Digital Digest

25 recent Internet and Technology developments you may have missed from – and/or potentially impacting on - Qatar and the Middle East

Issue 9: Q3 2013

Contact us: rassed@ict.gov.qa

Twitter: @ictqatar

Executive Summary

In a hurry? Our Top 10 takeaways

1. Video, Forums and eCommerce are MENA’s most popular online activities.

2. Nearly 75% of people in the UAE owns a smartphone.

3. Engagement with brands via social media increases during Ramadan

4. The value of the Middle East’s online commerce market grew by 29% last year.

5. Whilst the number of people shopping online increased by 65%.

6. MENA users upload around 2 of video every minute on YouTube.

.شبكة .7 shabaka or ".web" in English will become the world's first Arabic top-level domain.

8. 53% of UK audiences regularly multi-task with other media while watching TV.

9. In the US, video calling has tripled since 2011.

10. 1.7bn mobiles were sold in 2012, compared to 350m PCs.

Contents Issue 9: Q3 2013

Slides

1. Recent developments in the MENA region

• The most popular online activities in the Middle East

• UAE Global Smartphone Leader

• Social Media Usage during Ramadan

• Networked Society MENA City Index published

• eCommerce Insights

• In Brief: Content News

• In Brief: Social Media News

• In Brief: Technology News

• Spotlight: Global Competitiveness Report (World Economic Forum)

4-19

5-7

8-10

11

12

13-14

15

16

17

18-19

2. Wider ICT & Society Research

• Social Impact: Mobile devices driving a return to the living room

• Youth Research: Uncovering the digital habits of Kenyan youth

• Emerging Technology: Evolving Cell Phone Behaviors

• Internet Governance: Vietnam’s new online censorship law

20-25

21

22-23

24

25

3. Coming Up – three emerging issues

• Social Impact: “Mobile Is Eating The World”

• Technology: Machines and humans getting smarter by working together

• Internet Governance: Connecting the next 5 billion

26-29

27

28

29

1. Recent developments in the MENA region

Images: http://bit.ly/1bV8y32, http://bit.ly/17hivUO, http://bit.ly/18iIGKy

Includes: - The most popular online activities in the Middle East

- UAE Global Smartphone Leader

- Social Media Usage during Ramadan

- Networked Society MENA City Index published

- eCommerce Insights

- Global Competitiveness Report

1.1 Video, Forums and eCommerce - most popular

online activities in the Middle East (Ipsos MENA)

Survey data from 9 countries and 25,928 people

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With news consumption increasingly common online

But advertising remains focused on traditional channels.

Will advertising spend move to where the attention is?

1.2 UAE Global Smartphone Leader (Google)

Nearly 3/4 people in the UAE owns a smartphone.

Usage in South Korea and Saudi Arabia follows close behind - Data compiled by Statista from the results of Google’s ‘Our Global Planet’ survey.

Writing for the Spot On PR blog

Alexander McNabb dived deeper

into the UAE data, noting:

• 73% of users had prepaid

packages with 85% of users

connecting via Wi-Fi rather

than the public network.

• 77% of smartphone users

surveyed accessed the internet

at least daily and 66% multiple

times per day. 56% had used

the Internet on their phones

every day in the past week.

• Browsing the Internet (76%),

email (74%), photo or video

sharing (77%) and accessing

social networks (70%) were

the leading online activities.

Image from: http://bit.ly/15g7pdP

Jordanian based mobile app developer, FrootApps, compiled an

infographic which identified many of the same behaviors.

This included:

• frequency of usage

• popularity of home

based activity (where

Wi-Fi is presumably

more prevalent)

• Texting and Talking

account for >50% of

daily mobile use

Research from Ipsos showed different penetration figures

But the trend – high smartphone penetration – remains constant

(NB: This example highlights the challenge of getting accurate data from the region, but general trends e.g. high smartphone penetration in the GCC can still be discerned, as all sources show this.)

1.3 Social Media Usage during Ramadan (The Online Project)

- Brand engagement can increase substantially c.30%

- Integrated marketing has higher multiplier effects at this time

Brands typically

dedicate 20% of

their annual

media spend to

activity during

Ramadan.

Some spend

even more.

Source: Gulf News -

http://bit.ly/ruhaLE

“…people engage with social media at different periods of

time during Ramadan…. Brands benefit from the increase

in engagement, especially during peak hours, given that

the content is entertaining and/or valuable.” http://bit.ly/16ZGeqE

http://bit.ly/13xXwxW

1.4 First Networked Society MENA City Index published (Ericsson)

Dubai, Abu Dhabi and Doha are MENA’s most Hi-Tech Cities

Via

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"Trends suggest that more than 60

percent of all people in the region

will live in cities by 2030.

In the future, advances in

technology and infrastructure

performance will continue to

change our lives, as ICT has the

potential to help us meet some of

our great societal challenges.

The report shows high levels of ICT

maturity in the MENA region in

terms of infrastructure and usage

and indicates the untapped

opportunities to leverage the

socioeconomic benefits."

Anders Lindblad, President, Region

Middle East and North Africa,

Ericsson

Via: http://bit.ly/19wAc0a

1.5 eCommerce in the Middle East New Insights from PayPal and Ipsos

Five Key Findings

1. The Middle East’s online commerce market grew 29% from

$7 billion in 2011 to $9 billion in 2012.

2. In 2012, there were over 30 million people shopping

online in the Middle East, an increase of 65% from 2011.

3. Predicted that the Middle East’s online commerce market

will be worth $15 billion a year by 2015.

4. Security remains the top concern for consumers.

5. Most transactions are completed on a computer, but

mobile transactions account for 10% of e-commerce.

Image: http://bit.ly/15EZh7S

Charts and Report: http://bit.ly/16O52Q6

Four reasons for

market growth:

“new consumers

purchasing online for

the first time;

retailers establishing an

online presence or

increasing the

sophistication of their

current online opening;

a number of major

international retailers

marketing directly to

consumers in the region

and finally, the explosive

growth of mobile

commerce.”

Key Charts Top Online Spending categories in 2012

Top Online MENA merchants (Average spend per online shopper)

Size of

MENA market

1.6 In Brief: Content News Im

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Wamda reported that Lebanese game

developer Game Cooks had seen it’s

mobile word scramble game, reach the

Top Five for Word Games in the U.S.

App Store and Top Five in the overall

Games category in MENA countries

including Egypt, Saudi Arabia, Qatar, the

UAE, and Kuwait: http://bit.ly/19dwLxJ

The Gulf Times explored the popularity of

regional streaming services, given iTunes’

absence from this market in the Middle East (NB: iTunes enjoys 63% market share of MENA music downloads).

Companies include France-based Deezer and

Morocco-based Yala Music, as well as Lebanon-

based Anghami, which has enjoyed two million

downloads since it launched in November 2012.

The market is estimated to be worth $1.1 billion

p.a. in the region. Piracy and illegal downloads

are a challenge to its growth: http://bit.ly/18kU3Ao

The MENA region contributes around 2

hours out of the 72 hours of video

uploaded every minute on YouTube. via Tfour.me - http://bit.ly/1d4WDeT

“Do you remember

scrabble, the old yet

classic word game?! Get

ready to meet its cooler

cousin: “Scrab it”, a new

modern concept for your

mobile device.”

Image and downloads available via: https://itunes.apple.com/sa/app/scrab-it/id661176587?mt=8

Facebook ads in #Egypt are

as a popular as Google ads: http://bit.ly/1d4WDeT

1.7 In Brief: Social Media Highlights

Global Voices notes the popularity of a

Twitter hashtag, which translates as

Take a Picture of Yourself Like a Girl

Does. It shows Saudi boys poking fun at

girls sharing their pictures on social

media: http://bit.ly/14fMN9s

LinkedIn revealed that Emirates has

become the first global airline to

reach 100,000 followers: http://bit.ly/1gRNkko

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1.8 In Brief: Technology News

“The Middle East beats the West in female tech founders”

reports The Economist, noting that globally 10% of internet

entrepreneurs across the world are women, against an average

35% in MENA. http://econ.st/155Iyeh

.شبكة (.shabaka or ".web" in English), will

become the world's first Arabic top-level

domain (TLD) http://bit.ly/15CtqtY

Informa reports that sales of tablets in the region are expected to

increase almost fivefold in the next four years, from 6.5 million

in 2012 to 32.1 million in 2016. http://bit.ly/16jaDmY

Jordan blocks 254 news websites for having no license.

During the summer AFP reported sites were blocked “for failing to obtain the

necessary licensing,” which followed legislation introduced in 2012. The law

included powers to regulate “electronic publications,” with sites having to be

registered and licensed. http://bit.ly/16BA98i

1.9 Global Competitiveness Report (via World Economic Forum)

The World Economic Forum has published their latest

Global Competitiveness Report which assesses the

competitiveness landscape of 148 economies, with a

focus on the drivers of productivity and prosperity.

A number of countries in the MENA region did well in

this index, with the report authors noting:

Source: http://bit.ly/15WC6sT (Page 14)

“The Middle East and North African region continues to

be affected by political turbulence that has impacted

individual countries’ competitiveness.…

… At the same time, some small, energy-rich economies in

the region perform well in the rankings.

This underlines the fact that, contrary to the situation found in

previous energy price booms, these countries have

managed to contain the effects of rising energy prices on

their economies and have used the window of

opportunity to embark on structural reforms and invest in

competitiveness-enhancing measures.”

Image: http://bit.ly/18mtgDG

The Index uses 12 Pillars to determine competitiveness including Technological Readiness, which recognizes that “in today’s globalized world, technology is increasingly essential for firms to compete and prosper.”

Cited benefits provided by Tech include increased productivity and production processes, daily activities, enabling innovation, and cross-cutting infrastructure. Image: http://bit.ly/1521eLm

About the Index

2. Wider research related to ICT and Society

Images: http://bit.ly/19aIwI6, http://bit.ly/19PxpPC, http://bit.ly/16XzVTf

Includes: - Mobile devices driving a return to the living room

- Uncovering the digital habits of Kenyan youth

- Evolving Cell Phone Behaviors

- Vietnam’s new online censorship law

2.1 Social Impact: The domestic digital media hub Tablets and Smartphones driving a return to the living room

Ofcom’s Communications Market Report 2013

revealed that people still coming together to

watch TV in the living room – 91% of UK

adults view TV on the main set each week.

But they often undertake other digital media

activity – such as streaming videos, using

instant messenger apps or updating their social

media status – at the same time.

Terminology Watch

“Media meshing”’ – doing something

else but related to what they’re watching

on TV.

e.g. During the 2013 Wimbledon Men’s tennis

final, 1.1 million people tweeted 2.6 million times

using hashtags associated with the game. 80%

of tweets were from mobile devices.

- 25% media mesh weekly

-------------------

“Media stacking’ – using smartphones

and tablets for completely unrelated

activities while watching TV.

- 53% regularly multi-task with

other media while watching TV

Read more: http://bit.ly/1cqUA7l

2.2 Youth Research: new UNICEF report published Uncovering the digital habits of Kenyan youth

UNICEF has published a report which looked at how young people in Kenya use ICT. The

report noted that young people don’t differentiate between mobile and Internet use,

instead viewing it as an integrated digital experience which enables them to meet new

people, access entertainment-related content and learn about new things of interest.

Read more: http://bit.ly/13STkGP

Popular activities online include:

• socializing and chatting using

social media platforms and chat

forums,

• accessing audio/video content,

playing games, and

• searching for information on

topics ranging from sports,

entertainment, fashion, dating

and love lives to academic

subjects and gossip. In terms of developing skills to be

safe online, young people prefer

to learn from people like them.

Cyberbullying or receiving hurtful messages was common.

Respondents usually just delete

such messages or block the

sender. They seldom tell an adult.

qnrct16bit.ly/http://Image: All charts are taken from the report.

2.3 Technology: Evolving Cell Phone Behaviors 50% of US cell owners download apps to their phones

48% listen to music services + video calling triples since 2011

Research at: http://bit.ly/14Wxd55 Images via: http://bit.ly/18e4Egg

With 91% of US adults owning a mobile phone, new data from the Pew Research Center

shows how over the past four years phone owners are increasingly likely to use their

mobile for activities such as getting directions, listening to music or video calling.

2.4 Internet Governance Vietnam’s new online censorship law attracts criticism

Decree 72 bans bloggers and users of social media from quoting, gathering, or

summarizing information from press organizations or government websites,

reports the Electronic Frontier Foundation (EFF). Designed to uphold "national security,"

Vietnamese authorities also claim it will help combat online copyright infringement.

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Critics of the decree included the Asia

Internet Coalition (which includes

eBay, Facebook, Google, and Yahoo!):

“It is unfortunate that the Vietnamese

government has decided to take a

restrictive policy approach towards the

management of the internet….

In the long term, the Decree will stifle

innovation and discourage businesses

from operating in Vietnam, thereby

hindering Vietnam's goal to establish itself

as an advanced competitive ICT nation.”

Statement via: http://bit.ly/171VfsV

Read more: http://bit.ly/18SUiBl and

http://wapo.st/16rAhly

According to Reporters Without Borders,

35 bloggers and other online critics

have been jailed in Vietnam in 2013.

The Washington Post noted this means that

“about 20 percent of the world's imprisoned

bloggers this year have been Vietnamese”.

Whilst, the Elite Daily website called it “The

Strictest Online Censorship We’ve Ever Seen.”

3. Emerging Issues

Images: http://gtnr.it/1aEbJZc, http://bit.ly/16YFuRo, http://bit.ly/15FrJGY,

Includes: - “Mobile Is Eating The World”

- Machines and humans getting smarter by working together

- Connecting the next 5 billion

3.1 Social Impact: “Mobile Is Eating The World”

Benedict Evans’ presentation outlines the impact

on the PC and Mobile Industries of tablet and

smartphone take up, and the impact on

Internet usage.

In this environment he refers to “the role of

content as a competitive weapon”.

Source: http://slidesha.re/1gVFSES

How mobile is changing our relationship with the Internet.

3.2 Emerging Technology: Top trends of 2013 (Gartner)

Machines and humans getting smarter by working together

The 2013 edition of Gartner's long-running Hype Cycle for Emerging Technologies identifies the three

biggest emerging technological trends, as well as technologies which are overhyped.

The Top 3

1) Augmenting humans with

technology e.g. an

employee with a wearable

computing device;

2) Machines replacing

humans e.g. a cognitive

virtual assistant acting as an

automated customer

representative; and

3) Humans and machines

working alongside each

other e.g. a mobile robot

working with a warehouse

employee to move boxes.

Technologies at the overhyped stage – shown on the chart in the “Peak of Inflated Expectations” segment

include "big data", consumer 3D printing, gamification, and wearable user interfaces.

Mobile health monitoring, NFC and cloud computing reside in the “Trough of Disillusionment”.

wSu1605zd.net/http://Source:

3.3 Internet Governance: Connecting the next 5 billion

The Founder members are: Facebook, Ericsson, MediaTek, Nokia, Opera, Qualcomm and

Samsung. Efforts will include lobbying, developing new business models and focusing

on mobile and reducing the data needed by apps and other online tools.

Press release: http://bit.ly/17IUNP5 New York Times article: http://nyti.ms/19bvtGb

Mark Zuckerberg announces a global partnership – Internet.org

Critics argued that the move is being driven by a search for

new markets, or that the developing world has more pressing needs. e.g. Time: Three Reasons Zuckerberg’s “Internet For All” Crusade Rings Hollow - http://ti.me/19yeNER

The move follows the launch of “Project Loon” by Google (featured

) which uses balloons to help fill coverage gaps. 8Digest No in

The New York Times noted that Zuckerberg

acknowledged this but that he felt: “if you can

afford a phone, I think it would be really good

for you to have access to the Internet.”

“We’re focused on it more because we think it’s something good for the world…

rather than something that is going to be really amazing for our profits.”

Thank you for reading.

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Disclaimer: all content in these slides is in the public domain and referenced so that you can read the original sources.

Any omissions, errors or mistakes are mine, and mine alone.

rassed@ict.gov.qaContact us:

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