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Whats driving the Digital revolution in Asia
1.
The Digital Media Habits
and Attitudes of Southeast Asian Consumers October 2011
2.
Overview
In other areas of digital media another revolution has been taking place – the ‘on demand’, anytime, anywhere nature of The current state of the digital marketplace in media consumption. Supported by multiple device ownership, Southeast Asia: Evolution or revolution? mobility, greater bandwidth and access to a global pool of content, consumers are sourcing information, entertainment Throughout Southeast Asia deep changes are taking place with and other tools via the Internet in addition to traditional respect to how consumers watch and interact with various methods. This is particularly true of entertainment content forms of media. These changes have been brought about by such as TV programs and movies. Behaviours around video rapid technological development. From high speed Internet uptake indicate opportunities for video advertising, to deliver access and WiFi to smartphones and tablets, it’s easier now for digital consumers with compelling messages in the online consumers to get online than it has ever been. environment, to complement those previously confined to television. As a result, we have seen strong uptake in digital activities throughout the region and more than ever, the digital So the online landscape has seen both a revolution and an landscape in Southeast Asia is at a turning point. For many evolution – revolution in the behaviour of consumers and consumers, digital media is ingrained in their everyday lives, evolution in the way marketers and content providers can and in some countries Internet usage is even surpassing interact with those consumers and distribute content. time spent on traditional media such as television or print. There is another relatively new dimension within the digital landscape which is gaining significant momentum – that of the Internet-capable mobile device, including smartphones, tablet computers, eBook readers, connected games devices or some other hybrid form that will likely emerge. These mobile devices provide on-the-go access to all kinds of online activities such as social networking, reading news and communication such as emails. With ownership of mobile devices in the region, particularly smartphones, set to surge in the year ahead, this will have a profound impact on the digital behaviours of Southeast Asian consumers. We have also seen the continued rise of social media, which is revolutionizing the way digital consumers communicate, share, entertain themselves and others, socialize, form relationships and source information. Social media has forever changed the way in which consumers can connect with brands, connect with other consumers to discuss brands, and read other consumers’ opinions and experiences related to brands. To keep pace with this revolution, marketers themselves have had to evolve. Social media has provided more customer touch points, more methods of content and communication distribution and more information about customers and their preferences. 2 Copyright © 2011 The Nielsen Company.
3.
Internet Adoption For many
consumers in Southeast Asia, digital media is ingrained in their everyday lives, and in some countries internet usage is even surpassing time spent on traditional media such as television or print. Key Findings • Singapore has the highest Internet penetration at 67 percent, whilst Indonesia trails the region with just 21 percent penetration • Most Internet users around the region access the Internet on a regular basis, the vast majority at least several times per week, if not daily • Internet usage is highest amongst younger consumers, and declines with age • With the exception of the Philippines, men are more likely to be regular internet users than women Copyright © 2011 The Nielsen Company. 3
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5.
Consumer Technology
• Amongst digital consumers, mobile phone ownership has reached saturation point. Smartphones are prevalent in An increasing number of Southeast Asian consumers have Singapore and Thailand, and gaining ground in Malaysia, Indonesia and the Philippines. Penetration is considerably internet-capable devices at their disposal, with rapid uptake lower in Vietnam at just 11% expected in 2012. • Like tablet computers, smartphones are gaining in popularity amongst digital consumers and purchase intent in the year Key Findings ahead is high, particularly in Malaysia and the Philippines. • In all markets except Indonesia, desktop computer An increasing number of Southeast Asian consumers have ownership is high internet-capable devices at their disposal, with rapid uptake expected through 2012 • In Indonesia, ownership of an internet-capable mobile phone is more than double that of desktop or notebook computers • A large proportion of digital consumers are making use of mobile phone applications. Games-related and Facebook • Notebook computers are more prevalent in Singaporean apps are largely the most popular across all six Southeast digital consumers’ households, than desktop computers Asia markets • Tablet computers have seen strong uptake across the • Although smartphone and internet-capable mobile phone region, with the exception of Indonesia and Vietnam. Tablet penetration varies across the region, use of apps sees ownership is expected to further increase in the year ahead, widespread popularity, including paid apps. Popularity of in particular in Malaysia, Singapore and Thailand mobile apps in Indonesia, however, trails the rest of the region Copyright © 2011 The Nielsen Company. 5
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8.
Online User Environment
• The mobile phone, as a facilitator of internet access, is now very popular across Southeast Asian markets, with the While desktop and notebook computers remain the main exception of Vietnam device for Internet access across the region, mobile phones are • In Indonesia the mobile phone is now the most popular gaining traction, and in markets such as Indonesia, the mobile means of accessing the internet, being cited by a significant phone is cited as the single, main device for internet access by proportion of the digital population (43%) as the single, main device for internet access a significant proportion of the digital population. • In the Philippines and Vietnam, internet use is predominantly via a desktop computer while in Malaysia and Singapore the Key Findings more portable notebooks and laptop computers are popular • Desktop computers have widespread use among Southeast • In line with ownership and purchase intentions, new devices Asian digital consumers, likely as they facilitate internet are making their mark for consumers’ internet access. With access not only in the home, but also in the workplace and in the exception of Vietnam and Indonesia, devices such as internet cafes tablet computers, media players, internet-capable games • In Indonesia and the Philippines, a significant proportion of consoles, eBook readers and internet-capable televisions digital consumers mainly access the internet at an internet are now being used for internet access by a considerable cafe, while in other Southeast Asian markets home-based proportion of digital consumers in Southeast Asian markets use is most prevalent 8 Copyright © 2011 The Nielsen Company.
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10.
Cross Media And
Cross Screen • Simultaneous media consumption or ‘media multi tasking’ is becoming more prevalent with the increasing ownership Behaviour of portable devices – accessing the internet whilst watching TV is the most common media multi tasking activity No longer is TV content only available via broadcast channels, undertaken, occurring at least several times per week as the rise of the internet paves the way for digital consumers • Whilst simultaneously consuming media, participating to view TV shows and movies via online sources, whilst consumers indicate that the internet has most of their increasing ownership of portable devices is resulting in more attention. These changing patterns of behaviour impact media multi tasking. media engagement levels and are important to understand in today’s media landscape • Another evolution is that relating to TV content. No longer Key Findings is this content only available via broadcast channels, as the • Online media is capturing a significant amount of digital rise of the internet has paved the way for digital consumers consumers’ media time each week. In markets other than to obtain TV shows and movies online. While broadcast TV Indonesia and Vietnam, digital consumers now spend more remains the more popular option for watching television, time, on average, accessing the internet than they do with a considerable proportion of Southeast Asian digital main media including TV, radio and printed newspapers. In consumers now stream and/or download TV content from Vietnam, time spent using the internet is largely on par with unofficial and official online sources that spent watching TV • The emergence of PVRs / DVRs (eg TiVo) among digital • Singaporean digital consumers spend the most time with consumers in Southeast Asia, and strong purchase intentions online media, averaging 25 hours per week in many markets (notably in the Philippines, Malaysia and Thailand) will also impact TV viewing habits with the facilitation of time-shifted viewing and potential ad-skipping 10 Copyright © 2011 The Nielsen Company.
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12.
Online Services, Activities
And • In Indonesia, social media activities make up the four most frequently undertaken activities, with private messages on Content social networking sites the most popular • Communicating via social networks, accessing online news The popularity of online video amongst Southeast Asian and using search are common activities conducted on a digital consumers points to opportunities not only in content frequent basis among Southeast Asian digital consumers delivery via the internet, but also rich online advertising • Although not amongst the top five frequent activities, but messages, to complement those previously confined to with strong adoption, streaming and/or downloading video television. via the internet is now popular Key Findings • Email is the most popular online activity undertaken by Southeast Asian digital consumers on a weekly basis (or more often), in all markets except Indonesia Top five online activities conducted on at least a weekly basis Digital consumers aged 15+ Indonesia Malaysia Philippines Singapore Thailand Vietnam Private msgs on SN Email Email Email Email News sites 92% 90% 96% 85% 90% 71% Public comments on Private msgs on SN Private msgs on SN News News Search SN sites sites sites 86% 79% 81% 61% 83% 83% Browsing people’s News Wall posts/status Search Private msgs via SN IM profiles 82% updates/group msgs 81% sites 68% 59% via SN sites 74% 81% Updating SN profile Search News IM Reading comments Gaming online 56% 79% 79% 70% about brands/ 52% products 70% Email IM IM Private msgs on Sharing content Streaming audio 51% 75% 78% SN sites 69% 47% 67% 12 Copyright © 2011 The Nielsen Company.
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14.
Social Media
• YouTube also enjoys widespread popularity in Southeast Asia. Not surprisingly it dominates when it comes to the site The rise of social media provides brands with more customer most used to view video touch points and more information about their customers and • The rise of social media provides brands with more customer preferences than ever before. touch points than ever before. Digital consumers in Thailand, Philippines and Malaysia are the most likely to have interacted with, or engaged with, a brand or company via a Key Findings social media site like Facebook, Twitter or YouTube • Online social media exploded onto the media scene at the • Not only can brands deliver messages and content to end of the last decade. Southeast Asian digital consumers customers via this channel, but they should also listen are on-board and in all markets except Vietnam, social to the conversations taking place through social media. media activities can be found in the top five most popular Southeast Asian digital consumers are actively posting their online activities to stimulate frequent conduct own opinions about brands and services online, and reading • As in many other markets globally, Facebook has won the other consumers’ comments, as part of the decision making hearts and loyalty of Southeast Asian digital consumers. process A massive 90 percent of Indonesian digital consumers • Rich media, in the form of online video about products actively maintain a Facebook profile. Facebook dominates or services, also plays a role in many consumers’ decision the social media landscape in all markets except Thailand making process (where 4shared maintains decent market share) and Vietnam • Online forums and message boards, together with (where Zing Me has slightly more active profile holders than social networking sites and review sites, provide an ideal Facebook) mechanism to tap into other consumers’ opinions, and publish one’s own opinion. A significant proportion of digital consumers visit forums at least monthly 14 Copyright © 2011 The Nielsen Company.
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17.
Online Advertising Online advertising
expenditure continues to grow in Southeast Asia, albeit off a very low base. Online media’s share of total advertising is very low, for example, in Singapore it represents 6.9 percent of total ad spend while in Thailand and Malaysia online advertising represents less than one percent of total ad spend1. Key Findings • Increasing consumer up-take of mobile internet and online video provide brands with opportunities around new, innovative online advertising formats and executions • Digital consumers in Vietnam show the greatest positivity toward online advertising while those in Thailand are the least positive • Digital consumers are more likely to feel positive towards online advertising that is relevant to their needs and interests 1 All figures come from Nielsen Advertising Information Services (AIS) reports Copyright © 2011 The Nielsen Company. 17
18.
Nielsen introduces the
most in-depth study of consumer digital behaviour in Southeast Asia Gain the latest insights on Southeast Asian consumers’ digital behaviour with the Nielsen Southeast Asia Digital Consumer Report 2011 The digital landscape in Southeast Asia is a dynamic and constantly evolving environment. As new technologies continue to emerge, consumers are assessing online media via an ever-expanding array of devices and screens, often simultaneously with other forms of media. The Nielsen Southeast Asia Digital Consumer Report uncovers the drivers of digital behaviour and its role in the lives of today’s consumers. It is a vital resource for any business wanting to stay abreast of the digital media space to inform decision making and planning for 2011 to 2012. This unique report delivers country-specific insights to shape key digital investment. The insights included within this whitepaper are topline findings from the Southeast Asia Digital Consumer Report. For further information on the Nielsen Southeast Asia Digital Consumer Report email nielsenonline.apaccommunications@nielsen.com. About Nielsen Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, please visit www.nielsen.com. Copyright © 2011 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service 18 Copyright © 2011 The or registered trademarks of their respective companies. 11/3948 names are trademarks Nielsen Company.
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