Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

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Digital Philippines 2011 No part of this document may be quoted, reproduced, stored in a retrieval system, or transmitted in any form or by any means – electronic, mechanical, photocopying, recording, or otherwise – without the written permission of Yahoo! Southeast Asia Pte. Ltd. and The Nielsen Company (Philippines), Inc.. Yahoo!-Nielsen Net Index Highlights Manila, Philippines

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In 2009, Yahoo!-Nielsen Net Index study was launched to gather an baseline understanding of the Filipino internet userBuilding 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.

Transcript of Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

Page 1: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

Digital Philippines 2011

No part of this document may be quoted, reproduced, stored in a retrieval system, or transmitted in any form or by any means –

electronic, mechanical, photocopying, recording, or otherwise – without the written permission of Yahoo! Southeast Asia Pte. Ltd. and The Nielsen

Company (Philippines), Inc..

Yahoo!-Nielsen Net Index Highlights

Manila, Philippines

Page 2: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

Yahoo!- Nielsen Net Index 2011

• In 2009, Yahoo!-Nielsen Net Index study was launched to gather an baseline understanding of the Filipino internet user

At Yahoo! and Nielsen, we believe that fact-based

Insights should drive decision-making!

• 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

Page 3: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

• 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

Research Design

classes who have used the internet in the past month

• Sample Size 1,500

• Sampling Approach Multi-stage Probability Sampling

• Fieldwork Period Q1 2011

Page 4: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

The Changing Landscape

2009-2011

Page 5: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

2009 2010 2011Past Month Reach (%)

Internet usage has remained largely stable, though we see some pockets of growth

30

36

2926 26 27 29

3331

42

3024

30

23

3337

30

43

2630

34

17

37 36

Total Metro Manila Luzon Visayas Cebu Mindanao Davao Mega Manila

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

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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

Despite this stability, overall engagement is on the rise. Social networking now dominates…

Visiting public chat rooms 54 67 65

Email 63 65 64

Played games online 53 45 54

Listen to songs in music websites - - 45

Downloaded or uploaded music files online 25 37 37

Shared/posted something online that you created 15 24 36

* 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

Activities showing significant increase at 95% confidence levels between 2009 and 2011

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Place of Access (Weekly Avg. Time Spent)

Home School WorkInternet

cafes

Evident from the increased time being spent online, across mediums and locations

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

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2009 2010 2011

Total Age Gender SEC

Past Month Reach (%)

Internet usage highest amongst upscale under 30s…

30

52

44

1913

3

31 29

60

49

2531

55

42

25

14

4

3329

65

54

2630

53

43

21

11

3

29 30

66

53

24

Total 10-19 20-29 30-39 40-49 50 and up Male Female SEC ABC SEC C2 SEC DE

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

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…fuelled by their appetite for entertainment contentContent Preferences on Internet Portals (%)

Total (T3B %) 10-19 (Index) 20-29 (Index)

International music 68 114 91

Local music 65 104 94

Interesting videos or photos 59 118 101

Games 56 108 94

Technology and gadgets 55 102 103

World news 49 99 103

National/ Local news 48 104 99

Entertainment news 45 116 99

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

Entertainment news 45 116 99

Lifestyle 45 95 118

Sports 45 104 93

Movies, TV or Drama reviews/guides 42 106 97

Business news 38 90 84

City guides 35 100 101

Travel 33 95 103

Finance 30 89 76

Traffic updates 29 104 99

Page 10: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

71 6966

2009 2010 2011Place of access (%)

The shift from shared to private access continues …

56

7 7

SEC ABC1

27

7 72 0

31

4 5 6 5

35

2 3 4 4

Internet cafes Home School Work Friend's house Cellphone/ PDA

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

National Mega Manila

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Home Internet OfferingsHome Internet Offerings Mobile Phone Internet OfferingsMobile Phone Internet Offerings

Mobile usage needs further tariff rationalisation to gain traction

Page 12: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

Filipino Netizens impression of the changing digital ecosystem?

• Evolution of Social Networking• Evolution of Social Networking

• Online Transactions (deal aggregation/ e-commerce)

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Social Networking –Social Networking –Cant stop this thing we started!

Page 14: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

Not just an activity but a starting point for the online

experience for many

39

Internet Usage Pathway (%)

Social Networking Search Email Online News Instant Messenger Games

39

30

11135

1

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

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A dominant platform to connect and communicate… though mail/messenger remain relevant

63 65 64

51 53

82

Past month online activities (%)

Email

6368 69

MessengerSocial Networking

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

2009 2010 2011

51

2009 2010 2011 2009 2010 2011

Page 16: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

Updating profile is mainly done through PC, Mobile updates reflect Mobile usage (low)

Mobile Mobile

Phone Phone

BrowserBrowser

Mobile Mobile

Phone Phone

BrowserBrowser

Mobile Mobile

Phone SMSPhone SMS

Mobile Mobile

Phone SMSPhone SMS

Mobile Mobile

Phone Phone

BrowserBrowser

Mobile Mobile

Phone SMSPhone SMS

Through PCThrough PC

96%96%

Mode for updating Social networking profile (%)

3%

Phone SMSPhone SMSPhone SMSPhone SMS

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

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96

59

38

Regular friends

Family members

Friends with whom you had lost contact

Social networks start with ‘close contacts/relations’… but quickly move to less familiar circles…

Connections on Social Networking sites (%)

32

15

11

3

3

People from outside your city/country

Referrals from friends

People you met once or twice in person

People you only know in the virtual world

Co-workers

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

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66

57

45

33

Keep Strict Privacy Settings

Limit My Personal Info. Available Online

Avoid Allowing People Access My Blog/Social Net. Site

Limit The Type/Number Of Photos/Video Shared

…thus the effort to limit what users share with the larger/extended group on social networking sites

Steps taken to manage digital profile (%)Steps taken to manage digital profile (%)

17

16

13

13

4

2

Remove The 'Tag' On Photos/Video Uploaded By Others

Limit/Prevent Others From Posting onMy Blog/SNS

Avoid Allowing People Access My Blog/SNS

Always Check Info About Me Online

Deleted A Blog/Social Networking Page

Cancelled Another Online Account

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

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74

72

69

I've found more people like me who share my interests

Allows me to be more social than I am in person

I can really reveal parts of my life/personality, I would

normally not disclose

And the emergence of ‘selective socialization’

Opinions on Social Networking (%)

67

67

63

59

normally not disclose

I feel less awkward when I communicate on these sites

than in person

I feel more in tune to what is going on socially

I really try to find just sincere people

I've become choosy about whom I socialize with

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

Page 20: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

Facebook Sees Big Traffic Drops in

US and Canada as It Nears 700

Million Users Worldwide

Inside Facebook, June 12th, 2011

Facebook sees a Decline in Young

Users

softpedia, June 12th, 2011

Softening of growth of Social networking is becoming well documented

Social Networks In Decline

Smart Insights, April 12th, 2011

ALONE TOGETHER

Why We Expect More From Technology and

Less From Each Other

By Sherry Turkle

Page 21: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

So what’s next…

…fragmentation across multiple …fragmentation across multiple …fragmentation across multiple

platforms OR cataloging on a

single platform?

…fragmentation across multiple

platforms OR cataloging on a

single platform?

Page 22: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

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 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)

Page 23: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

E-Commerce

Online Deal Aggregation –A Mixed Bag

Page 24: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

The backdrop to e-commerce in Philippines

Lack of ‘accreditation and guarantees'…by default modern

Presence of counterfeits and

knock-offs

High reliance on inter-personal relationships

IT and Banking infrastructure “evolving”

Traditional trade legacy

Buyers need to Buyers feel the Low levels of

There is an inherent

reluctance to “trade”

through the Internet

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

Page 25: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

Online Transactions (%)

Online transacting remains in it’s infancy

34

Mega Manila

SEC ABC

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

Mega Manila

Page 26: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

53

36

10

Cash (face to face)

Credit card

Transfer via ATM/Bank

Payment methods (%)

Payments largely made offline, given current trust and comfort levels with e-payment

9

4

1

1

1

Internet Banking

Deposited cash at bank branch

Online accounts such as Paypal

Cheque

Debit card

Page 27: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

Group buying sites like Groupon have created

significant buzz recently…

Hailed by Forbes as the "fastest-

growing company in

history", Groupon turned over

US$760 million last year, and expects

that to hit the billions this year.

Over the past three years, an entirely

new industry known as group-buying

has suddenly emerged, and is growing

at a phenomenal rate.

nzherald.comForbes

nzherald.com

Page 28: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

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 to thousands of subscribers in a free daily email. The

deals are activated only when a minimum number of

people agree to buy.

Page 29: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

EASE OF COMPREHENSION LEVEL OF INTEREST

Current levels of comprehension limit overall interest … Interest is high among those who understand

Understand

Neither

15%

Not at all

interested

Extremely

interested

5%

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

Understand

32%

Not at all

understand

53%

15% interested

25%

Slightly

interested

9%

Somewhat

interested

18%

Quite

interested

43%

Page 30: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

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”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

Page 31: Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

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 e-

payment platforms and trust levels will dictate the rate of growth!