Mark molenaar tns digital life south africa event jan 2012


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Mark molenaar tns digital life south africa event jan 2012

  1. 1. Digital Life © TNS 2011
  2. 2. The most comprehensive view of consumerattitudes and behaviour online Digital Life © TNS 2011
  3. 3. Realising the opportunityUsers Reach the Digital User, understand:“I am online”  What‟s the reach, size, structure of the digital channel?  Can I get my message to users in new markets?  How do I communicate with my target group?Consumers Engage with the Digital Consumer, understand:“I engage with  How are consumers interacting with brands online?brands online”  Should I build friends and fans on social networks?  What brand opinions are consumers forming through digital?Advocates Identify & cultivate the Digital Advocate, understand:“I tell others online  What is the level and influence of buzz for my category?about brands”  Who is talking about my category and who is listening?  What„s the impact of negative conversation online?Customers Convert the Digital Customer, understand:“I use online  What is the role of online and offline channels throughout the path-to-prior to and for purchase, for researching and buying products?purchase”  Are my customers using the Internet to purchase products? Digital Life South Africa Report 3 © TNS 2011
  4. 4. Africa has the fastest internet growth in theworld 2000 2011 Mobile subscriptions 15 million X 4327% 649 penetration 65% million Internet subscriptions 120 million 11.5% penetration 4.5 million X 2527% Digital Life Sources: Internet world stats © TNS 2011 GSMA ITU
  5. 5. Tanzania Ghana India Uganda Kenya Pakistan South Africa Indonesia Egypt Thailand Nigeria Using daily (%) Philippines Peru Vietnam Mexico Ukraine Internet penetration (%) Romania China Brazil Colombia internet is used for Morocco Russia Saudi Arabia Turkey Argentina Greece Portugal Italy Chile Poland Malaysia Source [Internetworldstats; Digital Life] Base: Total Market Population; Min 500 Hungary Spain Ireland Internet Penetration Cz. Republic Hong Kong UAE France Taiwan Israel Slovakia Austria© TNS 2011 Digital Life Estonia Singapore hence low frequency of use, limiting what …but, internet penetration is still low, and Belgium USA Australia Japan Canada Germany Switzerland South Korea UK New Zealand Luxembourg Finland Denmark Netherlands Sweden 5 Norway
  6. 6. Growth in internet access in the region offers big opportunities for brands and marketers……but,Digital marketing is wasted if nottailored to the local marketOr worse, can actively create brand-resistant consumers Consumers hold the power Need to understand how consumers are using the internet and where they are in their digital evolution 6
  7. 7. 0 10 20 30 40 50 60 Tanzania Ghana India Uganda Kenya Pakistan South Africa Indonesia Egypt Thailand Nigeria Philippines Mexico Peru Vietnam Ukraine Romania China Brazil Morocco Russia Sub-Saharan Africa Saudi Arabia Turkey Greece Portugal Italy Colombia Chile Poland Malaysia Hungary be different to developed countries Spain Ireland Internet Penetration Czech Republic Argentina Hong Kong UAE France Taiwan Israel Slovakia Austria Estonia Singapore Belgium % Started using the internet less than two years ago US Australia Japan Canada Germany to the internet and still becoming acquainted – usage will Switzerland With strong internet growth in Africa, most users are new South Korea UK New Zealand Luxembourg Finland Denmark Netherlands Sweden Norway7
  8. 8. Mobile is key to Digital strategy in Sub-Saharan AfricaAccess internet via… Global 36 97 Nigeria 82 64 Ghana 61 75 Uganda 31 97 Tanzania 65 82 Kenya 77 64 South Africa 68 60 Different countries within SSA have different development paths – Mobile is key in SSA
  9. 9. Mobile is emerging as the key access point for internet users in South AfricaUsed to access internet in last month (%) 68 39 23 6 7 4 1 1 PC at home PC at work PC at PC at Internet PC elsewhere Mobile phone Tablet Internet TV Games console school/university café Question: S5; Device use for Internet access in past 4 weeks Base: All respondents; 1000 9
  10. 10. Younger and older internet users experience the internet differently – take this into account when designing digital strategiesAccessed the internet via… 90% 85% Mobile Phone 50% PC 24% 15-20 years 21-24 years 25-34 years 35-44 years 45-54 years 55-65 years
  11. 11. Mobile internet users prefer mobile as an internet access point - and this will increase as access speeds increase“I would be happy doing allmy Internet surfing via mymobile” 68%“I would like to access theInternet more on mymobile phone, if it weremore convenient, or hadhigher speed or 57%connectivity”Question: H4, A2; Mobility attitudes, Internet attitudes Base: Mobile users; 11
  12. 12. Once adopted, digital media is close to traditional media in terms of daily users on board Daily users (%) 68 59 50 29 21 6 TV Internet for leisure Radio Internet for work Newspapers MagazinesQuestion: M1; Media use Base: All respondents; Size 1000 12
  13. 13. And there is a strong incidence of people engaging in entertainment media (TV & radio) whilst accessing internet on mobileOffline activities done whilst also online (%) PC Mobile 35 Find out more information just seen advertised 18 30 Listening to radio 53 21 Watching TV 57 7 Reading magazine/newspaper 12 6 Playing video games 10 Shopping (not on the Internet) 22 Find out info about product in-store 16 Question: [H3]; [Device use for Internet access in past 4 weeks] Base: [All respondents]; 605,686 13
  14. 14. 0% 10% 20% 30% 40% 50% 60% 70% Tanzania Ghana India Uganda Kenya Pakistan South Africa Indonesia Egypt Thailand Nigeria Philippines Mexico Peru Vietnam Ukraine Romania China Brazil Morocco Sub-Saharan Africa Russia Saudi Arabia Turkey Greece Portugal Italy Colombia Chile Poland Malaysia Hungary Spain Ireland Internet Penetration Czech Republic Argentina Hong Kong UAE France Taiwan Israel Social networking is seen to be the most Slovakia important online activity in most of Africa Austria Estonia Singapore Belgium % Most important online activity – social networking US Australia Japan Canada Germany Switzerland South Korea UK New Zealand Luxembourg Finland Denmark Netherlands Sweden Norway14
  15. 15. In contrast to Global internet use, Social is far more relevant than e-mailGlobal Key activities on internet (% use) 32 26 10 58 9 6 18 13 SSA 4 3
  16. 16. Facebook is visited weekly by three quarters of internet users Visit daily: 54% 30% 5% 3%Visit weekly: 73% 59% 10% 10% Question: [B6]; [Frequency of visiting websites] Base: [Total];1000
  17. 17. Social networking users are highly active online, but it is all about communicating with their network – brands need relevance to become a part of the conversation Weekly users (%) Active Passive Write a post / message / status update on my social network 60 Check my social network accounts 56 Comment or respond to other Visit / check / read other people’s people on my social network 58 19 blog or forum Use online chat / instant messaging 22 Stream music 18 Post comments on, or rate other peoples blogs, forums or reviews 21 Download videos / movies / TV shows or music 15 Upload photos 19 Stream video 13 Write my own blog 16 Download photos or look at pictures at photo sharing websites 13 Upload video or music 14 Forward / share a link 14 Download an “App” or application 10 Post Status updates or messages on Visit / read / other people´s micro a micro-blog 11 blog 9Question: B12; DL Sub-activity usage Base: All respondents; 1000 18
  18. 18. While a significant proportion of internet users in SA go online daily, interaction with brands is still quite limited, with researching brands being the main brand-related activity Global South Africa Internet 30% 14% Penetration % of internet % of internet users that: users that:Are part of 84% 81%Social NetworkGo online daily 68% 59%Are brand fans 33% 8%on SNWrite about 47% 7%brands onlineResearch brands 81% 30%online 19
  19. 19. Tanzania Ghana India Uganda Kenya Pakistan South Africa Indonesia Egypt Sub-Saharan Africa Thailand Nigeria Philippines Mexico Peru Vietnam Ukraine % reading about brands Romania China Brazil Morocco Russia Saudi Arabia Turkey Greece Portugal Italy Colombia Chile Poland Malaysia Hungary Spain Ireland Czech Republic Argentina Internet Penetration Hong Kong UAE France presence on the internet is still under-developed Taiwan Israel Slovakia Austria Estonia Singapore Belgium are to read about brands on the internet – In Africa, brand US Australia Japan Canada Germany Switzerland The higher the internet penetration, the more likely internet users South Korea UK New Zealand Luxembourg Finland Denmark Netherlands Sweden Norway20
  20. 20. Messages are not in the control of brandsEven a stranger on the other side of the world is trusted more… % Agree “What other people say about brands can be trusted more than what the brand says themselves” 57% “I trust the comments my friends write about brands” 54% “I trust the comments people I don‟t know write about brands” 41%
  21. 21. Very few consumers write about brands, but those who do believe their interaction influences the brand % Agree “Posting comments online is an effective way to influence companies” 68% “I expect companies to contact me if I write something about them” 34% 22Question: [I8a]; [Attitudes to comments & reviews] Base: [All Writers]; 73 xx
  22. 22. Though there are many reasons to express the opinion online, main causes are to praise, to seek advice and to share opinions 2 15 48 42 To praise a brand 28 To criticise a brand Ask advice Offer advice 45 Share answers/opinions Share opinions w/communities 45 To share cool stuff brands produce To receive customer service 31 25 Because I‟m rewarded for doing soQuestion: [I8]; [Reasons to write about a category] Base: [All Writers];73 **base size for this demographic is between 30 and 74. Results are therefore for illustrative purposes only 23
  23. 23. Information on products and peers as reference groups motivate consumers to join a brand community (%)What’s in it for me? Promotion/special offer 10 Competitions/prizes 8Further Research More information about products/services 15 Information about brand ethics 7 Connect with people behind the brand 5 Access brand content 5Brand Interaction Passionate about the brand 9 Show that brand is important to me 6Giving & Receiving Feedback Give brands input 7 Receive customer service 6Friend Interaction Friends doing the same 14 Connect with other fans 9Miscellaneous Use specific apps/games 4 Support a cause 7Question: [I3a/I3b]; [Reasons to join a brand group/community] Base: [Social Networkers & Micro Bloggers]; 891 24
  24. 24. Digital needs to play a supportive/complementary role to traditional media in Sub-Saharan Africa Global Recommendations Consumer journey touchpoints – from 38 influence on product choice friends/family Product review website 28 Expert review website 28Price comparison website 27 Consumer opinion blog 27 TV ad 26 39 TV Ad Recommendations fromRecommendations from 24 31 friends/family sales assistant 22 Ads in newspapers/magazines SSA
  25. 25. Pre-purchase browsing is relatively low in SSA compared to global norms. Lower incomes and cost of internet access are holding back interestEver browse or pre-purchase shop via… Mobile PC Global 62 79 Nigeria 17 6 Ghana 17 22 Uganda 7 8 Tanzania 28 25 Kenya 13 15 South Africa 28 43
  26. 26. Online shopping is still under-developed in Sub-Saharan Africa. But, mobile shopping likely to play a bigger role in online shopping in futureEver shop via… Mobile PC Global 50 73 Nigeria 4 6 Ghana 5 4 Uganda 5 5 Tanzania 19 16 Kenya 5 4South Africa 10 18
  27. 27. Preference for offline purchasing is strikingly high compared to online across all categories Bought online Bought offline Music 5% 43% Travel 5% 10% Movies 4% 36% Software 4% 20% ISP 2% 7% Cosmetics 1% 52% Skin Care 1% 54% Hair Care 1% 57% Clothes & Shoes 1% 78% Insurance Policy 1% 9% Banking 1% 12% PC 1% 11%Question: E6; Purchased on or offline Base: Category Purchasers;, 1000 29
  28. 28. The Digital Growth Index utilises these four components to provide a single KPI to describe the size of the opportunity in each market Users Size of Scale, audience Motivations, Behaviours Consumers Advocates Customers Opportunity to engage Path to Brand Building Brand Buzz PurchaseA single number KPI score The Digital Growth Index 30
  29. 29. The Global Digital Growth IndexHigh Penetration, Low Index – High Internet High Penetration, High Index–Utilise large reach, engage outliers Penetration Major opportunity, invest heavilyLow Growth High Growth Index Index South Africa Low Penetration, High Index –Low Penetration, Low Index– Low Internet Drive growth through engaged earlyTap into latent demand, plan for Penetration adoptersfuture opportunity 31
  30. 30. Developing markets  These markets are held back by either low access to digital, poorer infrastructures or low incomes reducing the relevancy of a brand conversation Low Digital Growth Index  Yet aspirations run high, and huge latent demandArgentina Peru Internet Penetration existsEgypt PhilippinesGhana Romania  Mobile has provided a gateway to access in many of these markets. Marketing communications mustIndonesia South Africa also be delivered through this channelKenya TanzaniaMorocco Thailand  The desire to communicate, and join social networks is a key driver in these marketsNigeria UgandaPakistan  Give them the means to talk about your brand; being seen as a brand that directly empowers users by Low partnering with these social networks / content providers and sponsoring access 32
  31. 31. To sum up…• Internet growth and evolution offers new opportunities for marketers to engage with consumers• But, internet penetration in SA still low and growth behind the rest of the continent. For most people the experience of the internet is new, is different to what it was before, is mobile and is social• High costs and barriers of access mean internet penetration and usage is still low and other traditional media still play a dominant role• The future of internet in South Africa is clearly mobile and marketers need to focus on interactions in the mobile space, with different strategies for mobile internet and fixed line, targeting different audiences and needs• Brand interactions via internet in SA are still very low. What works elsewhere will not necessarily work here.
  32. 32. and…• Digital marketing in SA has to incorporate social media and traditional media• Encouragement and incentivisation need to be used to overcome barriers to experiment and expand use of internet via mobile (other than social networking) – “whats in it for me” should be asked of any digital campaign• Social networks can have a big influence on brand perceptions and people trust comments people say about brands online – need to ensure brands have an active social media and Customer Experience Management strategy• Online purchasing still low in SA – need to make people more familiar and confident in using internet – need to bring down data costs before this can happen …and online pre-shop and shopping is likely to be predominantly via mobile phone in future – need to be thinking mobile in terms of design and consumer interaction