1. james digital life presentation jhb 2012
DESCRIPTION
James Fergusson presentation at TNS Digital Life event South Africa 25/26 January 2012TRANSCRIPT
© 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 (%)
Digital Life © TNS 2011
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
Digital Life © TNS 2011
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
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
Digital Life © TNS 2011
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
Digital Life © TNS 2011
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.”
Digital Life © TNS 2011
What used to be comparatively simple
27
Digital Life © TNS 2011
Is now more complex
28
Digital Life © TNS 2011
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
Digital Life © TNS 2011
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
Digital Life © TNS 2011
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
Digital Life © TNS 2011
34
“If you haven't
found it yet,
keep looking.
Don't settle”
Steve Jobs