european digital trends-shifting_consumption_habits

Owen West

European Digital Trends - Shifting Consumption Habits

Owen West EU Business Development Director [email protected]

Gulltaggen 2012

Discussion Topics

A Brief Introduction to comScore

Key Trends in Global Internet Behaviour;

• How communication is redefined by social media

• How online video is now established and the shift to long form content

• Growing mobile media consumption allows for new consumer engagement opportunities

• E-Commerce and M-Commerce are on the rise despite the backdrop of continued economic uncertainty

• Digital advertising enters era of increased accountability as brand budgets continue to shift online

3 © comScore, Inc. Proprietary.

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Patent-Pending Methodology 1 Million Domains Participating

Adopted by 80% of Top 100 Global Media Properties

PANEL

PERSON-Centric Panel with SITE-Census Measurement

V0411 And, a behavioural cross-platform measurement capability

FACEBOOK IPO RAISES THE PROFILE OF SOCIAL NETWORKING AND DIGITAL ADVERTISING

2012 SUMMER OLYMPICS ILLUMINATE THE RISE OF MULTIMEDIA & ‘ALWAYS-ON’ CONSUMPTION

SOCIAL MEDIA A DEMOCRATISING FORCE AHEAD OF U.S. PRESIDENTIAL ELECTION

MOBILE DISRUPTING TRADITIONAL

RETAIL SALES FUNNEL

MIND THE ‘DIGITAL OMNIVORE’ MULTI-DEVICE INCREMENTAL EFFECT & PLATFORM CANNIBALIZATION

Stories That Will Shape Digital in 2012

1

2

3

4

5


In 1996, 2/3 of world’s Internet population was in the US, yet today Asia Pacific is the largest region with over 40% of online population. Many emerging regions likely to bypass old modes, skipping dial-up to go straight to broadband,

making multimedia, video and collaborative content immediately accessible. Early adoption of mobile web in addition to PC web will likely be popular in many of these high-

growth areas.

Asia Pacific

Distribution of Worldwide Internet Audience

66%

13%

34%

87%

1996 2011

U.S. Internet Population vs. Rest of the World

Rest of the World

U.S.

The U.S. Is No Longer the Centre of the Online Universe

Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011

Asia Pacific, 41.3%

Europe, 26.4%

North America,

14.6%

Latin America,

9.0%

Middle East -

Africa, 8.8%


595

381

210 129 126

534

361

203 112 111

Asia Pac Europe North America Latin America Middle east Africa

Dec-11 Dec-10

And Asia Continues Significant Growth in Size of Internet Audience

Growth expected to continue as home broadband penetration increases in Asia and Latin America

Growth slows in North America

European growth mostly driven by Russia

+11%

+3% +6%

+15% +14%

Worldwide Online Population (Millions)

Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2010 and Dec 2011

1,323

1,444

2010 Dec 2011 Dec

+9%


Online Landscape in Europe

Source: comScore Media Metrix, Europe Age 15+, January 2012

384 million Europeans go

online for 29.8 hours each month


Size of Online Audience; 15+ Home & Work

Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Jan 2011 vs Jan 2012

Significant growth in Europe in the past year

6% growth represents 20 million new web users from work & home

Online Population 15+ (Millions)

363.3

16.2 3.2

383.7

16.6 3.3

Europe Nordics Norway

Jan-11 Jan-12

+6%

+3% +2%


Nordics’ Web Usage is High Compared to Some Other Regions….. …..And Norway leads the Nordic charge

Web users in Austria are amongst the least engaged globally; only less engagement by those in China, India & S. Africa

Total Monthly Hours Online per Visitor

WW AVG: 25.3

Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Jan 2012

38.6

29.9

29.8

28.7

27.1

15.9

United Kingdom

Norway

Europe

Finland

Nordic …

Austria

SOCIAL NETWORKING


It is difficult to overstate the importance of social media

Usage is nearly ubiquitous

Social media is impacting:

– Geopolitics: Tunisia, Egypt, Libya, etc

– US politics: 2008 election, and soon the 2012 election

– Retail: Groupon visitation is up 250% versus the previous year

– Marketing: Facebook is the single largest server of display inventory on the

web

– Consumer behaviour: Social media accounts for 18% of all time spent online

globally

The web’s connective tissue: hyperlinks social connections

The Rise of the Global Social Networking Audience

0

200

400

600

800

1,000

1,200

1,400

1,600

2007 2008 2009 2010 2011

+174%

+88%

Worldwide Total Unique Visitors (MM)

Total Internet

Social Networking

Source: comScore Media Metrix, March 2007 - October 2011


Austria 86% Belgium 93% Denmark 94% Finland 91% France 91% Germany 90% Ireland 95% Italy 93% Netherlands 94% Norway 89% Poland 95% Portugal 96% Russia 88% Spain 98% Sweden 93% Switzerland 90% Turkey 96% United Kingdom 98%

Australia 96% China 53% Hong Kong 93% India 95% Indonesia 94% Japan 58% Malaysia 94% New Zealand 95% Philippines 96% Singapore 94% South Korea 87% Taiwan 94% Vietnam 85%

Canada 94% United States 98%

Argentina 96% Brazil 97% Chile 94% Colombia 96% Mexico 96% Peru 96% Puerto Rico 90% Venezuela 96%

Israel 94% South Africa 88%

North America South America Europe Middle East & Africa Asia Pacific

Percentage of Online Population Using Social Networking around the World* % Reach of Online Population * Data is based on the 43 countries on which comScore reports individually.

An Average of 9 out of 10 local online populations engage in social networking

Source: comScore Media Metrix, October 2011

2008 2009 2010 2011

Time Spent on Key Categories Online Worldwide Hours per Month (Billions)

35

30

25

Nearly in 4 minutes online

is spent on social networks today

1

Social Networking

Search/Navigation

Retail

Communications (Email/IM)

Other Content


Social Networking is Redefining the European Online Landscape

Source: comScore Media Metrix, Europe Age 15+, January 2011 to 2012

15.9%

11.7%

6.6%

4.6% 0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Share of time spent among top web categories

Social Networking Services Portals Multimedia E-mail

25.8%

Source: comScore MobiLens, EU5, Dec 2010 – Dec 2011

Not Only is Social Networking One of the Most Consumed Content Categories on a Mobile, it’s also One of the Fastest Growing

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Social Networking or Blog

News General Reference TV Guides Online Retail

Tota

l Au

die

nce

(000

)

Fastest Growing Mobile Content Categories (000) Source: comScore MobiLens, EU5, 3 mo. avg. ending Dec-2010 vs. Dec-2011

Jan-2011 Jan-2012

+ 44.7%

+ 48.9%

+ 57.8% + 45.2%

+ 60.9%

Asia Pacific

33%

Latin America

10% North America

18%

Europe

30%

Middle East - Africa

9%

Regional Share of Total Unique Visitors to Social Networking


1/3 of the world’s social

networkers are in Asia Pacific

11.1 10.7 10.4 10.2 9.8 8.7 8.5 8.3 7.9 7.7

Average Hours per Visitor


Yet 5 of the most engaged markets for social

networking are in Latin America

7

Average Engagement with Social Networking by Region Average Hours per Visitor


Average Hours per Person in Europe Spent on Social Networking

3 Average Hours per Person in Asia Pacific Spent on Social Networking

% 7.6 7.2 7.0

6.4

2.9

Latin America Middle East - Africa

Europe North America

Asia Pacific

Fastest Growing Top-Tier Global Social Networks in Terms of Audience Size

Total Unique Visitors (MM)

Source: comScore Media Metrix, Worldwide, October 2011 vs. October 2010

0

40

80

120

160

200

Twitter LinkedIn SINA Weibo Tumblr Badoo

Oct-10

Oct-11

+59%

+55%

+181% +172% +64%

2007 2008 2009 2010 2011

Facebook

Twitter

LinkedIn

The Growth of Today’s Social Networking Leaders


900

800

700

600

500

400

300

Total Unique Visitors (MM)

3 55% Facebook’s global

penetration


Facebook’s worldwide site rank

3 in 4 minutes on social networking sites are spent on Facebook

1 in 7 minutes spent online are spent on Facebook


471MM

788MM

Jan-2010 Apr-2010 Jul-2010 Oct-2010 Jan-2011 Apr-2011 Jul-2011 Oct-2011

Facebook overtakes StudiVZ in Germany

Facebook overtakes Orkut in India

Facebook overtakes

Windows Live in Mexico

Facebook overtakes Hyves in Holland

Facebook overtakes

Windows Live in Portugal

Facebook overtakes Yahoo! Wretch in Taiwan

Facebook’s Ascent in Recent Years Total Unique Visitors (MM)

Source: comScore Media Metrix, January 2010 - October 2011

Since 2010, Facebook Has Taken the Lead in 6 New Markets Across Asia, Latin America and Europe

Today, there are only 7 markets where

Facebook is not the leading social network


Brazil

Poland Russia

Japan

Vietnam

South Korea China


3 of the Top 6 Social Networks in

Europe are Russian; VKontakte, Odnoklassniki, [email protected]

Source: comScore Media Metrix, Worldwide, Feb 2012

But…..Social Networking is Not Just Facebook

Social Networking is the Most Popular Online Activity Worldwide

1

Social Networking Beyond Facebook Google+ and Pinterest Take Off in 2011

Source: comScore Media Metrix, Oct-2010-Jan-2012, Worldwide

Unique Visitors (000) to Selected Social Media Sites

0

20

40

60

80

100

120

140

160

180

200

Oct-2010

Jan-2012

TWITTER.COM LINKEDIN.COM Google Plus MYSPACE.COM TUMBLR.COM PINTEREST.COM

-42%

-32% -37% -34% -36%

-22%

-8% -4% -3%

1%

34% 25%

15% 21%

12%

Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+

Instant Messengers Email Social Networking

saw the largest Worldwide decline in engagement of web-based email and instant messaging …..

Change in Average Time Spent with Content Category by Age Segment

Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010

15-24 year olds.. ..’Digital Natives’

-42%

-32% -37% -34% -36%

-22%

-8% -4% -3%

1%

34% 25%

15% 21%

12%

Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+

Instant Messengers Email Social Networking

…and the highest increase in engagement of social networking

Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010

Change in Average Time Spent with Content Category by Age Segment

67.1

264.7

483.0

Email

Instant Messengers

Social Networking

Average Minutes per Visitor (15-24)

For ‘Digital Natives’, social networking is the norm

Source: comScore Media Metrix, Worldwide, October 2011


ONLINE VIDEO


Online Video is Now a Huge Global Market

Source: comScore Video Metrix, Aged 15+, Feb 2012

1.2 Billion people watched an average of

18 hours each of Online Video in February

Worldwide



1

Online Video’s Blockbuster Year Nearly 50 Million Russians Watch Online Video Daily

Source: comScore Video Metrix, Jan-2011 to Jan-2012, Spain

39 million

Mar 2011

48.5

million Feb 2012



1

Total Videos Viewed Increase 20% in Spain in 12 months Average Viewer Watched 153 Videos in Feb 2012

Source: comScore Video Metrix, Feb-2011 to Feb-2012, Spain

2.5 billion Feb 2011

3

billion Feb 2012


Russia Leads the Way in Europe in terms of Audience Size

48.5 46

39 34

23.5 21.5 20

0

10

20

30

40

50

60

Russia Germany France UK Italy Turkey Spain

Unique Viewers (Millions)

Source: comScore Video Metrix, Key Measures, February 2012


And Higher Composition of Young Males Outside EU-3* Indicates Room for Maturity

0

5

10

15

20

25

30

35

40

45

50

Germany France UK Spain Italy Russia Turkey

Other

Males 15-34

17.3% 19.3% 19.6% 21.5% 22.2% 30.4% 44.9%

Source: comScore Video Metrix, Demographic Profile, September 2011

Unique Viewers (Millions)

*EU-3 includes UK, France and Germany


Rapid Growth of Unique Viewers and Video Views Stopped in Q1 2010 for EU-3

0

20

40

60

80

100

120

140

0

5

10

15

20

25

30

Feb-2008 Aug-2008 Feb-2009 Aug-2009 Feb-2010 Aug-2010 Feb-2011 Aug-2011

Videos (Billions) Unique Viewers (Millions)

Source: comScore Video Metrix, Media Trend *EU-3 includes UK, France and Germany

Videos (Billions) Unique Viewers

(Millions)


19.2%

14.2%

7.5%

2.3%

8.2%

0

20

40

60

80

100

120

140

0

5

10

15

20

25

30

Feb-2008 Aug-2008 Feb-2009 Aug-2009 Feb-2010 Aug-2010 Feb-2011 Aug-2011

Videos (Billions) Unique Viewers (Millions)

Source: comScore Video Metrix, Media Trend *EU-3 includes UK, France and Germany

Videos (Billions)

March – Sept Change

Minutes per Video +4%

Total Minutes + 33%

But….. a Closer Look Uncovers the Story of a Shift from Quantity to Quality ….. Longer Videos

A Quality Viewing Experience A Choice of Quality Content Convenient and Accessible

A Price Worth Paying

A New Era of Online Video……


A Quality Viewing Experience: Online Video has Come a Long Way

UGC/’Numa Numa’ Song PREMIUM/FROZEN PLANET


A Choice of Quality Content: The Two Ends of the Quality Spectrum are Well Defined

UGC PREMIUM

Shorter format Low budget Low quality Low talent/interest Unknown content Minimally monetised

Longer format High budget High quality

High talent/interest Known content Well monetised


A Choice of Quality Content: At the Premium End, TV Broadcasters Have Large Online Video Presence (UK example)

4.2 4.1

3.3

2.4

0.7

Unique Viewers (millions)

Source: comScore Video Metrix, October 2011, UK


Sources: comScore Custom Marketing Solutions Study (US 2011)

Convenient and Accessible: Online Video is Social and Publishers can Leverage the Power of Social Media

• 1 in 3 video viewers comment

• 2 in 5 upload videos

• 1 in 2 regularly share videos

• More than 1 in 2 view online video with others


A Price Worth Paying: Video Advertising Has Nearly Tripled in One Year (UK example)

19.2%

14.2%

7.5%

2.3%

8.2%

Source: comScore Video Metrix, UK, Age 6+, February 2011 vs 2012

Video Content Video Ads

With people spending more time viewing long-form content

the platform is ripe for brand advertising


MOBILE

THE RISE OF SMARTPHONES; EU5 LEADS THE US

Source: comScore MobiLens, EU5 and US, 3 mon. avg. ending Oct 2011

In the UK, there are

26 million smartphone

users, increase of 50% year

on year

Smartphone Market Growing Rapidly

Source: comScore MobiLens, UK, Age 13+, January 2011 vs 2012

UK IS THE HIGHEST EUROPEAN PENETRATED MARKET WITH

•53% Penetration


All Communications and Social Media accessed show double-digital growth

19.2%

14.2%

7.5%

2.3%

8.2%

Source: comScore MobiLens, UK, Age 13+, January 2011 vs 2012


19.2%

14.2%

7.5%

2.3%

8.2%

Source: comScore Device Essentials, UK, January 2012

Smartphones and Tablets Change the Way People Consume Content (UK example)

Computer 89.7%

Mobile 6.4%

Tablet 3.3%

Other 0.5%

Non-Computer

10.2%*

Share of Connected Device Traffic in UK

*In October we saw only 7.7% of traffic coming from non-computer….. …..in January the figure rose to 10.2% -- a growth of 33% in 3 months


19.2%

14.2%

7.5%

2.3%

8.2%

Source: comScore MobiLens: One month snapshot, January 2011 / January 2012, Country: UK, N=5,124

Dual Device Ownership;

Introducing the “Digital Omnivore”

5.3%

12.7%

January 2011 January 2012

Percentage of Smartphone Audience

Also Owning a Tablet (UK example)


19.2%

14.2%

7.5%

2.3%

8.2%

Source: comScore GSMA Mobile Media Metrics: UK, December 2011

Browser versus App Usage; Just analyzing one consumption behaviour versus the other could seriously undervalue a brand’s total audience (UK example)

75.5%

48.0%

84.3%

42.2%

63.4%

28.0%

17.9%

11.4%

12.3%

BBC Sites

Sky Sites

eBay

Access Methods by (%) Share of Mobile Users for Selected Sites

Browser Access App Access Combined Access

E-COMMERCE

E-COMMERCE IS BACK…..

…..AND BIGGER THAN EVER

8%

9%

10%

11%

12%

13%

14%

15%

16%

17%

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

Retail E-Commerce Spending ($MM) Y/Y % Growth

Source: comScore E-commerce Measurement, U.S.

2011 U.S. Retail E-Commerce Spending ($MM) and Y/Y Growth Rate by Month

E-Commerce Bounces Back in 2011 Total E-Commerce Spending Reached $256 Billion, +12% Growth (US example)

Source: comScore E-Commerce Measurement, U.S.

Top 10 Online Retail Spending Days in 2011: $1.25 Billion Cyber Monday Ranks As Top Online Spending Day

$1,251

$1,178

$1,133

$1,116

$1,107

$1,072

$1,064

$1,025

$1,024

$1,018

Monday, Nov. 28 (Cyber Monday)

Monday, Dec. 5

Monday, Dec. 12 (Green Monday)

Tuesday, Nov. 29

Tuesday, Dec. 6

Friday, Dec. 16 (Free Shipping Day)

Tuesday, Dec. 13

Wednesday, Nov. 30

Thursday, Dec. 8

Thursday, Dec. 15

Spending in Millions ($)


1

Source: comScore E-commerce Measurement, U.S.

Free Shipping is the Key to E-Commerce Growth


1

Source: comScore MobiLens, 3 mon. avg. ending Jan-2012, Spain

M-Commerce; Spain's New Shopping Companion Half of Smartphone Owners Use Phone While in a Brick-and-Mortar Store to Shop

1 in 8 Scanned Barcodes

50% of Smartphone Owners Used Phone to Shop While in a Retail Store


DIGITAL ADVERTISING


DIGITAL ADVERTISING ENTERS ERA OF INCREASED

ACCOUNTABILITY AS BRAND SPEND CONTINUES

TO SHIFT ONLINE


UK Digital Ad Landscape

Source: comScore Ad Metrix, Feb 2012,UK.

In the UK, 40 million people

are exposed to 70 billion ad impressions a month

Facebook Delivers 1 of Every 4 Display Ads in 2011

Source: comScore Ad Metrix, Jan-2011 to Dec-2011, UK.

Facebook

, 27.9%

All Other,

69.7%

30.3%

5.5

8.1

8.2

13.2

15.6

30.8

40.8

41.3

41.5

240.1

Gumtree Sites

Amazon Sites

AOL, Inc.

Glam Media

Trader Media …

Google Sites

Microsoft Sites

eBay

Yahoo! Sites

FACEBOOK.COM

Top 10 Display Ad Publishers (Billions of Impressions)



1 79

65 74

104 99

10

14 15

15 20

12 12

10

13 17

9

Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011

Number of Advertisers Delivering at Least 1 Billion Display Ad Impressions per Quarter

1-3 Billion 3-5 Billion 5-10 Billion 10+ Billion

Source: comScore Ad Metrix, Q4 2010 – Q4 2011

Large Brand Advertisers Growing Digital Investment


ADVERTISING MEASUREMENT TO EVOLVE


… price is regulated by the proportion between the

quantity brought to market, and the demand of

those who are willing to pay… - Adam Smith ‘The Wealth of Nations’, 1776


Price

Quantity

Where supply meets demand,

everything sells

Demand Supply

The Problem Counting unlimited served impressions hurts

advertising economics. Demand is increasing, but

prices aren’t following

The Solution Introduce Digital Scarcity to the system


Achieving Digital Scarcity

Only count impressions that reached a real user and had a chance to make a real impact

in-view audience geography brand safe fraud


Validated Campaign Essentials™ (vCE) is powered by comScore’s unique impression validation technology, vGRP

Gross Impressions

Removes All Ad Impressions That

Didn’t Have A Chance to Make An Impact

Validated Impressions

No opportunity to be seen Delivered outside of target audience Delivered in the wrong geography Delivered next to “unsafe” content Subject to fraudulent delivery


Conclusions

The digital world is expanding rapidly, driven by new users in some regions and / or by growth in time spent in others

Younger consumers are leading the revolution, with higher engagement coming from 15-34 age segments

Social Networking is a key driver of computer and Mobile activity, cannibalizing many other activities

Video & Mobile’s time is now

Online advertising is effective, both as a direct response and branding strategy……BUT it needs to be proven to deliver

THANK YOU! Owen West – EU Business Development Director [email protected]

mailto:[email protected]

european digital trends-shifting_consumption_habits

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