At the Hill&Knowlton Demystifying Digital event in Amsterdam on April 14 2011, Martin Warmelink shows the results of a TNS research on Social Media usage in Europe.

1. Deciphering the Social Media landscape tnsMartin Warmelink

2. 1. THE DIGITAL LANDSCAPE 2. MOBILE 3. SOCIAL 4. VIEWING THE WORLD THROUGH A DIGITAL LENS 5. BRAND PERMISSION AND STRATEGIES

3. Sources: TNS Digital life (2010) and TNS Mobile life (2011)

4. 1. Digital: 83% 2. Radio: 52% 3. TV: 51% 1. Digital: 56% 2. TV: 39% 3. Newspaper:32% 1. Digital: 69% 2. TV: 62% 3. Radio: 42% 1. Digital: 82% 2. TV: 52% 3. Radio: 49% 1. Newspaper:56% 2. TV: 41% 3. Radio: 37% 1. TV: 70% 2. Digital: 62% 3. Radio: 31% 1. TV: 75% 2. Digital: 42% 3. Newspaper:35% 1. TV: 68% 2. Digital: 53% 3. Radio: 44% 1. TV: 61% 2. Radio: 59% 3. Newspaper:38% 1. TV: 64% 2. Digital: 57% 3. Newspaper:46% Internet penetration NW Europe: +/- 80% Internet penetration SE Europe: +/- 50% % accessing daily (base: internet users!)

6. Rules of engagement will vary by region: localised campaigns that take this into account will have a better chance of yielding high returns HIGH CONSUMPTION Internet is commoditised Makes my life more efficient Internet is pivotal Is the centre of my life HIGH INVOLVEMENT LOW INVOLVEMENT LOW CONSUMPTION Internet is functional It helps me to be productive Internet is aspirational Helps me achieve my goals

7. The Internet has become a functional tool for many markets in the NW part of Europe, particularly the Nordic markets. Stand out markets are France and the UK with high consumptions levels and strong levels of involvement HIGH CONSUMPTION Internet is commoditised Makes my life more efficient Internet is pivotal Is the centre of my life FI FR GR TR BE AT RU PT IT PL GB DE HIGH INVOLVEMENT LOW INVOLVEMENT LU DK ES NL IL EE LOW CONSUMPTION NO SE Internet is functional It helps me to be productive Internet is aspirational Helps me achieve my goals

8. Digital meets a broader range of needs than any other media; it is inherently fragmented Organise Entertain Inform Communicate

9. Consumers engage in email, social and news the most frequently. 80% of global online users have tried online shopping at some point % doing activity NWE

10. Social will continue to grow, especially in emerging markets and via mobile PC mobile increase decrease 10

11. Mobile access is critical especially in rapid growth markets – invest in talent and R&D now to be able to respond to the trend % online users accessing internet from mobile in last four weeks

12. And social networking is moving seamlessly to mobile Consumers accessing social networking sites through their mobile – Global Source: Mobile life 2011

14. Why? Four key developments 1. Improving user interface 2. The growth of “Now” 3. Unlimited data plans 4. Cheaper phones 14 http://www.flickr.com/photos/escalepade/3823351212/sizes/o/in/photostream/

15. MOBILE INTIMATE Implications for marketeers INSTANT

16. Despite much lower daily use than email, social networking attracts the highest volume of usage, an immense opportunity to leverage engagement

17. Multi-media integration is the critical next step for social across PC and mobile

18. And it is the same for mobile Usage and demand for mobile social networking services - %

19. Social is already a major brand channel... Brand Activities on Social Media 32% Talking (Written positive or negative comments about brands) 36% Listening (Read user comments about brands) 48% Inactive in CGM (Does not read or write comments about brands)

20. Brands are fighting for a social presence 20

21. …but whilst social media is universal, brands are universally ignored Connections on social networks

22. This can be partly explained by resistance to brand ‘intrusions’ Attitudes to brand interaction on social media across regions % actively looking for brands % who find brands intrusive

23. Multiple tactics can be employed to generate brand connections Reasons to join brand community

24. If you do it, do it right (1)

25. If you do it, do it right (2)

26. If you do it, do it right (3)

27. Reasons for de-friending a brand

28. Low involvement categories can use social media to differentiate from competitors The ‘Will it blend’ campaign from Blendtec showcases its products by blending an array of objects Old Spice livened up its image by inviting consumers to ask the Old Spice man a series of questions which he answered through YouTube

29. High involvement categories need integrated digital presence to survive LG has strong online presence through its own interactive website LG campaign for youngsters to think about the repercussions of sending text messages Brand is associated with a good cause and gets exposure to consumers who want to see their content

30. Consumers have different needs ….. Dominant Consumer Needs

31. And consumers differ………..

32. Size segments by region: Functionals tend to dominate in NW Europe, NAM and Dev. Asia, while Influentials tend to dominate in Ind and China % size of segments

33. Different behaviours NW Europe 26% 4% 25% 19% 10% 16% Knowledge-Seekers Functionals Aspirers Networkers Communicators Influencers Generators Amplifiers Readers

34. Melissa Networker Wall Photos Video Info Friends For me, the internet is about relationships. Social media makes me feel ‘close/supported and in the loop’ so we like popular sites. I like to play games on Facebook now and then. I love promotions, offers, competitions – and would like to become fan of your brand and will ‘follow’ you – but ensure brand information is interesting and to the point Our lives are getting busier, and we don’t spend much time online at work – contact us in our free time I’m open to brand messages via e-mail, Provide me with entertaining content that I can share with my friends Networkers Favourite sites: View photos of Melissa Information Married No children Age 35 Working / Higher education Friends Likes… 161 friends view all My smartphone for 24/7 networking Price comparison sites

35. Brand implications & strategies

36. Brands need to know the key stages on the (online) path to purchase Use online touchpoints Use offline touchpoints

37. And understand where you have ‘permission to play’ % actively looking for brands % who find brands intrusive

38. 1 Invest time to understand your audience Use a digital lens to view the market, understand the who, what , why and where.

39. 2 Get ready for Mobile Be nimble, targeted, offer mobile purchasing

40. 3 Don’t succumb to peer pressure Don’t do something because its cool, do it because its right for your target

41. 4 Be authentic and have a genuine interest in your target audience. Be prepared to interact with them, resource for this, and allow consumers to dictate

42. More information Martin.warmelink@tns-nipo.com Discoverdigitallife.com +31 20 5225 421 Discovermobilelife.com