The State of Social MediaOnline Marketing Institute London, Feb 2012 Mike Shaw Director, Marketing Solutions comScore’s Innovative Approach Revolutionizes Measurement 2 Million Person Panel 360°View of Person Behavior PERSON-Centric Panel with SITE-Census Measurement PANEL CENSUS Unified Digital Measurement™ (UDM) Patent-Pending Methodology Adopted by 90% of Top U.S. Media Properties © comScore, Inc. Proprietary. 2 V1011 It is difficult to overstate the importance of social media Usage is nearly ubiquitous Social media is impacting: – Geopolitics: Tunisia, Egypt, Libya, etc – US politics: 2008 election, and soon the 2012 election – Retail: Groupon visitation is up 250% versus the previous year – Marketing: Facebook is the single largest server of display inventory on the web – Consumer behavior: Social media accounts for 18% of all time spent online The web’s connective tissue: hyperlinks social connections © comScore, Inc. Proprietary. 3 Percentage of Machines Included in UDM Measurement More than half of local online populations engage in social networking. North America Canada United States 94% 98% North America Argentina Brazil Chile Colombia Mexico Peru Puerto Rico Venezuela Percentage of Online Population Using Social Networking around the World* % Reach of Online Population * Data is based on the 43 countries on which comScore reports individually. 96% 97% 94% 96% 96% 96% 90% 96% Europe Austria Belgium Denmark Finland France Germany Ireland Italy Netherlands Norway Poland Portugal Russia Spain Sweden Switzerland Turkey United Kingdom Middle East & Africa 86% 93% 94% 91% 91% 90% 95% 93% 94% 89% 95% 96% 88% 98% 93% 90% 96% 98% Israel South Africa 94% 88% Asia Pacific Australia China Hong Kong India Indonesia Japan Malaysia New Zealand Philippines Singapore South Korea Taiwan Vietnam 96% 53% 93% 95% 94% 58% 94% 95% 96% 94% 87% 94% 85% Source: comScore Media Metrix, October 2011 The Rise of the Global Social Networking Audience 1,600 +88% 1,400 Total Internet 1,200 +174% 1,000 Social Networking 800 600 400 200 Worldwide Total Unique Visitors (MM) 0 2007 2008 2009 2010 2011 Source: comScore Media Metrix, March 2007 - October 2011 1 Nearly in 5 minutes online is spent on social networks today. 2008 2009 2010 2011 35 Social Networking 30 25 Search/Navigation Retail Communications (Email/IM) Other Content Time Spent on Key Categories Online Worldwide Hours per Month (Billions) Source: comScore Media Metrix, March 2007 - October 2011 1/3 of the world‟s social Middle East Africa networkers are in Asia Pacific. 9% Asia Pacific 33% Europe 30% Regional Share of Total Unique Visitors to Social Networking Latin America North America 10% 18% Source: comScore Media Metrix, October 2011 Yet 5 of the most engaged markets for social networking are in Latin America. 11.1 10.7 Average Hours per Visitor 10.4 10.2 9.8 8.7 8.5 8.3 7.9 7.7 Source: comScore Media Metrix, October 2011 7.6 2.9 Average Hours per Person in Latin America Spent on Social Networking Average Hours per Person in Asia Pacific Spent on Social Networking 7.6 7.2 7.0 % 6.4 2.9 Latin America Middle East - Africa Europe North America Asia Pacific Average Engagement with Social Networking by Region Average Hours per Visitor Source: comScore Media Metrix, October 2011 Social Media sites draw more UK visitors than retail, e-mail, and news sites % Reach 100 90 80 70 60 50 40 30 20 10 0 95.3 93.5 89.5 73.7 64.2 63.7 51.0 20.2 Source: comScore Media Metrix, January, 2012 © comScore, Inc. Proprietary. 10 The Growth of Today‟s Social Networking Leaders 2008 2009 2010 2011 900 800 700 Facebook 600 Twitter 500 LinkedIn 400 300 Total Unique Visitors (MM) Source: comScore Media Metrix, March 2007 - October 2011 Google+ surged to 25 million visitors in less than a month – faster than any other social network. Months to Reach 25 Million Visitors 0 5 <1 month to reach 25 million 10 15 Google+ 20 MySpace 25 30 Twitter 35 Facebook Total Unique Visitors (MM) Source: comScore Custom Analytics, July 2011 Social Media‟s Online Audience Across all regions, women are more social. 8.2 Latin America 6.9 8.2 Europe 6.3 7.9 North America Asia Pacific 6.0 3.3 2.7 6.5 Worldwide 5.0 Females 15+ Males 15+ Average Engagement with Social Networking by Gender Average Hours per Visitor Source: comScore Media Metrix, October 2011 Males and users 55+ represent the fastest growing segment in social networking. +5.0 +8.0 % Reach 84.4% 83.0% +8.4 82.9% 75.0% +9.3 83.9% 81.0% 79.9% 78.7% 74.6% 71.6% July-10 +9.4 80.0% 79.4% Age 15-24 +5.3 +8.4 Age 25-34 Age 35-44 70.6% Age 45-54 Age 55+ 71.7% Males Females October-11 Social Networking Penetration Among Worldwide Demographic Groups % Reach Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010 Women still spend more time on social than men, but the gender gap is narrowing for younger demographics. Age 55+ 4.9 2.7 6.4 Age 45-54 Females 3.9 Males 5.6 Age 35-44 3.9 5.8 Age 25-34 4.9 8.6 Age 15-24 7.5 Average Hours per Visitor Social Networking Engagement Among Worldwide Demographic Groups Average Hours per Visitor Source: comScore Media Metrix, Worldwide, October 2011 15-24 year olds saw the largest decline in engagement with web-based email and instant messaging 34% 25% 21% 15% 12% 1% -3% -4% -8% -22% -32% -42% Age 15-24 Age 25-34 -34% -37% Age 35-44 Age 45-54 Instant Messengers Email -36% Age 55+ Social Networking Change in Average Time Spent with Content Category by Age Segment Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010 …but also saw the highest increase in engagement with social networking. 34% 25% 21% 15% 12% 1% -3% -4% -8% -22% -32% -42% Age 15-24 Age 25-34 -34% -37% Age 35-44 Age 45-54 Instant Messengers Email -36% Age 55+ Social Networking Change in Average Time Spent with Content Category by Age Segment Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010 For digital natives, social networking is the norm. Social Networking 483.0 Instant Messengers 264.7 Email 67.1 Average Minutes per Visitor (15-24) Source: comScore Media Metrix, Worldwide, October 2011 Social Media‟s Impact on Marketing 3 55% Facebook‟s worldwide site rank Facebook‟s global penetration Source: comScore Media Metrix, October 2011 3 in 4 minutes on social networking sites are spent on Facebook 1 in 7 minutes spent online are spent on Facebook Source: comScore Media Metrix, October 2011 Today, there are only 7 markets where Facebook is not the leading social network. Poland China Russia Japan South Korea Vietnam Brazil Source: comScore Media Metrix, October 2011 Facebook is the largest publisher of online display ad impressions, attracting a “long tail” of smaller advertisers. Publisher Share of Display Ad Impressions Source: comScore Ad Metrix, U.S., Q3 2011 Despite Social Networking‟s leadership in the display ad market, it is not yet attracting its fair share of online ad dollars. 27.7% 20.7% 16.9% 14.8% Display Ad Impressions Page Views Time Spent Online Display Ad Estimated Spending Social Networking Share of Key Metrics Source: comScore Ad Metrix and Media Metrix, U.S., October 2011 75% of ads will become socially enabled by 2015 Google makes 7 predictions for display advertising market by 2015 1. 50% of online ads will have video in them 2. 50% of all targeted display advertising will rely on real-time bidding 3. Mobile will become #1 screen for advertising 4. New metrics will emerge to measure success of ad campaigns 5. 75% of ads will become socially enabled 6. 50% of brand campaigns will run rich media in ads 7. Display advertising will become a $50 billion industry Source: Google's Seven Display Ad Predictions http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=136685 © comScore, Inc. Proprietary. 26 1 out of 12 display ads are socially-enabled. Among CPG advertisers, 1 out of 6 display ads are socially-enabled. Socially Enabled, 8.2% Display Ad Impressions Total Internet All Other, 91.8% Socially Enabled, Display Ad16.7% $ Display Ad Impressions CPG Advertisers All Other, 83.3% Source: comScore Ad Metrix Social, U.S., November 2011 Are Facebook Brand Pages the new microsite? Yes, if CPG advertisers are any indication Click Through Destination for New CPG Banner Ads NOT Running on Facebook Facebook, 15% Amazon, 6% All Other, 76% YouTube, 3% © comScore, Inc. Proprietary. 28 Leading Brands on Facebook Globally Leading brand pages by fan volume include FMCG, technology, clothing & leisure 40.0 35.0 Global Facebook Fans (m) 34.4 30.0 25.3 25.0 20.0 23.1 22.4 20.8 19.3 17.4 15.0 15.6 15.3 14.3 10.0 12.3 12.2 11.3 11.3 11.2 10.7 10.5 10.5 10.4 10.2 5.0 - Source: Facebook fan pages & www.famecount.com, September 2011 © comScore, Inc. Proprietary. 29 The Power of Like: White Paper from comScore & Facebook To download white paper please visit www.comscore.com/like © comScore, Inc. Proprietary. 30 49% of time spent on Facebook is spent on the Newsfeed and Profile pages Share of Time Spent on Facebook.com by Content Section Source: comScore Mediabuilder, U.K., Dec 2011 29% 32% 6% 17% © comScore, Inc. Proprietary. 17% 31 Homepage/News Profiles Photos Apps/Tools All Other Brands control the three basic levers that will determine social media marketing success. Many brands don’t consider these intermediary steps Get Fans (Who are they?) Brand Messages Reach Fans in News Feed Fans “Talk About” News Feed Content News Feed Content Spreads to Friends Goal: Max Reach, ROI 1. Cut-Through 2. Engagement 3. Amplification The vast majority of brand exposure happens in the Newsfeed and on Profile pages Starbucks received 156 impressions for every 1 page view on their brand page Starbucks, Southwest & Bing: Ratio of Facebook Impressions for Fans & Friends of Fans to Page Views on Brand Fan Pages Source: comScore Social Essentials, U.S., May 2011 180 160 156 140 120 100 80 60 42 45 Southwest Bing 40 20 0 Starbucks © comScore, Inc. Proprietary. 33 Understanding How Facebook Works For Brands Facebook Fans are NOT regular visitors to Facebook Fan Pages. Marketers need to reach out to Fans in their News Feed with relevant content! Brand No. of Fans Monthly Unique Visitors To Facebook Fan Pages Coca Cola 24.0 Million 39,000 Oreos 17.5 Million 137,000 Best Buy 2.7 Million 175,000 Source: comScore, US data, Oct 2011 © comScore, Inc. Proprietary. 34 Friends of Fans represent a way for brands to efficiently amplify their reach substantially beyond Fans FANS Exposed Fans Earned Impressions Southwest Bing Starbucks 661K 1,070K 4,841K 2,457K 3,353K 13,664K FRIENDS Southwest Bing Starbucks Exposed Friends 853K 2,035K 8,846K Earned Impressions 1,460K 3,183K 18,073K Reach Frequency 0.3% 0.5% 2.2% Reach 3.7 3.1 2.8 Frequency 0.4% 0.9% 4.1% Friends expand Fans Reach by 33% © comScore, Inc. Proprietary. 35 to 86% 1.7 1.6 2.0 GRP 1.1 1.6 6.3 GRP 0.7 1.5 8.4 Fans and Friends of Fans exposed to earned brand impressions on Facebook exhibit higher brand engagement, than the average user Friends Friends Friends Baseline Internet User Source: comScore Social Esessentials May2011 © comScore, Inc. Proprietary. 36 Brand Exposure in Social Media Tends To Lead To Significantly Higher Usage of Owned Media Football club website reach amongst UK Internet Users 30.0 26.9 25.0 23.2 18.7 20.0 15.0 10.0 7.6 6.8 6.6 5.0 1.6 1.4 1.3 0.0 Total Internet Exposed Exposed Friend of Fan Fan Total Internet Exposed Exposed Friend of Fan Fan Source: comScore Social Essentials, July 2011 © comScore, Inc. Proprietary. 37 Total Internet Exposed Exposed Friend of Fan Fan Exposed Fans also tend to spend more at Starbucks than the average Internet user Starbucks: Fans & Friends of Fans Purchase Activity vs. Average Internet User Source: comScore Social Essentials, U.S., May 2011 12% 11% 10% 8% 8% 6% 4% 2% 0% Spending per Buyer © comScore, Inc. Proprietary. Transactions per Buyer 38 And Finally… Mobile Social Networking: U.S. Smartphone Owners Lead the Way 63.3% Smartphone 44.5% Smartphone owners accessed at least once in month owners accessed at least once in month 61.5% Smartphone owners accessed at least once in month 38.4% Smartphone owners accessed at least once in month 60.7% Smartphone 37.9% Smartphone owners accessed at least once in month owners accessed at least once in month 47.4% Smartphone 34.7% Smartphone owners accessed at least once in month owners accessed at least once in month Product: MobiLens Data: Three month average ending September 2011* © comScore, Inc. Proprietary. 40 (*with the exception of Japan , Canada - 1 month data September 2011) Country: US, N= 30,659, EU5, N= 67,003, JP, N= 5,000 , CA, N= 5,500 Smartphones drive mobile social networking use. 64.1% 45.2% 40.4% 38.8% 36.5% 23.1% 22.8% U.S. EU5 Accessed Social Networking Site or Blog Almost Every Day Accessed Social Networking Site or Blog Ever in a Month % of Smartphone Audience 25.4% U.S. EU5 Accessed Social Networking via App Accessed Social Networking via Mobile Browser Source: comScore MobiLens, 3 Month Average Ending October 2011* Tablets and Connected Devices: The Future of Mobile Social Networking? Incremental Reach and Duration of Time Spent on Selected Categories Relative to Computer Use for iPhone and iPad Owners Incremental Reach Total Internet 2.0x 0.2% Maps 56.8% News/Information 28.9% Email Social Networking Retail Incremental Duration 23.6% 12.5% 8.7% 9.2x 1.6x 1.9x 2.8x 2.5x Source: comScore Custom Analytics, U.S., September 2011 Summary • Social networking is the most popular online activity worldwide • It‟s not just young people using social networking anymore – it‟s everyone • The importance of Facebook cannot be overstated • „Digital natives‟ suggest communications are going social • Social networking leads in online display advertising volumes, but lags in corresponding share of budget • Mobile devices are fueling the social addiction Thank You Mike Shaw Director, Marketing Solutions
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