Digital Life webcast presentation

Global Webcast © TNS 2011


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What is Digital Life?


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The most comprehensive view of consumer attitudes and behaviour online


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Digital lives comprise many activities Share of hours in an average week online

Communication Social networking & connecting Email Entertainment Multi-media & entertainment Online gaming Personal interest Shopping Information Pre-purchase & browsing Knowledge & education News, sport & weather Management Personal admin

18hrs/wk 9% 31%

24%

37%


Meeting many needs The Internet helps me to…

5

61

52

51

34

34

34

42

55

% agree

Have fun

Better express my feelings

Explore my personality

Improve my self-confidence

Pass on news / events to others

Connect closely to others

Expand my network

Keep in touch with others


6

PC

Mobile Tablet

During the night

In bed when I wake up

Early morning

Commuting

Late morning

Midday

Early afternoon

Early evening

Late afternoon

In bed before I go to sleep

Late evening

Throughout the day A constant companion from dawn to dusk…

61% of mobile and tablet users feel they are “always connected to the Internet”

Access by day part and device (all consumers)


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The internet is just one part of a complex reality Fragmented pathways between buyers, behaviours and brands


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% describing TV as an important source of information at any stage in the consumer journey

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Taking share of influence from traditional sources

Internet Penetration


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Hong Kong Norway Tanzania Mexico


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Business growth in a digitally-enabled world

1. Consumers: Content, connection, community

2. Brands: Relevance and utility

3. Paths to purchase: Integration across the marketing and business cycle

12 Global Webcast © TNS 2011

1 Consumers: Content, connection, community


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61

52

51

34

34

34

42

55

% agree

Have fun






Expand my network


Digital enables self-expression The Internet helps me to…


Upload photos

Microblog

Upload videos

Write a blog 26

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Leading to an explosion in consumer content generation Every week I...


With a very real audience Happy to consume content, wherever it comes from...

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70% 62%

% consuming professionally-produced online video

% consuming a user-generated online video


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Brand content is firmly in the hands of the masses And there is an audience for it...


% of total market population reading about brands online % of total market population writing about brands online


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Tanzania

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India

Uganda

Kenya

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Indonesia

Egypt

Thailand

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Turk

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Gre

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Port

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Italy

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Uganda Brazil Taiwan Norway


Enabling connection and community The Internet helps me to…

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61

52

51

34

34

34

42

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% agree

Have fun






Expand my network



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Building wide networks …with massive potential reach for opinions and ideas...

China

Brazil

USA

94 246

118 303

481 38

Total number of friends on SN Friends interact with regularly


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Building wide networks …but brand friends are not common here

China

Brazil

USA

Total number of friends on SN Total number of brand friends

94 246 481

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19

17


And this environment doesn‟t always welcome brands Consumers don‟t want to be bothered by brands...

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Total number of brand friends % who do not want to be bothered by companies or organisations in social networks

23 19

60 53 52

17

China

Brazil

USA


2. Brands: Relevance and utility


Messages are not in the control of brands Even a stranger on the other side of the world is trusted more…

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“What other people say about brands can be trusted more than what the brand says themselves”

Disagree

13 57

“I trust the comments my friends write about brands”

“I trust the comments people I don‟t know write about brands”

11 54

21 41

Agree


The consumer brand voice I write about brands to…

25

64 64 61 60

56 53 51 46

40

% agreeing

Paid/ rewarded for doing so

Share experiences

Offer advice

Praise a brand

Ask advice

Share answers/ opinions

Criticise a brand

Share cool stuff from brands

Customer service


26

PC

Mobile Tablet

During the night

In bed when I wake up

Early morning

Commuting

Late morning

Midday

Early afternoon

Early evening

Late afternoon

In bed before I go to sleep

Late evening

The “always on” Advocate Online more of the time and with more mobile devices

Access by day part and device (Advocates)


Consumers can be positive and supportive I write about brands to…

27

64 64 61 60

56 53 51 46

40

% agreeing


Share experiences

Offer advice

Praise a brand

Ask advice


Criticise a brand


Customer service


But are also able to criticise I write about brands to…

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64 64 61 60

56 53 51 46

40

% agreeing


Share experiences

Offer advice

Praise a brand

Ask advice


Criticise a brand


Customer service


So whilst brands might not lead the conversation Their audiences are still reading about their products and services...

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20 20 24 26 28 28

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% reading about category on their social network

Travel Confectionery Baby care Mobile phone

Clothes & shoes

New car Credit cards


They need to know where and when it is happening Review sites are likely to be prioritised when actively searching...

30

40

27

35

27

35 35 33

% reading about category on review sites

Travel Confectionery Baby care Mobile phone

Clothes & shoes

New car Credit cards


52

43

50

64

Negative comments resonate strongly And can be a very real threat to sales...

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% agreeing “Even a single negative review can have an effect on how I feel about a brand”

Global

Brazil

China

USA


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24 28 29

59 65 67 67

77

52 50 58

83 87 88 87 90

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% researching at all

% researching online

Travel Confectionery Credit cards

TV New car Cleaning products

Mobile phone

Alcohol

Online research is critical to some categories But brands don‟t control what is discovered...


Mobile

Cosmetics

Credit Cards

Personal Hygiene

Organic conversation varies across categories and participatory campaigns fuel conversation...

33 33

Low Levels of Category WoM

High Levels of Category WoM

Highly Researched

Lightly Researched


Affinity comes at a price Consumers expect a benefit from their support on a social network...

34

Promotion/

special offer

Access content Brazil 50

China 77

USA 65 61

45

Global

Specific market

To show that a brand is important to me

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British Olympic Association: Our Greatest Team

“Our challenge, as much to ourselves as to anybody else, is „900 athletes 60 million strong‟. A challenge taken on principally through the digital medium - to connect the entire nation to the 900 athletes that will represent the nation next year.”

Hugh Chambers, Chief Commercial Officer, British Olympic Association


Affinity comes at a price Apps represent a specific opportunity for connection...

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Promotion/

special offer

Access content

To use specific apps or games provided by the brand

Brazil 50

China 77

USA 65 61

45

43

Global

Specific market

To show that a brand is important to me

44

China 72


“I think the brands that are doing really well are the ones where the product is not everything, the product is a component of what the brand represents.”

Larry Bruck, Kellogg Company

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„Lifestyle Management‟ as Utility: Extending the brand idea beyond the product with Special K


3. Paths to purchase: Integration across the marketing and business cycle


“When we launched online ordering just over a decade ago, it was a huge investment, but one that has continued to pay off, year on year.”

Chris Moore, CEO, Domino‟s Pizza

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Actions speak louder than words when delivering the message that your brand meets consumer needs


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The complex reality


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Unpacking the path to purchase How do we decide what to buy

1. Become aware 2. Choose a product 3. Decide where to buy

Number of touchpoints used to research in the automotive category - USA


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Unpacking the path to purchase How do we decide what to buy

Consumer voice

Brand voice


Online

Offline

Data sources consulted…

Number of touchpoints used to research in the automotive category - USA


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Consumer reviews (all categories)

TV ads (all categories)

33 28

20

38

26 21


Consumer and brand touchpoints are important sources… Touchpoint is important to me to…


44

27 22

18

26 24 21

…as are on and offline touchpoints Touchpoint is important to me to…

Manufacturer‟s website (all categories)

Sales person in-store (all categories)



“If somebody goes to our website, sees a new game, they reserve on line, pick it up in store. The person in store sells them add-on digital content for their game which is delivered to them digitally to their „digital locker‟ which they have because they are a rewards member on our awards programme.”

Mike Hogan, CMO and SVP Marketing & Corporate Strategy, GameStop

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Integration of a multi-channel experience


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But the world isn't flat!


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The Digital Growth Index The opportunity for brand growth through digital

Access Reach, Motivations, Behaviours Engage Strengthen brand connection Advocate Amplify positive buzz Transact Influence decision-making

The Digital Growth Index A single KPI


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The Digital Growth Index A precise view by geography and category

Ukraine

China

Malaysia

India Pakistan

Thailand

South Korea

Singapore

Netherlands

UAE

USA

Indonesia

Czech Republic

Low Growth Index

High Growth Index

High Internet Penetration

Low Internet Penetration


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Different consumers with differing needs Segmented by attitude, motivations and behaviours...

Engage % with brand connections on SNS

Advocate % writing about brands online

Transact % researching purchases online

27

29

38

52

44

48

24

37

52

37

62

66

88

57

85

90

90

86

Functional

Aspirer

Knowledge seeker

Networker

Communicator

Influencer


Bringing it together


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

Understand the nuances of your geography and category to optimise the mix at each stage

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Marketing in a Digital Age


From campaign integration to business integration:

Working together with a common goal…

Marketing and Consumer Insights teams

Web, apps and software development teams

CRM and Blogger Outreach teams

Channel management and Retail teams

52

From integrated marketing to integrated business planning


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Explore more Digital Life findings at www.tnsdigitallife.com Join our conversation @tns_global #tnsdl

http://www.tnsdigitallife.com/


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Digital Life webcast presentation