thetrendwatch #04

winter 2007

Contributors

olivierUSA

damon & charlesFRANCE

steveUK

minhiuCHINA

Network 2.0

Consumer 2.0

Media 2.0

Advertising 2.0NOTE:

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Network 2.0

A Maturing Network

DSL today:

212,000kaccess a DSL connection worldwide:

59,000k in Europe

54,000k in the USA

90,000k in Asia

+15,000k have access to a FTTH connection in the world

Internet Users vs. Non-Users:

68%

32%

52%48%

11%

89%

59%

41% 33%

67%

4%

96%

2000

2006

USA Europe Asia

Hours Spent Online / Month:

Average worldwide Monthly Hours Online Among Age Group 15+

43 hours in Asia

35 hours in Europe

27 hours in the USA

Multiplication of access points:

InternetEverywhere- Google provides free WiFi in Mountain View, CA- Wifi communities develop (FON: 5,800 hotspots in France / 81,000 Worldwide)- 3G+ becomes affordable- Smartphones and WiFi gizmos everywhere (PSP...)

The End of Radio?

- 18 million Internet Users Download an Average of 5 Podcasts per week- Over 50 million Ipods sold in total (8,5 million alone in Q2 2006)- PSP sales at the end of 2006 (Sony Projection): 20 Million- Music radio audience down 8.5% this year alone

A Network witha Human Face

ME vs. USThe Web is no longer about Individualism,

but about Sharing and Collaborating

ME vs. USInternet Users create and develop online identities and expect

recognition from peers...

ME vs. USThe Explosion of Online Video Gaming has triggered the increase

in creation of Community Websites over the last 2 years, providing a virtual platform for gamers to gather and socialise.

ME vs. USInternet Users want to valorize their offline contacts; social and

professional networks are now being shared Online

Consumer 2.0

ConsumerÜber-Informed

über-informedWEB 2.0 offers consumers a whole new way of getting the best information about products they plan to Buy: Trips,

Books, Music, Movies,...

über-informedWEB 2.0 offers consumers a whole new way of getting the best information about products they plan to Buy: Trips,

Books, Music, Movies,...

über-informedThese new types of Content search provide opportunities for

players in the Video and Music Markets

The Word Of Mouth Community is gaining Mainstream Audience

Unique VisitorsAudience - May 2006 in the US:

51 Million: MYSPACE

14 Million: FACEBOOK

12 Million: YOUTUBE

9 Million: MSN SPACES

5 Million: FLICKR

IndymediaWith the support of internet users, Virtual NewsGroups rise

and compete with Mainstream Media Groups...

Consumer-bloggers making profit

Annual IncomesFrom main players In the Pro Blog Market:

$ 3 Million: Nick Denton ( Gawker + Gizmodo)

$ 1 Million: John Battelle (Federated Media)

$ 730 K: Mickael Arrington (Techcrunch)

$ 600 K: Markos Moulitsas (Daily Kos)

$ 500 K: Andrews Carton (Tréonauts Blog)

Web Overtakes Newspaper In Europe

Average hours spent online per week per European in 2006

Average hours spent online per week per European in 2003

Average hours spent reading newspaper and magazines per week per European in 2003

ConsumerParticipationEntertainment

The Rise Of Web TVWe Witness the Launch of IndyMedias...

Consumer expression snow ball effect

Freedom Of SpeechAn opportunity offered by the Web... and seized by the

general public

The Press

-2.6%Newspaper Circulation in the US, Q1 2006

+8%Newspaper-run Web sites increase their audience in the US, Q1 2006

New Info SourcesThe general public becomes a source of Information

for Mainstream Network and Media

Challenging Mass MediaBloggers uncover the Truth and Expose Mainstream Media

Mistakes

Media2.0

Going DigitalPaper Magazines move Online in mass to reach and maintain

their audience

Focused, Up-to-date, InteractiveInternet Offers more Information Sources...

Television viewing continues to shrink...

The week of July 4th was the least-watched week in recorded history, as only 20.8 million viewers were tuned in to primetime TV at any given moment. This was down from the previous low of 21.5 million viewers set last July.

The fact that records are being set, shows that network TV is gradually losing its hold on popular culture: video games, the Internet, and MP3 players, other ways of watching video content (Consumers can now watch TV on cable, satellite, FiOS, IPTV, and the Internet, all of which offer far more options than the on-the-air networks) gain audience.

Podcasting Stealing Radio Audience

By 2010, today's 94% penetration for terrestrial radio will have sunk to 85%."

27% of 12-24 yr. olds attribute their reduction in radio consumption to MP3 and podcast.

Worldwide figure from ARBITRON, a radio industry research firm

“Pick&Mix Media”vs.“Linear Media”

Any Time, AnyWhereUsers can now access any content, without the constraints of

Linear Media

DVDs

-4%Shipments in the 1st half of the year, compared to 2005

Advertising2.0

Advertising, Consumer Generated Content

Get Recognition from the BrandRenowned Brands Challenge their customers to produce Ads...

And be part of the successMovie companies invite Fans to take part in

the production, promotion and merchandising of their Films

Advertising, InteractiveOffline Campaign

Interactive EverywhereBrands promote their goods with Offline Interactive Advertising

campaigns

Go Where Your Consumer IsBrands promote their goods in Second Life

Advertising,The Viral Advertising Age

Promote via ViralSexpacking: More than 3 million Visitors, 1,5 Million Video

DownloadsSexpacking: 24,500 Google hits / 1,367 Blogs according to

TechnoratiSexpacking: Free International Press and TV coverage

Promote via ViralMusic Groups promote their work and sell it on Community

Websites:on the iTunes Music Store as of September 5, 2006,

this single has reached #11 and the album #2.

Not a penny of paid media > 1+ million views on YouTub, significant play on TV talk shows + biggest-ever traffic spike to CampaignForRealBeauty.com, three times more than

Dove's Super Bowl adand resulting publicity last year, according to Alexa.com.

Advertising, The Video Game Era

Video Games’ CodesBrands Use and Parody them to promote their goods

“New Playground”Growing Opportunities are available for Brands in Games and

Virtual Worlds

ANIMATION: Mr Bruce Prokopets http://www.marketingworldnews.com

In-Game Advertising - In 2005, advertisers spent approximately $56 Million placing ads in video games, up from $34 Million in 2004

- In-game avertising results in a 60% increase in awareness for new products and animated 3-D ads achieve twice the recall of static billboards

Advertising, New Killer Applications

Create MashupBrands from separate markets become partners in order to create

Killer Apps

Advertising, Branded Entertainment

Be the EntertainerBrands use entertainment as a means to promote their Image