1. james digital life presentation jhb 2012

© TNS 2011

Understanding the World’s Digital Life from an African perspective

The role of mobile & digital and the rise and rise of Social Networking

Agenda

- The Digital World

- Role of Mobile

- Rise & Rise of Social Networking

- Harnessing Digital to drive Growth

2

© TNS 2011

The Digital World

Digital Life © TNS 2011

Device is key; mobile phones offer a gateway to digital services in sub-Saharan Africa

4

Share of online hours/week

PC: home

PC: work/school

PC: Internet café

PC: elsewhere

Mobile

Tablet

Other device

Source: S7; Hours spent online weekly Base: All respondents: 73512,1000,1500,1000

Global

South Africa

Kenya

Nigeria

5

68

55

31 29

13

Internet for leisure

TV Radio Newspapers Magazines

% using at least once a day – Global

Among online users, digital is the primary daily media channel…

Digital is the dominant media source in all but the lowest penetration markets

6

69

91

62

51

51

66

40

75

36

19

14

65

22

25

30

15

Netherlands

South Korea

China

Ghana

Internet for leisure TV Radio Newspapers

Question: M1; Media Usage Frequency Base: All respondents; 1001, 1010, 2361, 1008

Daily users (%)


7

In sub-Saharan Africa digital is competing with television to be the dominant media source for daily consumption

68

65

63

59

56

80

61

68

29

43

23

21

13

15

11

6

Global

Kenya

Nigeria

South Africa

Internet for leisure TV Newspapers Magazines

Source: M1; Media Usage Frequency Base: All respondents; 73512,1000,1500,1000

Daily users (%)

© TNS 2011

Role of Mobile

Regardless of legacy, mobile reigns supreme globally – it is the world‟s must have device

9

Lik

ely

to

bu

y

Current ownership

Without alternative technology device options, mobile gains increased relevance in emerging markets

R = 0.85

GDP Per capita

Developed Emerging 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

1

2

3

4

5

6

7

8

9

10

Uga

nd

a

Ben

in

Tan

zan

ia

Gh

ana

Ke

nya

Sen

egal

Cam

ero

on

Nig

eri

a

Pak

ista

n

Vie

tnam

Ind

ia

Ph

ilip

pin

es

Ind

on

esia

Mo

rocc

o

Ch

ina

Thai

lan

d

Sou

th A

fric

a

Gu

atem

ala

& C

ost

a R

ica

Bra

zil

Mex

ico

Mal

aysi

a

Ch

ile

Arg

enti

na

Ru

ssia

Sau

di A

rab

ia

New

Zea

lan

d

Ital

y

Spai

n

Ko

rea

Jap

an

Fran

ce

Taiw

an

UK

Ger

man

y

UA

E

Swed

en

Can

ada

Au

stra

lia

Net

her

lan

ds

Ho

ng

Ko

ng

USA

Sin

gap

ore

Number of technology devices owned Mobile ownership (%)

10


But demand for existing and future activities is focused mainly around the mobile in Sub-Saharan Africa

N America Europe Dev Asia Lat Am China MENA

Emerg Asia India SSA

Digital music

Calendar

Navigation

Transfer files

Bluetooth

Games

Video calling

IM

Internet access

Download content

Download apps

Email

Banking

Edit images and videos

Read eBooks

Browse the Internet

Social networking

Edit documents

Online shopping

Prefer PC Prefer Mobile Prefer tablet Preferred devices for activities Source: Mobile Life

Source: Mobile Life 2011

Much more than Desktop 130,000 Cafés

163 million users

513 million online

952 million mobile users

355 million mobile internet users

China paves the way for the emerging market digital and mobile landscapes…

China has the largest mobile & online population in the world

Online behaviour differs significantly to Developed Markets

China‟s Digital Landscape is differs from developed

markets with many relying solely on cell phones for internet access

China sets the benchmark for other rapid growth markets

13

31

50

45

42

35

32

25

18

16

6

Global

China

N America

Dev Asia

Europe

MENA

Lat Am

SSA

Emerg Asia

India

% using mobile Internet

A quarter (25%) of the South African population currently access the

Internet via their mobile

Globally mobile internet usage is exploding… already half the population in China access the Internet via their mobile

14

Improved user

interface

The growth of “Now”

Unlimited data plans

Intuitive handsets

Increased accessibility (low cost)

Lack of alternate Internet access

There are six key factors contributing to the explosion of mobile Internet usage

Mobile drives usage of digital services ever higher across the world

Hours spent online in average week

(global %)

15

18

25

31

PC users

Mobile users

Tablet users

Question: S7; Hours spent online weekly Base: PC users, mobile users, tablet users: 70397, 25386, 3511

16

In bed when I

wake up

Early morning

Commuting Late morning

Midday Early afternoon

Late afternoon

Early evening

Late evening

In bed before I go

to sleep

During the night

PC

Mobile

Question: H2, H4; Occasion use; Mobility attitudes Base:PC/mobile/tablet users;

I feel I am „always connected‟ to the Internet 66%

605,686

Mobile provides continuous access to online services, especially in the evenings

17

With strong mobile reliance Africa is a key example of where low-cost smartphones will be eagerly adopted

© TNS 2011

Rise & Rise of Social Networking

The world has become smaller…

Social networking & connecting

Email Multi-media & entertainment

Online gaming

Personal interest

Shopping Pre-purchase & browsing

Knowledge & education

News, sport & weather

20

Communication

Entertainment

Information

Management

Question: S7; Time spent online Base: All respondents; 73152 For a full definition of the Digital Life activities, please consult the appendix

Share of hrs in an

average week

online

(global)

Total/week

18hrs

Across devices, digital users are performing a huge variety of activities online; globally more time is spent Social Networking


Share of hrs in an

average week

online

(global)

21

Whilst African Internet users spend less time online each week than the global norm, their routines are angled heavily towards social

4.8

2.9

Nigeria South Africa

Total/week

18hrs

7.6

2.1

Total/week

16hrs

5.6

2.1

Total/week

11hrs

7.3

1.6

Total/week

13hrs

Social media

and networking Connecting and sharing

with others online,

whether using a social

network like Twitter, or

something like Twitter

Multi-media

and

entertainment Watching video,

listening to music or

radio streaming or

watching on-demand TV

programmes...

Global Kenya

Source: B2; Hours spent on Digital Activities Base: All respondents: 73512,1000,1500,1000


22

Social networkers primary access is via their mobiles, but multi-media services are yet to develop in these channels to the same extent

47

32

23

29

33

11

5

5

Global

Kenya

Nigeria

South Africa

Social

Multimedia

18

53

56

43

10

16

10

8

PC Daily users

Mobile Daily users

Source: B2; Hours spent on Digital Activities Base: Device users

% accessing social networking services via their mobile phone

19

32

29

26

25

21

20

19

12

3

12

18

13

16

18

13

7

14

5

2

Global

N America

MENA

China

Dev Asia

Europe

Lat Am

SSA

Emerg Asia

India

2011

2010

Mobile Life 2011: B1: Service usage

Base: All mobile users

Social networking access via the mobile has exploded and the growth is exponential…

24

84

Global % of people who are part of social

networks

40

Global % who friend brands on social

networks

Question: B1, I1, I5; Online Activities, No. brand Friends, Comment writers Base: All Respondents, Social Network Users, All Respondents:73512, 61508, 73512

Size of

potential audience

Size of current

brand audience

Social networks becoming primary way of communicating online, however brands are not yet capitalising on the potential conversations

25

Question: B1, I1, I5; Online Activities, No. brand Friends, Comment writers Base: All Respondents, Social Network Users, All Respondents:73512, 61508, 73512

Size of

potential audience

Size of current

brand audience

81

% of people who are part of social networks

8

% who friend brands on social networks

This story is particularly strong in South Africa, where there is relatively little brand interaction online

“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.”


What used to be comparatively simple

27


Is now more complex

28


As infrastructures develops and offer alternative sources, digital takes share of influence from TV

29

% describing TV as an important source of information at any stage in the Consumer Journey

Internet Penetration

Source: P1a-P3; Touchpoint usage throughout Consumer Journey Base: Purchasers answering Section P; Varies by market (all >453)

Tanzania

G

hana

India

U

ganda

Kenya

Pakis

tan

South

Afr

ica

Indonesia

Egypt

Thailand

Nig

eri

a

Philip

pin

es

Peru

Vie

tnam

M

exic

o

Ukra

ine

Rom

ania

Chin

a

Bra

zil

Colo

mbia

M

oro

cco

Russia

Saudi Ara

bia

Turk

ey

Arg

entina

Gre

ece

Port

ugal

Italy

Chile

Pola

nd

Mala

ysia

H

ungary

Spain

Ir

ela

nd

Czech R

epublic

Hong K

ong

UAE

Fra

nce

Taiw

an

Isra

el

Slo

vakia

Austr

ia

Esto

nia

Sin

gapore

Belg

ium

U

S

Austr

alia

Japan

Canada

Germ

any

Sw

itzerl

and

South

Kore

a

UK

New

Zeala

nd

Luxem

bourg

Fin

land

Denm

ark

N

eth

erl

ands

Sw

eden

Norw

ay


30

Online users are mutli-taskers; mobile devices are blurring the divide between online and offline

Offline activities done whilst also online

(Global % of device users)

Source: H3; Internet multi-tasking Base : Device users

33

7

18

19

36

43

28

12

23

31

43

44

35

21

30

18

57

53

53

33

28

29

36

26

Find out more about a product (just seen advertised offline)

Watching TV

Listening to radio

PC Mobile Global Kenya Nigeria South Africa

© TNS 2011

Harnessing Digital to Drive Growth


What role can digital play for brands?

32

Fostering Brand Engagement and Management

Creating Brand Saliency

Influencing the Path to Purchase

Acting as a Game Changer

Implications ...

33

1. Digital is the primary media channel throughout the world and is growing – as the mobile experience improves, digital is increasingly becoming mobile

2. In emerging markets demand for comprehensive mobile offerings and advanced features is high due to limited infrastructure and low device ownership levels. In developed markets it is driven by greater consumer utility

3. Limited smartphone penetration in emerging markets prevents ease of mobile internet access and restricts content uptake, however the introduction of low-cost smartphones will change the landscape dramatically – having brand content available will be key

4. Harness the social explosion – social networking and social media have the ability to anchor digital strategies and provide a continual gateway to reach consumers

5. Consumers are looking for experiences that match their needs and behaviours in the „now‟ society we live in – content that focuses on convenience and entertainment will hold strong potential to succeed


34

“If you haven't

found it yet,

keep looking.

Don't settle”

Steve Jobs

Technology

1. james digital life presentation jhb 2012