Inventory Unlimited Scarcity Approach Optimisation Strategy Advertising Metrics Click through Engagement Pricing Ever decreasing Increacing Value Context None Related to specific content Owned Space Web Site Content / Experience Brands Role Information & Accessibility To Entertain & Educate Consumer Engagement 2-way conversation Network Activation
  • 20. globalwebindex - Annual Report 2011Professional content explosion Books Internet Films Magazines TV Music
  • 21. globalwebindex - Annual Report 2011 Entertainment is the Key Growth Motivation in 2010Our motivations to get online (figure 16) have shifted considerably in the last 12 This is reflected in the growth of internet enabled platforms which has made richmonths, with content focused ones exceeded those for social connection. The fastest content easily accessible online.growing motivations to use the internet are “finding TV / Films”, “Finding music” and“Entertainment”. A clear demonstration of the new age of entertainment that is driving Long term this is a clear indication of how the future of the internet will orientate to bechange in how we use the web. the mass entertainment and content delivery platform. We as consumers are going back to traditional needs and demands and seeking a more passive experience. Figure 16: Our “Very important” motivations to use “The internet”: Global Data. Percentage change between Wave 1 v Wave 3. 5 out of 21 motivation statements To stay in touch with friends Entertainment To find TV / Films To share my opinion To find Music +22.3% +28.5% +13.3% +13.4% +0.5%
  • 22. globalwebindex - Annual Report 2011 Traditional Content is a Core Part of the Online ExperienceFor web users across the world, traditional content is now a core part of their online However in established internet markets like the US and the UK, much of this is legal,experience. thanks to the efforts of broadcasters to put their content online.In September 2010, 29% watched live TV, 27% of internet users streamed on demand Most of all, it shows: how popular on-demand streaming is online; the value of socialand 25% downloaded free programming. This compares with just 13% who media to drive consumption; and how much demand there is for the internet todownloaded illegally. It is undoubtedly the case that much of the streaming will be via provide the entertainment experience. It also demonstrates the massive opportunitiesnon-legitimate sources, particularly in markets like China, India or Malaysia. for professional content producers and rights holders to drive audiences and revenue online. Figure 17: Our “Very important” motivations to use “The internet”: Global Data. Percentage change between Wave 1 v Wave 3. 5 out of 21 motivation statements Paid for TV / Film Downloads Download free TV / Film content Watched Live TV Download TV shows via P2P Watched TV on demand via streaming service 25% 27% 29% 9% 13%
  • 23. globalwebindex - Annual Report 2011 Video Streaming: The Shift to Professional ContentLooking specifically at weekly video streaming habits through video sharing platforms,we can see how this new landscape of content consumption looks. Consumer Figure 18: Percentage of active video viewers who watched full length TV programminggenerated content, which has traditionally defined the growth of video, is now eclipsed online in the last week. Wave 3 data. 1 from 22 types of video content viewedby traditional rich content in all markets, a demonstration of how social platforms aredriving consumption of professional content. There are nuances in this shift, 0% 10% 20% 30% 40% 50% 60% 70%depending on local market trends, and interesting distinctions betweencommercially-led and organic, consumer-led markets: UGC / Personal home videos• China: a more liberal attitude to copyright means that the leading Chinese video platforms, such as YouKu and Tudou, are dominated by long form content. Consumers have been free to upload and share any professional Music videos content, and users can watch any TV show or film at the click of the button. This is a far better offer than the state-controlled TV and the internet is becoming the main entertainment platform for hundreds of millions of people. It also shows what happens when you let consumers distribute and upload Full length TV show professional content in a free and open network.• Brazil: a YouTube dominated market and the massive consumption of music videos is a reflection of the number of people that utilise YouTube as an Full length sports programs on-demand music player.• UK: the rise of professional platforms, such as iPlayer from the BBC, ITV player, Sky Player and Seesaw, plus the growing integration of professional content Sports hi-lights into YouTube has driven full length programming consumption.• USA: the same story, where Hulu, YouTube and the networks have pushed Full length films consumption, but not to the same levels as China, where organic consumer-driven distribution has made professional content a mass phenomenon. Film Trailers Brazil USA China UK
  • 24. globalwebindex - Annual Report 2011When Brands and Content Producers became One ContentBrand Opportunity Producer
  • 25. globalwebindex - Annual Report 2011 The New Entertainment EnvironmentThese mega trends that define the internet in 2010 represent a huge opportunity forcontent companies and brands. “The challengeFor the content companies there are obvious and immediate opportunties to distribute now is not selling theand monetise their content on a global scale, while the packaged internet offers thechance to reintroduce traditional economics that drive advertising revenue and need to be involved incollective mass audiences. “Real-time” provides a mechanism to build “live”feedback, a channel to distribute content and a way of creating live community around social, but how companiesreal events. and brands engage theFor brands, the shifts represent a major opportunity. Online advertising and search,which has typified the last 10 years of online, with its unlimited inventory and the focuson optimisation and “click throughs”, has often fallen short of the branding current online environmentenvironment that traditional media delivers. However, the packaged platforms offerhigh quality advertising placement, while consumers in this new age of social to proactively buildentertainment demand content from brands. their brand”Today, the challenge is typically seen as selling social involvement to companies andbrands. This is not the case. We have already seen the success of employing socialplatforms to deliver customer service and enabling customer feedback . As this datashows, consumers significantly value this and it’s an approach that will become asstandard as operating a call centre. The real challenge now is how companies andbrands embrace this new era of entertainment to build their brand in the growingcontent environment. In a world that is dominated by the packaged internet,conversation will be more limited. Content will be king.The puts big brands in a great position. They have resource, the connections and thecredibility to create online experience and content and the network of staff, agenciesand consumer advocates to distribute them.
  • 26. globalwebindex - Annual Report 2011 Monetising Content OnlineThe packaged internet demonstrates how content companies can drive real revenues This shows how high quality packaged content platforms can drive revenue as theyonline. Rich content that consumers can download and keep is by far the leading create a higher quality experience.content form for consumers to purchase online, whether that be music, TV or e-books.The interesting thing is that people pay for permanent content over the service or Interestingly, the lack of advertising is the second key factor. This shows how brandsdelivery. will need to embrace the culture of entertainment to increase their opportunities to drive engagement. Following that are the ability to access from all devices, online onlyWhen we look at the motivating factors we can also see that the leading factor to drive content, and instant access to complete series. These show that there is muchpayment is “high definition”. potential to deliver content using new models of delivery. Figure 19: The content/services that consumers would pay for online. Global data Figure 20: The key motivating factors to pay for video content online. Global data Music download to keep Higher quality e.g High Definition Television / Film download to keep No advertising E-book Being able to accessPremium web service e.g email / online storage from all my devices An application for your mobile phone Access before the offline release A mapping / GPS service of a mobile phone Television / Film live stream Instant access to episodes of a series A multi-player online game Access to content that will only be released online A game on your mobile phone Priority in purchasing tickets for News website offline screening / performance Music to stream to stream on-demand Digital rights management free Live sports stream online Sports hi-lights To support the producers / artists A social network service An option to share with friends A dating service Access to a related exclusive A photo sharing service community to meet other fans 0% 10% 20% 30% 40% 50% 60% 70% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
  • 27. globalwebindex - Annual Report 2011 Consumers want Brands to Entertain themIn this age of entertainment, the consumer/brand relationship is changing. It is clear Older age groups are more focused on product information and, in particular tothat consumers actively want to engage with companies and brands. “improve their knowledge”.Often, people in the marketing industry talk about what is appropriate for brands to This is a major shift in how consumers relate to brands and is a clear indication of theengage in. There is also a perception that as social media is “consumer driven” it’s not need for brands to adopt the position of content creator to either entertain or inform.always appropriate for brands to engage or there is a need to be extremely cautious. The web is an inherently commercial space, and brands have a major role to play inThis is untrue. Consumers are extremely open to brand engagement and, in the age of defining its future through great content, digital experience and applications.entertainment, this goes beyond information and conversation. The lead motivation foryounger consumers is for brands to “entertain them”, with up 66% of 16-24 year oldsstating this as a way they would like a brand to act towards them. Figure 21: “How do you want a brand to act towards you?” Global Data Keep you informed Provide you with on the product and Improve your Connect you with interesting real life Be part of your Help you organise Talk to me like a Entertain you the company knowledge people experiences daily routine your life real person 16-24 66% 45% 61% 42% 36% 37% 30% 22% 25-34 60% 50% 62% 35% 37% 36% 34% 24% 35-44 52% 55% 68% 29% 31% 36% 35% 31% 45-54 45% 61% 72% 28% 30% 34% 32% 36% 55-64 40% 64% 76% 29% 27% 34% 30% 44%
  • 28. globalwebindex - Annual Report 2011 Interaction Versus EntertainmentMass market social media has enabled a revolution in how consumers can interact For large ticket items, such as cars , there is a clear consumer demand for real-timeand be serviced by companies and brands, driving new levels of interaction and contact and service, with even higher scores than for a brand you like.transparency. There is also major demand for the same large ticket brands to create content. ForThis is of clear interest to consumers, as we can see from Figure 22. When asking what cars/autos this is clear, with online videos featuring the brand ,and sponsorship oftype of digital marketing activities improve their opinion of a brand we can see that music downloads leading the way. This underlines how brands can now go muchdirect conversation wins. further in directly engaging consumers. Figure 22: “Which of the following marketing communications activities improves your opinion of a brand?” 3 out of 10 categories 50% 45% 40% Interaction Entertainment 35% 30% 25% 20% 15% 10% 5% 0% Becoming your Using micro-blog Creating blogs to Contacting me Talking to Creating a Listening to the Sponsoring Creating videos Create applications friend in a social / social network talk about the with helpful bloggers directly website allow comments that music downloads online featuring / online services network pages to provide company and information if I about relevant you to interact people say on the brand customer support product mention the brand products and with the brand forums, or social / service on a microblog services / company networks directly Brand you like Alcoholic Brand Car / Auto
  • 29. globalwebindex - Annual Report 2011Where next?: The Future of Social Entertainment Future ContentBrand Producer
  • 30. globalwebindex - Annual Report 2011 The Future of Social EntertainmentThe combination of real-time social, rich professional content and packaged platforms • The emergence of the 2 tier web: The packaged web is driven by the media,is changing the dynamics of the web today and will increasingly transform all content technology and web businesses. It is commercially driven and will grow whereand media delivery in the coming years, particularly as the internet begins to link all there are bigger budgets to invest and higher returns to make. We expectdevices: markets like the US, the UK and Japan to be very focused on packaged platforms into the future, while markets like India, China or Brazil will not have the “big• The fusion of social technologies and professional content: This will change the media” commercial development and will be orientated around the open web. dynamics of content distribution. Your social network, contacts on Twitter or social data will impact what you view, replacing the scheduler or editor. • The rise of social data-driving content selections: Consumer impact is less about the content they make and more about the trail of data they leave behind,• Tangible web: Increasing the internet will not only be packaged into digital whether that be number of views, similar views or rating. applications, but physical boxes. TV connected boxes that mix web content, applications and traditional live TV onto your screen, will become the next thing, • Brands as content producers: All companies have great stories to tell. The social or tablets that are pre-bundled with content, and paid for with a contract. The entertainment age provides an opportunity to create these and to distribute physical object enables the extraction of value in the digital. them. There is also the opportunity to be more involved in the financing of good content. Who would bet against Coca Cola have a programming division in the• The content passport: A key consumer driver to pay for digital content is to link next 10 years? The line between content producers and brands will disappear. it with multi-platform. Imagine a content application that provides you access to a film via your mobile, PC, TV, the soundtrack for streaming, exclusive access to the fanzone community and digital mobile vouchers to enable real world cinema access or a live event.
  • 31. globalwebindex - Annual Report 2011 Find out More!• The GlobalWebIndex team is based in London and work with customers from all over the world. If you want to find out how you can understand your audience, business and category online and experience the product to see how it can enable exceptional internet strategy, get in touch today to organise a demonstration:• +44 (0)208 549 3955••• Or stay in touch with the latest research and trends at Twitter: @globalwebindex and on Tumblr: globalwebindex.tumblr.comThe work of the following flickr users is duly acknowledged under the creative commons attribution license:• dailyinvention• eye of einstein• markhillary• Mike Fleming• Mr Negative• sjon• Tay• Tedd Santana