European Digital Trends - Shifting Consumption Habits Owen West EU Business Development Director
[email protected]
Owen West 2012 Gulltaggen
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
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And, a behavioural cross-platform measurement capability 4 © comScore, Inc.
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V0411
Stories That Will Shape Digital in 2012
1
FACEBOOK IPO
2
2012 SUMMER OLYMPICS
3
SOCIAL MEDIA A DEMOCRATISING
4 5
MOBILE DISRUPTING TRADITIONAL
RAISES THE PROFILE OF SOCIAL NETWORKING AND DIGITAL ADVERTISING
ILLUMINATE THE RISE OF MULTIMEDIA & ‘ALWAYS-ON’ CONSUMPTION
FORCE AHEAD OF U.S. PRESIDENTIAL ELECTION
RETAIL SALES FUNNEL
MIND THE ‘DIGITAL OMNIVORE’ MULTI-DEVICE INCREMENTAL EFFECT & PLATFORM CANNIBALIZATION
The U.S. Is No Longer the Centre of the Online Universe U.S. Internet Population vs. Rest of the World
Rest of the World
Distribution of Worldwide Internet Audience Middle East Latin Africa, America, 8.8% 9.0%
34%
87% U.S.
North America, 14.6%
66%
Asia Pacific
Europe, 26.4%
13% 1996
Asia Pacific, 41.3%
2011
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 highgrowth areas. © comScore, Inc.
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Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011
And Asia Continues Significant Growth in Size of Internet Audience Growth expected to continue as home
Worldwide Online Population (Millions)
broadband penetration increases in Asia and Latin America
+9%
Growth slows in North America
1,323
European growth mostly driven by Russia
2010 Dec
+11%
595
Dec-11
2011 Dec
Dec-10
+6%
534 381
+3%
+15%
361 210
Asia Pac
1,444
Europe © comScore, Inc.
203
North America Proprietary.
7
129
112
Latin America
+14%
126
111
Middle east Africa
Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2010 and Dec 2011
Online Landscape in Europe
384 million Europeans go online for 29.8 hours each month
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Source: comScore Media Metrix, Europe Age 15+, January 2012
Size of Online Audience; 15+ Home & Work Significant growth in Europe in the past year 6% growth represents 20 million new web users from work & home Online Population 15+ (Millions) Jan-11
Jan-12
+6% 363.3
383.7
+2% 16.6
16.2 Europe
Nordics
© comScore, Inc.
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+3%
9
3.3
3.2 Norway
Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Jan 2011 vs Jan 2012
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
United Kingdom
38.6
Norway
29.9
Europe
29.8
Finland
28.7
Nordic … Austria
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27.1
15.9
Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Jan 2012
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
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The Rise of the Global Social Networking Audience 1,600
+88%
1,400
Total Internet
1,200
+174%
1,000
Social Networking
800 600 400
200 Worldwide Total Unique Visitors (MM)
0 2007
2008
2009
2010
2011 Source: comScore Media Metrix, March 2007 - October 2011
An Average of 9 out of 10 local online populations engage in social networking
North America
Canada United States
94% 98%
South America
Argentina Brazil Chile Colombia Mexico Peru Puerto Rico Venezuela
96% 97% 94% 96% 96% 96% 90% 96%
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.
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Europe
Austria Belgium Denmark Finland France Germany Ireland Italy Netherlands Norway Poland Portugal Russia Spain Sweden Switzerland Turkey United Kingdom
14
Middle East & Africa
86% 93% 94% 91% 91% 90% 95% 93% 94% 89% 95% 96% 88% 98% 93% 90% 96% 98%
Israel South Africa
94% 88%
Asia Pacific
Australia China Hong Kong India Indonesia Japan Malaysia New Zealand Philippines Singapore South Korea Taiwan Vietnam
96% 53% 93% 95% 94% 58% 94% 95% 96% 94% 87% 94% 85%
Source: comScore Media Metrix, October 2011
1
Nearly in 4 minutes online is spent on social networks today 2008
2009
2010
2011
35
Social Networking Search/Navigation
30
Retail
25
Communications (Email/IM) Other Content
Time Spent on Key Categories Online Worldwide Hours per Month (Billions) Source: comScore Media Metrix, March 2007 - October 2011
Social Networking is Redefining the European Online Landscape Share of time spent among top web categories Social Networking
Services
Portals
Multimedia
E-mail
25.0%
20.0%
15.0%
10.0%
5.0%
25.8%
15.9% 11.7%
6.6% 4.6%
0.0%
Source: comScore Media Metrix, Europe Age 15+, January 2011 to 2012
Not Only is Social Networking One of the Most Consumed Content Categories on a Mobile, it’s also One of the Fastest Growing Fastest Growing Mobile Content Categories (000) Source: comScore MobiLens, EU5, 3 mo. avg. ending Dec-2010 vs. Dec-2011 Jan-2011
Jan-2012
70,000
60,000
+ 44.7%
Total Audience (000)
50,000
+ 48.9%
40,000
+ 57.8%
30,000
+ 45.2% + 60.9%
20,000
10,000
0
Social Networking or Blog
News
General Reference
TV Guides
Online Retail
Source: comScore MobiLens, EU5, Dec 2010 – Dec 2011
1/3 of the world’s social Middle East Africa
networkers are in Asia Pacific
9%
Europe
30%
Asia Pacific
RegionalShare of TotalUnique Visitors to Social Networking
33%
Latin America North America
10%
18% Source: comScore Media Metrix, October 2011
Yet 5 of the most engaged markets for social networking are in Latin America 11.1
10.7
Average Hours per Visitor
10.4
10.2
9.8
8.7
8.5
8.3
7.9
7.7
Source: comScore Media Metrix, October 2011
7
3
Average Hours per Person in Europe Spent on Social Networking
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
Average Engagement with Social Networking by Region Average Hours per Visitor Source: comScore Media Metrix, October 2011
Fastest Growing Top-Tier Global Social Networks in Terms of Audience Size 200
+59%
Oct-10
160
Oct-11
120
+55%
80
+181%
+172%
+64%
SINA Weibo
Tumblr
Badoo
40 0 Twitter
LinkedIn
Total Unique Visitors (MM) Source: comScore Media Metrix, Worldwide, October 2011 vs. October 2010
The Growth of Today’s Social Networking Leaders 2007
2008
2009
2010
2011
900 800 700
Facebook
600
Twitter
500
LinkedIn
400 300 Total Unique Visitors (MM)
Source: comScore Media Metrix, March 2007 - October 2011
3 55%
Facebook’s worldwide site rank Facebook’s global penetration
Source: comScore Media Metrix, October 201
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 201
Since 2010, Facebook Has Taken the Lead in 6 New Markets Across Asia, Latin America and Europe Jan-2010
Apr-2010
Facebook overtakes Windows Live in Portugal
471MM Facebook overtakes Windows Live in Mexico
Jul-2010
Oct-2010
Jan-2011
Apr-2011
Oct-2011
788MM
Facebook overtakes StudiVZ in Germany
Facebook overtakes Orkut in India
Jul-2011
Facebook overtakes Yahoo! Wretch in Taiwan
Facebook overtakes Hyves in Holland
Facebook’s Ascent in Recent Years Total Unique Visitors (MM) Source: comScore Media Metrix, January 2010 - October 2011
Today, there are only 7 markets where Facebook is not the leading social network
Poland China
Russia
Japan South Korea Vietnam
Brazil
Source: comScore Media Metrix, October 2011
But…..Social Networking is Not Just Facebook
3 of the Top 6 Social Networks in Europe are Russian; VKontakte, Odnoklassniki,
[email protected]
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Source: comScore Media Metrix, Worldwide, Feb 2012
Social Networking Beyond Facebook Google+ and Pinterest Take Off in 2011 200
1
180 160 140
120 100
80 60
Social Networking is the Most Popular Online Activity Worldwide
TWITTER.COM LINKEDIN.COM Google Plus MYSPACE.COM TUMBLR.COM PINTEREST.COM
40
20 0 Oct2010
Jan2012
Unique Visitors (000) to Selected Social Media Sites Source: comScore Media Metrix, Oct-2010-Jan-2012, Worldwide
15-24 year olds.. ..’Digital Natives’
saw the largest Worldwide decline in engagement of web-based email and instant messaging …..
34%
25%
21% 15%
12% 1%
-3%
-4%
-8%
-22% -32%
-42% Age 15-24
Age 25-34
-37% Age 35-44 Instant Messengers
-34% Age 45-54 Email
-36% Age 55+ Social Networking
Change in Average Time Spent with Content Category by Age Segment Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010
…and the highest increase in engagement of social networking 34%
25%
21%
15%
12% 1% -3%
-4%
-8% -22% -32% -42% Age 15-24
Age 25-34
-34%
-37% Age 35-44
Age 45-54
Instant Messengers
Email
-36% Age 55+ Social Networking
Change in Average Time Spent with Content Category by Age Segment Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010
For ‘Digital Natives’, social networking is the norm
Social Networking
483.0
Instant Messengers
264.7
Email
67.1
Average Minutes per Visitor (15-24) Source: comScore Media Metrix, Worldwide, October 2011
ONLINE VIDEO
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Online Video is Now a Huge Global Market
1.2 Billion people watched an average of
18 hours each of Online Video in February
Worldwide © comScore, Inc.
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Source: comScore Video Metrix, Aged 15+, Feb 2012
Online Video’s Blockbuster Year Nearly 50 Million Russians Watch Online Video Daily
1
Social Networking is the Most Popular Online Activity Worldwide
48.5 million
39 million
Feb 2012
Mar 2011
Source: comScore Video Metrix, Jan-2011 to Jan-2012, Spain © comScore, Inc.
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Total Videos Viewed Increase 20% in Spain in 12 months Average Viewer Watched 153 Videos in Feb 2012
1
Social Networking is the Most 3 2.5Popular Online Activity billion Feb 2012 billionWorldwide Feb 2011
Source: comScore Video Metrix, Feb-2011 to Feb-2012, Spain © comScore, Inc.
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Russia Leads the Way in Europe in terms of Audience Size
60
Unique Viewers (Millions)
50
48.5 40
46 39
34
30
23.5
20
21.5
20
Turkey
Spain
10 0 Russia
Germany © comScore, Inc.
France Proprietary.
UK 36
Italy
Source: comScore Video Metrix, Key Measures, February 2012
And Higher Composition of Young Males Outside EU-3* Indicates Room for Maturity Unique Viewers (Millions)
50 45 Other
40
Males 15-34
35
30 25 20
15 10
5 0
17.3%
19.3%
19.6%
21.5%
22.2%
30.4%
44.9%
Germany
France
UK
Spain
Italy
Russia
Turkey
*EU-3 includes UK, France and Germany © comScore, Inc.
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Source: comScore Video Metrix, Demographic Profile, September 2011
Rapid Growth of Unique Viewers and Video Views Stopped in Q1 2010 for EU-3 Unique Viewers (Millions)
Videos (Billions)
30
140
25
120
100
20
80 15
60 10
40
5
20
0
0
Feb-2008 Aug-2008 Feb-2009 Aug-2009 Feb-2010 Aug-2010 Feb-2011 Aug-2011
Videos (Billions) © comScore, Inc.
Proprietary.
Unique Viewers (Millions) 38
Source: comScore Video Metrix, Media Trend
*EU-3 includes UK, France and Germany
But….. a Closer Look Uncovers the Story of a Shift from Quantity to Quality ….. Longer Videos Videos (Billions)
30
140
25
120 19.2%
100
20
80 15 March – Sept Change
10 Minutes per Video
5
Total Minutes
+4% + 33%
0
14.2%60 8.2% 40 7.5% 20
2.3% Feb-2008 Aug-2008 Feb-2009 Aug-2009 Feb-2010 Aug-2010 Feb-2011 Aug-2011
Videos (Billions) © comScore, Inc.
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0
Unique Viewers (Millions) 39
Source: comScore Video Metrix, Media Trend Germany
*EU-3 includes UK, France and
A New Era of Online Video…… A Quality Viewing Experience A Choice of Quality Content Convenient and Accessible A Price Worth Paying
A Quality Viewing Experience: Online Video has Come a Long Way UGC/’Numa Numa’ Song
© comScore, Inc.
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PREMIUM/FROZEN PLANET
41
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
© comScore, Inc.
Longer format High budget High quality High talent/interest Known content Well monetised
Proprietary.
42
A Choice of Quality Content: At the Premium End, TV Broadcasters Have Large Online Video Presence (UK example) Unique Viewers (millions) 4.2
4.1 3.3 2.4
0.7
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Source: comScore Video Metrix, October 2011, UK
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
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Sources: comScore Custom Marketing Solutions Study (US 2011)
A Price Worth Paying: Video Advertising Has Nearly Tripled in One Year (UK example)
19.2%
Video Ads
Video Content
14.2% 8.2%
7.5% 2.3%
With people spending more time viewing long-form content
the platform is ripe for brand advertising © comScore, Inc.
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Source: comScore Video Metrix, UK, Age 6+, February 2011 vs 2012
MOBILE
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THE RISE OF SMARTPHONES; EU5 LEADS THE US
Source: comScore MobiLens, EU5 and US, 3 mon. avg. ending Oct 2011
Smartphone Market Growing Rapidly
In the UK, there are
26 million smartphone users, increase of 50% year on year UK IS THE HIGHEST EUROPEAN PENETRATED MARKET WITH •53% Penetration Source: comScore MobiLens, UK, Age 13+, January 2011 vs 2012
All Communications and Social Media accessed show double-digital growth
19.2%
14.2% 8.2%
7.5% 2.3%
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Source: comScore MobiLens, UK, Age 13+, January 2011 vs 2012
Smartphones and Tablets Change the Way People Consume Content (UK example) Share of Connected Device Traffic in UK
19.2%
Computer 89.7%
Mobile 6.4%
NonComputer 10.2%*
14.2%
Tablet 3.3% Other 0.5%
8.2% 7.5% 2.3%
*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 © comScore, Inc.
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Dual Device Ownership; Introducing the “Digital Omnivore” Percentage of Smartphone Audience Also Owning a Tablet (UK example) 12.7% 19.2%
14.2%
5.3% 8.2%
7.5%
January 2011
January 2012
2.3%
Source: comScore MobiLens: One month snapshot, January 2011 / January 2012, Country: UK, N=5,124 © comScore, Inc.
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Browser versus App Usage; Just analyzing one consumption behaviour versus the other could seriously undervalue a brand’s total audience (UK example) Access Methods by (%) Share of Mobile Users for Selected Sites Browser Access
App Access
Combined Access
75.5%
BBC Sites
19.2%
42.2% 17.9%
48.0%
Sky Sites
14.2% 63.4%
11.4%
8.2%
7.5% 84.3% eBay
28.0%
2.3%
12.3%
Source: comScore GSMA Mobile Media Metrics: UK, December 2011
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E-COMMERCE
E-COMMERCE IS BACK….. …..AND BIGGER THAN EVER
E-Commerce Bounces Back in 2011 Total E-Commerce Spending Reached $256 Billion, +12% Growth (US example) $25,000
Retail E-Commerce Spending ($MM)
Y/Y % Growth
17% 16%
$20,000
15% 14%
$15,000
13% 12%
$10,000
11%
10%
$5,000
9% $0
8% Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
2011 U.S. Retail E-Commerce Spending ($MM) and Y/Y Growth Rate by Month Source: comScore E-commerce Measurement, U.S.
Top 10 Online Retail Spending Days in 2011: $1.25 Billion Cyber Monday Ranks As Top Online Spending Day Spending in Millions ($) Monday, Nov. 28 (Cyber Monday)
$1,251
Monday, Dec. 5
Monday, Dec. 12 (Green Monday)
$1,178 $1,133
Tuesday, Nov. 29
$1,116
Tuesday, Dec. 6
$1,107
Friday, Dec. 16 (Free Shipping Day)
$1,072
Tuesday, Dec. 13
$1,064
Wednesday, Nov. 30
$1,025
Thursday, Dec. 8
$1,024
Thursday, Dec. 15
$1,018
Source: comScore E-Commerce Measurement, U.S.
Free Shipping is the Key to E-Commerce Growth
1
Social Networking is the Most Popular Online Activity Worldwide
Source: comScore E-commerce Measurement, U.S.
M-Commerce; Spain's New Shopping Companion Half of Smartphone Owners Use Phone While in a Brick-and-Mortar Store to Shop
1
Social Networking is the 1Most in 8 50% Popular Online Activity Scanned of Smartphone Owners Used Phone to Shop Barcodes While in a Retail Store Worldwide
Source: comScore MobiLens, 3 mon. avg. ending Jan-2012, Spain
DIGITAL ADVERTISING © comScore, Inc.
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DIGITAL ADVERTISING ENTERS ERA OF INCREASED ACCOUNTABILITY AS BRAND SPEND CONTINUES TO SHIFT ONLINE
© comScore, Inc.
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UK Digital Ad Landscape
40 million people are exposed to 70 billion
In the UK,
ad impressions a month
© comScore, Inc.
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Source: comScore Ad Metrix, Feb 2012,UK.
Facebook Delivers 1 of Every 4 Display Ads in 2011 Top 10 Display Ad Publishers (Billions of Impressions) 240.1
FACEBOOK.COM
Facebook , 27.9% 30.3% All Other, 69.7%
Yahoo! Sites
41.5
eBay
41.3
Microsoft Sites
40.8
Google Sites
30.8
Trader Media… Glam Media
15.6
13.2
AOL, Inc.
8.2
Amazon Sites
8.1
Gumtree Sites
5.5 Source: comScore Ad Metrix, Jan-2011 to Dec-2011, UK.
Large Brand Advertisers Growing Digital Investment Number of Advertisers Delivering at Least 1 Billion Display Ad Impressions per Quarter
1
9
Social Networking is the Most Popular Online Activity Worldwide
12 10
Q1 2011
1-3 Billion
© comScore, Inc.
15
20
104
99
Q3 2011
Q4 2011
74
65
Q4 2010
17
10 15
12 14
79
13
3-5 Billion
Proprietary.
Q2 2011 5-10 Billion
63
10+ Billion Source: comScore Ad Metrix, Q4 2010 – Q4 2011
ADVERTISING MEASUREMENT TO EVOLVE © comScore, Inc.
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… 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
© comScore, Inc.
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Price
Supply
Demand
Where supply meets demand,
everything sells
Quantity © comScore, Inc.
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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
in-view
audience
geography
brand safe
fraud
Onlycount impressionsthat reached a real user and had a chance to make a real impact © comScore, Inc.
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Validated Campaign Essentials™ (vCE) is powered by comScore’s unique impression validation technology, vGRP
Gross Impressions No opportunity to be seen
Removes All Ad Impressions That Didn’t Have A Chance to Make An Impact
Delivered outside of target audience Delivered in the wrong geography Delivered next to “unsafe” content
Subject to fraudulent delivery
Validated Impressions © comScore, Inc.
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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
© comScore, Inc.
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THANK YOU!
Owen West – EU Business Development Director
[email protected]