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© TNS 2011 Digital Life
33

Mark molenaar tns digital life south africa event jan 2012

Oct 21, 2014

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Page 1: Mark molenaar tns digital life south africa event jan 2012

© TNS 2011

Digital Life

Page 2: Mark molenaar tns digital life south africa event jan 2012

Digital Life © TNS 2011

The most comprehensive view of consumer attitudes and behaviour online

Page 3: Mark molenaar tns digital life south africa event jan 2012

Digital Life South Africa Report © TNS 2011

Realising the opportunity

3

Engage with the 'Digital Consumer', understand:

How are consumers interacting with brands online?

Should I build friends and fans on social networks?

What brand opinions are consumers forming through digital?

Identify & cultivate the 'Digital Advocate', understand:

What is the level and influence of buzz for my category?

Who is talking about my category and who is listening?

What„s the impact of negative conversation online?

Convert the 'Digital Customer', understand:

What is the role of online and offline channels throughout the path-to-purchase, for researching and buying products?

Are my customers using the Internet to purchase products?

Reach the 'Digital User', understand:

What‟s the reach, size, structure of the digital channel?

Can I get my message to users in new markets?

How do I communicate with my target group?

Advocates “I tell others online about brands”

Customers “I use online prior to and for purchase”

Consumers “I engage with brands online”

Users “I am online”

Page 4: Mark molenaar tns digital life south africa event jan 2012

Digital Life © TNS 2011

Africa has the fastest internet growth in the

world

2000 2011 Mobile subscriptions

Internet subscriptions

4.5 million

120 million 11.5% penetration

X 4327%

X 2527%

15 million 649 million 65% penetration

Sources: Internet world stats

GSMA

ITU

Page 5: Mark molenaar tns digital life south africa event jan 2012

Digital Life © TNS 2011

5

Internet Penetration

Internet penetration (%)

Using daily (%)

Source [Internetworldstats; Digital Life] Base: Total Market Population; Min 500

…but, internet penetration is still low, and hence low frequency of use, limiting what internet is used for

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Page 6: Mark molenaar tns digital life south africa event jan 2012

Growth in internet access in the region offers big opportunities for brands and marketers…

6

…but, Digital marketing is wasted if not tailored to the local market Or worse, can actively create brand-resistant consumers

Consumers hold the power

Need to understand how consumers are using the internet and where they

are in their digital evolution

Page 7: Mark molenaar tns digital life south africa event jan 2012

With strong internet growth in Africa, most users are new to the internet and still becoming acquainted – usage will be different to developed countries

7

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Internet Penetration

% Started using the internet less than two years ago

Sub-Saharan Africa

Page 8: Mark molenaar tns digital life south africa event jan 2012

Mobile is key to Digital strategy in Sub-Saharan Africa

Nigeria

Tanzania

Uganda

Kenya

Ghana

South Africa

Global 36

82 61

31

65

77

68

97

64

75

97

82

64

60

Different countries within SSA have different development paths – Mobile is key in SSA

Access internet via…

Page 9: Mark molenaar tns digital life south africa event jan 2012

39

23

6 7 4

68

1 1 PC at home PC at work PC at

school/university PC at Internet

café PC elsewhere Mobile phone Tablet Internet TV Games console

9

Question: S5; Device use for Internet access in past 4 weeks Base: All respondents;

Used to access internet in last month (%)

1000

Mobile is emerging as the key access point for internet users in South Africa

Page 10: Mark molenaar tns digital life south africa event jan 2012

Accessed the internet via…

85%

15-20 years 21-24 years 25-34 years 35-44 years 45-54 years 55-65 years

Mobile Phone

PC

24%

50%

90%

Younger and older internet users experience the internet differently – take this into account when designing digital strategies

Page 11: Mark molenaar tns digital life south africa event jan 2012

11

“I would be happy doing all my Internet surfing via my mobile”

“I would like to access the Internet more on my mobile phone, if it were more convenient, or had higher speed or connectivity”

Question: H4, A2; Mobility attitudes, Internet attitudes Base: Mobile users;

Mobile internet users prefer mobile as an internet access point - and this will increase as access speeds increase

68%

57%

Page 12: Mark molenaar tns digital life south africa event jan 2012

12

68

59

50

29

21

6

TV Internet for leisure Radio Internet for work Newspapers Magazines

Question: M1; Media use Base: All respondents; Size

Daily users (%)

1000

Once adopted, digital media is close to traditional media in terms of daily users on board

Page 13: Mark molenaar tns digital life south africa event jan 2012

Offline activities done whilst also online (%)

13

35

30

21

7

6

18

53

57

12

10

22

16

Find out more information just seen advertised

Listening to radio

Watching TV

Reading magazine/newspaper

Playing video games

Shopping (not on the Internet)

Find out info about product in-store

PC Mobile

Question: [H3]; [Device use for Internet access in past 4 weeks] Base: [All respondents]; 605,686

And there is a strong incidence of people engaging in entertainment media (TV & radio) whilst accessing internet on mobile

Page 14: Mark molenaar tns digital life south africa event jan 2012

0%

10%

20%

30%

40%

50%

60%

70%

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Social networking is seen to be the most important online activity in most of Africa

14

Internet Penetration

% Most important online activity – social networking

Sub-Saharan Africa

Page 15: Mark molenaar tns digital life south africa event jan 2012

58

18

13

4

4

3

Global

SSA

32

26

10

9

6

In contrast to Global internet use, Social is far more relevant than e-mail

Key activities on internet (% use)

Page 16: Mark molenaar tns digital life south africa event jan 2012

Facebook is visited weekly by three quarters of internet users

Visit daily:

Visit weekly:

54%

73%

30%

59%

5%

10%

3%

10%

Question: [B6]; [Frequency of visiting websites] Base: [Total];1000

Page 17: Mark molenaar tns digital life south africa event jan 2012

18

60

58

22

21

19

16

14

14

11

Write a post / message / status update on my social network

Comment or respond to other people on my social network

Use online chat / instant messaging

Post comments on, or rate other people's blogs, forums or reviews

Upload photos

Write my own blog

Upload video or music

Forward / share a link

Post Status updates or messages on a micro-blog

56

19

18

15

13

13

10

9

Check my social network accounts

Visit / check / read other people’s blog or forum

Stream music

Download videos / movies / TV shows or music

Stream video

Download photos or look at pictures at photo sharing websites

Download an “App” or application

Visit / read / other people´s micro blog

Active Passive

Question: B12; DL Sub-activity usage Base: All respondents;

Weekly users (%)

1000

Social networking users are highly active online, but it is all about communicating with their network – brands need relevance to become a part of the conversation

Page 18: Mark molenaar tns digital life south africa event jan 2012

81%

59%

8%

7%

30%

Internet Penetration

30% 14%

84%

68%

33%

47%

81%

Go online daily

Are brand fans on SN

Write about brands online

Research brands online

% of internet users that:

% of internet users that:

While a significant proportion of internet users in SA go online daily, interaction with brands is still quite limited, with researching brands being the main brand-related activity

19

Global South Africa

Are part of Social Network

Page 19: Mark molenaar tns digital life south africa event jan 2012

The higher the internet penetration, the more likely internet users are to read about brands on the internet – In Africa, brand presence on the internet is still under-developed

20

Internet Penetration

% reading about brands

Sub-Saharan Africa

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Page 20: Mark molenaar tns digital life south africa event jan 2012

Messages are not in the control of brands Even a stranger on the other side of the world is trusted more…

“What other people say about brands can be trusted more than what the brand says themselves”

“I trust the comments my friends write about brands”

“I trust the comments people I don‟t know write about brands”

57%

54%

41%

% Agree

Page 21: Mark molenaar tns digital life south africa event jan 2012

22

xx

% Agree

Question: [I8a]; [Attitudes to comments & reviews] Base: [All Writers];

“Posting comments online is an effective way to influence companies”

“I expect companies to contact me if I write something about them”

73

Very few consumers write about brands, but those who do believe their interaction influences the brand

68%

34%

Page 22: Mark molenaar tns digital life south africa event jan 2012

23

To praise a brand

To criticise a brand

Ask advice

Offer advice

Share answers/opinions

Share opinions w/communities

To share cool stuff brands produce

To receive customer service

Because I‟m rewarded for doing so

Question: [I8]; [Reasons to write about a category] Base: [All Writers];

48

28

45

25 31

45

42

15

2

73

Though there are many reasons to express the opinion online, main causes are to praise, to seek advice and to share opinions

*base size for this demographic is between 30 and 74. Results are therefore for illustrative purposes only *

Page 23: Mark molenaar tns digital life south africa event jan 2012

10

8

15

7

5

5

9

6

7

6

14

9

4

7

Promotion/special offer

Competitions/prizes

More information about products/services

Information about brand ethics

Connect with people behind the brand

Access brand content

Passionate about the brand

Show that brand is important to me

Give brands input

Receive customer service

Friends doing the same

Connect with other fans

Use specific apps/games

Support a cause

24

Further Research

Brand Interaction

Giving & Receiving Feedback

Friend Interaction

What’s in it for me?

Miscellaneous

Question: [I3a/I3b]; [Reasons to join a brand group/community] Base: [Social Networkers & Micro Bloggers];

(%)

891

Information on products and peers as reference groups motivate consumers to join a brand community

Page 24: Mark molenaar tns digital life south africa event jan 2012
Page 25: Mark molenaar tns digital life south africa event jan 2012

Global

SSA

TV ad

Product review website

Expert review website

Consumer opinion blog

Price comparison website

Recommendations from

friends/family

Recommendations from sales assistant

38

28

28

27

27

26

24

TV Ad 39

Recommendations from friends/family 31

Ads in newspapers/magazines 22

Digital needs to play a supportive/complementary role to traditional media in Sub-Saharan Africa

Consumer journey touchpoints – influence on product choice

Page 26: Mark molenaar tns digital life south africa event jan 2012

Nigeria

Tanzania

Uganda

Kenya

Ghana

South Africa

Global 62

17

17

7

28

13

28

79

6

22

8

25 15

43

Mobile PC

Pre-purchase browsing is relatively low in SSA compared to global norms. Lower incomes and cost of internet access are holding back interest

Ever browse or pre-purchase shop via…

Page 27: Mark molenaar tns digital life south africa event jan 2012

Nigeria

Tanzania

Uganda

Kenya

Ghana

South Africa

Global 50

4

5

5

19

5

10

73

6

4

5

16

4

18

Mobile PC

Online shopping is still under-developed in Sub-Saharan Africa. But, mobile shopping likely to play a bigger role in online shopping in future

Ever shop via…

Page 28: Mark molenaar tns digital life south africa event jan 2012

5%

5%

4%

4%

2%

1%

1%

1%

1%

1%

1%

1%

Bought online

Question: E6; Purchased on or offline Base: Category Purchasers;,

29

43%

10%

36%

20%

7%

52%

54%

57%

78%

9%

12%

11%

Bought offline

Music

Travel

Movies

Software

ISP

Cosmetics

Skin Care

Hair Care

Clothes & Shoes

Insurance Policy

Banking

PC

1000

Preference for offline purchasing is strikingly high compared to online across all categories

Page 29: Mark molenaar tns digital life south africa event jan 2012

The Digital Growth Index utilises these four components to provide a single KPI to describe the size of the opportunity in each market

30

The Digital Growth Index

Size of audience

Opportunity to engage

A single number KPI score

Brand Building

Consumers

Scale, Motivations, Behaviours

Users

Brand Buzz

Advocates

Path to Purchase

Customers

Page 30: Mark molenaar tns digital life south africa event jan 2012

The Global Digital Growth Index

31

High Growth

Index

High Internet

Penetration

Low Growth

Index

Low Internet

Penetration

Low Penetration, High Index –

Drive growth through engaged early

adopters

Low Penetration, Low Index–

Tap into latent demand, plan for

future opportunity

High Penetration, Low Index –

Utilise large reach, engage outliers

High Penetration, High Index–

Major opportunity, invest heavily

South Africa

Page 31: Mark molenaar tns digital life south africa event jan 2012

Developing markets

32

Argentina Peru

Egypt Philippines Ghana Romania

Indonesia South Africa Kenya Tanzania

Morocco Thailand

Nigeria Uganda

Pakistan

Digital Growth Index

Inte

rnet P

enetra

tion

Low

Low

These markets are held back by either low access to digital, poorer infrastructures or low incomes reducing the relevancy of a brand conversation

Yet aspirations run high, and huge latent demand exists

Mobile has provided a gateway to access in many of these markets. Marketing communications must also be delivered through this channel

The desire to communicate, and join social networks is a key driver in these markets

Give them the means to talk about your brand; being seen as a brand that directly empowers users by partnering with these social networks / content providers and sponsoring access

Page 32: Mark molenaar tns digital life south africa event jan 2012

To sum up…

• Internet growth and evolution offers new opportunities for marketers to engage with consumers

• But, internet penetration in SA still low and growth behind the rest of the continent. For most people the experience of the internet is new, is different to what it was before, is mobile and is social

• High costs and barriers of access mean internet penetration and usage is still low and other traditional media still play a dominant role

• The future of internet in South Africa is clearly mobile and marketers need to focus on interactions in the mobile space, with different strategies for mobile internet and fixed line, targeting different audiences and needs

• Brand interactions via internet in SA are still very low. What works elsewhere will not necessarily work here.

Page 33: Mark molenaar tns digital life south africa event jan 2012

and…

• Digital marketing in SA has to incorporate social media and traditional media

• Encouragement and incentivisation need to be used to overcome barriers to experiment and expand use of internet via mobile (other than social networking) – “whats in it for me” should be asked of any digital campaign

• Social networks can have a big influence on brand perceptions and people trust comments people say about brands online – need to ensure brands have an active social media and Customer Experience Management strategy

• Online purchasing still low in SA – need to make people more familiar and confident in using internet – need to bring down data costs before this can happen

…and online pre-shop and shopping is likely to be predominantly via mobile phone in future – need to be thinking mobile in terms of design and consumer interaction