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Owen West
European Digital Trends - Shifting Consumption Habits
Owen West EU Business Development Director owest@comscore.com
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.
comScore is a Global Leader in Measuring the Digital World
NASDAQ SCOR
Clients 1,900+ worldwide
Employees 1,000+
Local Presence 32+ locations in 23 countries
Global Coverage 170+ countries under measurement; 43 markets reported
Headquarters Reston, VA
4 © comScore, Inc. Proprietary.
comScore’s Unified Approach; The Best of Both Worlds
2 Million Person Panel 360°View of Person Behaviour
CENSUS
Unified Digital Measurement™ (UDM)
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
6 © comScore, Inc. Proprietary.
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%
7 © comScore, Inc. Proprietary.
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%
8 © comScore, Inc. Proprietary.
Online Landscape in Europe
Source: comScore Media Metrix, Europe Age 15+, January 2012
384 million Europeans go
online for 29.8 hours each month
9 © comScore, Inc. Proprietary.
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%
10 © comScore, Inc. Proprietary.
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
12 © comScore, Inc. Proprietary.
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
14 © comScore, Inc. Proprietary.
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
Source: comScore Media Metrix, March 2007 - October 2011
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
Source: comScore Media Metrix, October 2011
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
Source: comScore Media Metrix, October 2011
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
Source: comScore Media Metrix, October 2011
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
The Growth of Today’s Social Networking Leaders
Source: comScore Media Metrix, March 2007 - October 2011
900
800
700
600
500
400
300
Total Unique Visitors (MM)
3 55% Facebook’s global
penetration
Source: comScore Media Metrix, October 2011
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
Source: comScore Media Metrix, October 2011
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
Source: comScore Media Metrix, October 2011
Brazil
Poland Russia
Japan
Vietnam
South Korea China
27 © comScore, Inc. Proprietary.
3 of the Top 6 Social Networks in
Europe are Russian; VKontakte, Odnoklassniki, MyWorld@Mail.Ru
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
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
33 © comScore, Inc. Proprietary.
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
34 © comScore, Inc. Proprietary.
Social Networking is the Most Popular Online Activity 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
35 © comScore, Inc. Proprietary.
Social Networking is the Most Popular Online Activity Worldwide
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
36 © comScore, Inc. Proprietary.
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
37 © comScore, Inc. Proprietary.
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
38 © comScore, Inc. Proprietary.
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)
39 © comScore, Inc. Proprietary.
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……
41 © comScore, Inc. Proprietary.
A Quality Viewing Experience: Online Video has Come a Long Way
UGC/’Numa Numa’ Song PREMIUM/FROZEN PLANET
42 © comScore, Inc. Proprietary.
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
43 © comScore, Inc. Proprietary.
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
44 © comScore, Inc. Proprietary.
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
45 © comScore, Inc. Proprietary.
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
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
49 © comScore, Inc. Proprietary.
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
50 © comScore, Inc. Proprietary.
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
51 © comScore, Inc. Proprietary.
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)
52 © comScore, Inc. Proprietary.
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
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
$1,018
Monday, Nov. 28 (Cyber Monday)
Monday, Dec. 5
Monday, Dec. 12 (Green Monday)
Tuesday, Nov. 29
Tuesday, Dec. 6
Friday, Dec. 16 (Free Shipping Day)
Tuesday, Dec. 13
Wednesday, Nov. 30
Thursday, Dec. 8
Thursday, Dec. 15
Spending in Millions ($)
Social Networking is the Most Popular Online Activity Worldwide
1
Source: comScore E-commerce Measurement, U.S.
Free Shipping is the Key to E-Commerce Growth
Social Networking is the Most Popular Online Activity Worldwide
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
60 © comScore, Inc. Proprietary.
DIGITAL ADVERTISING ENTERS ERA OF INCREASED
ACCOUNTABILITY AS BRAND SPEND CONTINUES
TO SHIFT ONLINE
61 © comScore, Inc. Proprietary.
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.
, 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)
63 © comScore, Inc. Proprietary.
Social Networking is the Most Popular Online Activity Worldwide
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
65 © comScore, Inc. Proprietary.
… 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
66 © comScore, Inc. Proprietary.
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
68 © comScore, Inc. Proprietary.
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
69 © comScore, Inc. Proprietary.
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
70 © comScore, Inc. Proprietary.
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 owest@comscore.com
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