Net Index 2011 Highlights VietnamNo part of this document may be quoted, reproduced, stored in a retrieval system, or transmitted in any form or by any means – electronic, mechanical,photocopying, recording, or otherwise – without the written permission of Yahoo! Southeast Asia Pte. Ltd. and TNS Media Vietnam.
What I will cover today…1. Net Index Vietnam 2011 • Press Release • Deep Dives – selective socialization – e-commerce/deal aggregation2. Helping you to help us! • Moms • Youth
Yahoo!-Kantar Media Net Index 2011 At Yahoo! and Kantar Media, we believe that fact- based insights should drive decision-making!• In 2009, Yahoo!-Kantar Media Net Index was launched to get a baseline understanding of the Vietnamese internet user• Building on this foundation, the study was repeated in 2010 to track shifts in user behaviour and evolving preferences• In 2011, the study continues to evolve, to reflect the changing digital landscape…whilst maintaining key longitudinal measures
Research Design• Methodology Personal face-to-face interviews (linked to TNS Media Habits survey)• Area Coverage All Urban – Ha Noi, Ho Chi Minh City, Da Nang & Can Tho (previously urban and rural)• Respondents Males and Females aged 15-54 who have used the internet in the past month• Sample Size 1,500• Sampling Approach Multi-stage Probability Sampling• Fieldwork Period January to February 2011
Internet reach (daily) has now surpassed both radio and newspaper… 2010 2011 % Reach 94 98 Yesterday 36 40 10 5 22 23 33 42 0 0 TV NEWSPAPER 100 98.8 Last week MAGAZINE 76 65.3 46 23.3 RADIO 33 35.9 INTERNET 47 52.3 CINEMA 3.8 4 100 99 Last Month 77 70 56 39 36 40 52 56 11 15Base: Urban Vietnamese aged 15--54Source: Kantar Media MHS 2009 Wave 2 , April 2011 dataset (Fieldwork Week 33 2011 – Week 4 2011)
Access grows across cities … Past Month Reach (%)Base: Urban Vietnamese aged 15--54Source: Kantar Media MHS 2009 Wave 2 , April 2011 dataset (Fieldwork Week 33 2011 – Week 4 2011)
Dominant activities in Vietnam are information gathering, entertainment and connecting with others Activities undertaken in past 3 months 2010 2011 Read News Online 97 97 Visited internet portal front pages 96 96 Used a search engine 95 96 Read entertainment/celebrity news 79 80 Used instant messengers 77 73 Read sports information 60 66 Downloaded or uploaded music files online 64 61 Used email 63 60 Played games online 50 57 Visited a social networking site 41 55 Visited forums (community groups) 51 40Base: Past Month Urban internet users aged 15-54Source: Yahoo!-Kantar Media Net Index Vietnam 2010 / 2011
Internet adoption continues for teens and young adults… Past Month Reach (%) Total Age GenderBase: Urban Vietnamese aged 15-54Source: Kantar Media MHS 2009 Wave 2 , April 2011 dataset (Fieldwork Week 33 2011 – Week 4 2011)
…fuelled by their appetite for entertainment content Content Preferences on Internet Portals (T3B%) Total (%) Aged 15-19 Aged 20-24 (Index) (Index) Entertainment news 61 111 95 Local music 57 126 117 Social updates from your network 52 97 98 National/Local news 51 72 91 Interesting videos or photos 45 125 105 International music 45 138 117 World news 44 75 94 Lifestyle 42 96 102 Movies,TV or Drama reviews and guides 42 123 103 Sports 39 85 89 Games 38 152 115 Travel 30 104 91 Traffic updates 27 63 91 Business news 26 38 76 Blogs 24 150 124Base: Past Month Urban internet users aged 15-54Source: Yahoo!-Kantar Media Net Index Vietnam 2011
Shift from shared to private access … with mobile on theverge of overtaking iCafes… Place of access (%)Question : Access the Internet on a regular basis and have done in the past three months – from each location?Base: Past Month Urban internet users aged 15-54Source: Yahoo!—Kantar MediaNet Index Vietnam 2010 / 2011
Mobile growth greatest in Da Nang and Can Tho…where users are leapfrogging to mobile Access from mobile (%) 61 2010 2011 46 34 30 26 25 21 19 12 14 Total HA NOI DA NANG HCM CITY CAN THOQuestion : Access the Internet on a regular basis and have done in the past three months – from a mobile?Base: Past Month Urban internet users aged 15-54Source: Yahoo!—Kantar MediaNet Index Vietnam 2010 / 2011
The catalysts for growth; low cost devices, affordabledata plans and aggressive promotion Availability of Low Cost Affordable Data Plans Industry-wide Sophisticated Devices marketing
Vietnamese Netizens impression of thechanging digital ecosystem?1. Evolution of Social Networking2. Online Transactions (deal aggregation/ e-commerce)
Steady growth in Social Networking… Email and Messenger remain dominant communication platforms Past 3 month online activities (%) Social Networking Email MessengerBase: Past Month Urban internet users aged 15-54 who have used the internet in the past monthSource: Yahoo!-Kantar Media Net Index Vietnam 2011
Mobile acting as a catalyst, allowing on-the-goconnectivity and instantaneous updates Mode for updating Social networking profile (%) Mobile Phone Browser Through PC 15% Mobile 98% Phone SMS 2%Question : How do you usually view /update your Social Networking sites?Base: Past Month Urban internet users aged 15-54 who accessed a social network in the past 3 monthsSource: Yahoo!—Kantar Media Net Index Vietnam 2011
Social Networking heavily favored by youth Used social network in past 3 months (%) 73 71 58 55 38 30 18 Total 15-19 20-24 25-29 30-34 35-39 40-54Base: Past Month Urban internet users aged 15-54 who accessed a social network in the past 3 monthsSource: Yahoo!—Kantar Media Net Index Vietnam 2011
Social networks start with ‘close contacts/relations’… but will then move to less familiar circles Connections on Social Networking sites (%)Question : Who are the people you interact with regularly on these Social Networking sites?Base: Past Month Urban internet users aged 15-54 who accessed a social network in the past 3 monthsSource: Yahoo!—Kantar Media Net Index Vietnam 2011
De-growth of Social networking is becoming welldocumented in more mature markets like USAFacebook Sees Big Traffic Drops in US Facebook sees a Decline in Youngand Canada as It Nears 700 Million UsersUsers Worldwide softpedia, June 12th, 2011Inside Facebook, June 12th, 2011 ALONE TOGETHERSocial Networks In Decline Why We Expect More From Technology and Less From Each OtherSmart Insights, April 12th, 2011 By Sherry Turkle
Social networks are primarily an expression of oneself, Vietnamese are not yet becoming selectively social Opinions on Social Networking sites (%)Question : Using a scale of 1 to 10, where ‘1’ means you ‘Strongly Disagree’ and ‘10’ means you ‘Strongly Agree’,please tell me to what extent do you agree with each of the following statements:Base: Past Month Urban internet users aged 15-54 who accessed a social network in the past 3 monthsSource: Yahoo!—Kantar Media Net Index Vietnam 2011
Evolution of Social Networking - Summary• Social networking is suited to one-to-many … mail and messenger remain dominant for personal one-to-one conversations• The continued growth of social networks in Vietnam, may lead to an increased awareness for the need to build “walls” within existing networks .. this need does not seem to exist currently!
The backdrop to e-commerce in Vietnam Presence of High reliance on IT and BankingTraditional trade counterfeits and inter-personal infrastructure legacy knock-offs relationships “evolving” Lack of‘accreditation and guarantees…by Buyers need to Buyers feel the Low levels of default modern ensure quality by comfort, dealing confidence/trust in trade actually physical inspection with known vendors transacting online encourages destination shopping There is an inherent reluctance to “trade” through the Internet
Despite this backdrop, people are still using the Internet to research, compare and “purchase” … Likelihood of purchasing online in next 12 months (%) Online TransactionsQuestion: Have you purchased products online in the past 12 months… payment could be online or offlineBase: Urban Indonesians aged 15-50 years old from SES ABCDE householdsSource: Yahoo!-TNS Net Index Indonesia 2011 Base 1712
Though payments are largely made offline, given current trust and comfort levels with e-payment Payment methods used (%) Cash (face to face) 93 Transfer via ATM/Bank 18 Debit card 14 Credit card 11 Deposited cash at bank branch 5 Online accounts such as Paypal 2 Internet Banking 2 No Cash (Goods Exchange) 1Question :In terms of paying for online purchases, which of the following payment modes/types have you used to pay for online purchases?Base: Past Month Urban internet users aged 15-54 who have purchased online in the last 12 monthsSource: Yahoo!—Kantar Media Net Index Vietnam 2011
Group buying sites like Groupon have createdsignificant buzz recently…Hailed by Forbes as the "fastest- Over the past three years, an entirelygrowing company in history", new industry known as group-buyingGroupon turned over US$760 million has suddenly emerged, and is growinglast year, and expects that to hit the at a phenomenal rate.billions this year. nzherald.comForbes
Group Buying: Description These sites negotiate discounts on popular goods, services and cultural events, which is offered to thousands of subscribers in a free daily email. Thedeals are activated only when a minimum number of people agree to buy.
Current levels of comprehension are high, howeverinterest is limited…will require considerable education EASE OF COMPREHENSION LEVEL OF INTEREST Extremely Quite interested interested 3 10 Somewhat Not at all interested interested 21 46 Slightly interested 20Question : After hearing the explanation of this concept, to what extent do you understand it? After having a look at the explanation of this concept, how interested are you in this overall concept?Base: Past Month Urban internet users aged 15-54Source: Yahoo!—Kantar Media Net Index Vietnam 2011
Deal Aggregation - Summary• Pure-play ecommerce offerings are still in nascent stage, given the constraints around infrastructure• Online buyers and sellers currently find each other online, but typically “transact offline”… which will be a key challenge for deal aggregation sites• For deal aggregation sites to be successful, a mind-shift needs to occur… there is a need to educate on the concept of deal aggregation, against a backdrop of reluctance to “pay” online
Key Takeaways1. Daily Internet reach surpasses radio and newspapers … reading news (both hard and soft) remains the top activity2. Internet access via mobile is growing quickly, which is facilitating accessibility in Tier 2 cities!3. Deal aggregation holds significant potential, but comfort in e- payment platforms will dictate the rate of growth!