Luxury Institute Wealth Survey - Social Networking Habits and Practices

73
The Knowledge of Luxury, The Luxury of Knowledge Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com Luxury Institute WealthSurvey Social Networking Habits and Practices of the Wealthy

Transcript of Luxury Institute Wealth Survey - Social Networking Habits and Practices

Page 1: Luxury Institute Wealth Survey - Social Networking Habits and Practices

The Knowledge of Luxury, The Luxury of Knowledge

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

Luxury Institute WealthSurvey

Social Networking Habits and Practices

of the Wealthy

Page 2: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

2

Table of Contents

Topic Slide #

Research Notes and Methodology 3

Key Research Findings 7

Use of Social Networking Sites 12

Benefits Of Social Networking 28

Trends And Changes Resulting From Social Networking 31

Online Communities And Targeted Groups 43

Social Media Marketing 49

Social Media Barriers To Entry 60

Appendix: Respondent Profile 63

Contact Information 73

Page 3: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

3

Research Notes

The Luxury Institute conducted research among wealthy consumers with a

minimum annual income of $150,000 about their opinions, behaviors and

perceptions related to social networking.

These results are intended to provide important insights that can guide

decision making in and best practices implementation for companies and

brands that cater to wealthy consumers.

Please be advised that your use of a Luxury Institute or Luxury Board

document constitutes your agreement to (i) use the content under a limited

license only for your own internal individual purposes, and (ii) not disclose,

publish or otherwise make public or provide the content, in whole or in part,

to any third person or entity without the prior written consent of The Luxury

Institute, LLC. The content is and remains at all times the

exclusive intellectual property of The Luxury Institute, LLC.

Copyright © 2009 The Luxury Institute, LLC.

Page 4: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

4

Research Methodology: Sampling

In this study a national sample of 427 wealthy consumers were surveyed in-depth

online about their opinions in the second half of 2009. A similar survey was conducted

in the first quarter of 2008 with 805 wealthy consumers.

Respondents were recruited and screened to only include those age 21 or older with a

minimum gross annual income of $150,000. No minimum was set for net worth, but

the data was captured.

According to the latest (2007) Federal

Reserve Board Survey of Consumer

Finances (SCF), this criteria

represents the top 10.6 million (9.1%)

of U.S. households.

The survey data have been weighted

with respect to gender, age and

income to match the SCF profile of

these households.

Sample Profile2007 SCF

Benchmark

Survey Data

(unweighted)

Survey Data

(weighted)

Gender ratio (M:F) n/a 38%:62% 50%:50%

Age 21 to 44

Age 45 to 54

Age 55 to 64

Age 65 or older

Median age

28%

32%

26%

14%

51 years

36%

33%

23%

8%

48 years

28%

32%

26%

14%

51 years

$150k-$199k

$200k-$299k

$300k-$499k

$500k or more

Mean income

Median income

40%

30%

14%

16%

$421k

$221k

52%

32%

9%

7%

$298k

$198k

40%

30%

14%

16%

$415k

$233k

Mean net worth

Median net worth

$3.5 mil.

$1.2 mil.

$2.9 mil.

$0.8 mil.

$4.9 mil.

$1.0 mil.

Page 5: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

5

Research Methodology: Questionnaire

Wealthy consumers are asked the following series of questions:

What type of mobile device do you own?

Which of the following sites are you a member of?

How often do you visit [site]?

On average, approximately how much time do you spend on [site] per visit?

What was the primary reason you joined [site]?

Do you use any of the following applications to aggregate your social media content?

How many friends, connections or followers do you have on [site]?

Which of the following activities have you done through the networking sites that you use?

Please indicate whether you plan to do any of the online activities below.

How have the following activities changed as a result of your participation in social networks?

Thinking about the networking or community site(s) you visit most, how often do you update your personal profile?

Which of the following do you have on your personal profile?

How much do you agree or disagree with the following statements about sharing personal information online?

Tell us what you find most valuable on [site]. Please select up to the top 3 reasons why you visit these sites.

Please indicate how likely you would do any of the online activities below.

Page 6: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

6

Research Methodology: Questionnaire

Continued…

Are you a member of any of the following social shopping sites?

Do you notice the presence of advertiser brands on the social networking sites you visit?

Have you ever joined a group on your social networking site(s) that is based around a

product/service or a brand?

• If yes, how did you find them?

Please indicate whether you have done any of the following on your social networking

site(s).

What kind of widgets or applications have you added to your profile page?

What categories of content reflect the types of widgets or applications you have added to

your profile page?

Have you downloaded branded widgets or applications (i.e. from retailers, other websites,

or movie brands, for example)?

How do you hear of new widgets and applications for your profile page?

Do you access social media networking sites from your mobile device?

How much do you agree or disagree with the following statements about why you do not

visit any of these sites?

Page 7: Luxury Institute Wealth Survey - Social Networking Habits and Practices

The Knowledge of Luxury, The Luxury of Knowledge

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

Luxury Institute WealthSurvey

Key Research Findings

Page 8: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

8

Key Findings: Use of Social Networking Sites

Seven out of ten wealthy consumers (72%) are members of social networking

sites, up from 60% in 2008.

Since 2008, average membership has increased from 2.8 to 3.1 sites.

Overall, Facebook is the dominant networking site among wealthy consumers,

with the highest overall membership, daily use and number of visits per week.

Nearly 30% of wealthy consumers who belong to multiple social networks use

applications to aggregate social media content.

More than 10% of all wealthy consumers access social networks from a mobile

device.

Top Social Networking Sites

Benchmark Metrics: 2009 LinkedIn MySpace Twitter Facebook YouTube

Class-

Mates

Yahoo!

Groups

Membership level 28% 17% 14% 48% 20% 21% 15%

Most common joint membershipFace-

book

Face-

book

Face-

bookLinkedIn

Face-

book

Face-

book

Face-

book

At least daily use of site 12% 19% 33% 44% 11% 3% 25%

Mean number of visits per week 2.3 3.1 4.2 6.7 2.9 0.6 5.1

Avg. length of visit (minutes) 35 26 56 47 42 11 61

Mean number of connections 95 69 36 93 14 27 101

Page 9: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

9

Key Findings: Benefits and Trends

Benefits of Social Networking

The specific reasons for joining and the most valuable features of a social networking site vary by site, but most commonly include desires to reestablish, develop, and maintain old and new relationships of the personal or professional nature, share online content, and learn from others.

Trends and Changes Resulting from Social Networking

Compared to in 2008, wealthy members of social networks are…

• less likely to use email and IM, join or start clubs, submit links to the site, vote or rate site content, and participate in advertising or marketing initiatives.

• more likely to be posting and receiving comments on their own and others’ pages,

• more likely to say that they have a personal profile, and

• more likely to be including marital status and photos in their profiles.

At the same time wealthy consumers on social networks have become…

• more likely to say they are being careful about the information they post,

• more likely to agree that they are OK with new people viewing their information, and

• less likely to say they are concerned about identification theft or fraud.

As a result of participation in social networking, there have been notable shifts in how and where wealthy consumers use in IM and online dating applications.

Page 10: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

10

Key Findings: Targeted Groups & Marketing

Online Communities and Targeted Groups

Nearly one-quarter (24%) of wealthy social networkers say that they would be

likely to join a community dedicated to a luxury brand that is sponsored by the

brand and 20% would join an independent luxury community.

• Another five percent have already joined each type of luxury brand community.

Nearly one in five (18%) belong to a social shopping site.

Social Media Marketing

Of the wealthy consumers who are members of at least one SN site:

• More than 40% say they notice the advertising on the sites that they visit

• 13% have joined a group that is based around a product/ service or a brand,

• Half indicate that they have done at least one consumer behavior or product/service

promotional activity on social networking sites, such as receiving/giving virtual gifts,

• One in ten has downloaded a widget or application to their profile page.

Entertainment widgets or applications are the most commonly added to profile

pages, followed by informational widgets or applications.

• Movies, weather, finance, and news and current events are the most common

categories of widget or application content. One in five have downloaded branded

widgets or applications.

Page 11: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

11

Key Findings: Social Media Barriers

The barriers to joining social networks are less strong than was the case a year

ago, even among wealthy consumers who have yet to join in.

The top reason for not joining social networks continues to be: “I have other

methods of communicating.”

However since 2008, a significantly lower share of the wealthy consumers who

do not belong to social networking sites are saying that:

• they don’t trust that personal information will be private,

• the sites are targeted for younger users,

• they are not familiar with the activities they can do,

• they only join sites with free membership,

• they have never heard of these sites,

• they haven’t had the opportunity to check them out, and

• they tend to join sites where their offline friends and acquaintances are already

members.

Page 12: Luxury Institute Wealth Survey - Social Networking Habits and Practices

The Knowledge of Luxury, The Luxury of Knowledge

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

Luxury Institute WealthSurvey

Use of Social Networking Sites

Page 13: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

13

Top 10 Social Networking Sites

Top 10 Social Networking Sites Used

60%

11%

13%

21%

20%

16%

23%

10%

9%

2%

72%

48%

28%

21%

20%

17%

15%

14%

10%

7%

7%

Any use of a social networking site

Facebook

LinkedIn

Classmates

YouTube

MySpace

Yahoo! Groups

Twitter**

Wikipedia

MSN Groups

Photobucket

2008

2009

Q: Which of the following sites are you a member of? (n=427 in 2009 and n=805 in 2008) ** Not asked in 2008.

Membership in social networking sites has increased significantly since early 2008 from

60% to 72% of wealthy consumers.

• Facebook, LinkedIn, and newcomer Twitter have grown the most in that time.

indicates statistically significant change since 2008 at 90% confidence level.

Page 14: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

14

Other Social Networking Sites Used

6%

5%

3%

3%

3%

3%

1%

5%

4%

3%

3%

3%

2%

2%

2%

2%

2%

1%

1%

flickr

Yahoo! 360

Friendster

hi5**

Windows Live Spaces

Last.fm**

MyYearbook**

Ning**

Webshots

Yelp**

AOL People Connection

ASmallWorld2008

2009

Q: Which of the following sites are you a member of? (n=427 in 2009 and n=805 in 2008) ** Not asked in 2008.

indicates statistically significant change since 2008 at 90% confidence level.

2%

3%

1%

1%

3%

1%

1%

1%

1%

1%

3%

<1%

<1%

<1%

<1%

Bebo**

Del.icio.us

Digg

Multiply**

Tagged**

Affluence.org**

Orkut**

Technorati

Tumblr**

Diamond

Lounge

Other

Page 15: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

15

Member of at Least One Social Network Site

60% 62%57%

76%

61%

49%

58%61% 63%

60% 60%66%

72%69%

76%

85%

75%

62%

69%72%

76% 75%

66%

76%

Total Men Women Under 45 45-54 55+ $150k-

$199k

$200k-

$299k

$300k+ <$1MM $1MM-

$4.9MM

$5MM+

2008 2009

Gender Age Household Income Net Worth

Use of Any Social Network by Demographics

Membership in social networks increased across all subgroups of wealthy consumers.

Q: Which of the following sites are you a member of? Percent who belong to at least one site shown. (n=427 in 2009 and n=805 in 2008)

indicates statistically significant change since 2008 at 90% confidence level.

Page 16: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

16

Use of Social Networking Sites by Demographics

Wealthy consumers who are under age 45 are much more likely to be using social

networking sites.

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: Which of the following sites are you a member of? (n=427 in 2009)

Gender Age Household Income Net Worth

Social Networking Site

Membership Total Men Women

Under

45 45-54 55+ <$200k

$200k-

$299k $300k+ <$1 mil

$1 -$4.9

mil $5 mil+

Any social networking site 72% 69% 76% 85% 75% 62% 69% 72% 76% 75% 66% 76%

Facebook 48% 42% 54% 60% 48% 40% 48% 57% 40% 52% 46% 42%

LinkedIn 28% 29% 27% 36% 34% 17% 27% 26% 31% 28% 31% 21%

Classmates 21% 21% 21% 20% 26% 18% 20% 19% 25% 19% 24% 22%

YouTube 20% 24% 17% 33% 13% 18% 16% 24% 22% 19% 18% 31%

MySpace 17% 17% 18% 26% 17% 12% 16% 18% 19% 17% 15% 24%

Yahoo! Groups 15% 17% 14% 19% 15% 13% 12% 15% 20% 14% 14% 20%

Twitter 14% 13% 16% 23% 14% 8% 12% 16% 15% 11% 16% 19%

Wikipedia 10% 14% 6% 14% 4% 11% 6% 6% 17% 4% 12% 23%

Photobucket 7% 8% 6% 12% 4% 6% 4% 6% 12% 5% 4% 21%

MSN Groups 7% 8% 5% 10% 6% 4% 6% 4% 10% 8% 4% 8%

n= 427 164 263 154 139 134 223 136 68 252 135 40

Page 17: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

17

Trend in Number of Sites Belong To

Number of Sites Belong to39%

23%

15%

8%

4%

11%

30%

21%

17%

11%

8%

13%

1 2 3 4 5 Over 5

2008 2009

Since 2008, wealthy consumers have increased the number of different networking

sites of which they are members from an average of 2.8 to 3.1.

• The share of those belonging to just one site has decreased significantly, while the share of

those belonging to 5 sites has doubled.

Q: Which of the following sites are you a member of? (n=316 in 2009 and n=483 in 2008 who belong to at least one networking site)

indicates statistically significant change since 2008 at 90% confidence level.

Page 18: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

18

Mean Number of Sites by Demographics

The average number of social networking sites that a consumer continues to be higher

on average for men, those under age 45, and those in higher income and wealth

brackets.

Mean Number of Sites Wealthy Consumers Belong To

2.8 2.92.6

3.7

2.6

2.0

2.6 2.5

3.4

2.7 2.6

3.03.1

3.5

2.7

3.7

2.72.9

2.7

3.1

3.5

2.7

3.2

4.2

Total Men Women Under 45 45-54 55+ $150k-

$199k

$200k-

$299k

$300k+ <$1MM $1MM-

$4.9MM

$5MM+

2008 2009

Gender Age Household Income Net Worth

Q: Which of the following sites are you a member of? (n=316 in 2009 and n=483 in 2008 who belong to at least one networking site)

indicates statistically significant change since 2008 at 90% confidence level.

Page 19: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

19

Q: Which of the following community or networking sites are you a member of? (Cross Matrix)

(Base = members of each individual site, limited to top 7 sites)

Example: Read as 70% of LinkedIn members are also members of Facebook.

Joint Membership

Site Membership Matrix LinkedIn MySpace Twitter Facebook YouTube

Class-

mates

Yahoo

Groups

Avg. number of different sites belong to 4.0 5.1 5.4 3.5 5.1 4.7 5.1

Facebook 70% 80% 67% 100% 75% 72% 69%

LinkedIn 100% 39% 55% 40% 41% 48% 40%

Classmates 36% 50% 39% 31% 35% 100% 32%

YouTube 30% 44% 51% 32% 100% 34% 43%

MySpace 25% 100% 46% 29% 38% 41% 28%

Yahoo! Groups 22% 24% 24% 22% 32% 23% 100%

Twitter 28% 37% 100% 20% 36% 26% 22%

Wikipedia 17% 14% 21% 11% 31% 13% 17%

Photobucket 6% 19% 13% 9% 21% 12% 17%

MSN Groups 9% 14% 20% 6% 13% 13% 21%

flickr 9% 5% 7% 6% 10% 10% 12%

Yahoo! 360 3% 10% 11% 5% 14% 8% 17%

hi5 5% 11% 13% 5% 10% 7% 4%

Windows Live Spaces 6% 9% 8% 5% 10% 7% 13%

Friendster 5% 10% 9% 5% 7% 9% 5%

Yelp 5% 3% 8% 3% 6% 2% 7%

Unweighted Sample Size 119 76 65 222 86 86 60

Shading indicates sites with at least 50% overlap

indicates site with most cross-over membership

Table continued on next slide

Page 20: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

20

Q: Which of the following community or networking sites are you a member of? (Cross Matrix)

(Base = members of each individual site, limited to top 8 sites)

Example: Read as 6% of LinkedIn members are also members of MyYearbook.

Joint Membership … Continued

Site Membership Matrix LinkedIn MySpace Twitter Face-book YouTube

Class-

mates

Yahoo

Groups

Avg. number of different sites belong to 4.0 5.1 5.4 3.5 5.1 4.7 5.1

MyYearbook 6% 10% 8% 4% 6% 11% 6%

Ning 4% 5% 5% 3% 3% 4% 4%

Webshots 3% 2% 2% 2% 2% 1% 6%

Last.fm 1% 3% 6% 1% 2% -- 4%

Digg 3% 4% 10% 2% 4% 2% 4%

Tagged 1% 4% -- 2% 1% 5% 5%

Multiply -- 4% -- 2% 1% 3% 7%

Bebo 1% 5% 1% 2% 1% 3% 5%

AOL People Connection 2% 3% 4% 1% 4% 3% 4%

Del.icio.us 1% 1% 4% 1% 1% -- 2%

ASmallWorld 2% -- -- -- -- 2% --

Orkut 1% 1% 1% 1% 2% 1% 1%

Affluence.org 1% -- 2% -- -- 1% 2%

Tumblr 1% -- 2% -- -- 1% 2%

Technorati -- -- -- -- -- -- 2%

Unweighted Sample Size 119 76 65 222 86 86 60

Shading indicates sites with at least 50% overlap

indicates site with most cross-over membership

Page 21: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

21

Aggregation of Social Media Content

Q: Do you use any of the following applications to aggregate your social media content?

(n=217 wealthy consumers who are members of at least two social networking sites)

Almost three out of ten wealthy consumers who use more than one social networking

site use applications to aggregate social media content, with the Facebook application

clearly being the most popular.

Use of Applications To Aggregate Social Media Content

1.0%

0.8%

0.5%

0.5%

0.5%

0.4%

0.4%

26%

28%

1%

Any use of aggregation app

Facebook

Flock

Socialthing

EventBox

Profilactic

Strands

FriendFeed

Power.com

Other

Page 22: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

22

Mean Number of Connections

Q: How many friends, connections or followers do you have on [social networking site]?

(Base = randomly selected members of each site, limited to top 7 sites)

Wealthy social networkers tend to have, on average, about one hundred friends,

connections or followers on Yahoo! Groups, LinkedIn and Facebook.

Average Number of Friends, Connections, Followers

101

95

93

69

36

27

14

Yahoo! Groups

LinkedIn

Facebook

MySpace

Twitter

Classmates

YouTube

Page 23: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

23

Frequency of Visiting

Frequency of Visiting Top Social Networking Sites

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Facebook

Twitter

Yahoo! Groups

MySpace

LinkedIn

YouTube

Classmates

Several times per day Once a day Several times per week Once a week Several times per month Once a month or less

Q: How often do you visit [social networking site]? (Base = randomly selected members of each site, limited to top 7 sites)

At least

daily

Mean #

times

per

week

44% 6.7

33% 4.2

25% 5.1

19% 3.1

12% 2.3

11% 2.9

3% 0.6

Facebook is the social networking site that is used most frequently by wealthy

consumers.

Page 24: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

24

Trend In Daily Use of Networking Sites

At Least Daily Use of Top 10 Social Networking Sites

38%

33%

31%

9%

31%

7%

44%

33%

25%

19%

12%

11%

3%

Facebook

Twitter**

Yahoo! Groups

MySpace

LinkedIn

YouTube

Classmates

2008

2009

Q: How often do you visit [social networking site]? (Base = randomly selected members of each site, limited to top 7 sites)

** Not asked in 2008.

The daily use of social networking sites has changed dramatically since 2008:

• Twitter, a relatively new site, is used on a daily basis a third of wealthy members.

• Daily use of MySpace and YouTube have declined.

indicates statistically significant change since 2008 at 90% confidence level.

Page 25: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

25

Length of Visit

Average Amount of Time Spent On Site Per Visit

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yahoo! Groups

Twitter

Facebook

YouTube

LinkedIn

MySpace

Classmates

Open all day >2 hours but not open all day 1-2 hrs 30-59 mins 15-29 mins 5-14 mins < 5 mins

Q: On average, approximately how much time do you spend on [social networking site] per visit?

(Base = randomly selected members of each site, limited to top 7 sites)

Mean length

of visit

(minutes)

61

56

47

42

35

26

11

Members of Yahoo! Groups and Twitter are likely to be spending about an hour on

average on the sites each time they visit.

Page 26: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

26

Accessing Social Networks via Mobile Devices

One in ten wealthy consumers access social networks from their mobile device.

Another 54% are members of social networking sites and own a mobile device, but do

not use it for their social networking activities.

Q: Which of the following sites are you a member of?

Q: What type of mobile device do you own?

Q: Do you access social networking sites from your mobile device? (n = 427 wealthy consumers)

Relationship Between Social Networking and Owning Mobile Devices

Own a mobile device but

not a social networker

21%

Do not own a mobile

device and not a social

networker

7%

Social networker, but do

not own a mobile device

7%

Social networker, own a

mobile device, but do not

access social networks

from it

54%

Access social networks

from a mobile device

11%

Page 27: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

27

Accessing Social Networks via Mobile Devices

Wealthy consumers under age 45 are much more likely than older consumers, and

those earning $200-299k are more likely than those with lower income to be accessing

social networking sites from their mobile devices.

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: Do you access social networking sites from your mobile device? (n = 427 wealthy consumers)

Percentage Who Access Social Networks From A Mobile Device

11%10%

12%

25%

8%

3%

8%

15%

10% 10%11%

12%

Total Men Women Under 45 45-54 55+ $150k-

$199k

$200k-

$299k

$300k+ <$1MM $1MM-

$4.9MM

$5MM+

Gender Age Household Income Net Worth

Page 28: Luxury Institute Wealth Survey - Social Networking Habits and Practices

The Knowledge of Luxury, The Luxury of Knowledge

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

Luxury Institute WealthSurvey

Benefits of Social Networking

Page 29: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

29

Primary Reason for Joining

Q: What was the primary reason you joined [social networking site]?

(Base = randomly selected members of each site, limited to top 7 sites)

The dominant reason for joining LinkedIn is to make a business connection.

For MySpace, Facebook, and especially Classmates the main reason for joining is to

find an old friend or family member.

Primary Reason for Joining LinkedIn MySpace Twitter Face-book YouTube

Class-

mates

Yahoo

Groups

I was trying to find an old friend or family member 5% 49% 8% 33% 3% 79% 7%

I wanted to make a business connection 76% 5% 22% 5% 3% -- 18%

Everyone I know is a member 9% 19% 27% 30% 23% 7% 15%

I was trying to organize a social event or group 1% 9% 7% 3% -- 2% 12%

I wanted to see what my child was doing online -- 7% 2% 8% 3% -- 5%

Other 9% 11% 34% 21% 68% 11% 43%

Unweighted Sample Size 104 56 39 186 55 62 39

Shading indicates dominant reason

Page 30: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

30

Q: Tell us what you find most valuable on [social networking site]. (Base = randomly selected members of each site, limited to top 7 sites)

Most Valuable Site Features

Most valuable feature of this site: LinkedIn MySpace Twitter

Face-

book YouTube

Class-

Mates

Yahoo!

Groups

Locate and reacquaint with old friends/family 16% 38% 11% 56% 2% 53% 12%

Maintain existing personal relationships with friends/family 14% 30% 13% 60% 2% 21% 14%

Research product or company information 19% 7% 15% 6% 9% -- 19%

Maintain existing professional relationships 59% 13% 17% 9% 3% 6% 15%

Stay entertained by the variety of available content and applications 3% 9% 14% 8% 26% 2% 14%

View others’ photos 4% 23% -- 32% 9% 9% 5%

Learn more about a specific interest/hobby from others 2% 4% 12% 1% 14% 3% 32%

Watch others’ videos 1% 16% -- 3% 71% 3% 11%

Meet new professionals and develop new business relationships 59% 6% 15% 8% -- 1% 12%

Share my photos with others <1% 10% 7% 23% 4% 3% 5%

Meet new people and develop new personal relationships 10% 6% 17% 7% 3% 1% 8%

Share my videos with others 1% 3% 7% 2% 18% -- --

Keep track of what my child is doing online 2% 11% 8% 12% 1% 1% 4%

Write about things that I care about and interest me 3% 4% 7% 5% -- -- 9%

Build support for an environmental cause 1% 3% 6% <1% 2% -- 6%

Build support for a specific political cause -- -- -- 1% 2% -- 11%

Build support for consumer advocacy 2% 1% 4% 1% 4% -- --

Build support for a philanthropic cause -- 2% 2% 2% 1% -- 3%

Other 4% 8% 6% 1% 6% 4% 1%

Unweighted Sample Size (random members) 104 56 39 186 55 62% 39

dominant features

Page 31: Luxury Institute Wealth Survey - Social Networking Habits and Practices

The Knowledge of Luxury, The Luxury of Knowledge

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

Luxury Institute WealthSurvey

Trends And Changes Resulting From Social

Networking

Page 32: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

32

Trends in Online Activities on Social Networks

In 2008 asked as: Q: Please indicate whether you do or

plan to do any of the following activities through the

community or networking sites that you are a member of?

(Base: n=501 social networkers)

In 2009 asked as: Q: Which of the following activities have

you done through the networking sites that you use?

(Base: n = 316 social networkers)

** Option not asked in 2008.

indicates statistically significant change since 2008 at

90% confidence level.

Online Activities

Currently Do

69%

49%

50%

35%

40%

28%

30%

30%

41%

39%

30%

31%

28%

31%

19%

15%

54%

52%

49%

47%

44%

43%

42%

40%

32%

31%

28%

20%

19%

19%

11%

9%

8%

5%

Email

Check profiles of people in my network

Create a personal profile

Post a comment on others’ content

Upload your own content

Post a comment on others’ profile page

Receive comments on your own profile

page

Receive comments on your own content

Instant message

Join a club or group

Browse new profiles of people outside my

network

Submit/post a link on the site

Check to see what my child/ children are

doing online**Look up information on a specific

company**

Vote for site content

Rate site content

Participate in a advertiser or marketing

initiative on the site

Start a club or group

2008

2009

Compared to in 2008,

social networkers are now

less likely to use email and

IM, join or start clubs,

submit links to the site,

vote or rate site content,

and participate in

advertising or marketing

initiatives.

They are more likely to be

posting and receiving

comments on their own

and others’ pages.

Page 33: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

33

Social Network Activities by Demographics

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: Which of the following activities have you done through the networking sites that you use? (Base: n = 316 social networkers)

Gender Age Household Income Net Worth

Social Networking

Activities Total Men Women

Under

45 45-54 55+ <$200k

$200k-

$299k $300k+ <$1 mil

$1 -$4.9

mil $5 mil+

Email 54% 54% 55% 58% 48% 57% 57% 43% 62% 54% 57% 49%

Check profiles of people in

my network52% 50% 54% 61% 53% 43% 51% 55% 51% 54% 53% 47%

Create a personal profile 49% 42% 55% 49% 54% 46% 50% 54% 43% 51% 50% 41%

Post a comment on others’

content (photos, videos, etc.)47% 42% 51% 54% 46% 41% 43% 53% 44% 51% 42% 45%

Upload your own content

(photos, videos, etc.)44% 44% 45% 50% 40% 43% 43% 48% 42% 46% 46% 37%

Post a comment on others’

profile page43% 35% 50% 55% 38% 35% 39% 48% 42% 41% 47% 41%

Receive comments on your

own profile page42% 36% 48% 54% 38% 35% 38% 44% 45% 43% 39% 45%

Receive comments on your

own content (photos, videos,

etc.)

40% 34% 46% 53% 37% 31% 38% 44% 39% 41% 38% 41%

Instant message 32% 30% 34% 44% 27% 26% 29% 31% 36% 31% 33% 34%

n= 316 113 203 130 105 81 163 101 52 194 91 31

Table continues on next page

Page 34: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

34

Social Network Activities by Demographics

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: Which of the following activities have you done through the networking sites that you use? (Base: n = 316 social networkers)

Gender Age Household Income Net Worth

Social Networking

Activities Total Men Women

Under

45 45-54 55+ <$200k

$200k-

$299k $300k+ <$1 mil

$1 -$4.9

mil $5 mil+

Join a club or group 31% 30% 31% 44% 28% 21% 25% 37% 31% 32% 28% 32%

Browse new profiles of

people outside my network28% 30% 26% 36% 30% 18% 23% 26% 36% 27% 30% 29%

Submit/post a link on the site 20% 18% 21% 26% 21% 13% 18% 27% 15% 18% 25% 14%

Check to see what my

child/children are doing online19% 12% 25% 11% 28% 18% 20% 20% 16% 18% 19% 18%

Look up information on a

specific company19% 21% 16% 18% 21% 17% 18% 19% 18% 16% 21% 22%

Vote for site content 11% 13% 9% 18% 9% 6% 11% 12% 11% 12% 10% 12%

Rate site content (videos,

photos, etc.)9% 12% 7% 16% 7% 5% 9% 9% 11% 8% 11% 12%

Participate in a advertiser or

marketing initiative on the site8% 10% 6% 5% 7% 12% 9% 6% 8% 8% 5% 13%

Start a club or group 5% 3% 7% 13% 3% 1% 5% 7% 5% 6% 5% 5%

n= 316 113 203 130 105 81 163 101 52 194 91 31

Page 35: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

35

Trends In Online Activities Plan To Do

In 2008 asked as: Q: Please indicate whether you do or

plan to do any of the following activities through the

community or networking sites that you are a member of?

(Base: n = 501 social networkers)

In 2009 asked as: Q: Please indicate whether you plan to

do any of the online activities below. (Base: n = 316 social

networkers)

** Option not asked in 2008.

indicates statistically significant change since 2008 at

90% confidence level.

Online Activities

Plan To Do

11%

14%

18%

19%

18%

20%

14%

16%

16%

15%

17%

17%

16%

18%

16%

15%

16%

12%

11%

9%

9%

9%

9%

8%

8%

8%

7%

7%

6%

6%

6%

4%

3%

3%

Look up information on a specific

company**

Email

Instant message

Upload your own content

Post a comment on others’ profile page

Submit/post a link on the site

Participate in a advertiser or marketing

initiative on the site

Check profiles of people in my network

Post a comment on others’ content

Receive comments on your own content

Browse new profiles of people outside my

network

Rate site content

Create a personal profile

Receive comments on your own profile

page

Vote for site content

Check to see what my child/ children are

doing online**

Join a club or group

Start a club or group

2008

2009

Compared to in 2008,

fewer social networkers

have plans to do the

majority of these online

activities, except for email

and instant messaging.

Page 36: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

36

Trend In Personal Profile Updating

How Often Personal Profile Is Updated

4%8%

6%8%

42%

19%

13%

4% 5% 6%9%

51%

17%

9%

Daily Several times a

week

Once a week 2-3 times a

month

Once a month

or less

Never I don't have a

personal

profile

2008 (Have a personal profile: 87%)

2009 (Have a personal profile: 91%)

Social networkers are more likely to say that they have a personal profile now,

compared to in 2008.

Q: Thinking about the networking or community site(s) you visit most, how often do you update your personal profile?

Base: n (2008) = 501 and n (2009) =316 social networkers indicates statistically significant change since 2008 at 90% confidence level.

Page 37: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

37

Personal Profile: Demographics

The likelihood of having a personal profile does not vary by demographics.

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: Thinking about the networking or community site(s) you visit most, how often do you update your personal profile? Base: n (2009) =316 social networkers

Percentage Who Have a Personal Profile

91% 92% 90%94% 94%

87%90%

95%90%

93%90% 89%

Total Men Women Under 45 45-54 55+ $150k-

$199k

$200k-

$299k

$300k+ <$1MM $1MM-

$4.9MM

$5MM+

Gender Age Household Income Net Worth

Page 38: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

38

Trend In Information Included In Personal Profile

Information Included In Personal Profile

43%

27%

48%

45%

26%

37%

11%

9%

7%

5%

7%

58%

51%

47%

46%

42%

40%

13%

10%

10%

5%

4%

Marital or relationship status

Photo(s) of yourself

List of my personal interests or intentions

Age

Photos that you took

My mailing and contact information

Digital images that you've downloaded from other sources

Professional photos

Videos that you took

Professional videos

Other

2008

2009

Q: Which of the following do you have on your personal profile? (Base (2008) = 437 and Base (2009) = 290 social networkers who have a personal profile)

Compared to 2008, wealthy social networkers are significantly more likely to include

their marital or relationship status, photos of themselves, and photos that they took in

their personal profiles.

indicates statistically significant change since 2008 at 90% confidence level.

Page 39: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

39

Info in Personal Profile by Demographic Group

indicates statistically significant differences between demographic subgroups at 90% confidence level. * Caution, low sample size (n<30)

Q: Which of the following do you have on your personal profile? (Base (2009) = 290 social networkers who have a personal profile)

Gender Age Household Income Net Worth

Info Included in Personal

Profile Total Men Women

Under

45 45-54 55+ <$200k

$200k-

$299k $300k+ <$1 mil

$1 -$4.9

mil $5 mil+

Marital or relationship status 58% 50% 66% 62% 59% 54% 58% 62% 56% 62% 51% 61%

Photo(s) of yourself 51% 44% 58% 56% 53% 44% 52% 52% 50% 50% 50% 57%

List of my personal interests

or intentions47% 46% 49% 50% 50% 42% 50% 43% 48% 43% 46% 65%

Age 46% 48% 43% 41% 43% 52% 41% 43% 53% 42% 44% 59%

Photos that you took 42% 37% 46% 56% 39% 30% 41% 38% 46% 42% 41% 43%

My mailing and contact

information40% 44% 37% 33% 34% 55% 38% 37% 45% 35% 48% 41%

Digital images downloaded

from other sources13% 15% 12% 26% 6% 7% 11% 19% 11% 12% 9% 27%

Professional photos 10% 13% 8% 18% 4% 10% 10% 7% 14% 8% 7% 25%

Videos that you took 10% 10% 9% 21% 3% 4% 6% 17% 6% 9% 12% 8%

Professional videos 5% 6% 4% 10% 3% 1% 4% 4% 7% 4% 5% 8%

Other 4% 4% 3% 4% 6% 1% 3% 6% 2% 4% 5% --

n= 290 104 186 123 96 71 148 96 46 182 80 28*

Page 40: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

40

Trend in Attitudes Towards Sharing Personal Info

Top 2 Box

Statement Agreement

76%

63%

45%

74%

53%

24%

12%

79%

77%

68%

64%

63%

52%

49%

33%

15%

I would feel more comfortable if there

was an option that prevents marketers

from obtaining members’ personal

information**

It is inappropriate for sites to share

personal information of its members to

advertisers and marketers

I only want people that I know to view

my profile information

I don’t mind, but I’m careful about the

information I post

I’m concerned that access to this

information could lead to identification

theft or fraud

I would feel more comfortable if the

members in the community were

screened and vetted to qualify for

membership**

I worry about the threat of stalkers and

predators, not only for myself but for

others in my household

I don’t mind new people viewing my

personal information if they share the

same interests or connections

I don’t mind, in fact I enjoy it

2008

2009Q: How much do you agree or disagree with the following

statements about sharing personal information online?

Base: n (2008) = 501 and n (2009) =316 social networkers

**Not asked in 2008

indicates statistically significant change since 2008 at

90% confidence level.

The proportion who say

they are careful about the

information they post has

increased significantly from

45% to 64% since 2008.

An increase has also

occurred in the share

agreeing that they are OK

with new people viewing

their information if they

share interests or

connections.

Fewer are saying that they

are concerned about

identification theft or fraud.

Page 41: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

41

Attitudes About Sharing Personal Info

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: How much do you agree or disagree with the following statements about sharing personal information online? Base: n (2009) =316 social networkers

Gender Age Household Income Net Worth

Top 2 Box Statement

Agreement Total Men Women

Under

45 45-54 55+ <$200k

$200k-

$299k $300k+ <$1 mil

$1 -$4.9

mil $5 mil+

I would feel more comfortable if there

was an option that prevents marketers

from obtaining members’ personal info79% 71% 86% 76% 83% 79% 78% 81% 79% 79% 81% 75%

It is inappropriate for sites to share

personal information of its members to

advertisers and marketers77% 71% 82% 70% 82% 78% 76% 80% 75% 76% 81% 72%

I only want people that I know to view

my profile information68% 52% 83% 69% 79% 56% 74% 69% 60% 72% 70% 53%

I don’t mind, but I’m careful about the

information I post64% 65% 62% 65% 62% 64% 62% 63% 67% 63% 55% 81%

I’m concerned that access to this

information could lead to identification

theft or fraud63% 58% 67% 55% 68% 65% 67% 63% 58% 67% 64% 49%

I would feel more comfortable if the

members were screened and vetted to

qualify for membership52% 48% 56% 54% 49% 53% 47% 52% 58% 51% 54% 52%

I worry about the threat of stalkers and

predators, not only for myself but for

others in my household49% 38% 58% 55% 56% 36% 50% 49% 47% 51% 50% 38%

I don’t mind new people viewing my

personal information if they share the

same interests or connections33% 36% 30% 40% 27% 31% 29% 32% 37% 26% 37% 44%

I don’t mind, in fact I enjoy it 15% 14% 16% 21% 13% 11% 11% 12% 22% 10% 16% 29%

n= 316 113 203 130 105 81 163 101 52 194 91 31

Page 42: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

42

Change In Activities Due to Social Networking

Q: Have the following activities changed as a result of your participation in social networks? (n = 316 social networkers)

(Note: “Do it the same” and “Never did this” answer options are excluded from the chart for visual clarity.)

Overall, the largest decreases attributed to social network participation are seen in

instant messaging from personal IM accounts and uploading of photos to sites like

Shutterfly or KodakGallery.

Younger consumers are more likely to report shifts in their email usage, how they

organize social events or meet new people.

Change in Activities as a Result of Participation in Social Networks

17%

11%8% 8%

5%3%

6%

15%

7%

16%

8% 8%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Email from

personal email

accounts

Upload my photos

on sites like

Shutterly.com or

KodakGallery.com

Write a blog on a

personal website

or other blogging

site

Instant message

from personal

instant message

accounts

Organize social

events or parties

on sites like

Evite.com

Meet new people

on online dating

sites like

Match.com or

eHarmony.com

Do it more Do it less or stopped doing

19% if < Age 45 12% if < Age 45 19% among men

13% if < Age 45

Page 43: Luxury Institute Wealth Survey - Social Networking Habits and Practices

The Knowledge of Luxury, The Luxury of Knowledge

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

Luxury Institute WealthSurvey

Online Communities & Targeted Groups

Page 44: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

44

Use/ Likelihood of Using Online Communities

Likelihood of Doing Online Activities

0% 20% 40% 60% 80% 100%

Join a group around a particular topic of interest or hobby

Join a lesser known social network because it was

targeted toward a particular topic of interest or hobby

Connect with someone that you didn’t know because they

were connected to a friend in your network

Join a community dedicated to a luxury brand that is

sponsored by the brand

Connect with someone that you didn’t know because they

shared the same interests or hobbies

Join an independent community dedicated to a luxury

brand that is not sponsored by the brand

Start a club or group around a topic of interest or hobby

in your social network

I have already done this Very likely Somewhat likely Neither likely nor unlikely Somewhat unlikely Very unlikely

Q: Please indicate how likely you would do any of the online activities below. (Base: n = 316 social networkers)

Already

done

this

Likely to

do this

14% 38%

8% 31%

7% 29%

5% 24%

11% 23%

5% 20%

4% 16%

One out of four (24%) wealthy social networkers say that they would be likely to join a

community dedicated to a luxury brand that is sponsored by the brand, and 20% would

join an independent luxury community.

Page 45: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

45

Current Use of Online Communities

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: Please indicate how likely you would do any of the online activities below. (Base: n = 316 social networkers)

Gender Age Household Income Net Worth

Already Do This Total Men Women

Under

45 45-54 55+ <$200k

$200k-

$299k $300k+ <$1 mil

$1 -$4.9

mil $5 mil+

Join a group around a particular

topic of interest or hobby14% 12% 16% 21% 13% 10% 9% 17% 18% 14% 9% 24%

Connect with someone that you

didn’t know because they shared

the same interests or hobbies11% 12% 11% 18% 7% 9% 6% 12% 17% 8% 11% 23%

Join a lesser known social

network because it was targeted

toward a particular topic of

interest or hobby

8% 6% 11% 17% 5% 4% 4% 9% 13% 7% 6% 17%

Connect with someone that you

didn’t know because they were

connected to a friend in your

network

7% 6% 7% 13% 4% 3% 5% 6% 9% 5% 3% 18%

Join an independent community

dedicated to a luxury brand that

is not sponsored by the brand5% 3% 8% 12% 2% 2% 3% 2% 11% 3% 3% 17%

Join a community dedicated to a

luxury brand that is sponsored

by the brand5% 2% 7% 12% 1% 1% 4% 3% 8% 4% 2% 14%

Start a club or group around a

topic of interest or hobby in your

social network4% 1% 7% 11% 2% -- 2% 4% 7% 3% 4% 10%

n= 316 113 203 130 105 81 163 101 52 194 91 31

Page 46: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

46

Likelihood of Using Online Communities

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: Please indicate how likely you would do any of the online activities below. (Base: n = 316 social networkers)

Gender Age Household Income Net Worth

Likely To Do This

(Top 2 Box) Total Men Women

Under

45 45-54 55+ <$200k

$200k-

$299k $300k+ <$1 mil

$1 -$4.9

mil $5 mil+

Join a group around a particular

topic of interest or hobby38% 45% 33% 45% 37% 34% 35% 44% 37% 33% 50% 32%

Join a lesser known social

network because it was targeted

toward a particular topic of

interest or hobby

31% 39% 23% 38% 24% 31% 25% 35% 34% 26% 36% 38%

Connect with someone that you

didn’t know because they were

connected to a friend in your

network

29% 37% 22% 36% 28% 24% 21% 34% 36% 25% 30% 41%

Join a community dedicated to a

luxury brand that is sponsored

by the brand24% 34% 14% 29% 20% 22% 16% 33% 25% 22% 19% 37%

Connect with someone that you

didn’t know because they shared

the same interests or hobbies23% 33% 14% 24% 20% 24% 15% 29% 26% 17% 24% 38%

Join an independent community

dedicated to a luxury brand that

is not sponsored by the brand20% 30% 10% 26% 17% 16% 11% 27% 22% 20% 13% 32%

Start a club or group around a

topic of interest or hobby in your

social network16% 21% 11% 28% 11% 9% 13% 21% 15% 14% 18% 19%

n= 316 113 203 130 105 81 163 101 52 194 91 31

Page 47: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

47

Social Shopping Site Membership

Q: Are you a member of any of the following social shopping sites? (Base: n=316 social networkers)

Nearly one in five social networkers belong to a social shopping site.

• Ideeli and Rue LaLa are the most popular.

Membership In Social Shopping Sites

6.1%

6.0%

4.4%

4.1%

4.0%

3.8%

3.5%

1.8%

1.5%

1.3%

1.1%

0.9%

0.8%

0.7%

0.6%

0.4%

0.2%

0.6%

18%

1.5%

Any social shopping site

Ideeli

Rue LaLa

Kaboodle

Haute Look

Shop it to Me

Gilt

Etsy

Editor’s Closet

ShopStyle

StyleFeeder

The Top Secret

Threadless

Glam List

StyleHive

Vente Privee

StyleHop

Regent’s Secret

ThisNext

Other

Page 48: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

48

Percentage Who Are Social Shopping Site Members

18%

7%

29%

26%

15% 15%

11%

27%

20%21%

12%

24%

Total Men Women Under 45 45-54 55+ $150k-

$199k

$200k-

$299k

$300k+ <$1MM $1MM-

$4.9MM

$5MM+

Gender Age Household Income Net Worth

Social Shopping Site Membership

Women and wealthy consumers aged under 45 are more likely to be members of

social shopping sites.

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: Are you a member of any of the following social shopping sites? (Base: n=316 social networkers)

Page 49: Luxury Institute Wealth Survey - Social Networking Habits and Practices

The Knowledge of Luxury, The Luxury of Knowledge

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

Luxury Institute WealthSurvey

Social Media Marketing

Page 50: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

50

Awareness of Advertising

More than 40% of wealthy social networkers say they do notice the advertiser brands

on the social networking sites that they visit.

Q: Do you notice the presence of advertiser brands on the social networking sites you visit? (n=316 social networkers)

Do you notice the presence of advertiser brands on the social

networking sites that you visit?

I don’t know

13%

No

42%

Yes

45%

Page 51: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

51

Awareness of Advertising by Demographics

Wealthy consumers who earn $200k-$299k are more aware than those who earn less

than $200k of advertiser brands on the social networking sites that they visit.

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: Do you notice the presence of advertiser brands on the social networking sites you visit? (n=316 social networkers)

Percentage Who Are Aware of Advertiser Brands on SN Sites

45%42%

47% 46%44% 43%

37%

53%

46% 46%

39%

53%

Total Men Women Under 45 45-54 55+ $150k-

$199k

$200k-

$299k

$300k+ <$1MM $1MM-

$4.9MM

$5MM+

Gender Age Household Income Net Worth

Page 52: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

52

Membership In Product Group

Thirteen percent of social networkers have joined a group that is based around a

product/ service or a brand.

• Of these, more than a third were solicited via email or other form of communication.

Q: Have you ever joined a group on your social networking site(s) that is based around a product/service or a brand? (n=316 social networkers)

Q: If yes, how did you find them? (n = 45 social networkers who have joined a group based on a product/service or brand)

Have you ever joined a group based

around a product/ service/ brand?

I don’t know

3%

No

84%

Yes

13%

How did you find them?

2%

8%

22%

32%

37%

I received information from an

email or other form of

communication

I found them while I was

searching the site

A friend recommended

Other

I don’t remember

Page 53: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

53

Membership In Product Groups

The likelihood of membership in a group on a social networking site that is based

around a product/ service or brand is strongly related to the age of the consumer.

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: Have you ever joined a group on your social networking site(s) that is based around a product/service or a brand? (n=316 social networkers)

Percentage Who Are Members in a Product Group

13%

10%

16%

22%

14%

3%

13%14%

11%

15%

10%

12%

Total Men Women Under 45 45-54 55+ $150k-

$199k

$200k-

$299k

$300k+ <$1MM $1MM-

$4.9MM

$5MM+

Gender Age Household Income Net Worth

Page 54: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

54

Consumer Behaviors on Social Networks

Q: Please indicate whether you have done any of the following on your social networking site(s). (Base: n=316 social networkers)

Half of the social networkers indicate that they have done at least one of these activities.

• Receiving and giving virtual gifts are the most common behaviors.

• One in ten say they have downloaded a widget or application to their profile page.

Percentage Who Have Done These Activities

26%

19%

16%

12%

12%

10%

10%

9%

6%

5%

49%

8%

Any consumer activity

Received a virtual gift from someone

Send a virtual gift to someone

Recommended a product/service or brand to someone

Become a friend, connect or follow a public personality or

brand (e.g. celebrity, public figure, etc.)

Posted an informal opinion about a product/service or brand to

other people in your network

Download a widget or application to your profile page

Clicked on an advertising unit on a social networking site

Recommended a friend to join a group that was based around

a brand or product/service

Posted a formal opinion about a product/service or brand on

the profile page of the product/service or brand

Made a purchase based on a recommendation gotten through a

social networking site

Download or purchase a song because it was on a friends’

playlist

Explored in detail on slides 55-58

Page 55: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

55

Consumer Behaviors on Social Networks

indicates statistically significant differences between demographic subgroups at 90% confidence level.

Q: Please indicate whether you have done any of the following on your social networking site(s). (Base: n=316 social networkers)

Gender Age Household Income Net Worth

Consumer Activity Total Men Women

Under

45 45-54 55+ <$200k

$200k-

$299k $300k+ <$1 mil

$1 -$4.9

mil $5 mil+

Received a virtual gift from someone 26% 21% 30% 37% 25% 15% 23% 30% 26% 26% 24% 29%

Send a virtual gift to someone 19% 13% 24% 24% 21% 11% 19% 20% 17% 21% 17% 16%

Recommended a product/service or brand

to someone16% 16% 17% 25% 12% 12% 13% 18% 17% 14% 14% 26%

Become a friend, connect or follow a

public personality or brand12% 8% 15% 22% 8% 6% 10% 19% 8% 15% 8% 10%

Posted an informal opinion about a

product/service or brand to other people

in your network12% 15% 9% 13% 9% 13% 11% 13% 11% 11% 11% 15%

Download a widget or application to your

profile page10% 8% 12% 18% 10% 3% 11% 10% 10% 10% 11% 10%

Clicked on an advertising unit on a social

networking site10% 11% 8% 14% 9% 6% 10% 9% 10% 10% 10% 8%

Recommended a friend to join a group

that was based around a brand or

product/service9% 7% 10% 18% 4% 5% 9% 8% 9% 8% 6% 17%

Posted a formal opinion about a

product/service or brand on the profile

page of the product/service or brand8% 9% 7% 11% 9% 5% 7% 10% 7% 7% 10% 8%

Made a purchase based on a

recommendation gotten through a social

networking site6% 7% 5% 12% 4% 2% 6% 10% 2% 8% 3% 7%

Download or purchase a song because it

was on a friends’ playlist5% 4% 6% 7% 2% 7% 6% 5% 5% 4% 4% 12%

n= 316 113 203 130 105 81 163 101 52 194 91 31

Page 56: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

56

Types of Widgets or Applications Added

Q: What kind of widgets or applications have you added to your profile page?

(Base: n = 36 social networkers who have added widgets or applications to their profile page)

Entertaining widgets or applications are the most commonly added to profile pages,

followed by informational widgets or applications.

Widgets Or Applications Added To Profile Page

44%

35%

29%

7%

67%Entertaining (e.g. games, etc.)

Informational (e.g. weather

updates, sports scores, etc.)

Shopping-related

Tool-oriented (e.g. recipe

finders, search, etc.)

Other

Page 57: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

57

Categories Of Widget/Application Content

Q: What categories of content reflect the types of widgets

or applications you have added to your profile page?

(n = 36 social networkers who have added widgets or

applications to their profile page)

Content of Widget/Application Added To Profile Page

38%

30%

24%

24%

20%

19%

19%

18%

18%

18%

17%

16%

15%

12%

10%

9%

9%

9%

5%

5%

5%

19%

Movies

Weather

Finance

News and current events

Travel

Restaurants

Health/ Fitness

Food/ cooking

Television

Technology/ Electronics

Wine/ spirits

Fashion apparel and accessories

Magazines

Beauty/ Skincare/ Grooming

Real estate

Parenting and family

Private transportation

Automotive

Nightlife/ bars/ clubs

Jewelry/ Watches

Home appliances/ décor/ design

Other

Movies, weather, finance,

and news and current

events are the most

common categories of

widget or application

content.

Page 58: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

58

Branded Widgets Or Applications

One in five of those who have added widgets or applications to their profile page have

downloaded branded widgets or applications, such as those from retailers, other

websites, or movie brands.

Q: Have you downloaded branded widgets or applications (i.e. from retailers, other websites, or movie brands, for example)?

(n = 36 social networkers who have added widgets or applications to their profile page)

Have you downloaded branded widgets or applications?

I don’t know

7%

No

72%

Yes

21%

Page 59: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

59

Learning of New Widgets/ Applications

Q: How do you hear of new widgets and applications for your profile page?

(Base: n = 36 social networkers who have added widgets or applications to their profile page)

Similar shares of consumers with widgets or applications learn about these by

searching, by information pushed to them and through friend’s recommendations.

How do you hear of new widgets and applications?

I don’t remember

30%

Other

1%

A friend recommended

22%

I received information

from an email or other

form of communication

23%

I found them while I was

searching the site

24%

Page 60: Luxury Institute Wealth Survey - Social Networking Habits and Practices

The Knowledge of Luxury, The Luxury of Knowledge

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

Luxury Institute WealthSurvey

Social Media Barriers To Entry

Page 61: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

61

Trend In Social Media Barriers

Top 2 Box Statement Agreement

82%

67%

70%

72%

72%

71%

50%

45%

75%

72%

70%

69%

60%

58%

52%

27%

I have other methods of

communicating with my friends,

colleagues, family

Networking or community sites are

just not for me

I don't feel comfortable posting any

of my personal information online

I don't want to be subjected to

unwanted contact by solicitors or

old acquaintances

I don't trust the sites to keep my

personal information private

These sites seem targeted for

younger online users

These sites require time to use,

and I don't have much free time

I'm not familiar with the type of

activities I can do on these sites2008

2009

Q: How much do you agree or disagree with the following

statements about why you do not visit any of these sites?

Base: n (2008) = 304 and n (2009) =111 wealthy

consumers who have not joined social networks

indicates statistically significant change since 2008 at 90%

confidence level.

The top reason for not

joining social networks

continues to be: “I have

other methods of

communicating.”

Fewer are saying that they

don’t trust that personal

information will be private,

that the sites are targeted

for younger users, and that

they are not familiar with

the activities they can do.

Chart continued on next slide

Page 62: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

62

Trend In Social Media Barriers…Continued

Top 2 Box Statement Agreement

41%

31%

22%

20%

5%

14%

12%

18%

18%

17%

8%

8%

7%

5%

0%

I only join sites that have free

membership

I've never heard of these sites

These sites seem complicated to

use

I haven't had the opportunity to

check them out, but I plan to

I used to be a member of this site,

but I no longer join**

I know too many people on these

sites, and I prefer to join sites

where I don't know anyone

I tend to join sites where my offline

friends/ acquaintances are already

members

I don't qualify for membership / I

was not invited to join2008

2009

Q: How much do you agree or disagree with the following

statements about why you do not visit any of these sites?

Base: n (2008) = 304 and n (2009) =111 wealthy

consumers who have not joined social networks **Not

asked in 2008

indicates statistically significant change since 2008 at

90% confidence level.

Significantly fewer are

saying that they only join

sites with free membership,

they have never heard of

these sites, they haven’t

had the opportunity to

check them out, and that

they tend to join sites where

their offline friends and

acquaintances are already

members.

Page 63: Luxury Institute Wealth Survey - Social Networking Habits and Practices

The Knowledge of Luxury, The Luxury of Knowledge

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

Luxury Institute WealthSurvey

Appendix: Respondent Profile

Page 64: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

64

Demographics of Survey Sample

Q: What type of mobile device do you own? (Base: n = 427 wealthy consumers)

Ownership Of Mobile Device

26%

25%

14%

3%

28%

86%Any device

Web-enabled cell phone

Blackberry

iPhone

Treo

Other type of mobile phone or

device

Page 65: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

65

Demographics of Survey Sample

Hours per Week Use the Internet at home

(for purposes other than email)

21% 21%

15%

18%

26%

1-3 hours 4-5 hours 6-9 hours 10-15 hours 16+ hours

Mean: 10.1

hours

Q: What type of internet connection do you have at home?.

Q: How many hours per week do you spend on the Internet at home for purposes other than email?

(n = 427 wealthy consumers.)

Type Of Internet Service At Home

42%

2%

5%

<1%

51%Cable

DSL

Dial-up

Other

No access at

home

Page 66: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

66

Demographics of Survey Sample

Age Distribution

6%

7%

6%

10%

18%

14%

15%

11%

14%

21-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 or

older

August 2009 (Median Age: 51)

Q: What is your gender?

Q: Please click on the category that includes your age: (n=427 wealthy consumers.)

Gender

Female,

50%

Male,

50%

Page 67: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

67

Demographics of Survey Sample

Income Distribution

(Median: $233k)

40%

30%

14%

10%

6%

$150,000

and

$199,999

$200,000

and

$299,999

$300,000

and

$499,999

$500,000

and

$999,999

$1,000,000

or above

Q: Which group best describes your gross household income (before taxes) for 2008? (Select one)?.

Q: What is your household’s approximate net worth, (including the full equity in your home)? (n=427 wealthy consumers.)

Net Worth

(Median: $1.0 Mil)

12%

11%

11%

14%

17%

18%

6%

1%

4%

5%

2%

<1%

Under $50,000

$50,000 and $99,999

$100,000 and $249,999

$250,000 and $499,999

$500,000 and $749,999

$750,000 and $999,999

$1 million - $1.9 million

$2 million - $4.9 million

$5 million - $7.4 million

$7.5 million - $9.9 million

$10 million - $29.9 million

$30 million or above

Page 68: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

68

Demographics of Survey Sample

Value of Primary Residence

(Median $0.6Mil)

7%

32%

26%

13%

12%

6%

2%

1%

1%

<1%Under $100,000

$100,000 -

$249,999

$250,000 -

$499,999

$500,000 -

$749,999

$750,000 -

$999,999

$1 million - $1.9

million

$2 million - $4.9

million

$5 million - $7.4

million

$7.5 million -

$9.9 million

$10 million or

above

Q: Do you own or rent your primary residence? (n=427 wealthy consumers)

Q: What is the home value of your primary residence? (n=386 wealthy consumers who own their primary residence)

Type of Primary Residence

Other

1%Rent

9%

Own

90%

Page 69: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

69

Demographics of Survey Sample

Additional Family Members

37%

12%

11%

15%

20%

92%

Children under age 18 (net)

5 years of age and younger

6-8 years of age

9-12 years of age

13-17 years of age

18 years of age and older

(besides self)

Q: Including yourself, how many people currently in your household are in each of the following age groups? (n=427 wealthy consumers)

Page 70: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

70

Demographics of Survey Sample

Employment

53%

9%

11%

2%

1%

12%

1%

9%

1%

Employed full time

Employed part time

Self-employed

Not employed, but looking for

work

Not employed and not looking

for work

Retired

Student

Homemaker

Prefer not to answer

Q: What is your highest level of education?

Q: Which one of the following best describes your employment status? (n=427 wealthy consumers.)

Education

12%

45%

4%

<1%

3%

<1%

36%

9th to 12th

grade, no

diploma

High school

graduate or

equivalent

Some college,

no degree

Associate

degree

Bachelor's

degree

Graduate or

professional

degree

Other, please

specify

Page 71: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

71

Demographics of Survey Sample

Ethnicity

89%

4%

3%

0

1%

1%

1%

White/Caucasian

Black/African

American

Asian

Pacific Islander

Native American

Other

Prefer not to

answer

Q: Are you Spanish/Hispanic/Latino?

Q: Which one of the following best describes you? (n=427 wealthy consumers.)

Spanish/Hispanic/Latino?

No

95%

Yes

5%

Page 72: Luxury Institute Wealth Survey - Social Networking Habits and Practices

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

72

Demographics of Survey Sample

Q: In which state do you live? (n=427 wealthy consumers)

State of Residence

0.0%1.0%

0.0%

0.6%

13.1%

2.3%

3.2%

0.3%

0.2%

6.0%

3.5%

0.0%

0.4%

0.5%

6.1%

0.6%

1.1%

0.6%

0.4%

1.7%

4.2%

0.0%

3.2%

2.9%

1.4%

AK

AL

AR

AZ

CA

CO

CT

DC

DE

FL

GA

HI

IA

ID

IL

IN

KS

KY

LA

MA

MD

ME

MI

MN

MO

0.1%

0.0%

1.7%

0.0%

0.5%

0.8%

7.1%

0.2%

0.5%

12.2%

4.2%

0.0%

0.0%

5.6%

0.4%

0.5%

0.0%

1.6%

5.0%

0.3%

3.2%

0.0%

1.4%

1.3%

0.0%

0.1%

MS

MT

NC

ND

NE

NH

NJ

NM

NV

NY

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VA

VT

WA

WI

WV

WY

Page 73: Luxury Institute Wealth Survey - Social Networking Habits and Practices

The Knowledge of Luxury, The Luxury of Knowledge

Please be advised that your use of a Luxury Institute or Luxury Board document constitutes your agreement to (i) use the content under a limited license

only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person

or entity without the prior written consent of The Luxury Institute, LLC. The content is and remains at all times the exclusive intellectual property of The

Luxury Institute, LLC. Copyright © 2009 The Luxury Institute, LLC. www.luxuryinstitute.com

Luxury Institute, LLC115 East 57th Street, 11th Floor

New York, N.Y. 10022

www.LuxuryInstitute.com

Contact: Martin Swanson, Vice President

914 909 6350 (office)

914 715 3357 (cell)

[email protected]

Contact Information: