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1© TNS 2011
Shifting Paradigms: Insights for a changing world
2© TNS 2011
Exponential growth in internet penetration
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
16,000,000
1,971,000,000
>1,000,000,000
Source: Internetworldstats
3© TNS 2011
Netherlands
Russia
China
Ghana
69
79
62
51
51
32
40
75
36
18
14
65
22
8
30
15
Becoming a dominant form of media wherever penetration allows
Source: M1; Media Usage Frequency
Internet for leisureTVRadioNewspapers
Daily users (%)
4© TNS 2011
Tanza
nia
India
Kenya
South
Afr
ica
Egypt
Nig
eri
a
Peru
Mexic
o
Rom
ania
Bra
zil
Moro
cco
Saudi A
rabia
Arg
enti
na
Port
ugal
Chile
Mala
ysi
a
Spain
Cze
ch R
epublic
UA
E
Taiw
an
Slo
vakia
Est
onia
Belg
ium
Aust
ralia
Canada
Sw
itze
rland
UK
Luxem
bourg
Denm
ark
Sw
eden
% describing TV as an important source of information at any stage in the consumer journey
Taking share of influence from traditional sources
Russia
Internet Penetration
Source: P1a-P3; Touchpoint usage throughout Consumer Journey
5© TNS 2011
And only outpaced by the even faster growth of mobile
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
738,193,138
5,370,467,196
2,206,796,646
Source: Internetworldstats, ITU World Telecommunication / ICT Indicators Database
6© TNS 2011
And only outpaced by the even faster growth of mobile
No. mobiles 2000738,193,138
No. mobiles 20105,370,467,196
No. mobiles 20052,206,796,646
Source: Internetworldstats, ITU World Telecommunication / ICT Indicators Database
7© TNS 2011
Putting it in context
Number of mobile phones in Russia:
238,000,000
Number of people in Russia:
138,739,892
8© TNS 2011
In bed whenI wake up
During the night
Earlymorning
Commuting
Latemorning
Midday
Earlyafternoon
Earlyevening
Lateafternoon
In bed beforeI go to sleep
Lateevening
Mobile provides a constant connection
70% of mobile and tablet users feel they are “always connected to the Internet”
Access by day part and device (all consumers)
PCMobileTablet
Source: H2, H4; Occasion use; Mobility attitudes
9© TNS 2011
Fuelling the growth in socialTa
nzan
iaGh
ana
Indi
aUg
anda
Keny
aPa
kist
anSo
uth
Afric
aIn
done
siaEg
ypt
Thai
land
Nige
riaPh
ilipp
ines
Peru
Viet
nam
Mex
icoUk
rain
eRo
man
iaCh
ina
Braz
ilCo
lom
bia
Mor
occo
Russ
iaSa
udi A
rabi
aTu
rkey
Arge
ntina
Gree
cePo
rtug
alIta
lyCh
ilePo
land
Mal
aysia
Hung
ary
Spai
nIre
land
Cz. R
epub
licHo
ng K
ong
UAE
Fran
ceTa
iwan
Israe
lSl
ovak
iaAu
stria
Esto
nia
Sing
apor
eBe
lgiu
mUS
AAu
stra
liaJa
pan
Cana
daGe
rman
ySw
itzer
land
Sout
h Ko
rea
UKNe
w Z
eala
ndLu
xem
bour
gFi
nlan
dDe
nmar
kNe
ther
land
sSw
eden
Norw
ay
% using social media daily within total population (16-65)
Russia
Source: Internetworldstats, B1, I1; Frequency of digital activities, Links to brands on social networks
Internet Penetration
10© TNS 2011
11© TNS 2011
What is Digital Life?
12© TNS 2011
The most comprehensive view of consumer attitudes and behaviour online
13© TNS 2011
Digital presents four clear opportunities for brands to access different consumer behaviours
Reach1,938,059,098 people online in the 60 markets we covered
Engage1,627,969,642 people on social networks with 767,471,403 building relationships with brands
Activate846,931,826 write about brands whilst 1,391,526,432 read and are influenced by these comments
Convert1,577,580,106 people use Digital to research products and services they go on to purchase
14© TNS 2011
Delivering a need to summarise the opportunity across these four areas into a single indicator score - the Digital Growth Index
ReachFrequency, behaviours, motivations
EngageStrengthen brand connection
ActivateAmplify positive buzz
ConvertInfluence decision-making
The Digital Growth IndexA single KPI
15© TNS 2011
The Digital Growth IndexA precise view by geography and category
Russia China
Malaysia
IndiaPakistan
Thailand
South Korea
Singapore
Netherlands
UAE
USA
Indonesia
CzechRepublic
Low Growth Index
High Growth Index
Low Internet Penetration
High Internet Penetration
Source: Digital Growth Index; Internetworldstats
16© TNS 2011
87
29
59
94
Internet Penetration
Global30%
Russia43%
68
40
47
72
Go online daily
Are brand fans on SN
Write about brands online
Research brands online
The size and nature of the opportunity will differ by audience, category, or market
% of Internet users that:
Source: M1, I2, I5, E9; Users, Consumers, Advocates, Customers
17
Global Webcast
© TNS 2011
Global Webcast
© TNS 2011 17
Making friends with Russian social users – creating Digital Waste?
18
“Social media is like a puppy.Everyone wants to start a community. What they forget is the 24/7/365 reality TV show. You have to provide the content, engage the community and focus on what’s important rather than just let it fall.”
19© TNS 2011
Digital lives comprise many activitiesShare of hours in an average week online
23 hours /week
8.5
3.0
3.5 3.8
2.6
1.6
2.7 1.8
0.7
0.8Communication
Social networking & connectingEmail
EntertainmentMulti-media & entertainmentOnline gamingPersonal interestShopping
InformationPre-purchase & browsingKnowledge & educationNews, sport & weather
ManagementPersonal adminPlanning & organising
0.8
Source: S7; Time spent online
20© TNS 2011
78
75
55
50
32
30
33
69
% agree
Meeting many needsThe Internet helps me to…
61
52
51
49
34
34
55
42
Global
Have fun
Better express my feelings
Explore my personality
Improve my self-confidence
Pass on news / events to others
Connect closely to others
Keep in touch with others
Expand my network
Russia
Source: A1, A2; Attitudes to internet
21© TNS 2011
Upload photos
Upload videos
Write a blog
Microblog17
18
21
29
Leading to an explosion in consumer content generationEvery week I...
32
29
26
30
Global% agree Russia
Source: B12, activities done online
22© TNS 2011
Which they share with wide networks…with massive potential reach for opinions and ideas...
RussiaGlobal
Total number of friends on SNFriends interact with regularly
186
48%54%
161
Source: B7, I1; number of online friends, online brand friends
23© TNS 2011
And this environment doesn’t always welcome brandsConsumers don’t want to be bothered by brands...
Total number of brand friends% who do not want to be bothered by companies or organisations in social networks
6
5653
2
Source: B7, B18; number of online friends, attitudes to social networks
RussiaGlobal
24© TNS 2011
46
52Consumer opinion on social networks
Expert review or opinion on a website
Brands must learn to join, rather than start a conversation.
As markets reach digital maturity, consumers are increasingly influenced by each other, rather than brands.
Social media offers vast potential audiences, but brands must understand that these spaces belong to the consumer and their presence needs to be proportionate and relevant. Tracking comments and understanding the motivations behind each conversation is a first step before taking part.
Brands need to earn influence by investing in social media outreach to participate effectively in these conversations.
Influential sources of information in Consumer Journey (global %)
Source: P1a-P3; Touchpoint usage throughout Consumer Journey Base: Buyers in last 12 months answering section P; 70441
Rising levels of online consumer conversation are competing with brands, who are struggling to be heard
This point links the presentation more
effectively
25
Global Webcast
© TNS 2011 25
26© TNS 2011
And, consumers are getting louder40,000 times louder than in 2007
Tweets per day as of June 2011:200,000,000
Tweets per day in 2009:2,500,000
Tweets per day in 2007:5,000
27© TNS 2011
Tanz
ania
Ghan
aIn
dia
Ugan
daKe
nya
Paki
stan
Sout
h Af
rica
Indo
nesia
Egyp
tTh
aila
ndNi
geria
Phili
ppin
esM
exico
Peru
Viet
nam
Ukra
ine
Rom
ania
Chin
aBr
azil
Colo
mbi
aM
oroc
coRu
ssia
Saud
i Ara
bia
Turk
eyAr
genti
naGr
eece
Port
ugal
Italy
Chile
Pola
ndM
alay
siaHu
ngar
ySp
ain
Irela
ndCz
ech
Repu
...Ho
ng K
ong
UAE
Fran
ceTa
iwan
Israe
lSl
ovak
iaAu
stria
Esto
nia
Sing
apor
eBe
lgiu
m USAu
stra
liaJa
pan
Cana
daGe
rman
ySw
itzer
land
Sout
h Ko
rea
UKNe
w Z
eala
ndLu
xem
bour
gFi
nlan
dDe
nmar
kNe
ther
land
sSw
eden
Norw
ay
Brand content is firmly in the hands of the massesAnd there is an audience for it...
Source: Internetworldstats, I5; Number of online comment readers, Number of comment writers
% of total market population reading about brands online% of total market population writing about brands online
Internet Penetration
28© TNS 2011
Tanz
ania
Ghan
aIn
dia
Ugan
daKe
nya
Paki
stan
Sout
h Af
rica
Indo
nesia
Egyp
tTh
aila
ndNi
geria
Phili
ppin
esM
exico
Peru
Viet
nam
Ukra
ine
Rom
ania
Chin
aBr
azil
Colo
mbi
aM
oroc
coRu
ssia
Saud
i Ara
bia
Turk
eyAr
genti
naGr
eece
Port
ugal
Italy
Chile
Pola
ndM
alay
siaHu
ngar
ySp
ain
Irela
ndCz
ech
Repu
...Ho
ng K
ong
UAE
Fran
ceTa
iwan
Israe
lSl
ovak
iaAu
stria
Esto
nia
Sing
apor
eBe
lgiu
m USAu
stra
liaJa
pan
Cana
daGe
rman
ySw
itzer
land
Sout
h Ko
rea
UKNe
w Z
eala
ndLu
xem
bour
gFi
nlan
dDe
nmar
kNe
ther
land
sSw
eden
Norw
ay
Brand content is firmly in the hands of the massesAnd there is an audience for it...
Source: Internetworldstats, I5; Number of online comment readers, Number of comment writers
% of total market population reading about brands online% of total market population writing about brands online
Russia
Internet Penetration
29© TNS 2011
Messages are not in the control of brands Even a stranger on the other side of the world is trusted more…
“What other people say about brands can be trusted more than what the brand says themselves”
Disagree
11 62
“I trust the comments my friends write about brands”
“I trust the comments people I don’t know write about brands”
9 55
28 36
Agree
Source: I11, attitudes towards comments
30© TNS 2011
Affinity comes at a priceApps represent a specific opportunity for connection...
Promotion/special offer
Access content
To use specific appsor games provided by the brand
61
45
43
GlobalSpecific market
To show that a brand is important to me 44
Source: I3, reasons to befriend / follow brands
31© TNS 2011
“I’ve termed it ‘Open-source Creativeware’ to encapsulate the idea that much like open source software, we’re looking to create a blueprint or DNA of a creative campaign and then invite others to take it and adapt it and build it and grow it.”
Hugh Chambers, Chief Commercial OfficerBritish Olympic Association
32
Global Webcast
© TNS 2011
3. Paths to purchase: Integration across the marketing and business cycle
Global Webcast
© TNS 2011 32
33© TNS 2011
Tanza
nia
India
Kenya
South
Afr
ica
Egypt
Nig
eri
a
Peru
Mexic
o
Rom
ania
Bra
zil
Moro
cco
Saudi A
rabia
Arg
enti
na
Port
ugal
Chile
Mala
ysi
a
Spain
Cze
ch R
epublic
UA
E
Taiw
an
Slo
vakia
Est
onia
Belg
ium
Aust
ralia
Canada
Sw
itze
rland
UK
Luxem
bourg
Denm
ark
Sw
eden
% describing TV as an important source of information at any stage in the consumer journey
Taking share of influence from traditional sources
Source: P1a-P3; Touchpoint usage throughout Consumer Journey
Internet Penetration
34© TNS 2011
Tanza
nia
India
Kenya
South
Afr
ica
Egypt
Nig
eri
a
Peru
Mexic
o
Rom
ania
Bra
zil
Moro
cco
Saudi A
rabia
Arg
enti
na
Port
ugal
Chile
Mala
ysi
a
Spain
Cze
ch R
epublic
UA
E
Taiw
an
Slo
vakia
Est
onia
Belg
ium
Aust
ralia
Canada
Sw
itze
rland
UK
Luxem
bourg
Denm
ark
Sw
eden
% describing TV as an important source of information at any stage in the consumer journey
Taking share of influence from traditional sources
Internet Penetration
Russia
Source: P1a-P3; Touchpoint usage throughout Consumer Journey
35© TNS 2011
It’s not a straight substitution of one for anotherThe many are replacing the few
36© TNS 2011
Mobile
CosmeticsCredit Cards
Personal Hygiene
Organic conversation varies across categories and participatory campaigns fuel conversation...
Low Levels of Category WoM
High Levels of Category WoM
Lightly Researched
Highly Researched
Source: I5, E9; Number of online comment writers, Product research platform
37© TNS 2011
Creating differing opportunities for brandsThat must be bought, owned or earned...
Low Levels of Category WoM
High Levels of Category WoM
Lightly Researched
Highly Researched
BOUGHT
Buy media or produce a campaign that is engaging in its own right
EARNED
Earn media and invest in offline communication
OWNED
Ensure information-hungry consumers are kept up-to-date with information
EARNED & OWNED
Engage customers through multiple channels and
touchpoints
Source: I5, E9; Number of online comment writers, Product research platform
38© TNS 2011
Unpacking the path to purchaseHow do we decide what to buy
Number of touchpoints used to research all categories – Russia
6.8 6.27.7
1. Become aware 2. Choose a product 3. Decide where to buy
Source: P1a-c; Touchpoint usage throughout Consumer Journey
39© TNS 2011
Consumers are also empowered post-purchaseBrands can play an expanded role
Number of touchpoints used to research all categories – Russia
6.8 6.27.7
1. Become aware 2. Choose a product
5.55.9
5. Keep in touch3. Decide where to buy 4. Customer service
Source: P1a-P3; Touchpoint usage throughout Consumer Journey
40© TNS 2011
Expert reviews (credit cards)
TV ads (credit cards)
Meeting expectations means delivering consistently on and offline…Touchpoint is important to me to…
1. Become aware 2. Choose a product 5. Keep in touch3. Decide where to buy 4. Customer service
21 20
24 23
51
453038 32
51
Source: P1a-P3; Touchpoint usage throughout Consumer Journey (credit cards)
41© TNS 2011
Manufacturer’s website (credit cards)
Sales person in-store (credit cards)
And across bought and earned sources in-line with their overall role and level of importanceTouchpoint is important to me to…
1. Become aware 2. Choose a product 5. Keep in touch3. Decide where to buy 4. Customer service
27 2223 2340
35 3143
2942
Source: P1a-P3; Touchpoint usage throughout Consumer Journey (credit cards)
42
Global Webcast
© TNS 2011
Wrap up
42
43© TNS 2011
Marketing in a Digital Age
Content is the currency of community, shaped and consumed by the masses Understand attitudes and motivations Within the “new noise”, quality, rather than share, of voice counts
Brand as subject matter is alive and well, but brand voices lack trust Add value by facilitating content Add value by providing services to consumers beyond the core product
Touchpoints along the path to purchase are varied and fragmented Build connections earlier in the customer journey to minimise
the impact of negative buzz Online has reduced the dominance of TV; value is delivered when these
touchpoints complement rather than compete
44© TNS 2011
“Digital is a business enabler, not just a marketing enabler”
Larry Bruck, Senior Vice President Global Media & Marketing OperationsKellogg Company
45© TNS 2011
