1. Connected Life TNS 2014 TNS Connected Life Decision-making in a Connected World Martin Warmelink 2. Connected Life TNS 2014 Connected Life 3. Connected Life TNS 2014 Media fragmentation is often described as the biggest brand challenge of the digital age. In reality, its the greatest opportunity. 4. Connected Life TNS 2014 Where to start when forming your connection strategy? High Social engagement Low Social engagement Digital influence Social engagement Low Digitalinfluence High Digitalinfluence 5. Connected Life TNS 2014 How to establish your mediamix? High Social engagement Low Social engagement Low Digitalinfluence High Digitalinfluence MEDIA MIX Digital-led Offline-led 6. Connected Life TNS 2014 Owned/paid or earned? High Social engagement Low Social engagement Low Digitalinfluence High Digitalinfluence CONTENT MIXPaid/Owned Earned 7. Connected Life TNS 2014 Break down markets or target groups into four user segments High Social engagement Low Social engagement Low Digitalinfluence High Digitalinfluence LeadersObservers Functionals Connectors 8. Connected Life TNS 2014 SSA India Emerging Asia LATAM MENA China High Social engagement Low Social engagement Observer markets are found in Western Europe or North America where the internet often plays a functional role Low Digitalinfluence High Digitalinfluence Functional markets are often found in emerging markets where restricted access prevents the internet playing a stronger role Leader markets may be found in developed Asia where technology is adopted faster than anywhere else on the planet Connector markets are rapidly growing, where improving access to technology meets digitally enthused users Developed Asia N&W Europe N America S&E Europe Oceania NL is observer market like most W-European markets 9. Connected Life TNS 2014 High Social engagement Low Social engagement Low Digitalinfluence High Digitalinfluence Connected Life Segmentation Base: Netherlands (988) Observers Functionals Connectors Leaders 27% 16% 21% 36% Within market segmentation: Netherlands 10. Connected Life TNS 2014 1 How the growing digital ecosystem is impacting media habits 11. Connected Life TNS 2014 Markets with long histories of using fixed line devices often have habitual behaviours which create barriers to migrating behaviour to mobile Share of device time across markets 25 16 59 39 16 45 28 15 58 4745 UK Netherlands Singapore South Korea Mobile Tablet PC/Laptop D2. Total time spent on device/media Base: All who had a typical day- Netherlands (753) | UK (684) | South Korea (1089) | Singapore (629) % % % % 12. Connected Life TNS 2014 Those with higher digital engagement will adopt quickest and pave the ways towards mobile-centricity 25 16 59 39 16 45 28 15 58 4745 UK Netherlands Singapore South Korea Mobile Tablet PC/Laptop D2. Total time spent on device/media Base: All who had a typical day- Netherlands (753) | UK (684) | South Korea (1089) | Singapore (629) % % % % Share of device time across markets 13. Connected Life TNS 2014 And even older segments are becoming mobile-centric Observer markets are divided as younger users move at a faster pace D2. Total time spent on device/media Base: All who had a typical day- Netherlands 16-24 years (117) | Netherlands 55-65 years (171) | South Korea 16-24 years (223) | South Korea 55-65 years (67*) Mobile Tablet PC/Laptop 55-65 years*16-24 years 55-65 years16-24 years 57 6 37 41 5 53 40 12 49 17 17 67 Observer Netherlands %Leader South Korea % 14. Connected Life TNS 2014 More devices ultimately means more media consumption How media usage differs by level of digital development (amongst internet users) 2.9 1.1 2.6 1.2 0.4 0.3 Single-device, mobile-centric Nigeria Multi-device, mobile-centric Singapore 8.4 hours4.4 hours Time spent daily on device/media (hours) D2. Total time spent on device/media Base: All who had a typical day- Nigeria (672) | France (822) | Singapore (629) 0.4 0.1 2.7 0.8 0.4 0.1 % of time spent on devices Daily media time Device: Mobile Tablet PC/laptop Media: TV Radio Newspaper/Magazine 78%70% 2.5 0.7 1.2 2.2 1.3 0.2 Multi-device, PC-centric Netherlands 8.1 hours 54% 15. Connected Life TNS 2014 H1. Usage of new digital activities Base: Global (54,701) Note: Data weighted against internet penetration Often with overlapping consumption patterns; TV battles for attention with other devices in the most advanced markets Incidence of screen-stacking vs. markets 0 25 50 Greece Egypt Ghana Indonesia Nigeria SouthAfrica Vietnam Kenya India Hungary Thailand Brazil Philippines Slovakia Argentina Mexico Poland Belgium China Germany Japan Austria CzechRepublic France Turkey Israel HongKong Switzerland Colombia Malaysia Netherlands Italy UAE Taiwan USA Canada Russia Sweden Portugal UK SaudiArabia Spain Finland NewZealand Singapore Australia Denmark SouthKorea Norway Observer market Leader market Connector market Functional market Reach % N.B. Screen-stacking refers to simultaneous usage of devices 16. Connected Life TNS 2014 And in these markets this battle heats up at primetime How consumer attention is divided while watching TV Split of consumer attention while watching TV % Reach of TV % 15 15 15 14 14 24 18 8 18 10 11 15 15 8 12 15 16 8 16 10 3 5 12 3 9 13 10 3 8 4 16 19 16 10 13 22 18 7 17 11 55 46 42 65 52 26 39 74 41 65 In bed when I wake up Early morning Late morning During lunch Early afternoon Late afternoon Early evening During dinner Late evening In bed before I go to sleep Social and communication News/entertainment Online shopping/search Other Undivided TV attention 7* 14 9* 8* 7* 13 34 27 57 15 51% of TV watching time holds undivided attention D3. Media usage by daypart | D4. Activities by daypart Base: Netherlands - typical day (987) | All who watch TV In bed when I wake up (59*) | Early morning (119) | Late morning (73*) | During lunch (68*) | Early afternoon (64*) | Late afternoon (126) | Early evening (309) | During dinner (238) | Late evening (473) | In bed before I go to bed (118) *Caution low base size 17. Connected Life TNS 2014 18. Connected Life TNS 2014 2014 All time high linear TV: 3 hours and 20 minutes per day Media:tijd 2014 84% lineair tv kijken 13-19: 72% 20-34: 71% tv online video Advertising expenditures NL (spot) 200 minuten 19. Connected Life TNS 2014 > 5 hours screen time per day Young vs Old: different internet / tv mix Source: SKO / MSS 0 50 100 150 200 250 300 350 400 13-19 20-34 35-49 50+ online minutes per day tv minutes per day Total 20. Connected Life TNS 2014 Larger screen mobiles in Asia make online video even more accessible How Observer and Leader markets are using their mobile 17 23 38 52South Korea UK USA % of smartphones that are Phablets Hong Kong 12 17 30 40 % of online video viewing that is consumed via mobile 21. Connected Life TNS 2014 Bigger screens, bigger video opportunities NL sales 4.5 inch plus smartphones: 2013: < 25% Q1 2015: > 50% 22. Connected Life TNS 2014 2 What is the reach of digital platforms and channels? 23. Connected Life TNS 2014 70 66 8 21 19 18 47 17 8 7 7 5 18 83 82 25 55 46 47 73 40 24 37 23 20 69 Social/ Communication Instant messaging Social networking Video/voice calls over internet Entertainment Watch video online Stream music Play games on mobile/tablet Information seeking Reading news, sports or weather Visit blogs/ forums Shopping Mobile Wallet Researching and purchasing products Mobile research in-store Purchasing products online Productivity Internet banking or using a banking app Know where you can find your target group How activity participation differs by age Younger (16-30 years) Older (46-65 years) 34 48 4 6 8 13 53 11 1 9 2 2 21 46 67 12 29 20 20 73 29 5 42 8 17 73 Daily user Weekly user C1. Frequency of activities Base: Netherlands (988)| 16-30 years (268) | 46-65 years (426) % % 24. Connected Life TNS 2014 Each decade is dominated by a new format. This decade has seen the emergence and rapid growth of IM 1996 20141997 2004 2005 2006 2009 2011 Yahoo! Mail 298 Gmail 425 Facebook 1,230 YouTube 1,000 WhatsApp 500 Wechat 396 Line 330 Twitter 271 Hotmail 400 Snapchat 330 Communication platforms- speed of adoption (number of monthly active users- million) Source : Microsoft, Twitter, Tencent, Forbes, Venturebeat, Business Insider, The Guardian UK, TechinAsia 700 400 550 1350 285 25. Connected Life TNS 2014 Digital communication landscape 47 37 22 72 64 51 Instant messaging (IM) Social networking Emails Were seeing a shift in the global digital communication landscape 31 51 70 51 70 90 C1. Frequency of activities Base: Emerging markets (20,063)| Developed markets (34,638) Emerging markets Developed markets Daily Weekly Reach % 49 55 70 65 74 93 Netherlands IM taking over the game? 26. Connected Life TNS 2014 From social media manager to WhatsApp manager? 27. Connected Life TNS 2014 Social & IM are fragmenting Platforms w/ >10% adoption Platforms w/ >10% adoption 28. Connected Life TNS 2014 3 How and why do consumers engage with brands? 29. Connected Life TNS 2014 Great content marketing is timely, relevant and shareable In this scenario, not all consumers are equal, and prioritising those that are most active and most open to brand contact will increase the chances of success. 30. Connected Life TNS 2014 Dutch dont like to engage with brands on social Average number of brand activities vs. attitude towards brands online R = 0.6191 0 5 10 15 20 25 30 0 10 20 30 40 50 60 70 80 Kenya India Nigeria Ghana Vietnam Philippines Indonesia Thailand SouthAfrica China Mexico Turkey Argentina Egypt Hungary Poland Russia Slovakia CzechRepublic Portugal Taiwan Greece Spain Italy Japan UK NewZealand France Germany Belgium Finland Netherlands Austria Canada USA Sweden Denmark Australia Switzerland Norway Colombia Malaysia Brazil SouthKorea SaudiArabia Israel HongKong UAE Singapore Avg. number of brand activities % that like to engage with brands on social Trend line Larger white space C4. Frequency of SNS / IM usage Base: Global (54,775) - Single device, mobile-centric (15,762) | Single device, PC centric (1,910) | Multi-device PC-centric (26,554) | Multi- device, mobile centric (10,475) Multi-device, mobile-centricMulti-device, PC-centricSingle-device, PC-centricSingle-device Mobile -centric Avg. % Digital Market Development (factored by GDP and device-centricity) 31. Connected Life TNS 2014 Reach of brand activities - Global vs. Netherlands Base: Global (54,775) | Netherlands (988) | Those open to brands - T3B (151) C5. Brand engagement activities | C8b. Brand attitude I like to engage with brands on social But we are more likely to access a brands online service Broadcast Upload or share content and comments Discuss Converse with own network via social or IM Consume Consume content and information Global Netherlands % that like to engage with brands on social 40% 16% 23 18 15 Like or engage brand via SNS Forward brand content Write about brands online 18 18 15 Receive online customer service Ask a question to a brand online Join a branded community 29 25 24 Read user reviews Read emails from brands Access a brands online service 13 10 8 13 11 9 22 28 43 % % N.B. Reach of activities refers to weekly usage for top activity for each type 32. Connected Life TNS 2014 Key take outs: Combined on- and offline strategy necessary Multi device strategy needed. If not youre missing half of the opportunities More devices is more media consumption Screenstacking: the battle heats up at prime time Bigger screens: behaviour shifting more to mobile IM taking over the social game? Social and IM are fragmenting. Strategies for each platform necessary Dutch dont like brands in social; Being useful gives permission to gain further engagement 33. Connected Life TNS 2014 Media fragmentation is often described as the biggest brand challenge of the digital age. In reality, its the greatest opportunity. 34. Connected Life TNS 2014 35. Connected Life TNS 2014 36. Connected Life TNS 2014 Questions? Connectedlife.tnsglobal.com More info Martin Warmelink TNS NIPO Martin.warmelink@tns-nipo.com @martinwarmelink +31 6 53720496