Mark Molenaar's presentation at Digital Life South Africa event 25/26 January 2012

1. © TNS 2011
Digital Life

2. Digital Life
© TNS 2011
The most comprehensive view of consumer
attitudes and behaviour online

3. Digital Life South Africa Report
© TNS 2011
Realising the opportunity
3
Engage with the 'Digital Consumer', understand:
 How are consumers interacting with brands online?
 Should I build friends and fans on social networks?
 What brand opinions are consumers forming through digital?
Identify & cultivate the 'Digital Advocate', understand:
 What is the level and influence of buzz for my category?
 Who is talking about my category and who is listening?
 What„s the impact of negative conversation online?
Convert the 'Digital Customer', understand:
 What is the role of online and offline channels throughout the path-to-
purchase, for researching and buying products?
 Are my customers using the Internet to purchase products?
Reach the 'Digital User', understand:
 What‟s the reach, size, structure of the digital channel?
 Can I get my message to users in new markets?
 How do I communicate with my target group?
Advocates
“I tell others online
about brands”
Customers
“I use online
prior to and for
purchase”
Consumers
“I engage with
brands online”
Users
“I am online”

4. Digital Life
© TNS 2011
Africa has the fastest internet growth in the
world
2000 2011
Mobile subscriptions
Internet subscriptions
4.5 million
120 million
11.5% penetration
X 4327%
X 2527%
15 million 649 million65% penetration
Sources: Internet world stats
GSMA
ITU

5. Digital Life
© TNS 2011
5
Internet Penetration
Internet penetration (%)
Using daily (%)
Source [Internetworldstats; Digital Life] Base: Total Market Population; Min 500
…but, internet penetration is still low, and
hence low frequency of use, limiting what
internet is used for
Tanzania
Ghana
India
Uganda
Kenya
Pakistan
SouthAfrica
Indonesia
Egypt
Thailand
Nigeria
Philippines
Peru
Vietnam
Mexico
Ukraine
Romania
China
Brazil
Colombia
Morocco
Russia
SaudiArabia
Turkey
Argentina
Greece
Portugal
Italy
Chile
Poland
Malaysia
Hungary
Spain
Ireland
Cz.Republic
HongKong
UAE
France
Taiwan
Israel
Slovakia
Austria
Estonia
Singapore
Belgium
USA
Australia
Japan
Canada
Germany
Switzerland
SouthKorea
UK
NewZealand
Luxembourg
Finland
Denmark
Netherlands
Sweden
Norway

6. Growth in internet access in the region offers
big opportunities for brands and marketers…
6
…but,
Digital marketing is wasted if not
tailored to the local market
Or worse, can actively create brand-resistant consumers
Consumers hold the power
Need to understand how consumers
are using the internet and where they
are in their digital evolution

7. With strong internet growth in Africa, most users are new
to the internet and still becoming acquainted – usage will
be different to developed countries
7
0
10
20
30
40
50
60
Tanzania
Ghana
India
Uganda
Kenya
Pakistan
SouthAfrica
Indonesia
Egypt
Thailand
Nigeria
Philippines
Mexico
Peru
Vietnam
Ukraine
Romania
China
Brazil
Morocco
Russia
SaudiArabia
Turkey
Greece
Portugal
Italy
Colombia
Chile
Poland
Malaysia
Hungary
Spain
Ireland
CzechRepublic
Argentina
HongKong
UAE
France
Taiwan
Israel
Slovakia
Austria
Estonia
Singapore
Belgium
US
Australia
Japan
Canada
Germany
Switzerland
SouthKorea
UK
NewZealand
Luxembourg
Finland
Denmark
Netherlands
Sweden
Norway
Internet Penetration
% Started using the internet less than two years ago
Sub-Saharan Africa

8. Mobile is key to Digital strategy in Sub-Saharan
Africa
Nigeria
Tanzania
Uganda
Kenya
Ghana
South Africa
Global 36
82
61
31
65
77
68
97
64
75
97
82
64
60
Different countries within SSA have different development paths –
Mobile is key in SSA
Access internet via…

9. 39
23
6 7 4
68
1 1
PC at home PC at work PC at
school/university
PC at Internet
café
PC elsewhere Mobile phone Tablet Internet TV Games console
9
Question: S5; Device use for Internet access in past 4 weeks Base: All respondents;
Used to access internet in last month (%)
1000
Mobile is emerging as the key access point
for internet users in South Africa

10. Accessed the internet via…
85%
15-20 years 21-24 years 25-34 years 35-44 years 45-54 years 55-65 years
Mobile Phone
PC
24%
50%
90%
Younger and older internet users experience the
internet differently – take this into account when
designing digital strategies

11. 11
“I would be happy doing all
my Internet surfing via my
mobile”
“I would like to access the
Internet more on my
mobile phone, if it were
more convenient, or had
higher speed or
connectivity”
Question: H4, A2; Mobility attitudes, Internet attitudes Base: Mobile users;
Mobile internet users prefer mobile as an internet
access point - and this will increase as access speeds
increase
68%
57%

12. 12
68
59
50
29
21
6
TV Internet for leisure Radio Internet for work Newspapers Magazines
Question: M1; Media use Base: All respondents; Size
Daily users (%)
1000
Once adopted, digital media is close to traditional
media in terms of daily users on board

13. Offline activities done whilst also online (%)
13
35
30
21
7
6
18
53
57
12
10
22
16
Find out more information just seen advertised
Listening to radio
Watching TV
Reading magazine/newspaper
Playing video games
Shopping (not on the Internet)
Find out info about product in-store
PC Mobile
Question: [H3]; [Device use for Internet access in past 4 weeks] Base: [All respondents];605,686
And there is a strong incidence of people engaging in
entertainment media (TV & radio) whilst accessing
internet on mobile

14. 0%
10%
20%
30%
40%
50%
60%
70%
Tanzania
Ghana
India
Uganda
Kenya
Pakistan
SouthAfrica
Indonesia
Egypt
Thailand
Nigeria
Philippines
Mexico
Peru
Vietnam
Ukraine
Romania
China
Brazil
Morocco
Russia
SaudiArabia
Turkey
Greece
Portugal
Italy
Colombia
Chile
Poland
Malaysia
Hungary
Spain
Ireland
CzechRepublic
Argentina
HongKong
UAE
France
Taiwan
Israel
Slovakia
Austria
Estonia
Singapore
Belgium
US
Australia
Japan
Canada
Germany
Switzerland
SouthKorea
UK
NewZealand
Luxembourg
Finland
Denmark
Netherlands
Sweden
Norway
Social networking is seen to be the most
important online activity in most of Africa
14
Internet Penetration
% Most important online activity – social networking
Sub-Saharan Africa

15. 58
18
13
4
3
Global
SSA
32
26
10
9
6
In contrast to Global internet use, Social is
far more relevant than e-mail
Key activities on internet (% use)

16. Facebook is visited weekly by three
quarters of internet users
Visit daily:
Visit weekly:
54%
73%
30%
59%
5%
10%
3%
10%
Question: [B6]; [Frequency of visiting websites] Base: [Total];1000

17. 18
60
58
22
21
19
16
14
14
11
Write a post / message / status
update on my social network
Comment or respond to other
people on my social network
Use online chat / instant messaging
Post comments on, or rate other
people's blogs, forums or reviews
Upload photos
Write my own blog
Upload video or music
Forward / share a link
Post Status updates or messages on
a micro-blog
56
19
18
15
13
13
10
9
Check my social network accounts
Visit / check / read other people’s
blog or forum
Stream music
Download videos / movies / TV shows
or music
Stream video
Download photos or look at pictures
at photo sharing websites
Download an “App” or application
Visit / read / other people´s micro
blog
Active Passive
Question: B12; DL Sub-activity usage Base: All respondents;
Weekly users (%)
1000
Social networking users are highly active online, but it is
all about communicating with their network – brands
need relevance to become a part of the conversation

18. 81%
59%
8%
7%
30%
Internet
Penetration
30% 14%
84%
68%
33%
47%
81%
Go online daily
Are brand fans
on SN
Write about
brands online
Research brands
online
% of internet
users that:
% of internet
users that:
While a significant proportion of internet users in SA go
online daily, interaction with brands is still quite limited,
with researching brands being the main brand-related
activity
19
Global South Africa
Are part of
Social Network

19. The higher the internet penetration, the more likely internet users
are to read about brands on the internet – In Africa, brand
presence on the internet is still under-developed
20
Internet Penetration
% reading about brands
Sub-Saharan Africa
Tanzania
Ghana
India
Uganda
Kenya
Pakistan
SouthAfrica
Indonesia
Egypt
Thailand
Nigeria
Philippines
Mexico
Peru
Vietnam
Ukraine
Romania
China
Brazil
Morocco
Russia
SaudiArabia
Turkey
Greece
Portugal
Italy
Colombia
Chile
Poland
Malaysia
Hungary
Spain
Ireland
CzechRepublic
Argentina
HongKong
UAE
France
Taiwan
Israel
Slovakia
Austria
Estonia
Singapore
Belgium
US
Australia
Japan
Canada
Germany
Switzerland
SouthKorea
UK
NewZealand
Luxembourg
Finland
Denmark
Netherlands
Sweden
Norway

20. Messages are not in the control of brands
Even a stranger on the other side of the world is trusted more…
“What other people say about
brands can be trusted more than
what the brand says themselves”
“I trust the comments my friends
write about brands”
“I trust the comments people
I don‟t know write about brands”
57%
54%
41%
% Agree

21. 22
xx
% Agree
Question: [I8a]; [Attitudes to comments & reviews] Base: [All Writers];
“Posting comments online is an effective
way to influence companies”
“I expect companies to contact me if I
write something about them”
73
Very few consumers write about brands, but those
who do believe their interaction influences the brand
68%
34%

22. 23
To praise a brand
To criticise a brand
Ask advice
Offer advice
Share answers/opinions
Share opinions w/communities
To share cool stuff brands produce
To receive customer service
Because I‟m rewarded for doing so
Question: [I8]; [Reasons to write about a category] Base: [All Writers];
48
28
45
25
31
45
42
15
2
73
Though there are many reasons to express the
opinion online, main causes are to praise, to
seek advice and to share opinions
*base size for this demographic is between 30 and 74. Results are therefore for illustrative purposes only
*

23. 10
8
15
7
5
5
9
6
7
6
14
9
4
7
Promotion/special offer
Competitions/prizes
More information about products/services
Information about brand ethics
Connect with people behind the brand
Access brand content
Passionate about the brand
Show that brand is important to me
Give brands input
Receive customer service
Friends doing the same
Connect with other fans
Use specific apps/games
Support a cause
24
Further Research
Brand Interaction
Giving & Receiving Feedback
Friend Interaction
What’s in it for me?
Miscellaneous
Question: [I3a/I3b]; [Reasons to join a brand group/community] Base: [Social Networkers & Micro Bloggers];
(%)
891
Information on products and peers as reference
groups motivate consumers to join a brand
community

25. Global
SSA
TV ad
Product review
website
Expert review
website
Consumer
opinion blog
Price comparison
website
Recommendations
from
friends/family
Recommendations from
sales assistant
38
28
28
27
27
26
24
TV Ad
39
Recommendations from
friends/family31
Ads in newspapers/magazines22
Digital needs to play a supportive/complementary
role to traditional media in Sub-Saharan Africa
Consumer journey touchpoints –
influence on product choice

26. Nigeria
Tanzania
Uganda
Kenya
Ghana
South Africa
Global 62
17
17
7
28
13
28
79
6
22
8
25
15
43
Mobile PC
Pre-purchase browsing is relatively low in SSA
compared to global norms. Lower incomes and cost of
internet access are holding back interest
Ever browse or pre-purchase shop via…

27. Nigeria
Tanzania
Uganda
Kenya
Ghana
South Africa
Global 50
4
5
5
19
5
10
73
6
4
5
16
4
18
Mobile PC
Online shopping is still under-developed in Sub-Saharan
Africa. But, mobile shopping likely to play a bigger role in
online shopping in future
Ever shop via…

28. 5%
5%
4%
4%
2%
1%
1%
1%
1%
1%
1%
1%
Bought online
Question: E6; Purchased on or offline Base: Category Purchasers;,
29
43%
10%
36%
20%
7%
52%
54%
57%
78%
9%
12%
11%
Bought offline
Music
Travel
Movies
Software
ISP
Cosmetics
Skin Care
Hair Care
Clothes & Shoes
Insurance Policy
Banking
PC
1000
Preference for offline purchasing is strikingly high
compared to online across all categories

29. The Digital Growth Index utilises these four components
to provide a single KPI to describe the size of the
opportunity in each market
30
The Digital Growth Index
Size of
audience
Opportunity
to engage
A single number KPI
score
Brand Building
Consumers
Scale,
Motivations,
Behaviours
Users
Brand Buzz
Advocates
Path to
Purchase
Customers

30. The Global Digital Growth Index
31
High Growth
Index
High Internet
Penetration
Low Growth
Index
Low Internet
Penetration
Low Penetration, High Index –
Drive growth through engaged early
adopters
Low Penetration, Low Index–
Tap into latent demand, plan for
future opportunity
High Penetration, Low Index –
Utilise large reach, engage outliers
High Penetration, High Index–
Major opportunity, invest heavily
South Africa

31. Developing markets
32
Argentina Peru
Egypt Philippines
Ghana Romania
Indonesia South Africa
Kenya Tanzania
Morocco Thailand
Nigeria Uganda
Pakistan
Digital Growth Index
InternetPenetration
Low
Low
 These markets are held back by either low access to
digital, poorer infrastructures or low incomes
reducing the relevancy of a brand conversation
 Yet aspirations run high, and huge latent demand
exists
 Mobile has provided a gateway to access in many of
these markets. Marketing communications must
also be delivered through this channel
 The desire to communicate, and join social networks
is a key driver in these markets
 Give them the means to talk about your brand; being
seen as a brand that directly empowers users by
partnering with these social networks / content
providers and sponsoring access

32. To sum up…
• Internet growth and evolution offers new opportunities for marketers to
engage with consumers
• But, internet penetration in SA still low and growth behind the rest of the
continent. For most people the experience of the internet is new, is different
to what it was before, is mobile and is social
• High costs and barriers of access mean internet penetration and usage is still
low and other traditional media still play a dominant role
• The future of internet in South Africa is clearly mobile and marketers need to
focus on interactions in the mobile space, with different strategies for mobile
internet and fixed line, targeting different audiences and needs
• Brand interactions via internet in SA are still very low. What works elsewhere
will not necessarily work here.

33. and…
• Digital marketing in SA has to incorporate social media and traditional media
• Encouragement and incentivisation need to be used to overcome barriers to
experiment and expand use of internet via mobile (other than social networking)
– “whats in it for me” should be asked of any digital campaign
• Social networks can have a big influence on brand perceptions and people trust
comments people say about brands online – need to ensure brands have an
active social media and Customer Experience Management strategy
• Online purchasing still low in SA – need to make people more familiar and
confident in using internet – need to bring down data costs before this can
happen
…and online pre-shop and shopping is likely to be predominantly via mobile
phone in future – need to be thinking mobile in terms of design and
consumer interaction