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The Socialisation of Brands Social media tracker - 2010

Wave 5 - The Socialisation of Brands

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Social media is an incredibly dynamic environment. Terms like “friend” and “influencer” are no longer adequate. A deeper understanding of consumer needs and motivations is the key to unlocking a real understanding of social media and its users. Social networks are becoming powerful hubs of interconnected communities but it’s not just people that are connecting in the social media space. There is huge demand for a more social and interactive relationships with brands. Almost half of the Active Internet Universe has already joined a brand community. These communities are also clearly having a huge benefit to the brands involved, driving brand loyalty, endorsement and sales. However, understanding the nature of social demand for each consumer, category and market is the key to creating a successful social media experience.

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Page 1: Wave 5 - The Socialisation of Brands

The Socialisation of BrandsSocial media tracker - 2010

Page 2: Wave 5 - The Socialisation of Brands
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Contents

Executive summary

Introduction• The continuing Wave story

Methodology

The social challenge for brands

The new social landscape: means and motives• The gravitational pull of social networks• The rise of microblogging

The future face of social media

The Socialisation of Brands

The impact: summary

5

710

15

18

232842

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Executive Summary

Social media is an incredibly dynamic environment. Terms like “friend” and “influencer” are no longer adequate to describe the array of social activity and interaction that is occurring amongst the vast communities now being built online.

A deeper understanding of consumer needs and motivations is the key to unlocking a real understanding of social media and its users.

Social networks are becoming powerful hubs of interconnected communities but it’s not just people that are connecting in the social media space. There is huge demand for a more social and interactive relationships with brands.

Almost half of the Active Internet Universe has already joined a brand community.These communities are also clearly having a huge benefit to the brands involved, driving brand loyalty, endorsement and sales.

However, understanding the nature of social demand for each consumer, category and market is the key to creating a successful social media experience.

This report barely scratches the surface of the rich insight and detail available. Wave 5 – The Socialisation Of Brands contains information for 20 categories in more than 54 countries. You will find contact details if you require further information at the end of this report.

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Introduction

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The Socialisation of Brands

10% growth

in the

number

of social

network

managers

30% accessing social mediavia mobile

47% joining brand communities

1.5 billion visits to social networksper day

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Welcome to Wave:The largest and longest running dedicated social media study in the world.

When Wave started as a project in 2006 we were aware that there was much debate but few facts behind the social media phenomenon. Therefore we initiated Wave with the aim of measuring the scale and impact of social media across the globe. In this time, we have researched more than 95,300 internet users in 59 countries and, if Wave has taught us anything, it is that social media stands up to the hype. Growth has been unprecedented and our tracker has demonstrated how new platforms have sprung up and reached critical mass with blinding speed across vast geographies.

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Figure 1: Internet penetration by market

Figures sourced from internetworldstats.com

Hello

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The Socialisation of Brands

Five years is a lifetime in the world of social media and over the course of our five Waves of research we have come to a deep understanding of the complex and dynamic nature of social media behaviour.

Our first two Waves demonstrated that social media was enabling a large and active community to create content and share this content with others. In the process the medium moved from being a primarily text-based medium to a fully audio visual one. Our third Wave charted the democratisation of influence, how social media was driving ever greater means and opportunity for consumers to influence their peers. Influence that was becoming an integral part of many consumers decision making processes. In Wave 4 we examined the reasons behind the huge growth in social media by understanding the motivations behind the use of different social media platforms. This clearly demonstrated that you cannot treat all social media the same, consumers engage with a platform because it meet’s specific consumer needs and all platforms meet these needs differently.

What the Wave project has shown us is that far from being hype, social media is a an explosively dynamic phenomenon that is changing the way we interact and that this is having a fundamental effect on our thoughts, feelings, attitudes and behaviour. However, with a few exceptions, brands and companies are still not social. They are struggling to find a way to intelligently, sensitively and effectively engage with consumers in this space.

Therefore, with our fifth instalment of Wave, Wave 5 – The Socialisation Of Brands, we have brought together all our understanding of usage, behaviour , influence and motivation, done this across more than 50 countries and added the missing piece of the puzzle. The data, insight and analysis that will help brands create successful social media programmes.

The continuing Wave story

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15 markets 7,500 respondents

21 markets 10,000 respondents

29 markets 17,000 respondents

38 markets 23,200 respondents

53 markets 37,600 respondents

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The Socialisation of Brands

The expanding Wave universe

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AustraliaChina

FranceGermany

ItalyKorea

PhilippinesRussiaSpain

UKUS

Wave 1Australia

BrazilChina

FranceGermany

GreeceIndiaItaly

JapanKorea

MalaysiaMexico

PakistanPhilippines

RussiaSingapore

SpainTaiwan

ThailandUKUS

Wave 2Australia

AustriaBrazil

CanadaChina

Czech RepublicDenmark

FranceGermany

GreeceHong Kong

HungaryIndiaItaly

JapanKorea

MexicoNetherlands

PakistanPhilippines

PolandRomania

RussiaSpain

SwitzerlandTaiwanTurkey

UKUS

Wave 3Australia

AustriaBelgium

BrazilCanada

ChinaColombia

Czech RepublicDenmark

EcuadorFinlandFrance

GermanyHong Kong

HungaryIndiaItaly

JapanKoreaLatvia

LithuaniaMalaysia

MexicoNetherlands

NorwayPeru

PhilippinesPoland

PortugalRomania

RussiaSingapore

South AfricaSpain

SwedenTurkey

UKUS

Wave 4Algeria

Argentina Australia

AustriaBahrainBelgium

BrazilCanada

ChileChina

ColombiaCzech Republic

DenmarkEcuador

EgyptEstoniaFrance

GermanyHong Kong

HungaryIndiaItaly

Ireland (ROI)JapanKorea

KSAKuwaitLatvia

Lebanon LithuaniaMalaysia

Mexico Netherlands

NorwayOman

Philippines Poland

PortugalQatar

RomaniaRussiaSerbia

SingaporeSlovakia

South AfricaSpain

SwedenTaiwan

ThailandTunisiaTurkey

UAEUKUS

Wave 5

L IKE

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Methodology

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The Socialisation of Brands

The Social Media Tracker has retained the same methodology from Wave 1 through Wave 5, enabling comparison between data sets. All surveys have been scripted and hosted on UM’s in-house online research system, Intuition.

All surveys are self-completed and the data collected is entirely quantitative. Every market is representative of the 16-54 Active Internet Universe. For Wave 5, 37,600 internet users in 54 countries were surveyed with many new markets joining, including the Middle East

Who are the active internet universe and why do they matter?

• Active internet users are those people who use the internet every day or every other day

• Social media is driven by active internet users, if you don’t use the internet regularly you are unlikely to sign up for tools such as blogging or set up a social network profile.

• Active internet users drive adoption of platforms and tools and they will determine which tools and platforms become dominant in the social media space.

• They are the best proxy for the future, over time all internet users will increase their usage. Eventually everyone will become an active internet user, just as consumers made the transition from occasional to regular TV watching in the 1950s and 1960s.

Methodology

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0

20

40

60

80

100Read blogs / weblogs

Start my own blog / weblog

Leave a comment on a blog site

Upload my photos to a photo sharing site

Upload a video to a video sharing site

Watch video clips online

Create a profile on a social network

Manage a profile on a social network

Visit a friend’s social network page

Wave 1Sep 06

Wave 2Jun 07

Wave 3Mar 08

Wave 4Mar 09

Wave 5Jul 10

% ev

er d

one

An increasingly active universe

Figure 2 : “Thinking about the internet, which of the following have you ever done?”

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The Socialisation of Brands

The web is changing. It’s no longer just a place for information seeking and shopping but a platform where connections are made, friendships formed and information and opinion exchanged.

The new social web makes different demands on both consumers and advertisers. Consumers are not merely finding, they are contributing; writing, uploading pictures, videos, creating regular status updates and livestreaming their every day happenings.

Social networks have become more embedded in our everyday lives, whether it’s Facebook, Orkut or LinkedIn, we now contact more people in our personal life through our social networks (our research shows that on average we stay in contact socially with 52 people via these networks) than we do through any other means including face to face contact, email and phone.

It’s essential for brands to understand why and where different groups of consumers participate in this new world. It’s not merely a question of identifying the best places to target – the classic media planning/buying approach – but truly knowing what motivates them to be part of it.

Understand that and brands can create campaigns, messages and communities that consumers want to be part of, spreading the message far and wide much more effectively than simply buying banners and buttons in these spaces.

When we started tracking the growth of social media with our Wave study in 2006, these platforms were merely a seed of what they have since become.

The social challenge for brands

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Fast forward to 2010 and Facebook is no longer the new, new thing but a legitimate rival to Google for ownership and domination of the digital space.

What we have discovered in every iteration of our research is that social media participation among active internet continues to vary widely, in some countries blogging is or was top of the tree, in others it is or was uploading video, for example. In all markets the use of social networks has been rising steadily – and in some cases very rapidly indeed.

Similarly this latest research project finds that the motivations for blogging, joining a social network, uploading a video or a photo are not only very different at a global level but that individual countries and regions also have a different take on the value, appeal and utility of each platform.

Wave 5 – The Socialisation Of Brands – and the detailed data that lies behind it – will help brands understand what they need to do to connect with consumers on the social web.

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The Socialisation of Brands

The Socialisation of Brands

With Wave 5 we have created a roadmap that will help brands create the right social media experience. We know that people are more than willing to join social communities online and are doing so in their millions, but do they want to interact with brands in these spaces? The results from Wave 5 – The Socialisation Of Brands answer that question with an emphatic yes and this is true across a broad range of categories.

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The combination of social demand and platform understanding will give us the clear insight to create successful social media programmes.

Understand how and, more

importantly, why people use

social media

Map the

social landscape of the category you are operating in and where

your consumer fits in that landscape

Identify the social needs

of the consumer

Identify

the platforms that best meet

those needs

The challenge then is to identify the kind of social relationship consumers want and we do this by following four steps.

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The new sociallandscape

Means and motives

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The Socialisation of Brands

Means and motives

It is our belief at UM that brands should first concern themselves with why people engage in social media, and their motivations, before we try to understand the platforms themselves.

When consumers engage socially online they do so to meet certain needs. It could be to promote themselves, to share new experiences with others or just to have fun and waste time. It is a community peopled by a broad range of users, everything from career builders and money makers to community creators and story tellers. So social media definitions such as “friend”, “fan” or “follower” cannot really describe the complex interactions and relationships that exist in this environment.

Social media are often lumped together too. Sometimes the term is used synonymously with social networks but Facebook and its brethren are merely major players in a diverse eco-system. In fact the social media universe includes a wide range of different platforms ranging from IM, blogging to photo and video sharing sites. Social networks are trying to offer many of these functions in one place but the reasons why consumers use them, whether they are on a social network site or a separate platform vary widely.

Therefore looking at why people engage in social media and how effectively each social media platform is able to meet these needs becomes of paramount importance. We can see that blogs, message boards and video sites (see Figure 3) deliver specific needs. Video sites are great for having fun and being entertained, message boards are great for seeking alternative opinions and changing those of other others and blogs are powerful platforms for self expression and self promotion.

This is the challenge of understanding the complex eco-system of social media.

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Blogs Video sites Message Boards Instant Messenger

Be creative Change opinions

Earn respect

Explore the world around

Express yourself

Feel likeyou belong

Hang out orwaste time

Have fun /Be entertained

Keep up to date Learnsomething new

Make contactsfor work

Make money

Manage my life better

Meet new people

Promoteyourself

Seek other people’s

opinions

Shareknowledge

Share newexperiences

Stay in touchwith friends

0 10 20 30 40 50

Figure 3: “Which of the following do a good job when you want to...”

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The Socialisation of Brands

Means and motives

Social networks enable us to create a network of digital friends that may or may not correlate with our “real world” friends.

So it’s no surprise that meeting people, staying in touch and sharing experiences are key motivations for signing up to these platforms; acquiring a sense of belonging is another reason to be part of it.

What is more surprising is how effective social networks are at meeting so many other need states, ones traditionally better serviced by more specialised platforms, like blogging. They are also great for changing opinions, promoting yourself, keeping up to date and earning respect.

Split the motivations by country, and once again there is a dramatic split. In China members of Renren, 51.com and Kaizen001.com are looking for fun, in France consumers are hoping to advance their careers while in Germany the search is for a community that participants can be part of. The US and the UK also stand out, driven by the need to self-promote and influence others.

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Figure 4: “Which of the following do a good job when you want to...”

Blogs Video sites Message Boards Instant Messenger Social Networks

Be creative Change opinions

Earn respect

Explore the world around

Express yourself

Feel likeyou belong

Hang out orwaste time

Have fun /Be entertained

Keep up to date Learnsomething new

Make contactsfor work

Make money

Manage my life better

Meet new people

Promoteyourself

Seek other people’s

opinions

Shareknowledge

Share newexperiences

Stay in touchwith friends

0 10 20 30 40 50

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The Socialisation of Brands

The gravitational pull of social networksIt is, perhaps then, unsurprising that social networking is causing the most fundamental shift in social behaviour seen since the invention of email. They have moved from being places to meet friends and stay in contact to multi-faceted platforms capable of delivering a wide variety of social needs.

What is a social network?A site designed to allow users to meet, communicate,

share content and build communities.

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L IKE

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The Socialisation of Brands

As a result we see them fast becoming a ubiquitous tool for social interaction and you’d wrong to think that this is only an activity for the young.

Although penetration amongst 16-24 year olds remains highest it is in the 25-34 year old bracket that we have seen the greatest increase in usage, from 52% to nearly 70% in the last 3 years.

However, in all age brackets, we are seeing a similarly spectacular rise. Currently, nearly 3 quarters of the active internet universe claim to have ever managed a profile on a social network. If the current trends continues, a social networking profile will become as fundamental part of our daily lives as our telephone number.

Create a profile on a social network

Manage a profile on a social network

Visit a friend’s social network page

0

20

40

60

80

100

Wave 1Sep 06

Wave 2Jun 07

Wave 3Mar 08

Wave 4Mar 09

Wave 5Jul 10

% ev

er d

one

Figure 5: “Thinking about the internet, which of the following have you ever done?”

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20

40

60

80

45.1%51.4%

61.4%

Global

33.1%

48.3%58.1%

USA

47.4% 51.4%

68.4%

China

64.8% 66.1%

79.3%

Russia

53.4% 55.5% 58.6%

UK Brazil

51.4%62.8%

72.5%

India

63.6%53.9%

74.5%

Italy

27.2%36.6% 37.8%

Germany

29.9%

46.2%55.5%

Spain

26.3%

43.4%53.2%

France

24.0% 34.4%

53.9%

A truly global movement

Wave 3 Wave 4 Wave 5

Figure 6: “Thinking about using the internet, which of the following have you done in the last 6 months?” - Manage a profile on an existing social network

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The Socialisation of Brands

A pull of people and activity

We aren’t just seeing a large rise in the number of people joining social networks. They are also using them for a broader range of activities. A ready made, audience combined with increased site functionality means that they are, for example, sharing videos, organising groups and events, sharing photos and dating (see Figure 7). In fact, in 2009 they were using them for 6.4 activities. In 2010 this has now risen to 8. Again, this trend is decidedly upwards.

PHOTOS

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0%

10%

20%

30%

40%

50%

60%

70%

80%Message friends

Find old friends

Find new friends

Dating

Update my profile

Wave 32008

Wave 42009

Wave 52010

Figure 7: “Which of the following have you done with your social networking profile?” - Amongst those who have used a social network in the last 6 months

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The Socialisation of Brands

We are seeing a large rise in social connections via all digital means but leading the way are the social networks. They have become the largest source of social interaction, finally outstripping face to face contact in 2009. As finding friends old and new still remain the most highly participated activities it’s a trend clearly set to continue. This is community growth on an phenomenal scale (See Figure 9).

Face to face

Phone

Text message

Email

Instant Messanger

Social Network

My personal blog

Forum / message board

Wave 32008

Wave 42009

Wave 52010

Ave

rage

num

ber o

f peo

ple

10

20

30

40

50

60

Figure 8 : “Approximately how many people do you stay in contact with in your personal life through the following means?”

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USA

16.731.2

53.0

China

31.839.5

50.0

Russia

15.6

36.347

UK

30.7

40.6

57.0

Brazil

50.557.5

74.0

India

43.257.9 58.0

Italy

17.6

34.6

66.0

Germany

14.125.2

41.0

Spain

16.5

34.747

France

11.723.8

40.0

29.738.8

52

Global

Num

ber o

f peo

ple

Growth on a phenomenal scale

Wave 3 Wave 4 Wave 5

Figure 9 : “Approximately how many people do you stay in contact with in your personal life through the following means?” - Social Network (average)

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The Socialisation of Brands

Content sharing starts to migrate

How is the growing power of social networks affecting other social media platforms? We are certainly seeing content creation and sharing via photo sharing and video sites continuing to grow. However, we are seeing growth occur at a much slower pace than we have seen in past Wave studies (see Figure 10).

Upload my photos toa photo sharing website

Visit a photo sharing website

Upload a video clip to a video sharing website

Watch video clips online

Wave 32008

Wave 42009

Wave 52010

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Figure 10 : “Thinking about using the internet, which of the following have you done in the last 6 months?”

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But the ease with which social networking platforms have incorporated content sharing functionality into their sites, particularly in the mobile space, means that users are clearly adopting these platforms for sharing at a much faster pace than dedicated photo and video sharing sites.

0%

10%

20%

30%

40%

50%

60%

70%

80%Upload photos

Upload videos

Wave 32008

Wave 42009

Wave 52010

Figure 11: “Which of the following have you done with your social networking profile?”- Amongst those who have used a social network in the last 6 months

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The Socialisation of Brands

Specialisation of blogs & forums

As social networks keep growing we also see them begin to dominate discussion about personal topics. People are moving away from reading and discussing personal topics on both blogs and forums. At the same time we see a corresponding rise in social networks as the key platform for personal blogs (See Figure 12).

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%Personal blogs(diary sites)

Family / friendblogs

Write a blog on asocial network

Wave 32008

Wave 42009

Wave 52010

Figure 12 : “When you read blogs, which of the following types of blogs do you read most often?”- Amongst those who have read a blog in the last 6 months, “Which of the following have you done with your social networking profile?” - Amongst those who have used a social network in the last 6 months

What is a blog?A blog is a website that is

created by a user in order

to update others with

regular commentaries,

opinions or share content.

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The Socialisation of Brands

As a result, we are seeing them become more orientated towards specialised topics. They may no longer be the platform of choice for personal expression but they are clearly seeing some success in their battle to become legitimate rivals to the traditional media outlets by building specialist credibility.

10%

15%

20%

25%

30%

35%

40%News / Current A�airs

Product recommendations

Music

Technology

Business (general news & opinion)Business news (relevant to my job)

A company/brand blog

Science

Sport

Film / TV

Gaming

Travel (holidays, destinations)

Celebrities

Wave 32008

Wave 42009

Wave 52010

Figure 13 : “When you read blogs, which of the following types of blogs do you read most often?” - Amongst those who have read a blog in the last 6 months

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41

20

40

60

80

100

60.6% 64.5%

Global

55.3%

USA

45.6% 50.2% 46.7%

China

74.9% 75.7% 79.6%

Russia

59.3% 54.6%63.4%

UK

50.7%41.3% 40.8%

Brazil

74.5%

40.9%

72.4%

India

62.2% 63.1% 63.3%

Italy

61.9%51.0% 51.5%

Germany

35.2% 36.3%29.6%

Spain

63.6%55.9% 60.3%

France

45.6% 50.2% 46.7%

BloggingDeclining or stabilising in Western countries, but growing in others.

Wave 3 Wave 4 Wave 5

Figure 14: “Thinking about using the internet, which of the following have you used in the last 6 months?” - Read blogs / weblogs

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The Socialisation of Brands

The rise of microblogging

Microblogging is a great example of a new form of social media that has, within an incredibly short space of time, become a mass market activity.

Wave 42009

Wave 52010

0%

5%

10%

15%

20%

25%

30%

35%

40%

Figure 15 : “Thinking about using the internet have you used a microblogging service like Twitter or Jaiku in the last 6 months?”

What is a microblog? A blog on which updates

are restricted in length

(usually to less than 140

characters)

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It’s certainly the fastest growing social media platform that we track within our study (see figure 15) and as it has grown we have seen a significant move towards a more female profile amongst the community (see Figure 16).

Clearly, the fact that it doesn’t require an enormous amount time spent creating content, but still allows you to maintain a constant stream of news, updates and opinion has much appeal. But it is also its position as an undiluted way to communicate with audiences, without the need to engage with a sometimes difficult or prohibitive mass media, that gives it real potency. This has been clear during recent news events when people sent regular updates on, for example, the Iran protests or the Mumbai bombings that added a more personal and visceral dimension to the ensuing events. For the same reason it has been adopted wholesale by the marketing fraternity, in particular many high profile celebrities.

There is still much debate about how many people are actually tweeting vs following, however, with its integration into a number of simple mobile applications its growth will continue.

Wave 42009

45-548%

34-4419%

25-3432%

16-2441%

34.6%

65.4%

Wave 52010

45-548%

34-4420%

25-3433%

16-2439%

42.6%

57.4%

Figure 16 : Age and gender profile of people who have used a microblogging service in the last 6 months

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The future faceof social media

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The Socialisation of Brands

The mobile engine of social media

The most significant shift in social media over the last few years has been the ability of users to engage in social media via mobile. The availability of powerful handsets and tablets with flexible operating systems, such as Google’s Android and Apple’s O.S. combined with flat rate data charges has created a fertile environment for the growth of mobile social media. Alongside these has been the development of a range of easy to use first and third party applications that allow users to engage with their social media platform of choice, such as Facebook or Twitter, using a simple to use interface. As a result our Wave 5 data shows clear correlation between smartphone ownership, mobile internet access and engagement in social media (See Figures 18 and 19). Not only are smartphone users more likely to engage in a wider variety of platforms (see Figure 19) they do more often too. They visit their social network profile on average 3.5 times a day, 18% more often than the average social network user.

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Figure 18 : Percentage of people who access the internet via a mobile device and the % of people who access the internet via a mobile device and have a smartphone

Figure 19 : “Thinking about using the internet on your mobile device, which of the following have you done in the last 6 months?” - Amongst all who have accessed the internet via a mobile device and smartphone owners

0%

10%

20%

30%

40%

50%

60%

GLO

BAL

Chi

na

Russ

ia UK US

Indi

a

Ital

y

Ger

man

y

Fran

ce

Spai

n

Braz

il

Mobile internet usersMobile internet users with smartphones

0 10 20 30 40 50Use Instant Messenger

Watch video clips online (e.g youtube.com)Read blogs / weblogs

Visit a friend's social network pageVisited an official company / brand websitesVisit a photo sharing website (e.g flickr.com)

Visit a message board / forumUpload my photos to a photo sharing website

Shared a music file / mp3 with a friendStarted a topic on a message board/ forum

Post / write stories for my own blog / weblogManage a profile on an existing social network

Leave a comment on a blog siteShare a video clip with a friend

Used micro blogging service like Twitter/JaikuJoined an online community around a brand/prod

Upload a video clip to a video sharing websiteCreate a video to upload online

Joined a professional social networking siteCreated an online community around brand/prod

All respondents Smartphone owners

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The Socialisation of Brands

The connected generation

One of the most interesting things about the mobile social media user is not just the range and frequency of their activity but who they are. You might be forgiven for thinking that the people at the forefront are just the youngest adopters but, in fact, our research shows the higher cost of smart phone ownership and usage means that this audience is certainly at the higher end of the socio-economic scale. They have a broader age range, more like to be aged 25-34. They are more likely to be male (63%), married (53%), have a medium to high income (62%), have a high level of education (65% have a degree or post graduate qualification). Not only are they a wealthy consumer they are also highly influential. They are more likely work in senior decision making positions within companies(25%) and are more likely to try products first (index 172) and influence others in regard to their purchases (index 157)

It is clearly a significant audience and one which not only represents the future face of social media usage but a very interesting and influential audience today.

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Understanding means and motive is everything

• Social media is an incredibly dynamic environment

• A deeper knowledge of consumer needs and motivations is the key to unlocking our understanding of social media

• Understanding these motivations explains much of what is happening

• Why people engage in social media is an important starting point but there is still a missing piece of the puzzle

• What kind of social experience are people looking for with brands?

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The Socialisationof Brands

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The Socialisation of Brands

Is there a social demand for brands?

There is much debate about the role that brands can or should play in social media. The big question is do people actually want a social relationship with them at all?

We have found over the last three Waves of research a decline in the number of people saying that they have visited an official company website (See Figure 20). Does this mean that there is less appetite to engage with brands in their “official spaces”? Does the increasing power of peer to peer recommendation and the huge number of spaces that facilitate this recommendation, the burgeoning influence economy, mean that people no longer feel the need to engage directly with brands to find the information they want? Well, we can certainly see a trend towards consumers engaging with brands in social media. When we look at the numbers of people who are becoming fans with brands on their social networking platform we see a huge rise in the last year (See figure 21). Clearly, just by being present in a space socially relevant to the consumer means that they are more than willing to engage.

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70%72%74%76%78%80%82%84%86%

Wave 32008

Wave 42009

Wave 52010

0%

10%

20%

30%

40%

50%

A�liate with orbecome a fan of a brand

Join a group

Wave 4 (2009)

Wave 5 (2010)

Figure 20 : “Thinking about using the internet, have you visited an official brand/company website in the last 6 months?”

Figure 21 : “Which of the following have you done with your social networking profile?” -Amongst those who have used a social network in the last 6 months”

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The Socialisation of Brands

The answer is a resounding “Yes”

But it’s not just on their social networking profile that people are affiliating themselves with brands. Our Wave 5 research shows that, globally, nearly half of the active internet universe claims to have joined a brand community at some point (see figure 22). This clearly identifies a demand for brands in the social space.

100%

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Figure 22 : “Have you ever joined a brand community online?”

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55

Is social demand true for all categories? Well, we asked people if they wanted an interaction with brands beyond a simple transaction across a number of categories (see figure 23). These included a range of interactions from getting access to advance news of products to being able to access decision makers and influence product development. It’s clear from the results that, even though the level of social demand differs by category, there are significant numbers of people who do want to engage with brands in all categories (even if this engagement was more superficial, like just having access to breaking news).

Figure 23 : Amongst those who show an interest in an category, how many want an interaction with companies in that category (i.e. At least one or more interaction). These included a range of interactions from getting access to advance news of products to being able to access decision makers and influence product development

Health75%

Music73%

Movies74%

Telecomms71%Travel

71%

Food70%

Cars63%Finance

67%Software

71%

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The Socialisation of Brands

Brand communities

So why are people joining brand communities?

Although many are saying that they have joined a brand community online to gain access to free content (69.6%), the highest motivations are to learn (78.6%) and get access to advance news of products (76.1%).

In the influence economy, information is clearly a very valuable commodity.

These motivations are prevalent across all markets but when we look regionally we can see that there are nuances (See figure 24).

In Latin America brand communities are more likely to be driven by the desire to associate themselves with something (to support a cause or even something they think is cool). In Asia they are more likely to join if it was recommended to them by their peers and in the Middle East it is about feeling part of a like-minded community.

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Europe North America Latin America Asia & Oceania Middle East & Africa

To support a cause

To share my appreciation with others

To associate with something I think is cool

To learn moreabout it

To feel part of alike-minded community

To get free content

To fill time / have fun

Because it wasrecommended

to me

To get advancenews on products

0% 20% 40% 60% 80% 100%

Figure 24 : Agreement with the descriptions of why they joined a brand community amongst those have ever joined a brand community online by region.

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The Socialisation of Brands

What’s the benefit to brands?

The other big debate in social media is identifying the value of brand community engagement and interaction. Of those people who joined a brand community, 72% said they thought more positively of the brand as a result, 71% said they are more likely to buy the brand, 66% said they felt more loyal to the brand and 63% said they recommended others to join. So clearly there is an opportunity to build brand equity, drive sales, increase loyalty and create brand endorsement all of which sounds a lot like the holy grail of marketing communications. Of course, things are not so simple or easy. In order to create a social media experience that will benefit the brand in these ways we must first understand what kind of social media experience consumers want.

Figure 25 : “As a result of joining a brand community, please indicate how much you agree with the following statements?”

72% 71% 66% 63%

“I thought more positively of the brand”

“I am more likely to buy the brand”

“I felt more loyal towards the brand”

“I recommended others to join”

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Mapping the right social media experience

There are four steps to identifying the right social media experience for brands:

• Understand the social landscapeof the category

• Identify where the consumerfits in this landscape

• Identify the social needs of the consumer in the category

• Map them to social media platforms that can best deliver them

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The Socialisation of Brands

The social landscape of categories

The first thing we need to understand is the level of social activity in each category. We do this by mapping involvement across a spectrum of social engagement. From those actively creating content and collaborating with others to those simply seeking information.

What we see is that certain categories with very broad appeal, like music and movies, have large numbers of people engaged in collaboration, creation, sharing and seeking.

Conversely, categories like sport or fashion have a much smaller number of people engaged in the category but a higher proportion of those are actively collaborating.

However, in all categories there are significant numbers of people already actively engaging with brands and companies. The reason why it is important to understand the consumers current level of engagement with the category is because it has a fundamental effect on the depth of social interaction they want.

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Figure 26 : “Thinking about how you seek and share information regarding different products and services, which of the following statements best describe how you seek and share information in each of the following categories?” Numbers of consumers (in 000’s). Note: consumers can be active in more than one segment within a category.

600,000 400,000 200,000 0 200,000 400,000 600,000 800,000

Wine, spirits & alcohol

Non-alcoholic drinks

Luxury goods

Cosmetics

Console/PC Gaming

Sport

Cars

Portable technology

Fashion

Energy & environment

Computer hardware

Personal finance

Household products

Home technology

Travel

Mobile phones and services

Computer software

Food

Health & wellbeing

Music

Movies

I create content and collaborate withpeople and companies in this category

I share opinions, content and information in this category

I often seek information in this category to keep up to date

I sometimes seek information in this category when I need it

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The Socialisation of Brands

Different categories, different audiences, different needs

We can see that different categories have different social media needs. Analysis of the movie and health categories, for example, show that access to fun content is key for the movie category (unsurprisingly in a very visual and content rich medium) whereas learning is the dominant need in the health category (see Figure 27).

Movies Health & Wellbeing

Access to fun andentertaining content

Access to breaking news

An opportunity to learn something new

Access to unique eventsor competitions

Communicate and share experiences with others

A personal responseto my issues / complaints

An opportunity to develop

my skills

Tools help express creativity and

make something worth sharing

Contact employeedecision makers and influence product

development

0% 10% 20% 30% 40% 50%

Figure 27 : “Thinking about companies in the following categories, which of following statements describes the kind of interaction you would like to have with these companies?” amongst those who show an interest in the category

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I create and collaborate with peopleand companies in this category

I often / sometimes seek informationin this category to keep up to date

An opportunity tolearn something new

An opportunity to develop my skills

Access to breaking news

Free coupons /money-o� vouchers

Access to fun andentertaining contentA personal response

to my issues / complaintsCommunicate and shareexperiences with others

Access tounique events

and competitions

Tools help express creativity and

make something worth sharing

Contact employeedecision makers and

influence product development

0% 20% 40% 60% 80% 100%

And it’s not just the category differences that we have to take into account. We also need to consider current category behaviour as this has a significant impact on their social needs and expectations.

When we look at people actively engaged in the Computer Software category, for example, we can see that the demand for customer service (a personal response to issues and complaints) is equally important to both content creators/collaborators and seekers of information (see Figure 28). However, in all other regards creators/collaborators want a much deeper and more diverse social relationship but in particular we see that learning and skills development are the key social needs.

Figure 28 : “Thinking about companies in the computer software category, which of following statements describes the kind of interaction you would like to have with these companies?” amongst those who create content or seek information in the category.

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Mapping needs to platforms

Clearly, understanding the social needs of the consumer is the key to creating a successful social media programme. If all the consumer wants is access to information and news there is no point in creating an all singing, all dancing interactive content sharing platform. On the other hand if they want to be involved directly with product development then access to new news is unlikely to be involving or compelling.

Since these needs differ widely by country, category and audience it is essential to have a granular view of the social dynamics at play.

The other important factor is an understanding of which platforms and forms of communication best meet these needs. Wave 5 – The Socialisation of Brands also contains a wealth of information that can help identify the most influential platforms at both macro and micro level.

We believe that the combination of social need state and the ability of platforms to meet these needs gives us the crucial insight required.

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Personalised ad on social network page

Sponsored link on social network page

Ad on a blogSponsored music / video player

Recommendation from a friendSponsored link on a search engine

Opportunity to develop my skills

Access to unique events

Share experiences with other customers

Influence product development

Portable Technology

Personal Finance

Energy & The Environment

Home Technology

MusicTravel

Movies

FoodFashion

Wine, Spirits & Alcohol

Luxury Goods

Cosmetics

Console / PC Gaming

Sport

Cars Computer Software

Brand websiteMobile Telecommunication

Sponsored link on a website

on

Widget on a social netw

orkCom

municate m

y experiences

Company / Brand BLO

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Instant Messenger

Company / Brand BLO

G

Online branded video clip

Expert recomm

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Access to breaking news

Recomm

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age

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websiteVideo clip online featuring a brand

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The impact

Summary

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The Socialisation of Brands

The impact

Social media is an incredibly dynamic environment. Terms like “friend” and “influencer” are no longer adequate to describe the array of social activity and interaction that is occurring amongst the vast communities now being built online.

A deeper understanding of consumer needs and motivations is the key to unlocking a real understanding of social media and its users.Social networks are becoming powerful hubs of interconnected communities but it’s not just people that are connecting in the social media space. There is huge demand for a more social and interactive relationships with brands.

Almost half of the Active Internet Universe has already joined a brand community.These communities are also clearly having a huge benefit to the brands involved, driving brand loyalty, endorsement and sales.

However, understanding the nature of social demand for each consumer, category and market is the key to creating a successful social media experience.

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What does this mean for your business?Wave 5 – The Socialisation of Brands is an in-depth study and there are many other aspects that we are unable to cover in this report.

If you want to know how to operate in the new social media landscape and what this means for your business please contact:-

EMEAGlen ParkerResearch Director - [email protected]

North AmericaHeidi BrowningEVP Global Digital [email protected]

Huw GriffithsEVP Global Director of [email protected]

APACNatalie PidgeonDirector IQ and Insights - [email protected]

LatAmMario MejiaStrategic Director - Colombia / [email protected]

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The Socialisation of Brands

About this report

Wave 5 - The Socialisation of Brands is part of UM’s ongoing research programme aimed at exploring the massive changes occurring in communication technologies.

The studies have been conducted annually since 2006.

The research is conducted by the UM EMEA research team in collaboration with the UM global network of agencies.

If you have any questions about the research or future Wave projects please contact the EMEA research team

Glen ParkerResearch Director [email protected]

Lindsey ThomasResearch Executive [email protected]

© UM 2010

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This report is printed on Cocoon Offset: a paper produced using eco-sensitive technology from 100% recycled and de-inked fibres (FSC certified)

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