De-Coding Digital Trends Ireland Job No: (1)

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1 De-Coding Digital Trends Ireland 2011 Job No: (1)

2 The Key Trends 1. The smartphone factor + 2. The impact of social media = Increasing time online Sources: 1. Primary Research survey conducted in early March 2011 by RED C among a representative sample of 500 online adults aged WIN global alliance survey of 29,000 adults worldwide 3. Internet World Stats, Neilson, ITU (2)

3 Internet Access has grown substantially in Ireland 65% Internet Access 35% 50% 21% Poor broadband coverage Mobile broadband launched National Broadband Scheme rolled out Mobile Smartphone growth (Source: ITU, Nielson, C.I.Almanac) (3)

4 Internet Access - Ireland vs. Europe Iceland Norway Sweden Netherlands Denmark Finland United Kingdom Germany Belgium Switzerland France Ireland Czech Republic Spain Hungary Poland Serbia Italy Croatia Portugal Greece Turkey Russia Romania Ukraine (Source: Internet World Stats) 35.50% 33.70% 68.90% 65.80% 65.50% 62.60% 61.80% 58.40% 55.90% 51.70% 50.00% 48.10% 46.20% 45.00% 42.80% 97.60% 94.80% 92.50% 88.60% 86.10% 85.30% 82.50% 79.10% 77.80% 75.30% A significant improvement in our position over the past 5 years (4)

5 Who is online? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Total Male Female ABC1 C2DE F Gender Age Class (Source: RED Express National Survey) (5)

6 The big change in the recent past, and for the near future, is all about how we are accessing the Internet (6)

7 Two factors underpin the evolution in online behaviour 1. Device timeline 2. A shift in consumer rationale (7)

8 1. Device timeline FIRSTLY internet portability more common place (8)

9 1. Device timeline SECONDLY comfort with mobile internet devices grows (9)

10 1. Device timeline internet portability more common place comfort with mobile internet devices grows Decreased reliance on computers to conduct social media activities (10)

11 2. Shift in consumer rationale FIRSTLY an increasing desire to be connected at all times (11)

12 2. Shift in consumer rationale SECONDLY increasing use of mobile devices in general (12)

13 2. Shift in consumer rationale increasing desire to be connected at all times increasing use of mobile devices in general Devices preferred are those other than desk/laptop computers (13)

14 Everyone in the world has a phone! 3.8 billion people have access to adequate sewage worldwide 4 billion have mobile phones (14)

15 The worldwide mobile phone market grew 18% in the fourth quarter of 2010, a new quarterly high driven by demand for smartphones. Feature phone users looking to do more with their devices will flock to smartphones in the years ahead. This trend will help to drive the smartphone submarket to grow 43.7% year over year in (IDC MD Worldwide Quarterly Mobile Phone Tracker) (15)

16 Device ownership in Ireland already sees Smartphone ownership among internet users at more than a third STATIC PARTIALLY MOBILE FULLY MOBILE CURRENT OWNER SHIP 57% 82% 35% 8% Desktop PC Laptop Smartphone Tablet (16)

17 Claimed future purchase suggests over 50% growth in smartphone penetration in next 12 months STATIC PARTIALLY MOBILE FULLY MOBILE POTENTIAL GROWTH NEXT 12 MTHS OWNER SHIP 2% 57% 6% 82% Smart phone ownership could overtake desktops in 12 months time 20% 35% 17% 8% Desktop PC Laptop Smartphone Tablet (17)

18 Vodafone Ireland reports almost one in two devices sold in December was a smartphone. The market of the smartphone is growing so fast and it won t be very long until the vast majority of handsets, certainly in UK and Irish markets, will be smartphones, Jon French, HTC. (18)

19 7% of all the time spent online in Ireland is already done via smartphone devices Smartphone Tablet 2% 7% 16% Work PC Home PC/Laptop 75% based on increased smartphone ownership, this is likely to hit 10-12% in next 12 months (19)

20 This developing internet access channel, appears to be adding to the total time consumers spend online (20)

21 Over two thirds say they are spending more time online than last year.. Time Online vs. Last Year % Projected time spent online 12 Months From Now % INCREASE DECREASE 6 and many feel time online will continue to increase next year 8 (21)

22 In fact, average time spent online now mirrors time spent watching TV TV 2hrs 49 minutes Online 2hrs 44 minutes Radio 2hrs News 37 minutes..a significant increase in the past 2 years, when it stood at approximately 2 hrs (22)

23 Underlying this is the desire to be connected... with social media driving time online (23)

24 Activites consumers conduct online, suggest that much is based around social media activity Read/watch news Net shopping/auctions Browse postings Post messages Watch movies/videos/tv Update profiles Listen to music/stream Post photos Download music Employment search Online Chat Video Download Making social plans Music upload Online gaming Video upload Create blog Daily 22 % Weekly 22 % Less Often % (24)

25 At the same time active use of social media in Ireland is high - with Facebook dominating Job 76% 1 11 Both Personal 64 22% % % Facebook Linked In Twitter Bebo (25)

26 Irish consumer subscription to Facebook is one of the highest in the world Canada Australia USA Italy Ireland Spain UK India Worldwide France Saudi Arabia Pakistan Romania Qatar Russia (Source: WIN Global Social Media Survey) (26)

27 Smartphones facilitate social media connections more frequently Tablet Phone % % % % % Laptop Desktop Facebook Linked In Twitter Blog YouTube (27)

28 This increased engagement with social media, appears to be what is driving increased time online generally TIME SPENT ONLINE Other activities 3 hrs 34 mins 2 hrs 54 mins 2 hrs 44 mins 2 hrs 2 mins 2 hrs 24 mins Message Boards/ Blogs Social Media Sites Age (28)

29 Future Consumer Desires for online are all around mobile Based on the WIN global alliance survey of 29,000 adults worldwide, consumers want an improved mobile experience particularly in the following areas Improved connection speeds More reliable wireless Improved device bigger screens, better picture quality, touch screens Better mobile enhanced websites. (Source: WIN Global Social Media Survey) (29)

30 What does this mean for marketeers? The potent combination of fast growing social media engagement, and the increased availability of smartphone connection, will mean time spent online will continue to grow. This online media interaction is over and above other media consumption, rather than a replacement and often compliments other media. Brands need to utilise the consumer desire for connection and build campaigns that facilitate and engage consumers during connections, rather than impose on this time, in order to take advantage of this consumer interface. (30)

31 Appendix (31)

32 Ireland Methodology 500 interviews online conducted with a quota controlled representative sample of all adults aged 18+ who are online. Quotas set and data weighted to the known demographic breakdown of all online adults. Fieldwork conducted between the 14 th and 21 st March 2011 using the RED C online panel Sample error on a sample of 500 = + or 4.4% (32)

33 International WIN Methodology The first wave of the WIN Global Trend Tracker on Social Media interviewed 28,944 respondents over the age of 16 years old with particular emphasis on those of 18 to 42 years of age. The survey was conducted from March 1st to April 7th 2010 in 27 countries throughout the world. The margin of error per country is between +/- 1.87and5.35%, 19outof20times. Thetable totherightpresents asummaryofthe methodology used in each country to conduct this survey: Each sample is representative of its country s population in terms of socio-demographic variables. Sample sizes ensure accurate generalizations to the total population and allow a very precise interpretation of the results. Country Firm Method # Respondents Margin of Error Australia Colmar Brunton Online Austria Gallup Austria CATI Omnibus Brazil Ibope Inteligencia Face-to-Face Omnibus Bulgaria BBSS Face-to-Face Omnibus Canada Leger Marketing Online China CRC Research Online France BVA Online Germany Produkt und Markt CATI Omnibus Iceland Capacent Online India MaRS Face-to-Face Italy Doxa Online Japan NRC Research Online Korea Gallup Korea Online Kuwait PARC CATI Netherlands Marketresponse Online Pakistan Gallup Pakistan Face-to-Face Omnibus Poland Mareco Face-to-Face Omnibus Qatar PARC CATI Romania BBSS Face-to-Face Omnibus Russia Romir Online Saudi Arabia PARC CATI Serbia BBSS Face-to-Face Spain Instituto DYM Online Turkey Barem Research Online United Arab Emirates PARC CATI U.S.A. TRiG Online United Kingdom ICM Research Online Omnibus (33)

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