Yahoo!- Nielsen Net Index 2011

Digital Philippines 2011
Yahoo!-Nielsen Net Index Highlights
Manila, Philippines
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Yahoo!- Nielsen Net Index 2011
At Yahoo! and Nielsen, we believe that fact-based
Insights should drive decision-making!
•
In 2009, Yahoo!-Nielsen Net Index study was launched to gather an baseline
understanding of the Filipino internet user
•
Building on this foundation, the study was repeated in 2010 to track shifts in
user behaviour and evolving preferences
•
In 2011, the study continues to evolve, to reflect the changing digital
landscape…whilst maintaining key longitudinal measures
Research Design
•
Methodology
Personal face-to-face interviews using two-part structured
questionnaire (linked with Nielsen Media Index)
•
Area Coverage
National Urban Philippines
(22 major cities including Metro Manila)
•
Respondents
Males and Females aged 10+ yrs old across all socio-economic
classes who have used the internet in the past month
•
Sample Size
1,500
•
Sampling Approach
Multi-stage Probability Sampling
•
Fieldwork Period
Q1 2011
The Changing Landscape
2009-2011
Internet usage has remained largely stable, though we
see some pockets of growth
2009
Past Month Reach (%)
2010
2011
42 43
36
30 31 30
29 30 26
26 24
30
26
30
37
34
27
29
33
33
37 36
23
17
Total
Metro Manila
Luzon
Visayas
Cebu
Mindanao
Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines
Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
Davao
Mega Manila
Despite this stability, overall engagement is on the rise.
Social networking now dominates…
Select Monthly Online Activities (%)
2009
2010
2011
Visiting Social Networking sites
51*
53
82
Search
58
76
80
Instant messaging
63
68
69
Internet Portal
54
73
67
Visiting public chat rooms
54
67
65
Email
63
65
64
Played games online
53
45
54
-
-
45
Downloaded or uploaded music files online
25
37
37
Shared/posted something online that you created
15
24
36
Listen to songs in music websites
Activities showing significant increase at 95% confidence levels between 2009 and 2011
* Note. The 2009 figure for social networking includes community groups /forums
Base: Past month Internet users aged 10+ across National Urban Philippines
Source: Yahoo!-Nielsen Net Index 2010, 2011
Evident from the increased time being spent online,
across mediums and locations
Place of Access (Weekly Avg. Time Spent)
Home
School
Work
Internet
cafes
2009
4.8
3.4
7.7
4.5
2011
10.4
5.2
11.5
5.5
Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines
Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
Internet usage highest amongst upscale under 30s…
Past Month Reach (%)
Total
Age
SEC
Gender
2009
60
52 55 53
2010
65 66
49
44 42 43
30 31 30
25
19
2011
54 53
31 33 29 29 29 30
25 26 24
21
13 14 11
3 4 3
Total
10-19
20-29
30-39
40-49 50 and up
Male
Female
Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines
Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
SEC ABC
SEC C2
SEC DE
…fuelled by their appetite for entertainment content
Content Preferences on Internet Portals (%)
International music
Local music
Interesting videos or photos
Games
Technology and gadgets
World news
National/ Local news
Entertainment news
Lifestyle
Sports
Movies, TV or Drama reviews/guides
Business news
City guides
Travel
Finance
Traffic updates
Total (T3B %)
68
65
59
56
55
49
48
45
45
45
42
38
35
33
30
29
10-19 (Index)
114
104
118
108
102
99
104
116
95
104
106
90
100
95
89
104
Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines who
Have visited Internet Portals
Source: Yahoo!-Nielsen net Index 2009, 2010 and 2011
20-29 (Index)
91
94
101
94
103
103
99
99
118
93
97
84
101
103
76
99
The shift from shared to private access continues …
2009
Place of access (%)
2010
2011
SEC ABC1
71 69
7
66
5
27
31
35
National Mega Manila
7
Internet cafes
6 7
Home
4
School
2
7
5
3
Work
Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines
Source: Yahoo!-Nielsen net Index 2009, 2010 and 2011
2
6
4
Friend's house
0
5
4
Cellphone/ PDA
Mobile usage needs further tariff rationalisation to gain
traction
Home Internet Offerings
Mobile Phone Internet Offerings
Filipino Netizens impression of the
changing digital ecosystem?
• Evolution of Social Networking
• Online Transactions (deal aggregation/
e-commerce)
Social Networking –
Cant stop this thing we started!
Not just an activity but a starting point for the online
experience for many
Internet Usage Pathway (%)
39
30
13
11
5
1
Social Networking
Search
Email
Online News
Instant Messenger
Question: Please think about the following online services and tell me the order in which you first ever used each.
Base: Past month Internet users aged 10+ across National Urban Philippines
Source: Yahoo!-Nielsen Net Index-2011
Games
A dominant platform to connect and communicate…
though mail/messenger remain relevant
Past month online activities (%)
82
51
2009
Messenger
Email
Social Networking
63
65
64
63
68
69
53
2010
2011
2009
2010
Base: Past month Internet users aged 10+ across National Urban Philippines
# Note. The 2009 figure for social networking includes community groups /forums
Source: Yahoo!-Nielsen Net Index 2010-2011
2011
2009
2010
2011
Updating profile is mainly done through PC, Mobile
updates reflect Mobile usage (low)
Mode for updating Social networking profile (%)
Through PC
96%
Mobile
Phone
Browser
Mobile
Phone SMS
3%
4%
Question: How do you usually view/ update your Social Networking sites?
Base: Past month Internet users aged 10+ across National Urban Philippines who have visited social networking in Past 3 months
Source: Yahoo!-Nielsen Net Index 2011
Social networks start with ‘close contacts/relations’…
but quickly move to less familiar circles…
Connections on Social Networking sites (%)
Regular friends
96
Family members
59
Friends with whom you had lost contact
38
People from outside your city/country
32
Referrals from friends
15
People you met once or twice in person
11
People you only know in the virtual world
3
Co-workers
3
Question: Who are the people you interact with regularly on these Social Networking sites?
Base: Past month Internet users aged 10+ across National Urban Philippines who have visited social networking sites in Past 3 months
Source: Yahoo!-Nielsen Net Index 2011
…thus the effort to limit what users share with the
larger/extended group on social networking sites
Steps taken to manage digital profile (%)
Keep Strict Privacy Settings
66
Limit My Personal Info. Available Online
57
Avoid Allowing People Access My Blog/Social Net. Site
45
Limit The Type/Number Of Photos/Video Shared
33
Remove The 'Tag' On Photos/Video Uploaded By Others
17
Limit/Prevent Others From Posting onMy Blog/SNS
16
Avoid Allowing People Access My Blog/SNS
13
Always Check Info About Me Online
13
Deleted A Blog/Social Networking Page
Cancelled Another Online Account
4
2
Question: Who are the people you interact with regularly on these Social Networking sites?
Base: Past month Internet users aged 10+ across National Urban Philippines who have visited Social Networking Sites in Past 3 months
Source: Yahoo!-Nielsen Net Index 2011
And the emergence of ‘selective socialization’
Opinions on Social Networking (%)
I've found more people like me who share my interests
74
Allows me to be more social than I am in person
72
I can really reveal parts of my life/personality, I would
normally not disclose
69
I feel less awkward when I communicate on these sites
than in person
67
I feel more in tune to what is going on socially
67
I really try to find just sincere people
I've become choosy about whom I socialize with
63
59
Question: Please tell me to what extent do you agree with each of the following opinions about social networking?
Base: Past month Internet users aged 10+ across National Urban Philippines who have visited SNS in Past 3 months
Source: Yahoo!-Nielsen Net Index 2011
Softening of growth of Social networking is becoming
well documented
Facebook Sees Big Traffic Drops in
US and Canada as It Nears 700
Million Users Worldwide
Facebook sees a Decline in Young
Users
softpedia, June 12th, 2011
Inside Facebook, June 12th, 2011
ALONE TOGETHER
Social Networks In Decline
Smart Insights, April 12th, 2011
Why We Expect More From Technology and
Less From Each Other
By Sherry Turkle
So what’s next…
…fragmentation across multiple
platforms OR cataloging on a
single platform?
Social Networking - Summary
• Social networking is suited to one-to-many … mail and messenger
remain relevant for personal one-to-one conversations
• The rapid growth of social networks in Philippines, will result in
increased awareness for the need to build “walls” within existing
networks
• These “walls” will be built to control information exchanges and
ensure conversations remain rich and engaging (one-to-few)
E-Commerce
Online Deal Aggregation –
A Mixed Bag
The backdrop to e-commerce in Philippines
Traditional trade
legacy
Presence of
counterfeits and
knock-offs
High reliance on
inter-personal
relationships
IT and Banking
infrastructure
“evolving”
Lack of
‘accreditation and
guarantees'…by
default modern
trade actually
encourages
destination
shopping
Buyers need to
ensure quality by
physical inspection
Buyers feel the
comfort, dealing
with known vendors
Low levels of
confidence/trust in
transacting online
There is an inherent
reluctance to “trade”
through the Internet
Online transacting remains in it’s infancy
Online Transactions (%)
SEC ABC
3
4
Mega Manila
3
1
2010
2011
Question: Have you purchased products online in the past 12 months… payment could be online or offline?
Base: Past month Internet users aged 10+ across National Urban Philippines
Source: Yahoo!-Nielsen Net Index 2011
Payments largely made offline, given current trust and
comfort levels with e-payment
Payment methods (%)
Cash (face to face)
45
Credit card
44
Transfer via ATM/Bank such BancNet
15
Internet Banking
9
Deposited cash at bank branch
2
Online accounts such as Paypal
1
Cheque
1
Debit card
1
Group buying sites like Groupon have created
significant buzz recently…
Hailed by Forbes as the "fastestgrowing company in history",
Groupon turned over US$760 million
last year, and expects that to hit the
billions this year.
Forbes
Over the past three years, an entirely
new industry known as group-buying
has suddenly emerged, and is growing
at a phenomenal rate.
nzherald.com
Group Buying: Description
These sites negotiate discounts on popular goods,
services and cultural events, which is offered to
thousands of subscribers in a free daily email. The
deals are activated only when a minimum number of
people agree to buy.
Current levels of comprehension limit overall interest …
Interest is high among those who understand
LEVEL OF INTEREST
EASE OF COMPREHENSION
Extremely
interested
5%
Neither
15%
Not at all
interested
25%
Understand
32%
Not at all
understand
53%
Quite
interested
43%
Slightly
interested
9%
Somewhat
interested
18%
Question 1: After hearing the explanation of Deal Aggregation concept, to what extent do you understand it?
Question 2: After having a look at the explanation of Deal Aggregation concept, how interested are you in this overall concept?
Base: Past month Internet users aged 10+ across National Urban Philippines
Source: Yahoo!-Nielsen Net Index-2011
Deal Aggregation - Summary
• Pure-play ecommerce offerings are still in nascent stage, given
the constraints around product authenticity and infrastructure
• Online buyers and sellers currently find each other online, but
typically “transact offline”
• For deal aggregation sites to be successful, a mind-shift needs
to occur… there is a need to educate on the concept of deal
aggregation, against a backdrop of reluctance to “pay” online
Key Takeaways
1. Internet growth driven by the young and upscale audience
2. Home internet access continues to grow, with engagement levels
increasing with growth in private access
3. Philippines enormous appetite for social networking could
accelerate the emergence of “selective socialisation”
4. Deal aggregation holds significant potential, but comfort in epayment platforms and trust levels will dictate the rate of growth!