PH Net Index 2011 Highlights by Yahoo and Nilsen

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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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Yahoo Philippines-Nielsen Net Index 2011

Transcript of PH Net Index 2011 Highlights by Yahoo and Nilsen

Page 1: PH Net Index 2011 Highlights by Yahoo and Nilsen

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: PH Net Index 2011 Highlights by Yahoo and Nilsen

Yahoo!- Nielsen Net Index 2011

• 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

At Yahoo! and Nielsen, we believe that fact-based Insights should drive decision-making!

Page 3: PH Net Index 2011 Highlights by Yahoo and Nilsen

• 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

Research Design

Page 4: PH Net Index 2011 Highlights by Yahoo and Nilsen

The Changing Landscape

2009-2011

Page 5: PH Net Index 2011 Highlights by Yahoo and Nilsen

3036

29 26 26 27 293331

42

3024

30

23

3337

30

43

2630

34

17

37 36

Total Metro Manila Luzon Visayas Cebu Mindanao Davao Mega Manila

2009 2010 2011Past Month Reach (%)Past Month Reach (%)

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

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

Page 6: PH Net Index 2011 Highlights by Yahoo and Nilsen

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

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

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

Page 7: PH Net Index 2011 Highlights by Yahoo and Nilsen

Place of Access

Home School Work Internet cafes

2009 4.8 3.4 7.7 4.5

2011 10.4 5.2 11.5 5.5

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

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

Page 8: PH Net Index 2011 Highlights by Yahoo and Nilsen

30

5244

1913

3

31 29

60

49

2531

55

42

25

14

4

3329

65

54

2630

53

43

21

113

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

2009 2010 2011

TotalTotal AgeAge GenderGender SECSEC

Past Month Reach (%)Past Month Reach (%)

Internet usage highest amongst upscale under 30s…

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

Page 9: PH Net Index 2011 Highlights by Yahoo and Nilsen

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

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

Total (T3B %) 10-19 (Index) 20-29 (Index)International music 68 114 91Local music 65 104 94Interesting videos or photos 59 118 101Games 56 108 94Technology and gadgets 55 102 103World news 49 99 103National/ Local news 48 104 99Entertainment news 45 116 99Lifestyle 45 95 118Sports 45 104 93Movies, TV or Drama reviews/guides 42 106 97Business news 38 90 84City guides 35 100 101Travel 33 95 103Finance 30 89 76Traffic updates 29 104 99

Page 10: PH Net Index 2011 Highlights by Yahoo and Nilsen

71

27

7 72 0

69

31

4 5 6 5

66

35

2 3 4 4

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

2009 2010 2011Place of access (%)Place of access (%)

The shift from shared to private access continues …

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

Page 11: PH Net Index 2011 Highlights by Yahoo and Nilsen

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

Mobile usage needs further tariff rationalisation to gain traction

Page 12: PH Net Index 2011 Highlights by Yahoo and Nilsen

Filipino Netizens impression of the

changing digital ecosystem?

• Evolution of Social Networking

• Online Transactions (deal aggregation/

e-commerce)

Page 13: PH Net Index 2011 Highlights by Yahoo and Nilsen

Social Networking –

Cant stop this thing we started!

Page 14: PH Net Index 2011 Highlights by Yahoo and Nilsen

Not just an activity but a starting point for the online experience for many

Social Networking Search Email Online News Instant Messenger Games

39

30

11135

1

Internet Usage Pathway (%) Internet Usage Pathway (%)

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

Page 15: PH Net Index 2011 Highlights by Yahoo and Nilsen

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

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

63 65 64

2009 2010 2011

51 53

82

2009 2010 2011

Past month online activities (%)Past month online activities (%)

EmailEmail

6368 69

2009 2010 2011

MessengerMessengerSocial NetworkingSocial Networking

Page 16: PH Net Index 2011 Highlights by Yahoo and Nilsen

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

Mobile Phone

Browser

Mobile

Phone SMS

Through PC

96%

Mode for updating Social networking profile (%)Mode for updating Social networking profile (%)

4%

3%

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

Page 17: PH Net Index 2011 Highlights by Yahoo and Nilsen

96

59

38

32

15

11

3

3

Regular friends

Family members

Friends with whom you had lost contact

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

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

Connections on Social Networking sites (%)Connections on Social Networking sites (%)

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

Page 18: PH Net Index 2011 Highlights by Yahoo and Nilsen

66

57

45

33

17

16

13

13

4

2

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

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

…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 (%)

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

Page 19: PH Net Index 2011 Highlights by Yahoo and Nilsen

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

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

74

72

69

67

67

63

59

And the emergence of ‘selective socialization’

Opinions on Social Networking (%)Opinions on Social Networking (%)

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: PH Net Index 2011 Highlights by Yahoo and Nilsen

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

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

Softening of growth of Social networking is becoming well documented

Page 21: PH Net Index 2011 Highlights by Yahoo and Nilsen

So what’s next…

…fragmentation across multiple

platforms OR cataloging on a single

platform?

Page 22: PH Net Index 2011 Highlights by Yahoo and Nilsen

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)

Page 24: PH Net Index 2011 Highlights by Yahoo and Nilsen

The backdrop to e-commerce in Philippines

There is an inherent

reluctance to “trade”

through the Internet

Lack of ‘accreditation

and guarantees'…by

default modern trade

actually encourages

destination shopping

Presence of

counterfeits and

knock-offs

High reliance on

inter-personal

relationships

IT and Banking

infrastructure

“evolving”

Traditional trade

legacy

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: PH Net Index 2011 Highlights by Yahoo and Nilsen

3

1

2010 2011

Online Transactions (%)Online Transactions (%)

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

Online transacting remains in it’s infancy

Page 26: PH Net Index 2011 Highlights by Yahoo and Nilsen

Cash (face to face)

Credit card

Transfer via ATM/Bank

Internet Banking

Deposited cash at bank branch

Online accounts such as Paypal

Cheque

Debit card

53

36

10

9

4

1

1

1

Payment methods (%)Payment methods (%)

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

Page 27: PH Net Index 2011 Highlights by Yahoo and Nilsen

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.

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

Page 28: PH Net Index 2011 Highlights by Yahoo and Nilsen

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.

Page 29: PH Net Index 2011 Highlights by Yahoo and Nilsen

EASE OF COMPREHENSIONEASE OF COMPREHENSION LEVEL OF INTEREST LEVEL OF INTEREST

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

understand

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

Un-der-

stand 32%

Not at all under-stand53%

Neither15% Not at all

interested 25%

Slightly interested

9%

Somewhat interested

18%

Quite in-terested

42%

Extremely in-terested

5%

Page 30: PH Net Index 2011 Highlights by Yahoo and Nilsen

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

Page 31: PH Net Index 2011 Highlights by Yahoo and Nilsen

Key Takeaways1. 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!