Wave 6 - The Business of Social

The business of social Social media tracker 2012

The business of social | Social media tracker 2012

Contents Executive summary

5

What is Wave?

7

The continuing story of Wave

9

Social movements

15

Will data privacy slow social?

27

The Business Of Social

43

Connecting with social experiences

55

The impact: Summary

67

What does this mean for your business?

71

About this report

72

3

The business of social | Social media tracker 2012

Executive Summary The story so far in social networking has been the incredible growth in the numbers of people using them. But Wave 6 shows that in the future the biggest impact will come from the increasing amount of time people are spending on them. Social networks are now legitimate rivals to all forms of media and will continue to have a huge effect on online consumption in particular.

Consumers are continuing to move away from increasingly siloed brand websites, viewing it as a one dimensional experience compared to that offered by social media. Brands will need to reach out to consumers in the social spaces if they are to connect online.

Attachment to social networks is stronger than ever, with over 40% of people saying they are worried about missing out if they don’t visit their social network. As a result users are fully prepared to share their data in return for the benefits they bring.

Social experiences deliver very clear value to brands. Understanding the social experiences the consumer wants AND which of these experiences deliver the brand’s marketing objectives is the key to unlocking this value. This is an important part of making social media a legitimate platform for brand development.

Despite the reluctance of many companies to discuss problems, particularly in social media, our research has shown that actually responding to a customer’s issues is one of the most powerful social experiences a brand can deliver. In the future social CRM should be a fundamental part of any brand’s communication strategy.

The consumer has many devices through which they can interact with a brand digitally but not all of these devices are a suitable environment for every experience. Tablets and smartphones, for example, have very different strengths. Marrying the right experience to the right device is key to creating a compelling social strategy.

This report is a brief snapshot of the insight available. You will find contact details if you require further information at the end of this report.

5

The business of social | Social media tracker 2012

What is Wave?

•

Wave is a social media study.

•

Wave has retained the same methodology from Wave 1 to Wave 6, enabling comparison across Waves.

•

All research is conducted by the EMEA Research team in collaboration with the UM network of agencies.

•

The survey is carried out using UM’s in-house research system, Intuition.

•

We have surveyed 41,738 16-54 Active Internet Users in 62 countries.

•

All surveys are self-completed and the data collected is purely quantitative.

Why the Active Internet User?

•

Active Internet Users are those that use the internet every day or every other day.

•

Social media is driven by Active Internet Users.

•

They drive adoption of platforms and tools and they will determine which tools and platforms become dominant.

7

BUSINESS THE BUSINESS OF SOCIAL

SOCIAL

Social media tracker 2012

62 countries 42,000 respondents September 2011: QQ IM - over 700M active users

December 2011: Over 845M active users

54 countries 37,600 respondents

MOTIVATIONAL

June 2011: Over 200M tweets a day

June 2011: Launch April 2011: Valued at over £3Bn

March 2011: 100M members

December 2010: 100M users just 2.5 months after launch

October 2010: “The Social Network” film released

38 countries 23,200 respondents INFLUENTIAL

August 2010: Groupon is the fastest growing company of all time

July 2010: 100M check-ins April 2010: iPad released

February 2010: Facebook Mobile - 100M users

August 2009: Xiaonei becomes RenRen There are now more than 3.6Bn images on Flickr

29 countries 17,000 respondents

June 2009: Launch March 2009: Launch

October 2008: Launch

September 2008: First Android phone launch

August 2008: Over 100M users

TEXTUAL

21 countries 10,000 respondents

April 2008: Facebook overtakes MySpace in popularity

15 countries 7,500 respondents

March 2007: Launch

January 2007: iPhone launch

October 2006: Launch September 2006: Facebook is opened to everyone

July 2006: Launch

February 2006: Founded

December 2005: Launch

August 2005: Google acquire Android

April 2005: First video uploaded to Youtube

March 2005: Yahoo acquire Flickr

January 2005: Launch

December 2004: Launch

February 2004: Launch

January 2004: Launch August 2003: Launch May 2003: Launch

Delicious September 2003: Launch June 2003: Launch January 2003: Launch

January 2001: Launch

March 2002: Launch October 1999: Launch

The business of social | Social media tracker 2012

VISUAL

The continuing story of Wave In 2006, UM embarked on a project to measure the scale and impact of social media across the globe and to explore the changes occurring in communication technologies. To date, we have surveyed more than 136,000 Active Internet Users across 64 countries.

Over the course of this project Wave has taught us that growth in social media is unprecedented.

However, the real story has not just been one of growth but also of evolution. In a few short years social media has made content creators, sharers and influencers of us all.

•

Wave 1 (2006): demonstrated that social media was living up to the hype. There was a large and active community communicating online.

•

Wave 2 (2007): showed how social media moved from a text-based medium of bloggers and posters to a fully audio visual one full of content creators and sharers.

•

Wave 3 (2008): charted the democratisation of influence, how social media was driving greater means and opportunity for consumers to influence their peers.

•

Wave 4 (2009): examined the reasons behind the huge growth in social media by understanding the motivations to use different social media platforms. It showed that consumers engage with a platform because it meets specific consumer needs and all platforms meet these needs differently.

•

Wave 5 (2010): told us that there was huge demand for social interaction with brands. However, the nature and depth of this interaction varied wildly from person to person and category to category. But those brands that could create the right experience benefited enormously, driving brand loyalty, endorsement and sales.

9

The expanding Wave universe

41,738 62 RESPONDENTS

The business of social | Social media tracker 2012

COUNTRIES

WAVE 5

WAVE 4 WAVE 3 WAVE 2 WAVE 1 Australia China France Germany Italy Philippines Russia South Korea Spain UK US

Australia Brazil China France Germany Greece India Italy Japan Malaysia Mexico Pakistan Philippines Russia Singapore South Korea Spain Taiwan Thailand UK US

Australia Austria Brazil Canada China Czech Republic Denmark France Germany Greece Hong Kong Hungary India Italy Japan Korea Mexico Netherlands Pakistan Philippines Poland Romania Russia Spain Switzerland Taiwan Turkey UK US

Australia Austria Belgium Brazil Canada China Colombia Czech Republic Denmark Ecuador Finland France Germany Hong Kong Hungary India Italy Japan Latvia Lithuania Malaysia Mexico Netherlands Norway Peru Philippines Poland Portugal Romania Russia Singapore South Africa South Korea Spain Sweden Turkey UK US

Algeria Argentina Australia Austria Bahrain Belgium Brazil Canada Chile China Colombia Czech Republic Denmark Ecuador Egypt Estonia France Germany Hong Kong Hungary India Italy Ireland (ROI) Japan KSA Kuwait Latvia Lebanon Lithuania Malaysia Mexico Netherlands Norway Oman Philippines Poland Portugal Qatar Romania Russia Serbia Singapore Slovakia South Africa South Korea Spain Sweden Taiwan Thailand Tunisia Turkey UAE UK Ukraine US

WAVE 6 Algeria Argentina Australia Austria Bahrain Belgium Brazil Canada Chile China Colombia Croatia Czech Republic Denmark Ecuador Egypt Estonia France Finland Germany Greece Hong Kong Hungary India Italy Ireland (ROI) Japan KSA Kuwait Latvia Lebanon Lithuania Macedonia Malaysia Mexico Netherlands Norway Oman Philippines Poland Portugal Puerto Rico Qatar Romania Russia Serbia Singapore Slovakia South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Tunisia Turkey UAE UK Ukraine US Vietnam

11

The business of social | Social media tracker 2012

Welcome to Wave 6 The Business of Social Social media remains at the top of the agenda for many brands. However, it is clear that as a medium for marketers it’s still very much in its infancy. Popular measures of success, such as “Likes”, posts or Tweets, are no more than proxies for other more meaningful brand objectives. In fact, by definition, setting these goals suggests you may have already confined yourself to creating a one-dimensional social experience.

Perhaps this is one reason why so many social media strategies look the same, using familiar platforms in familiar ways to achieve similar goals. With Wave 6 we intend to address this challenge. Wave 5 – The Socialisation Of Brands told us that people want vastly differing social relationships with brands.

Wave 6 – The Business Of Social tells us what these social relationships can deliver for brands.

Do they make people want to spend more time with the brand, do they make them feel valued as customers, or do they encourage people to recommend the brand to others?

Our research has revealed a deeply complex environment where different social experiences meet different marketing objectives. An experience that drives brand advocacy in one category simply creates awareness in another. An experience that encourages brand participation for one person does very little for someone else. Knowing the value of an experience means we can build a social media strategy designed to meet a marketing objective, rather than starting with how to exploit an existing social platform.

We believe this knowledge is vital if we are to make social media a legitimate platform for the development of brands.

13

SOCIAL MOVEMENTS

Growth in social networking has slowed FIGURE 1: “Thinking about the internet, which of the following have you done in the last 6 months?

- Manage a profile on an existing social network (eg: facebook.com)�

GLOBAL 45.1%

Wave 3

51.4%

Wave 4

The business of social | Social media tracker 2012

61.4%

Wave 5

65.2%

Wave 6

U.S.A. 33.1% 48.3% 58.1% 64.5%

CHINA 47.4% 51.4%

BRAZIL 63.6% 53.9%

INDIA 51.4% 62.8%

74.5%

74.3%

SPAIN 29.9% 46.2% 55.5% 59.6%

RUSSIA 64.8% 66.1%

79.8%

68.4%

72.5%

68.9%

67.1%

FRANCE 26.3% 43.4% 53.2% 53.5%

U.K. 53.4% 55.5% 58.6% 62.9%

ITALY 24% 34.4%

53.9%

61.2%

GERMANY 27.2% 36.6% 37.8% 53.1%

77.1%

Wave 3

4

5

6

17

But as profile creation begins to plateau, active management still grows The social network is beginning to reach a plateau amongst the active internet universe (see Figure 2). As a result, we are going to see growth at a much slower rate from now on. This will naturally put pressure on Facebook as it IPOs. Investors will expect a return on their investment and the growth of the platform will be a key performance indicator. Facebook will need to find ways to get consumers to spend more time with them and further commercialise their services.

It is clear however, that active management of a social network profile is continuing to rise (see Figure 2) and time spent on a social networking site will continue to grow, at the expense of other platforms (see Figures 3 & 5).

The business of social | Social media tracker 2012

FIGURE 2: “Thinking about the internet, which of the following have you ever done?”

88%

49%

75%

77%

81%

49%

Upload a video to a video sharing site Wave 1

Watch video clips online

Wave 2

Create a profile

Wave 3

Manage a profile

Wave 4

Wave 5

Visit a friend’s social network page Wave 6

19

But people are spending more time than ever on social networks FIGURE 3: “Approximately how much time did you spend consuming the following media in the last 7 days?� Hours per week

16 - 24 year olds

Everyone

Television

9 6

Radio Magazines Newspapers

4

10

7

6 5

6 13 13

Internet 7 7

Email

7

Social networks 6

Microblogging sites

7 8

Mobile phone Blogs Video sites

The business of social | Social media tracker 2012

9

5

6 6

7

10

And the number of social contacts continues to grow FIGURE 4: “Approximately how many people do you stay in contact with in your personal life through the following means?�

80 Social network

Average number of people

70

i

m

60

Instant messenger Forum/Message board My personal blog

50

Phone

40

Email

30

Face to face SMS

Text message (SMS)

20

Post/Letter

10 0 Wave 3 2008

Wave 4 2009

Wave 5 2010

Wave 6 2011

21

The business of social | Social media tracker 2012

2010 may prove to be the peak for many other social platforms 2010 may have been the high point for many social platforms. Growth in some activities, like blog reading and creation, has stagnated (see Figure 5). In others, like starting a topic on a forum or visiting a photo website, we are seeing a marked decrease.

FIGURE 5: “Thinking about the internet, which of the following have you ever done?�

90% Read blog/weblogs

% Ever done

80%

Start my own blog/weblogs

70%

Visit a photo sharing website

60%

Use instant messenger

50%

Visit a message board/forum Started a topic on a message board/forum

40%

30%

20% Wave 1 2006

Wave 2 2007

Wave 3 2008

Wave 4 2009

Wave 5 2010

Wave 6 2011

23

But Microblogging is still rising although yet to be universally adopted Since Wave started in 2006 we have tracked the growth of many emerging technologies and we often see vast differences in the rate by country.

Microblogs, e.g. Twitter, fit the typical profile of an emergent social media. Small faltering steps as the platform begins to grow and then suddenly the event horizon is reached and they burst into life drawing in huge numbers of participants.

What is different about microblogging though is that the Chinese active internet universe is leading the way with a penetration of 71.5%. Chinese microbloggers are a highly vocal and active community. They are more likely to be highly educated and well paid, viewing microblogging as a tool for self expression (49% in China vs. 32% globally) and sharing experiences (46% in China vs. 30% globally). It’s no wonder then that in a few short years using sites like Sina Weibo, Sohu. com and Tencent microblogging have reached mass penetration. Clearly the microblogging platform is becoming a highly influential form of media, explaining why the Chinese government is becoming so heavily involved through new rules of use and the launch of it’s own platform.

The business of social | Social media tracker 2012

FIGURE 6: “Thinking about using the internet, which of the following have you used in the past 6 months?

– Used a microblogging service (e.g. Twitter, Jaiku)”

GLOBAL 14.9%

33.2%

Wave 5 Wave 4

42.9%

Wave 6

U.S.A. 8.5% 18.8% 22.1%

CHINA 26.3% 53.1%

BRAZIL 13.4% 43.9%

INDIA 24.4% 45.5%

47.6%

SPAIN 11.5% 19.1% 24.8%

RUSSIA 14.2% 19.9%

FRANCE 4.1% 8.8%

71.5%

U.K. 6.4%

42.9%

ITALY 9.4% 11.1%

12.2%

19.3%

GERMANY 6.2% 7.7%

62.9%

17.7%

15.9%

25.8%

Wave 4

5

6

25

will data privacy slow social?

FIGURE 7:

FIGURE 8:

“Please indicate how much you agree (definitely or tend to) with the statement [I am concerned about the amount of personal data that goes online]”

“Please indicate how much you agree (definitely or tend to) with the statements [I worry about missing out on something if I don’t visit my social network] & [Social networking sites are an integral part of my social life]”

I worry about missing out on something if I don’t visit my social network

I am concerned about the amount of personal data that goes online

70%

Social networking sites (eg: facebook.com) are an integral part of social life

55%

50%

% Agree

% Agree

65%

60%

45%

40%

55% 35%

50%

30% Wave 4 2009

Wave 5 2010

Wave 6 2011

The business of social | Social media tracker 2012

Wave 4 2009

Wave 5 2010

Wave 6 2011

Concern rises but so does attachment to social networks Currently, one of the most valuable commodities that a social business can own is data. Many are commercialising their platforms by delivering targeted advertising based on a user’s data and preferences. This has driven much discussion over the privacy policies of both Google and Facebook in the last 12 months and the knock-on effect is a rise in the concern amongst users (see Figure 7).

However, despite this concern, it’s clear that social media is becoming an increasingly important facet of social life. We see a huge rise in the number of people saying that the social networks are fundamental to their social life (see Figure 8).

Our research shows that concern about sharing personal data online is real and building. However, this concern goes hand in hand with the growing importance that social networks are now playing in users’ lives. People are sharing as much data as ever before, be this photos, videos or simply updating their profile or status (see Figure 9). So it is clear that users are aware that they are sharing data and, while this is a concern, the perceived benefits brought are too strong or outweigh the risks.

29

And people are still sharing personal data Updating your profile (62% globally) and status (52% globally) is a fundamental part of the social networking experience (see Figure 9). Also uploading your own content is continuing at high levels.

FIGURE 9: “What have you done with your social networking profile?, amongst those who have used a social network in the past 6 months�

38%

27% 19%

19%

Join a celebrity group

Dating

21%

21%

Organise events

Purchased something

The business of social | Social media tracker 2012

Make contacts for work/ professional reasons

29%

Shared your location

30%

30%

Affiliate with or become a fan of a brand

Write a blog

38%

31%

Upload videos

Join an interest group or cause

Removed someone from my friend list

62%

43%

44%

44%

Join a group

Display my interests

Play games

47%

47%

Used a “like� button

Used live chat

49%

Find new friends

59%

59%

Find old friends

Upload photos

64%

52%

Update my status

Update my profile

Message friends

31

Sharing personal data is an accepted risk FIGURE 10:

% agree social networking is an integral part of my social life

“Please indicate how much you agree (definitely or tend to) with the statements [I worry about missing out on something if I don’t visit my social network] vs. [I am concerned about the amount of personal data that goes online]� amongst those who have created a profile on a new social network. - Size of bubble represents size of audience

75%

70%

65%

60%

Russia

55%

50%

France

Germany

Italy

Turkey

45%

40%

35% 50%

55%

60%

% agree concerned about the

The business of social | Social media tracker 2012

Social networking more important

Brazil China Egypt

India S Korea Mexico

USA

Spain

UK Canada Poland

Privacy more important

Japan

65%

70%

75%

amount of personal data that goes online

33

FACEBOOK

IS THE MOST SEARCHED FOR WORD ON THE INTERNET

top 10 us search terms january 2012

1. Facebook 2. YouTube 3. Facebook Login 4. Craigslist 5. Facebook.com 6. Yahoo 7. eBay 8. www.facebook.com 9. Mapquest 10. Yahoo.com SOURCE: Experian Hitwise US

The business of social | Social media tracker 2012

The rise of social networking is not a self contained phenomenon. It is having a profound effect on the internet as a whole, way beyond the confines of social media. In 2011, Facebook and YouTube competed with the search engines and have proven themselves legitimate rivals by becoming the most searched and visited destinations on the web.

10.29% accounted for

and

of all website visits in the united states, a 15% increase from 2010 top 10 websites globally

1. google.com 2. facebook.com 3. youtube.com 4. yahoo.com 5. baidu.com 6. wikipedia.org 7. live.com (Windows Live) 8. blogspot.com 9. twitter.com 10. QQ.com SOURCE: alexa.com 35

FIGURE 11: “Thinking about the internet, have you visited an official company / brand website in the past 6 months?”

90% 85% 80% 75% 70% 65% 60% Wave 3 2008

Wave 4 2009

Wave 5 2010

Wave 6 2011

FIGURE 12: “Thinking about the internet, have you visited an official company / brand website in the past 6 months?”

16-24

90%

25-34

35-44

85% 80% 75% 70% 65% 60% Wave 3 2008

Wave 4 2009

The business of social | Social media tracker 2012

Wave 5 2010

Wave 6 2011

45-54

Is the world abandoning the brand website?

One casualty of this battle is the brand website, often a considerable investment for many brands.

Since 2008, we have seen a continued decrease in the number of people saying that they visited an official brand website (see Figure 11).

The exodus is even clearer amongst the youngest audiences This drop in visiting brand websites is not confined to any one group or demographic. We are seeing this happening equally amongst men and women and across the age ranges too. But, perhaps most significantly, it is amongst the youngest audiences that the exodus is most dramatic (see Figure 12). A fall of 15% points amongst the 16-24s represents the biggest drop of any age group.

37

FIGURE 13: “Which of these online applications does a good job when you want to...”

9% 13%

27% 37%

12%

24% 28%

9% 16% 12% 24% 19%

26%

16% 16% 19% 19% 21%

30%

23%

19%

26%

24% 27%

28% 41%

15%

13% 16% 21% 22%

22% 20%

Stay in touch with friends Make contacts for work

16% 12% 19%

9%

15% 15%

27%

17% 19%

Be creative

23%

29%

34%

22%

11%

20% 24%

32%

12% 14%

19% 18% 23% 26%

Feel like I belong 9%

16%

Express myself Have fun/ be entertained Make money

23% 27% 24%

14%

12%

Share new experiences

34%

25% 23%

13%

Change opinions

51%

14% 14%

Learn something new

Earn respect

24%

13% 15% 16% 20% 24%

Share knowledge

The business of social | Social media tracker 2012

45%

9%

Keep up to date

12%

12% 15% 10% 18% 19%

36%

Explore the world around me

“Hang out” or waste time

12% 14% 10% 16% 19%

21% 39%

Manage my life better

13%

25% 23% 22%

43%

Seek other people’s opinions

18%

11%

Promote myself 18% 15%

23% 22%

36%

Meet new people

11% 9% 10%

21% 26% 30%

38%

16% 16% 16%

Official brand websites

Forums

Photo/Video sites

Microblogs

Blogs

Social networks

So what then is the role of the brand website?

The question, then, is what role does the brand website play in a socially dominated web? If web users are naturally migrating to the social platforms, where does the brand website fit in?

The social web is a diverse and multi-dimensional environment allowing people to meet many human needs. As we saw from Wave 5 – The Socialisation Of Brands, people use different platforms to meet different needs. Blogs are great for self expression, microblogs (e.g. Twitter) are great for keeping in touch and forums help you seek others opinions.

In comparison, the brand website meets very few. Its primary role is confined to information and commerce (see Figure 13). This suggests that the brand website is not the right location for creating an interactive social experience. By comparison the social network platforms are far more powerful places to provide these needs.

39

FIGURE 14: “Which of these online applications [Social networks e.g. facebook.com] does a good job when you want to…?” By country

FUN

SELF-IMPROVEMENT “Hang Out” or waste time Romania Slovakia

Denmark Japan Norway

Argentina

Australia

Sweden UK Finland Express yourself Ireland Greece

Belgium

Stay in touch with friends Have fun/be entertained Ukraine Netherlands Spain Italy Latvia USA South Africa Estonia Canada Portugal Poland

Learn something new Hong Kong China Share knowledge

Manage my life better

Taiwan Vietnam

Meet new people Make contacts for work Turkey Singapore Keep up to date Earn respect Share new experiences Change opinions Switzerland Macedonia Chile Feel like you belong Explore the world around me Thailand South Korea UAE Lithuania Croatia Germany Philippines Malaysia Mexico Czech Republic Seek other people’s opinions India Austria Lebanon Colombia Tunisia Kuwait Ecuador Make money Puerto Rico Egypt Russia Be creative Qatar Bahrain KSA Hungary Algeria Brazil Oman France

Serbia

Promote yourself

CONNECTION The business of social | Social media tracker 2012

ENABLEMENT

The power of social networks differs across the world Despite social networking being a truly global phenomenon, this hasn’t led to cultural homogeneity amongst communities. It is evident that understanding the role that social media plays and the needs they best meet is important and our research shows that these needs are not uniform. As millions of people across the world flock to join the social networking platforms the nuances between nations become clear (see Figure 14).

For social networks, the desire to meet new people is the central need that unites everyone but for other needs cultural differences come into play. In the West, places like the UK and the USA, they are used for hanging out and having fun. In China and Hong Kong it’s about learning. In Eastern Europe it’s about community and connecting with others, explaining why some of the largest and most engaged social communities in the world reside here. For example, using local sites such as Vkontakte, social networking has reached 77.1% penetration in Russia, one of the highest in our study. When we look at the Middle East, we see that many use social networks for earning respect from others, but also importantly, changing other’s opinions. This explains why, during the Arab Spring, users naturally turned to social media to spread information.

41

the business of social

The business of social | Social media tracker 2012

The value of social experiences A word that is frequently used in social marketing is ‘Engagement’, often when citing the power of social media and the opportunity it brings for marketers. There is nothing wrong with this; it’s a worthy ambition for a brand to try to engage with their consumers. The problem is that engagement is essentially a meaningless term. It could mean anything or everything and is really just used as a proxy for more meaningful brand objectives. With Wave 5 – The Socialisation Of Brands we asked some fundamental questions: do consumers want a social relationship with brands and if they do what kind of relationship do they want? This information has allowed UM to guide clients in the social space by understanding the needs of the consumer first and foremost.

With Wave 6 – The Business Of Social we have taken things a step further. Not just understanding the social experience that consumers want but also, crucially, defining the marketing value that these experiences can deliver to brands. This means we can not only identify the right experiences but also those that best meet our marketing objectives. The results of this research have truly been surprising and allowed us to further understand the incredibly diverse world of social media. Also, in the space of social CRM, the results have some profound things to say about how brands connect with consumers to create the most compelling experiences of all.

45

Social needs vary by category...

Consumers want varying degrees of social relationship with brands. This can range from very superficial relationships, such as wanting discount vouchers or access to entertaining content, to very deep ones such as helping with product development or being part of a brand community (see Figure 15).

FIGURE 15: “Thinking about companies that make computer software, which of following statements describes the kind of interaction you would like to have with these companies?�

To be part of a brand community

Access to news about new developments & software upgrades

The ability to contact computer software companies and influence product development

The opportunity to learn something new about different applications

Discount vouchers for computer software or free software downloads

0

10

20

30

40

50

An opportunity to develop my software skills

Access to unique sponsored events or competitions

Access to fun and entertaining content

A personal response to my issues / complaints

The business of social | Social media tracker 2012

The ability to communicate and share experiences with other users

Tools and help to express my creativity and make something worth sharing

And these experiences deliver very different outcomes What is very interesting is that each of these experiences deliver very different outcomes. Figure 16 shows that giving people access to new news about a computer software brand drives awareness and education but very little else. Again discount vouchers stimulate transaction and trial but do very little for a computer software brand elsewhere. However a much deeper relationship, such as cooperating in new product development, drives commitment and prompts people to find out more.

FIGURE 16: “Thinking about the interactions that you have indicated you would like to have with companies that make computer software, which interaction is best…?”

20% Access to news about new developments & software upgrades

The ability to contact computer software companies and influence product development

Discount vouchers for computer software companies or free software downloads

30%

40%

50%

60%

70%

Awareness

Letting you know about the company

Education

Giving a detailed understanding of the company and its products

Desire

Making the company seem more desirable

Seek More

Making you feel closer to the company

Trial

Encouraging you to at least try out the company or its products for yourself

Transaction

Encouraging you to buy a product from the company

Commitment

Making you feel valued as a customer

Involvement

Makes you want to spend more time with the company or brand

Recommendation

Encouraging you to recommend the brand to others

47

The same experiences deliver different outcomes by category The same experiences can deliver very different outcomes by category. Let consumers help you develop products in the movie category and it drives awareness and education but not much else (see Figure 17). Create the same experience in the computer software category and it drives loyalty and prompts people to find out more about the brand.

FIGURE 17: “Thinking about the interactions that you have indicated you would like to have with companies that make computer software and with companies that produce and distribute movies, which interaction is best…?”

25%

30%

35%

40%

45%

50%

Awareness Education Desire Seek More Trial Transaction Commitment Involvement Recommendation The ability to contact computer software companies and influence product development

The business of social | Social media tracker 2012

The ability to contact film makers / movie studios and influence movie development

This allows us to be far more focussed on delivering social experiences that meet our objectives FIGURE 18: “Thinking about the interactions that you have indicated you would like to have with companies that make computer software, companies that make computer hardware, companies that are involved in the fashion industry and companies & artists that make & distribute music, which interaction is best‌?â€?

Objective - Making you feel closer to the company Computer software

Computer hardware Fashion Music

50% 45% 40% 35% 30% 25% 20% Access to breaking news or product launches

Ability to Opportunity Opportunity Communicate Tools to contact to learn to develop & share express my companies more skills experiences creativity & & influence make product something development worth sharing

A personal response to my issues / complaints

Access to Access to fun & unique entertaining events or content competitions

Discount vouchers

To be part of a brand community

49

The most powerful social experience?

Brands and companies no longer find themselves in complete control of either the conversation or content being shared about them. While many brands see this as an opportunity, using paid and owned brand assets to drive earned media, just as many don’t.

A natural fear of amplifying issues around the brand are a legitimate concern. One negative comment can quickly grow to become a real threat to a brands reputation.

However, Wave 6 has shown us this is possibly the biggest opportunity that brands have to connect with consumers. If you want to make a customer feel valued, don’t give them rewards, simply respond to their issues and complaints (see Figure 19).

FIGURE 19: “Thinking about the interactions that you have indicated you would like to have with companies in these categories, [A personal response to issues and complaints] is best at…?”

25%

30%

35%

40%

45%

50%

55%

Awareness Education Desire Seek More Trial

Transaction Commitment Involvement Recommendation

Travel

The business of social | Social media tracker 2012

Movies

Health & beauty

Fashion

Luxury

Telecoms Computer hardware

A personal response to issues / complaints Again and again as we analyse the results from Wave 6 we see the power of social media to create loyalty. What is even more apparent is amongst influencers, those people who often talk about the category, we can see that it not only drives loyalty it creates desire for the brand too (See Figure 20).

Responding to a customer’s problem is a natural behaviour for a truly social brand and consumers clearly respect and respond to this.

20%

30%

30%

40%

50%

60%

70%

Awareness Education Desire Seek More Trial

FIGURE 20: “Thinking about the interactions that you have indicated you would like to have with companies in the computer software category, [A personal response to issues and complaints] is best at…?”

By which statement best describes your relationship with the computer software category

Transaction Commitment Involvement Recommendation Consider myself a “fan” of a brand in this category

Need lots of information before buying

I often talk about this category

51

The business of social | Social media tracker 2012

The Power of Social Experiences A key element for making the social network platforms accountable tools for marketers is being able to evaluate the value they bring to brands. This effort begins with understanding the intrinsic values of the social media platforms and the power of the experiences they can deliver. Wave 6 – The Business Of Social has begun to answer this question and now allows UM to plan social strategies from the starting point of brand or business objective. We think this is an important step towards using social media in a more focussed and value driven way.

This approach also has implications for social CRM. Social media platforms, such as Twitter, are incredibly powerful tools for customer feedback. Using them in pro-active way to deal with problems very quickly is a proven and powerful driver of loyalty. However, responding quickly isn’t always easy and many marketing teams require input from many other areas of the organisation before dealing with a problem. This suggests that a social media strategy should not just be the sole domain of the marketing department, but rather part of a company wide effort including legal, PR, customer support and others. This requires commitment and investment but our research has shown that those brands that accomplish this will benefit greatly.

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connecting with social experiences

Devices Creating a compelling social experience is one part of the challenge. The second is understanding the means with which consumers want to connect with brands. There are now so many ways that a consumer can interact in the social space and many devices through which they can do it. So the question is which is the most appropriate? An app, a website, a widget? Or do they want to access these via a mobile phone, a desktop computer, a laptop computer, a tablet device or an internet connected TV? Each of these devices is used very differently and has different strengths and weaknesses.

Wave 6 – The Business Of Social tracks the usage and power of these technologies and helps us to identify the key way to deliver social experiences to consumers.

The business of social | Social media tracker 2012

People now have many ways to connect with the internet Consumers have many means with which to connect with the internet. On average they own four devices of which the majority of them are used to access the internet (see Figure 21).

Average number of devices owned and used to access the internet 5

4.1

4

2.9

3

2

FIGURE 21: “Which devices do you own and which have you used to access the internet in the past 6 months?�

Laptop / netbook PC

Desktop PC

Smartphone (eg: iPhone)

Tablet device (eg: iPad)

Mobile phone

E-book reader (eg: Kindle)

Internetconnected TV

Games console

Portable MP3 / video player

Portable games console

1

0

Own

Have used to access the internet

57

PC, laptop and mobile devices are still the main ways to connect Despite the rise of the smartphone for many the laptop and desktop remain the primary means of connection.

FIGURE 22: “Which devices do you own and which have you used to access the internet in the past 6 months?�

Size of the bubble represents % who own device.

Desktop PC

70% Mobile phone

60%

Portable MP3 / video player

Laptop / Netbook

% Own Device

50%

40% Portable games console

30%

Games console

Smartphone

Internet-connected TV

20% Tablet e-book Reader

10%

0% 0%

10%

20%

30%

40%

% Use Device to Go Online The business of social | Social media tracker 2012

50%

60%

As the PC remains the most versatile internet enabled device Although we can start to see the areas where smartphones (e.g. iPhone, Blackberry etc.) are encroaching on this dominance. Searching for a location, using a search engine and microblogging are all activities where the smartphone is particularly powerful (see Figure 23).

FIGURE 23: “Which activities have you carried out using each device in the past 6 months?”

Joined a group buying community Browsed the internet

Read blogs

Post / write on a blog

Upload photos to a photo sharing site

Shared your location via location-based social network

Watch video clips online Shared a video with a friend

Read a book

Download a podcast

Read a digital newspaper / magazine Laptop / netbook PC

Desktop PC

Download a video podcast

Searched for a location Watched live TV 0

Smartphone (eg: iPhone)

Tablet device (eg: iPad)

Mobile phone

E-book reader (eg: Kindle)

20

40

60

80

Games console

Used instant messenger

Joined an online community

Visited a company / brand website

Take part in multi-player game online

Used a search engine Wrote / sent a message on a microblog

Used a cloud-based music recommendation service Portable MP3 / video player

Portable games console

Managed a social network profile

Visited a friend’s social network page

Made a purchase

Visited a professional social network Internetconnected TV

100

Downloaded & used an app

Sent a text message

Visited a forum

Read a message on a microblog

59

Although we can see that smartphone penetration is growing rapidly FIGURE 24: “Which of the following devices do you own?� Smartphone (e.g. iPhone, Blackberry etc.)

28%

28%

61%

44% 45%

47%

22%

59%

44% 31% 43% 18% 38%

37%

37%

33%

43%

28% 40%

67%

43%

38%

34%

35% 44% 25% 27%

% own a smartphone >60% 50-60% 40-50% 30-40% <30%

The business of social | Social media tracker 2012

62%

37%

45%

34% 24% 16% 36% 53% 37% 36% 42% 26% 39% 22% 20%25% 23% 38% 45%45%29% 28%11% 24% 41% 34% 27% 44% 42% 40% 9% 8%

With tablet penetration slowly catching up FIGURE 25: “Which of the following devices do you own?” Tablet device (e.g. iPad, Samsung Galaxy etc..)

10%

12%

16%

14% 16%

33%

20% 14% 20% 8% 18%

17%

17%

19%

21%

19%

34% 12%

8%

28%

12%

19%

22%

12% 44% 10%

% own a tablet device

12%

11%

>20% 15-20% 10-15% 5-10% <5%

11%

15%

11%

12%

12%

6% 6% 6% 5%

11% 6% 5% 23% 11% 18% 10% 5% 6% 2% 6% 14% 8% 14% 11% 11% 13%

4% 5% 61

Different devices are seen as better at doing different things

Even more importantly, the tablet is seen as a better environment for making a purchase. This shows us that when we consider the experience we want to create we must understand which screen is more suited to deliver it.

FIGURE 26: â&#x20AC;&#x153;You have indicated you own these devices, which of these devices do you think does a good job when you toâ&#x20AC;Ś Smartphone Owners vs. Tablet Owners.

Smartphones are better when you want to...

50%

Ward off boredom

Socialise with others

55%

% Smartphone owners

Different devices have different strengths. When we compare smartphones and tablet devices we see that they offer very different environments for communication. A smartphone (e.g. iPhone, Blackberry etc.) is about fun and function.

Helping you manage your life and fill in down time. A tablet device (e.g. iPad, Samsung Galaxy etc.) is very good at allowing more leisurely experiences such as creativity and learning (See Figure 26).

Find your way

Access information quickly Have fun / Be entertained

Hang out or waste time

Manage my life Relax

45% Organise something

Read content

40%

Explore the world Play a game Learn something new

Get something done

35%

Be creative Watch content

30% Make a purchase

25%

Tablets are better when you want to...

Research something thoroughly

20% 20%

25%

30%

35%

40%

45%

% Tablet owners The business of social | Social media tracker 2012

50%

55%

What impact do multiple devices have on media consumption?

The interesting fact, though, is that television seems unaffected. This data suggest that TV, rather than being a rival to social media consumption, is a perfect partner through “second screening”, people accessing media via another screen (either a P.C. or mobile device) whilst watching TV. This data again suggests that not only should we consider the device best suited to deliver the social experience but how we should also consider using multiple screens in combination to deliver it.

FIGURE 27: “Approximately how much time have you spent consuming the following media in the last 7 days by the number of devices used to access the internet” 16

Average hours spent consuming media in last 7 days

As the number of devices that the consumer can use to access the internet grows, unsurprisingly, time spent online, including time spent on social networks, also grows dramatically (see Figure 27). Clearly the rise in mobile devices will transform our daily media consumption and this is already having an detrimental effect on traditional print media, although not an immediately catastrophic one.

14

12

10

8

6

4

2

0

1

2

3

Number of devices used to access the internet

Browsing the internet

TV

Social networks

Magazines

Newspapers

63

Connecting devices to experiences FIGURE 28: “You have indicated you own these devices, which of these devices do you think does a good job when you to…”

FUNPlay a Game

INFORMATION

Portable Games Console Games Console Have Fun/ Be Entertained Portable Ward Off Boredom MP3 / video player Relax

Learn Something New Desktop P.C.

“Hang Out” or Waste Time Socialise With Others

Research Something Access Information Thoroughly Quickly Watch Content

Mobile Phone

Laptop/Netbook P.C. Organise Something Read Content Make a Purchase

Be Creative

Internet connected Find My Way TV Manage My Life

Smartphone Explore the World Around Me

e-book Reader

Get Something Done

Tablet device

ORGANISATION The business of social | Social media tracker 2012

ACTION

Connecting experiences to screens Marketers are now faced with enormous choice when thinking about how to connect with consumers.

Never mind the fragmentation in traditional media, the growth of internet connected devices means that we cannot just think about the media itself, social or otherwise, but also the screen through which it is delivered.

Penetration of these devices differs enormously (see Figures 24 & 25), and video-on-demand services delivered by smart TV’s are fast growing. In South Korea, South Africa and Russia the mobile device is king. But it’s not just the penetration of these technologies we must consider but also their relative strengths. As we try harder and harder to create powerful social experiences it’s clear that the ability of these screens to deliver them differs enormously.

Wave 6 – The Business Of Social, delves into these attributes in far more depth than is available in this report. We also look at the power of apps and the role of m-commerce. We think that understanding where to best deliver the experience will become increasingly important as these technologies grow.

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the impact: summary

The business of social | Social media tracker 2012

The impact: summary Our research shows that social experiences can be very powerful, creating strong connections with the consumer. However, it also shows that knowing this is not enough. We also need to know the value that these bring. These experiences need not be complicated. The consumer is often the most powerful advocate and ally of a brand: Wave 6 - The Business Of Social demonstrates that even simply responding to a customer’s problems creates more loyalty and advocacy than any reward programme could.

So it is no good spending time and investment on a social experience that you don’t know the value of or doesn’t meet your brand’s challenges. It’s necessary to look at both the consumer’s needs and your own objectives if you are to build something that not only connects to the consumer but also helps build value for your brand.

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The business of social | Social media tracker 2012

What does this mean for your business?

•

What are the social dynamics of your category?

•

How are your consumers currently behaving in social media?

•

What kind of social media experience are they looking for?

•

Which of these experiences best deliver against your brand’s marketing objectives?

•

Which devices and social platforms are best able to deliver this experience?

Wave 6 – The Business Of Social is an in-depth study and there are many other aspects that we are unable to cover in this report.

If you want to know how to operate in the new social media landscape and what this means for your business please contact:

EMEA

apac

Glen Parker Research Director - EMEA Glen.Parker@umww.com

Natalie Pidgeon Director IQ and Insights - APAC Natalie.Pidgeon@umww.com

north america

LATIN america

Huw Griffiths EVP Global Director of Research Huw.Griffiths@umww.com

Mario Mejia Strategic Director - Colombia / LatAm Mario.Mejia@umww.com

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About this report Wave 6 - The Business Of Social is part of UMâ&#x20AC;&#x2122;s on-going research programme aimed at exploring the massive changes occurring in communication technologies The studies have been conducted annually since 2006.

The research is conducted by the UM EMEA research team in collaboration with the UM global network of agencies.

If you have any questions about the research or future Wave projects please contact the authors of this report: Glen Parker Research Director EMEA glen.parker@umww.com Lindsey Thomas Senior Research Executive EMEA lindsey.thomas@umww.com

The business of social | Social media tracker 2012

This report is printed on Cocoon Silk 100: a paper produced using eco-sensitive technology from 100% recycled & de-inked waste paper (FSC certified) Designed & illustrated with love by

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