Ogsf mon 1310 laura martin

[email protected] (917) 373-3066

Laura Martin, CFA Senior Equity Analyst

Entertainment & Internet Needham & Company, LLC

Women Power Online

March 19, 2012


Women’s Offline Purchasing Power

Globally, women represent approximately 49.7% of the total global population and over 70% of consumer dollars spent worldwide.

US women represent 51% of the population and control or influence 85% of purchasing decisions. Rising because: Household Structure. According to the 2010 U.S. Census, 41% of

mothers reported that they were not married. This number rises to 51% among younger moms, 18-34 years old. 44% of these moms think that marriage is “obsolete.” When a woman is the head of household, she controls 100% of the purchasing decisions for her and her kids.

Workforce. 59% of US women are in the workforce. If we narrow the focus to only women with children under 17 years old, 66% of them work: 74% full time and 26% part time. As the number of women’s paychecks rise, their spending power grows over time. Pur

chas

ing

Pow

er


The Importance of Women on the Web

Women are Driving the 4 Biggest Usage Trends on the Internet: The Rise of Daily Deals Casual Gaming E-Commerce Social Networking

Wom

en D

rivin

g O

nlin

e

Source: Nielsen NetView, June 2009-June 2010.


Online - Where are Women vs Men?

1. e-Commerce (2.2 hours per week vs 1.9 for men) 2. Social sites (5.0 hours/week on social sites, 4.1 hours on

email)

Con

sum

ers

Mov

ing

Onl

ine

Source: TNS Digital Life Study, February 2011.

Hours per Week Online


Online Purchasing Behavior, US

1. Women spend more time on the web each month than men 2. Women spend much more money.

e-Commerce in the U.S. reached $200 billion in 2011. In the U.S., women typically represent 58% of total monthly online purchases.

Nielsen analyzed the 11 largest e-commerce categories in the U.S. and found that women buy significantly more than their male counterparts in 9 of the 11 top online e-Commerce categories.

Wom

en M

ovin

g O

nlin

e- U

S

Source: Nielsen, 3Q10.


Online Purchasing Behavior, Global

1. Globally, ROW is following U.S. e-commerce patterns. 2. comScore’s global study of online purchasing in May of 2011:

On apparel sites, women globally represented 53% of unique visitors and they stayed 33% longer than men (10.9 minutes vs. men’s 8.2 minutes).

On coupon sites, women globally represented 53% of unique visitors globally and they stayed 89% longer than men (12.3 minutes vs. men’s average 6.5 minutes).

On luxury goods and accessories sites, women globally represented 66% of unique visitors globally and they stayed 62% longer than men (25.8 minutes vs. men’s average 15.9 minutes).

** Note: Beware of using unique visitors as a guide to spending. Women often spend 20-100% longer than men on the sites that they like. To estimate economics, the average length of stay is typically more important than unique visitors.

Wom

en M

ovin

g O

nlin

e - R

OW


Social Networking Globally – Longer Engagement

1. Engagement drives economics more than unique visitors = fans. 2. Women spend 30% more time on social networking sites vs men. 3. Social networking sites reached 76% of all women online globally

in May 2010 vs. 70% of men. 4. Women consumed 57% of social site pages and were 57% of total

minutes spent on social sites globally in May 2010. 5. Women spent 5.5 hours on social networking sites in May 2010,

41% more time than men (at 3.9 hours). 6. Average female posts 10-26/month vs avg male at 7-17 times.

Soc

ial N

etw

orks

Source: comScore, 2010.


How do Men and Women Use Social Networks?

1. Women use social networks to: Make connections and share daily personal updates. Learn about real people experiencing similar conflicts. Solve real-life problems in their day to day lives. Women are most likely to be found on sites & apps such as

Pinterest (80% women), MySpace (64%), Facebook (57%), Twitter (57%), and Flickr (55%).

2. Men typically visit sites and use social networks to gather information and increase their status within the hierarchy. Men use social media: To chronicle accomplishements- photos focus on this. To gather information and boost their influence. As an “Interactive Rolodex.” Men are most likely to be found on Hulu, Digg, and LinkedIn.

According to Pew, geo-social apps like Foursquare and Gowalla garner 2x as many men as women.

Soc

ial N

etw

orks


Are Women More Social than Men?

British anthropologist Robin Dunbar introduced the notion of Dunbar’s number in 1992, in which he suggests that the cognitive limits of the brain limit the number of people with whom a person can maintain stable social relationships. He postulates that group size has a direct relationship to neocortex size. The most commonly used Dunbar number is 150 people.

Average number of friends on social networks is 120. (FB data) The average woman will consistently respond to postings of 10

friends vs 7 for a man. The average woman reaches out regularly to 6 people vs the

average man at 4 people. Importantly, the more active the online dialog and interactions

become, the smaller and more stable the group size becomes. Bottom line, the online world appears to mirror the offline world in the

number of connections it fosters (i.e., less than 150) and women are indeed more social than men.

Soc

ial N

etw

orks


So What? How Do We Make Money?

Women Spend 70-85% of Total Dollars - What Do Women Want? Time-saving solutions. Develop community. Love and connection—last ing, romantic

re la t ionsh ips ; happy, hea l thy fami l ies ; connections with friends, colleagues and neighbors.

Time and work-life balance—the ability to “make it all happen” and make the right trade-offs.

Control of spending plus guidance on spending money wisely.

Con

clus

ions


Broader Implications for Women

A Bigger Answer: Women Writ Large The Internet functions as a global communications network

that allows women to access other women across boundaries of geography, wealth, class, time, gender, culture, and religion. Information flow should be good for women globally.

A 2009 BCG study concluded that: “At the most basic level, online connections are a revolution of, by, and for women. The Internet offers women education, better ways to nurture themselves and their families, increased success as executives and entrepreneurs, higher earnings, and better ways to manage and leverage their accumulated wealth.”

Con

clus

ions


1. Martin has a BA from Stanford and an MBA from Harvard. She also holds a CFA designation.

2. Martin’s first job was in media investment banking at Drexel Burnham Lambert

3. After the Drexel bankruptcy, she joined Capital Research & Management, managing $500M of media equities.

4. In 1994, she joined Credit Suisse First Boston where she was nat iona l ly ranked by Institutional Investor magazine for 4 years in the cable & entertainment industries.

5. In 2001, Martin moved to Paris to became EVP of Financial Strategy & Investor Relations for Vivendi Universal.

6. In 2003, Martin returned to publishing research on the largest Media and Internet companies, distributed through Soleil Securities.

7. In 2009, Martin joined Needham & Company. 8. Martin offers expert witness and consulting

services through www.CapKnowledge.com.

If you give me your card, I’ll send you my thematic research


Dis

clos

ures


Laura Martin, CFA Senior Equity Analyst

Entertainment & Internet Needham & Company, LLC

Women Power Online

March 19, 2012

Technology

Ogsf mon 1310 laura martin