The Story of Why. #Wave 7

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1 The Story of Why #Wave 7

2 Agenda Welcome to Wave 7 Trends: Social Movements Social is the new normal Trends: Devices The Mobile Revolution is there Cracking The Social Code The search for the why Brands Platforms Devices Learnings and outlook

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4 What is Wave? Biggest and longest ongoing quantitative study on the influence of Social Media on global markets Wave retains the same methodology from Wave 1 to Wave 7, enabling comparison across Waves Time series analysis: Comparison across waves to show developments Flexibility: Integration of new platforms possible Worldwide collaboration of all 65 countries involved & coordination by the UM G14/EMEA Research Team 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. 4

5 The long story of Wave 15 countries 7,500 respondents 21 countries 10,000 respondents 29 countries 17,000 respondents 38 countries 23,200 respondents 54 countries 37,600 respondents 62 countries 42,000 respondents 72 countries 49,600 respondents January 2007 Apple launch the first iphone April 2008 Facebook overtakes MySpace in popularity 11 March 2009 Foursquare launches February 2010 Facebook Mobile has 100M+ users February 2011 Linkedinreaches 100M members April 2012 Facebook buys Instagram 2004 pre March 2007 Tumblr launches August 2008 Facebook has over 100M users 20 September 2008 The launch of the first Android phone 7 October 2008 Spotify launches 19 June 2009 Farmville launches July 2009 There are now more than 3.6bn images on Flickr August 2009 Xiaonei becomes RenRen 3 April 2010 The first ipad released 30 July M check-ins August 2010 Groupon: fastest growing company of all time 4 April 2011 Valued at over 3Bn 28 June 2011 GooglePlus launches 30 June 2011 Twitter: 200M+ tweets per day September 2011 QQIM has 700M+ active users May 2012 Facebook floats on NASDAQ June M+ users on Twitter June 2012 NSA scandal 15 October 2010 The Social Network film released September 2011 Snapchat launches August 2012 Vine has over 40M users 21 December months after launch, Instagram has 100M users December 2011 Facebook has over 845M active users October 2012 Facebook has over 1Bn users 5

6 Wave 7 represents the views of more than 1 billion people all over the world respondents countries Wave 1 Australia China France Germany Italy India Japan Mexico Philippines Russia South Korea Spain United Kingdom United States Wave 2 Australia Brazil China France Germany Greece India Italy Japan Malaysia Mexico Pakistan Philippines Russia Singapore South Korea Spain Taiwan Thailand United Kingdom United States Wave 3 Australia Austria Brazil Canada China Czech Republic Denmark France Germany Greece Hong Kong Hungary India Italy Japan Mexico Netherlands Pakistan Philippines Poland Romania Russia South Korea Spain Switzerland Taiwan Turkey United Kingdom United States Wave 4 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 United Kingdom United States Wave 5 Algeria Argentina Australia Austria Bahrain Belgium Brazil Canada Chile China Colombia Czech Republic Denmark Ecuador Egypt Estonia France Germany Hong Kong Hungary India Ireland (ROI) Italy Japan Kuwait Latvia Lebanon Lithuania Malaysia Mexico Netherlands Norway Oman Philippines Poland Portugal Qatar Romania Russia Saudi Arabia Serbia Singapore Slovakia South Africa South Korea Spain Sweden Taiwan Thailand Tunisia Turkey United Arab Emirates Ukraine United Kingdom Wave 6 Algeria Argentina Australia Austria Bahrain Belgium Brazil Canada Chile China Colombia Croatia Czech Republic Denmark Ecuador Egypt Estonia Finland France Germany Greece Hong Kong Hungary India Ireland (ROI) Italy Japan Kuwait Latvia Lebanon Lithuania Malaysia Mexico Netherlands Norway Oman Philippines Poland Portugal Puerto Rico Qatar Romania Russia Saudi Arabia Serbia Singapore Slovakia South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Tunisia Turkey United Arab Emirates Ukraine United Kingdom United States Vietnam Wave 7 Algeria Argentina Australia Austria Bahrain Belgium Bosnia & Herzegovina Brazil Bulgaria Canada Chile China Colombia Cote d Ivoire Croatia Czech Republic Denmark Dominican Republic Ecuador Egypt Estonia Finland France Germany Greece Hong Kong Hungary India Indonesia Ireland (ROI) Israel Italy Japan Kenya Kuwait Latvia Lebanon Lithuania Macedonia Malaysia Mexico Netherlands Nigeria Norway Oman Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russia Saudi Arabia Serbia Singapore Slovakia South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Tunisia Turkey Ukraine United Arab Emirates United Kingdom United States Vietnam 6

7 TRENDS: SOCIAL MOVEMENTS SOCIAL IS THE NEW NORMAL

8 Almost every German uses Social Media 100% 80% % Ever done 60% 40% 20% 0% Wave Wave Wave Wave Wave Wave Wave Use a microblogging service Visit a forum Watch video clips online Create a profile on a social network Manage a profile on a social network Share your location (e.g. Facebook Places, Foursquare) Q: Thinking about using the internet, which of the following activities have you ever done? Base: Germany 8

9 50 % are concerned about their personal data going online, but share their content via Social Media above average All resondents I am concerned 50% 12% 15% 14% 15% 21% 24% I am concerned about the amount of personal data that goes online Post/write stories for my own blog/weblog Create a video to upload online Upload a video clip to a video sharing website (e.g. youtube.com) Q: Thinking about using the internet, which of the following things have you ever done? Index: All Heavy Internet Users = 100 Base: Germany 9

10 Social networking growth has slowed, but still continues Global 45,1% 51,4% 61,4% 65,2% 68,3% Brazil China France Germany 63,6% 53,9% 74,5% 74,3% 80,8% 47,4% 51,4% 68,4% 68,9% 71,3% 26,3% 43,4% 53,2% 53,5% 57,3% 27,2% 36,6% 37,8% 53,1% 57,7% India Italy United States Mexico 51,4% 62,8% 72,5% 67,1% 72,1% 24,0% 34,4% 53,9% 61,2% 71,7% 33,1% 48,3% 58,1% 64,5% 66,8% 62,9% 66,4% 71,7% 69,3% 70,6% Spain Russia United Kingdom 29,9% 46,2% 55,5% 59,6% 72,3% 64,8% 66,1% 79,8% 77,1% 70,8% 53,4% 55,5% 58,6% 62,9% 66,6% Wave Q: Thinking about using the internet, which of the following activities have you done in the past 6 months? Manage a profile on an existing social network (e.g. Facebook) Base: Global 10

11 Microblogging continues its meteoric rise, but there are less tweets in Germany Global 14,9% 33,2% 42,9% 51,9% Brazil China France Germany 13,4% 43,9% 47,6% 47,7% 26,3% 53,1% 71,5% 86,2% 4,1% 8,8% 12,2% 22,4% 6,2% 7,7% 15,9% 20,3% India Italy United States Mexico 24,4% 45,5% 42,9% 44,6% 9,4% 11,1% 17,7% 34,1% 8,5% 18,8% 22,1% 32,9% 15,8% 33,4% 40,1% 46,5% Spain Russia United Kingdom 11,5% 19,1% 24,8% 39,9% 14,2% 19,9% 25,8% 25,1% 6,4% 19,3% 26,8% 38,3% Wave Q: Thinking about using the internet, which of the following activities have you done in the past 6 months? - Use a Microblogging service (e.g. Twitter) Base: Global 11

12 In Germany, not only the diffusion of Microblogging is lower, but also the intensity of use. Marketing and IT professionals are the exception. Intensity of Twitter use in branches Daily or more often 4-6 times a week 1-3 times a week Every 2-4 weeks More rarely Germany 33% 13% 15% Global 28% 26% 20% 36% 34% 15% 23% 13% 17% 16% Germany overall Marketing /Media IT Q: Thinking about using the internet, which of the following activities have you done in the past 6 months? - Use a Microblogging service (e.g. Twitter) Base: Germany / Global 12

13 Forums are a typically German phenomenon Visit a forum 62% 55% 48% 46% Germany UK US Netherlands Q: Thinking about using the internet, which of the following activities have you done in the past 6 months? - Visit a forum Base: Germany - UK - US - Netherlands 13

14 TRENDS: DEVICES THE MUCH-ANTICIPATED MOBILE REVOLUTION IS THERE

15 The average number of used devices grows globally Germany Global Laptop/ Netbook Desktop PC Wave 6 Wave 7 Smartphone Tablet 4,9 4,9 4,8 Convertible Touchscreen Mini Tablet 4,1 Internetconnected TV Games console MP3 player Portable games console Mobile phone Wave 6 Wave 7 UK USA Q: Which of the following devices do you own? Base: Germany UK US 15

16 Mobile Boom: Smartphones diffuse rapidly Global 44,8% 73,4% Brazil China France Germany 34,7% 58,4% 59,5% 90,6% 37,8% 69,5% 39,1% 74,3% India Italy United States Mexico 36,6% 68,4% 41,3% 72,9% 43,8% 67,5% 44,9% 66,3% Spain Russia United Kingdom 44,1% 80,6% 28,5% 62,4% 52,5% 77,3% Wave 6 7 Q: Which of the following devices do you own? - Smartphone Base: Global 16

17 After a rapid growth, the smartphone diffusion exceeds the desktop diffusion Wave5 Wave6 Wave7 79% 69% 71% 68% 81% 74% 60% 39% 20% Change Wave 6 / Wave 7 Desktop PC Laptop / Notebook Smartphone + 2% +18% + 90% Q: Which of the following devices do you own? Base: Germany 17

18 Tablets also record a massive increase Global 19,4% 33,3% Brazil China France Germany 12,0% 35,2% 33,0% 46,9% 11,2% 27,5% 13,2% 26,5% India Italy United States Mexico 19,5% 26,2% 13,7% 31,0% 14,4% 31,6% 16,1% 28,4% Spain Russia United Kingdom 14,0% 35,5% 9,6% 31,6% 12,1% 28,4% Wave 6 7 Q: Which of the following devices do you own? - Tablet PC Base: Global 18

19 Multi Screen: The fact that tablets are often used parallel to TV can be used for advertising 59% use 1.5 other devices (on average) while watching TV 41% 32% 31% 23% Laptop Tablet Desktop Smartphone Q: Thinking about the devices you've said you own, do you ever use them whilst..? - Watching TV Base: Germany 19

20 e.g. tablets are strongly used for shopping! An extension of the TV campaign makes sense! Wave 6 Wave 7 75% 80% 75% 75% 42% 28% 23% 28% Q: You have indicated that you own the following devices. Please select which of them do you think does a good job when you want to - Make a purchase Base: Germany 20

21 The overall media consumption is becoming more complex with the growing number of devices Used devices Smartphone/Mobile phone 100% Laptop 80% Desktop 60% Tablet 40% Hybrid PC 20% 0% TV OOH Radio Magazines Newspapers Cinema Whilst using Q: Thinking about the devices you've said you own, do you ever use them whilst? - Watching TV; Listening to the radio; Reading a newspaper; Reading a magazine; Travelling out and about; Going to the cinema Base: Germany 21

22 All of these developments can be summarized by one single word: MORE But how can a brand successfully navigate through this complex world? 22

23 CRACKING THE SOCIAL CODE THE SEARCH FOR THE WHY

24 Wave cracks the code consisting of motivations & needs 24

25 Why do people use (Social) Media? Which motivations are concealed behind it? What do they expect from brands? 25

26 Online behavior is driven by human needs as well 26

27 Wave does not ask What?, but Why? 7 years of asking WHY has shown us that underpin all social behavior 27

28 A brand will only reach its objectives if it reacts to the needs of its consumers Relationship Diversion Progression Recognition Learning Brand objective Recommendation Involvement Desire Commitment Trial Encourages you to recommend the company /product to others Makes you want to find out more about the company/product Makes the company/product seem more desirable Makes you feel valued as a customer Encourages you to try the company/product 28

29 Analyzing the needs delivers insights for building & maintaining brand relationships over and above Social Media 29

30 What do consumers expect from brands? Brand Platform Device 30

31 First of all, consumers expect from brands knowledge for progression and individual communication LEARNING An opportunity to learn something new Access to the latest news about products & developments Help to connect with other people just like me 40% 30% 20% An opportunity to help others RELATIONSHIP Help to relax and escape from everyday life An opportunity to display my interest or support 10% 0% Access to entertaining content and experiences DIVERSION An opportunity to express my own opinions and experiences Help to create something worth sharing RECOGNITION A personal response to my issues and complaints An opportunity to influence the way products and services are made and provided Help and advice Help to develop my skills and abilities PROGRESSION Q: Thinking about the kind of interactions you would like to have with brands & companies that make [Category], please tell us which 3 of the following interactions you would most like to have with these companies? Base: Germany 31

32 Wave goes one step further and differentiates consumers needs regarding 16 categories Consumer Technology Computer Software Mobile / Telecommunication Games / Consoles Personal Care Movie Music Travel Luxury Personal Finance Cars Charity Food / Drinks Sports Childcare Health & Wellbeing 32

33 While consumers expect entertainment from consumer tech brands, an expert s advice is most wanted for financial services LEARNING Access to the latest news about products & developments Help to connect with other people just like me 35% 30% An opportunity to help others RELATIONSHIP An opportunity to learn something new 25% 20% 15% Help to relax and escape from everyday life An opportunity to display my interest or support 10% 5% 0% Access to entertaining content and experiences DIVERSION An opportunity to express my own opinions and experiences Help to create something worth sharing RECOGNITION A personal response to my issues and complaints An opportunity to influence the way products and services are made and provided Help and advice Help to develop my skills and abilities PROGRESSION Food / Drinks Consumer Technology Personal Finance Q: Thinking about the kind of interactions you would like to have with brands & companies that make [Category], please tell us which 3 of the following interactions you would most like to have with these companies? Base: Germany 33

34 Why and what for do consumers use Social Media? Brand Platform Device 34

35 Social Networks Motivations are explained by cultural differences: In Germany the focus is on maintaining relationships DIVERSION Keep up to date Relax/escape Share knowledge Lean something new LEARNING Have fun/be entertained Build your career Hang out/waste time UK Canada Bulgaria US Express yourself Ireland Australia Taiwan Norway Turkey Saudi Arabia China Belgium France Cote d'ivoire Egypt Share new experiences Portugal Israel Poland Singapore Seek other s opinions Finland Greece Sweden Hong Kong Denmark Netherlands India Switzerland Romania UAE Thailand Express & share emotions Czech Republic South Africa Austria Kenya Phillipines Japan Slovakia Macedonia Brazil Vietnam Germany Lithuania Bosnia Malaysia Stay in touch with friends Italy Latvia Serbia Puerto Rico Croatia Estonia Indonesia Paraguay Spain Ecuador Peru Chile Dominican Hungary Colombia Republic RELATIONSHIP Argentina Mexico Feel like I belong South Korea Russia Make contacts for work Ukraine Meet new people Change opinions Keep you company Promote yourself Explore the world around me Nigeria Earn respect Be creative Make money PROGRESSION Q: Which of these online applications does a good job when you want to? Social Networks Base: global RECOGNITION 35

36 Social Networks Against all odds no further expansion of the functions of Social Networks are apparent RELATIONSHIP LEARNING Keep up to date Learn something new Earn respect Seek other people's opinions Explore the world around you Meet new people 80% 70% 60% 50% 40% 30% 20% 10% 0% Stay in touch with friends Feel like you belong Share knowledge Share new experiences Hang out or waste time Express yourself Have fun/ be entertained DIVERSION Promote yourself Be creative Change opinions Make money RECOGNITION Make contacts for work Wave Q: Which of these online applications does a good job when you want to - Social Networks Base: Germany PROGRESSION 36

37 Social Networks Instead of the expected expansion, millennials search & replace the knowledge & experience on other platforms RELATIONSHIP LEARNING Keep up to date Learn something new Earn respect Seek other people's opinions Explore the world around you Meet new people 70% 60% 50% 40% 30% 20% 10% 0% Stay in touch with friends Feel like you belong Share knowledge Share new experiences Hang out or waste time Express yourself Have fun/ be entertained DIVERSION Promote yourself Be creative RECOGNITION Change opinions Make contacts for work Make money years Total Q: Which of these online applications does a good job when you want to - Social Networks Base: Germany PROGRESSION 37

38 Photo/ video sites The entertainment factor of photo & video sites is valued especially by millennials RELATIONSHIP LEARNING Keep up to date Seek other people's opinions Explore the world around you Meet new people 50% 40% 30% 20% Stay in touch with friends Feel like you belong Share knowledge Learn something new Earn respect 10% 0% Share new experiences Hang out or waste time Express yourself Have fun/ be entertained DIVERSION Promote yourself Be creative 6 Wave 6 RECOGNITION Change opinions Make contacts for work Make money 7 Wave 7 Wave Q: Which of these online applications does a good job when you want to - Photo/ video sites Base: Germany PROGRESSION 38

39 Micro-blogging services Microblogging services support recognition by exchanging opinions and entertainment RELATIONSHIP LEARNING Seek other people's opinions Explore the world around you Meet new people 40% 30% Stay in touch with friends Feel like you belong Keep up to date 20% Share knowledge Learn something new Earn respect 10% 0% Share new experiences Hang out or waste time Express yourself Have fun/ be entertained DIVERSION Promote yourself Be creative RECOGNITION Change opinions Make contacts for work Make money Q: Which of these online applications does a good job when you want to - Micro-blogging services Base: Germany PROGRESSION 39

40 Message boards/ forums There is an increasing relevance of forums regarding purchase decisions in Germany RELATIONSHIP LEARNING Keep up to date Learn something new Earn respect Seek other people's opinions Explore the world around you Meet new people 60% 50% 40% 30% 20% 10% 0% Stay in touch with friends Feel like you belong Share knowledge Share new experiences Hang out or waste time Express yourself Have fun/ be entertained DIVERSION Promote yourself Be creative RECOGNITION Change opinions Make contacts for work Make money Wave 6 7 Q: Which of these online applications does a good job when you want to - Message boards/ forums Base: Germany PROGRESSION 40

41 Official brand websites Regardless of increasing social media use, relevance of brand websites is still high 100% Germany Global 90% 80% 70% Use 60% 50% 40% 30% 20% 10% 0% Wave Wave Wave Q: Thinking about using the Internet, which of the following activities have you ever done? - Visit an official company / brand website Base: Germany 41

42 Official brand websites Still high relevance when it comes to researching products and information LEARNING Seek other people's opinions Explore the world around you Meet new people 40% 30% Stay in touch with friends Feel like you belong RELATIONSHIP Keep up to date 20% Share knowledge Learn something new Earn respect 10% 0% Share new experiences Hang out or waste time Express yourself DIVERSION Have fun/ be entertained Promote yourself Be creative RECOGNITION Change opinions Make money Make contacts for work Wave 6 7 Q: Which of these online applications does a good job when you want to - Official brand websites Base: Germany PROGRESSION 42

43 Why do consumers use certain devices? Brand Platform Device 43

44 Smartphone In Germany smartphones are rather perceived as an organizational than an entertaining device LEARNING Explore the world around you Organize something Research something thoroughly Learn something new Socialize with others 90% Be creative 80% 70% 60% 50% 40% 30% 20% 10% 0% RELATIONSHIP Have fun/ be entertained Hang out or waste time Relax DIVERSION Get something done Read content Find your way Watch content Make a purchase Ward off boredom PROGRESSION Access information quickly Manage my life Play a game Germany Global Q: You have indicated that you own the following devices. Please select which of them do you think does a good job when you want to - Smartphone Base: Germany - Global 44

45 Tablet computer Entertainment & Use of classic media content dominates the use of tablet computers LEARNING Explore the world around you Organize something Socialize with others Research something thoroughly 80% Be creative Learn something new 70% 60% 50% 40% 30% 20% 10% 0% RELATIONSHIP Have fun/ be entertained "Hang out" or waste time Relax DIVERSION Get something done Read content Find your way Watch content Make a purchase Ward off boredom PROGRESSION Access information quickly Manage my life Play a game Germany Global Q: You have indicated that you own the following devices. Please select which of them do you think does a good job when you want to... - Tablet computer Base: Germany - Global 45

46

47 Learnings Social media is globally and nationally established. The use of mobile devices and related services increase rapidly. To reach the consumer, brands need to consider even more devices and platforms. Screen follows function The content provided by brands needs to be adjusted to the devices different situations of use. A brand s omnipresence in the media doesn t suffice. The question is not reduced to where the consumer is to be reached. The needs and reasons regarding social media vary depending on the context of the brand, industry and media. If brands understand why consumers use social media they can reach their target group media- and content-wise with a motivation-oriented brand strategy. 47

48 Outlook: The future of media (use) is digital since the internet satisfies most of the needs RELATIONSHIP LEARNING Meet new people Seek other people's Stay in touch with 60% opinions friends Explore the world Feel like you belong around you 50% TV Keep up to date Learn something new 40% 30% 20% Share knowledge Express and share emotion Radio Earn respect 10% 0% Keep you company Newspaper RECOGNITION Express yourself Promote yourself Change opinions Share new experiences "Hang out" or waste time Have fun/ be entertained Magazine Cinema Build your career Make contacts for work Make money Be creative Relax/ escape DIVERSION Internet PROGRESSION 48

49 Outlook: From second screen to multi-screen The future of video content is not "second screen" but "multi-screen". For consumers, the simultaneous use of multiple devices for independent activities is the new normal. The role of TV as first screen is not stable. The first screen is always the screen that gets most of the user s attention! The consumers needs and motivations define the multi-screen mix of the future. 49

50

51 UM Wave Atlas Unique, free platform with information for 65 countries concerning: Diffusion of social media platforms Diffusion of devices Motivations to use social media platforms & devices 51

52 The Story of Why #Wave 7

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