Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies

Transcription

1 Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Market Intelligence Report BRICdata John Carpenter House 7 Carmelite Street London EC4Y 0BS United Kingdom Tel: +44 (0) Fax: +44 (0) Reference code: TE0005MR Published: September

2 EXECUTIVE SUMMARY 1 Executive Summary Brazil China India Social media represents a valuable opportunity for banks and financial service companies in Brazil. As internet access increases, a growing number of Brazilians are becoming social networking users and banks are developing their processes accordingly to be able to respond to web-oriented consumers. Almost XX% of an average Brazilian s total online activity is spent on time social networking sites, making it one of the leading online activities in the country. Banks and financial services institutions are engaging customers on social media, which is shaping up as a strong channel for promoting new schemes, identifying customer needs and receiving feedback online. Brazilian banks have begun to use video sharing sites such as the YouTube for the purposes of posting videos relating to products and services, key developments, events and conferences. Banks are marketing their services by posting presentations and brochures on document sharing sites such as Slideshare. Banks have still not fully exploited the benefits pertaining to their presence on social networks and need to find more innovative ways to gain followers. Other challenges comprise the limited adoption of social networking by banks due to threats pertaining to negative brand perception. With almost one-third of the population connected to internet, social media has become a popular marketing tool in China. Popular websites such as Facebook, YouTube, and Twitter are banned by the Chinese government. There are two promising, government sanctioned, social networks in the country: Renren and Kaixin001. Social media marketing is still in its early stages in the banking, financial services and insurance (BFSI) sector in China. The low levels of adoption are primarily due to the amount of negative feedback posted by Chinese nationals on bulletin boards which allow users to anonymously post their experience of products and rigged negative product reviews posted by competitors. With more than XXX million users active on social networks, blogs, microblogs, and other online communities, China's social media user base is driving banks and financial institutes to maintain an active presence on social networks. Since the purchasing decisions of internet users in China are influenced by digital marketing campaigns, banks are increasing their presence on social network sites to connect to the customers. While YouTube is banned in China, netizens are active on video sharing platforms such as Youku and Tudou. Banks in China are adopting a cautious approach towards social media marketing, and are using this channel to inform consumers about products and services, share annual performance reports and educate consumers about account security. Restricted access to global social media platforms remains an impediment for social media marketing growth. Greater investment in analytics tools, dedicated social media teams and a focus on location-based marketing are some of the factors which will be key focus areas for financial services companies going forward. Banks and financial services companies are improving their presence on social media sites to promote new schemes, identify user needs and receive feedback. The increased usage of social media is driven by increasing internet penetration rates and a rise in the adoption of mobile phones. India s mobile subscriber base reached XXX million in March 2012, making mobile devices the preferred medium for accessing social networking sites. Facebook and Orkut are the leading social media sites in the country, while Twitter and micro blogging websites are gaining in popularity. Social media marketing is gaining in popularity in the Indian BFSI sector as banks are using this medium to educate consumers about new products and services, identify consumer needs and receive feedback. The rising competitiveness in public sector banks, coupled with increases in performance accountability, is driving nationalized banks to improve their presence on social networks. Private sector banks are using social media marketing to a great extent, with banks such as ICICI Bank leading social media marketing initiatives. Social media penetration remains limited to urban India. Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 2

3 EXECUTIVE SUMMARY Indonesia Russia While private banks are improving their social media presence, nationalized banks are starting to adopt social media marketing strategies. Insurance companies are beginning to employ social media marketing strategies to heighten their competitive differentiation. State-owned life insurance company, Life Insurance Corporation (LIC) of India and other private insurance companies are actively using social networking sites to educate consumers about insurance products and to highlight the benefits pertaining to owning coverage. Moving away from urban centers and penetrating rural markets with social media marketing services will be a key focus area over the medium-term future. Most banks and insurance companies create social media marketing content in English, which excludes subscribers who are not well versed in English and therefore almost exclusively use Indian-language social media sites. Social media is expected to play a larger role in the overall marketing strategy of BFSI companies in the future, as consumers place a greater emphasis on social networks to derive information and receive peer-level recommendations. With XX million internet users of which XX% are mobile internet consumers Indonesia is becoming a key market for all social networking sites, with Twitter and Facebook reporting a significant growth in market penetration rates. Being a key market for social networking, Indonesia is a vital territory for banks to establish a social network presence. Indonesians are highly active on social networks and most interactions are conducted over smartphone platforms. A new set of companies is emerging in Indonesia, which aim to combine social networking with e-commerce, driving the social media presence of financial service companies. Digital sales have significant potential as the financial services sector is driven by the rising popularity of smartphones. Attractive data plans offered by telecom operators, coupled with a growing network of merchants, is anticipated to drive the social commerce market. Though companies in Indonesia s BFSI sector have made investments to strengthen their social media presence, little has been done to structure and analyze the results of social media interactions. Social media s growing user base has driven banks and financial services companies to establish a presence on such sites. However, most companies don't have a dedicated social media strategy. The future of social media marketing in Indonesia lies in increased access through smartphone platforms, the integration of technologies such as augmented reality, location-based services and a greater focus on social media based commerce. In Russia, social media marketing is recording strong levels of growth as internet penetration rates increase, and mobile subscriber rates rise. Social networking is a key driver of mobile internet usage as Russians use their mobile phones to access social networking sites such as Odnoklassniki.ru and Vkontakte.ru. In addition to informing consumers about new products and services, addressing complaints and seeking feedback, banks have begun to advertise their charity-related initiatives on social networks involving their fan base in such initiatives to build brand equity and creditability. The next steps for social media marketing include the integration of social networks with bank's existing internet banking applications. Video sharing sites attract a high volume of traffic in Russia, which is driving banks and financial services companies to use this platform to post videos related to initiatives and investor presentations. Russian banks are improving their presence on social networks and the next step for these banks is the integration of internet banking with social networks. Banks are also aiming to provide remote access to banking services through social media platforms such as Facebook, Classmate, Twitter and In Touch. A high volume of traffic to blogging sites presents financial services companies with opportunities to build brand equity. Linguistic barriers for non-russian companies are a key challenge with regards to posting on social networks. Russian firms will continue to use video marketing campaigns and social gaming to heighten the awareness of their brand. Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 3

4 EXECUTIVE SUMMARY South Africa South Korea With XX million active mobile devices in the country, smartphones are the preferred medium for accessing the internet and social networks in South Africa. South Africa has an active social networking user base with MXit reporting more than XX million registered users and XX,XXX new registrations per day. Social media is increasingly being used as a marketing tool in South Africa s BFSI sector. Financial services companies are using this tool to promote and educate consumers about their products and services in addition to addressing consumers concerns. First National Bank is using social media platforms to distribute basic banking products. A new set of companies focused on social lending and borrowing are expected to help evolve the nation s social media marketing practice. Social networks are underutilized as a marketing tool in South Africa, and typically firms don't have a wellformulated social media strategy. While there is an increased in the uptake of social media marketing, the platform is primarily being used as a communication and advertising tool. It is anticipated that in the future companies will invest in analytics tools to use this platform to obtain useful information about user segments and key demographics, to help create more customized offerings. South Korea is well known for its high levels of internet connectivity. The nation has an internet penetration rate of over XX% due to government investments in developing communications infrastructure, coupled with low-cost data access plans. South Korea remains one of the few countries where local social networks dominate over popular social networking sites such as Facebook and Twitter. Cyworld is the nation s leading social networking site, with over XX million users. The high usage of social networks is driving banks and financial institutes to adopt social media marketing to better communicate with consumers. Social networks, blogs, video sharing sites and social commerce are some of the country s most popular sites, creating an attractive platform for marketing and advertisements. In countries such as South Korea, where the adoption of local social networking sites is greater than other global social networks such as Twitter and Facebook, companies are required to customize their communication strategy to suit local users. UAE With a mobile phone penetration rate of over XXX%, mobile devices are the medium of choice for social network access with more than XX% of mobile phones in UAE being smartphones. Social media marketing is gaining in popularity, however, companies are typically using it to inform consumers about their credit card campaigns and other such product launches, little is being done with respect to the analysis of the social media communication of users to better understand their needs and preferences and customize products accordingly. Video sharing sites are growing in popularity and are being used by banks as a channel to reach end users. The biggest challenge to social media marketing remains the severe punishments imposed by the courts for defamation on social networks. In addition to this, the government has banned Orkut, flicker, and Hi5. Well-defined social media strategies and the rise of smartphones as a platform for social media interaction are considered the key growth drivers. Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 4

5 TABLE OF CONTENTS TABLE OF CONTENTS 1 Executive Summary Social Media Marketing Opportunities in Brazil Introduction to Social Media Marketing in the BFSI Sector in Brazil Key social networking sites in Brazil Social media marketing in the BFSI Sector Key Social Media Marketing Trends in the BFSI Sector in Brazil Case Example Banco Central do Brasil (BCB) Brazilians banks and their presence on social networks Challenges Future of Social Media Marketing in the BFSI Sector in Brazil Social Media Marketing Opportunities in China Introduction to Social Media Marketing in the BFSI Sector in China Key social networking sites in China Social media marketing in the BFSI sector Key Social Media Marketing Trends in the Chinese BFSI Sector Case Examples China Merchants Bank (CMB) Challenges Future of Social Media Marketing in China Social Media Marketing Opportunities in India Introduction to Social Media Marketing in India s BFSI Sector Key Social Networking Sites in India Social media marketing in India s BFSI sector Key Social Media Marketing Trends in the BFSI Sector in India Case Examples ICICI Prudential Life Insurance HDFC Bank Challenges Future of Social Media Marketing in the BFSI Sector in India Social Media Marketing Opportunities in Indonesia Introduction to Social Media Marketing in the Indonesian BFSI sector Key social networking sites in Indonesia Social media marketing in the BFSI sector Key Social Media Marketing Trends in Indonesia s BFSI Sector Case Examples Bank Mandiri Challenges Future of Social Media Marketing in Indonesia s BFSI Sector Social Media Marketing Opportunities in Russia Introduction to Social Media Marketing in Russia s BFSI sector Key social networking sites in Russia Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 5

6 TABLE OF CONTENTS Social media marketing in Russia s BFSI sector Key Social Media Marketing Trends in the Russian BFSI Sector Case examples Promsvyazbank Sberbank Challenges Future of Social Media Marketing in the Russian BFSI Sector Social Media Marketing Opportunities in South Africa Introduction to Social Media marketing in the South African BFSI sector Key social networking sites in South Africa Social media marketing in South Africa s BFSI sector Key social media marketing trends in South Africa s BFSI Sector Case Examples First National Bank Standard Bank Challenges Future of social media marketing in South Africa Social Media Marketing Opportunities in South Korea Introduction to Social Media Marketing in South Korea s BFSI Sector Key Social Networking Sites in South Korea Social media marketing in the BFSI sector Key Social Media Marketing Trends in South Korea s BFSI Sector Case Examples Kookmin Bank Citibank Korea Challenges Future of Social Media Marketing in South Korea Social Media Marketing Opportunities in the UAE Introduction to Social Media Marketing in the UAE s BFSI Sector Key social networking sites in the UAE Social media marketing in the BFSI Sector Key Social Media Marketing Trends in the UAE Case Examples Standard Chartered Mashreq Bank Challenges Future of Social Media Marketing in the UAE Appendix What is this Report About? Definitions Methodology Disclaimer Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 6

7 TABLE OF CONTENTS LIST OF FIGURES Figure 1: Social Networking Sites in Brazil by Total Unique Visitors, Dec 2010 vs Dec Figure 2: Facebook vs Orkut, User Growth Comparison, Brazil Figure 3: Banco do Brasil with an active presence on video sharing site, YouTube Figure 4: Banks Using Slideshare in Brazil Figure 5: Uploaded video views of Banco Central do Brasil Figure 6: Snapshot of Banco Central do Brasil s Twitter Presence Figure 7: Bank of Brazil, the Most Cited Bank on Social Networks in Brazil Figure 8: Twitter Remains the Most Popular Social Networking Site Among Financial Services Companies Figure 9: Barriers in Adopting Social Media, March Figure 10: Frequency of Social Network Visits by Chinese Users Figure 11: Snapshot of Social Media in China, Figure 12: High Percentage of Chinese Internet Users Refer to Digital Media before Making Purchases Figure 13: Chinese Users Share More Negative than Positive Reviews on Social Networking Sites Figure 14: Leading Social Networking Sites in India, July Figure 15: Fan Growth of Indian Banks on Social Networking Sites Figure 16: Internet Activity of Urban and Rural Population in India Figure 17: Snapshot of Living Your Passion, a Social Initiative Launched by ICICI Bank Figure 18: Adoption of Living Your Passion, a Social Initiative Launched by ICICI Bank Figure 19: HDFC Bank Advertising Products on Social Networks by Posting Similar News Articles Figure 20: Social Networking Users in India, Figure 21: Social Networking Users in Indonesia, 2011 (in millions) Figure 22: Social Network Users in Selected Countries (as a Percentage of Internet Users), May Figure 23: Snapshot of Wishkoo.com, Combining Social Networking with E-Commerce Figure 24: Usage of E-Commerce Sites by Indonesians Figure 25: Snapshot of Mandiri Fiesta Adverts on Facebook Figure 26: Mobile Consumers in Indonesia, December Figure 27: Snapshot of Social Media in Russia, Figure 28: Average Hours Spend on Social Networking Sites per Visitor in Russia, October Figure 29: Snapshot of Promsvyazbank s social media initiative launched on Facebook Figure 30: Online Savings App. Launched by Sberbank, Combining Social Media with Mobile Applications Figure 31: Social Networking Users in South Africa, Figure 32: Snapshot of RainFin, Providing P2P Social Lending in South Africa Figure 33: Majority of South African Social Networking Users Track their Banks on Facebook Figure 34: Snapshot of RbJacobs Twitter Wall, FNB s Social Networking Face Figure 35: Snapshot of Online Spat Between FNB and Standard Bank Figure 36: Handset Type Amongst Mobile Users Aged Years (Primary Phone) Figure 37: Incidence of Application Usage and Median Number of Applications Used Figure 38: Snapshot of KB Dream Talk Installment Savings Account Launched by Kookmin Bank Figure 39: Areas of Social Media Requiring Improved Approaches Figure 40: The UAE Leads Facebook Penetration Rates in the Arab Region, (%), December Figure 41: Number of Active Twitter Users in Arab Nations Figure 42: Survey Results Depicting the Value of Social Media in UAE, Figure 43: Snapshot of Mashreq Bank s Presence on Facebook Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 7

8 TABLE OF CONTENTS LIST OF TABLES Table 1: Market Environment for Social Media Marketing in Brazil... 9 Table 2: Response rate of Brazilian Banks on Consumer Complaints Posted on Social Networks Table 3: Market Environment for Social Media Marketing in China Table 4: Market Environment for Social Media Marketing in India Table 5: Presence of Private and Nationalized Banks on Social Networks Table 6: Market Environment for Social Media Marketing in Indonesia Table 7: Market Environment for Social Media Marketing in Russia Table 8: Presence of Banks and Insurance Companies on Social Networks in Russia Table 9: Top-10 Russian Online Video Sites by Total Unique Viewers (000) May Table 10: Market Environment for Social Media Marketing in South Africa Table 11: Market Environment for Social Media Marketing in South Korea, Table 12: Top Global Market, Blogs Usage, June Table 13: Personal Information Leaked from Social Networks in South Korea Table 14: Market Environment for Mobile Marketing in UAE, Table 15: BRICdata Social Media Marketing Definitions Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 8

9 SOCIAL MEDIA MARKETING OPPORTUNITIES IN THE BFSI SECTOR IN BRAZIL 2 Social Media Marketing Opportunities in Brazil This chapter provides insights into the current status of social media marketing in Brazil s BFSI sector, and details how this is likely to evolve in the future. Section 2.1 provides an introduction to social media marketing highlighting the business, infrastructure and consumer drivers. Section 2.2 provides information on the key trends in the social media marketing sector. Section 2.3 provides specific case examples followed by key challenges, in section 2.4, and the future direction of social media marketing in section Key social networking sites in Brazil Orkut was the leading SNS in Brazil in 2010; Facebook overtook Orkut for the first time in August 2011 In December 2011, the total unique visitors to Facebook registered an annual growth rate of XXX%, representing XX.X million users. The average pages visited per visitor rose from XX in December 2010 to XXX in December 2011 with average minutes per visitor measuring XXX.X in December Figure 1: Social Networking Sites in Brazil by Total Unique Visitors, Dec 2010 vs Dec , % Facebook.com 36,098 Orkut 32,671 34,419 5% Windows Live Profile 11,801 13,301 13% Twitter.com 8,939 12,499 40% 2010 Vostu.com 1,120 4, % 2011 % Change 0 Google Plus 4,300 Tumblr.com 1,319 4, % LinkedIn.com 0 3,182 Source: comscore BRICdata Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 9

10 SOCIAL MEDIA MARKETING OPPORTUNITIES IN THE BFSI SECTOR IN CHINA 3 Social Media Marketing Opportunities in China This chapter provides insights into the current status of social media marketing in the BFSI sector in China and how this is likely to evolve in the future. Section 3.1 provides an introduction to social media marketing highlighting the business, infrastructure, and consumer drivers. Section 3.2 provides information on the key trends in the social media marketing sector. Section 3.3 provides specific case examples followed by key challenges in section 3.4 and future direction of social media marketing in section Key social networking sites in China The online landscape in China varies significantly from other economies. Popular websites such as Facebook, YouTube, and Twitter are banned under government sanctions. Despite internet users having profiles on multiple social networks, the county s two leading social networks are: Renren and Kaixin001. Figure 10: Frequency of Social Network Visits by Chinese Users Five or above Five Social Network, 27.1% One Social Network, 27.1% Four Social Network, 8.9% Two Social Network, 27.2% Three Social Network, 29.1% Source: iresearch China BRICdata Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 10

11 SOCIAL MEDIA MARKETING OPPORTUNITIES IN THE BFSI SECTOR IN INDIA 4 Social Media Marketing Opportunities in India This chapter provides insights into the current status of social media marketing in the BFSI sector in India and how this is likely to evolve in the future. Section 4.1 provides an introduction to social media marketing highlighting the business, infrastructure, and consumer drivers. Section 4.2 provides information on the key trends in the social media marketing sector. Section 4.3 provides specific case examples followed by key challenges in section 4.4 and future direction of social media marketing in section Key Social Networking Sites in India Facebook and Orkut are the largest social media sites in the country, while Twitter and micro blogging websites are gaining momentum. Figure 14: Leading Social Networking Sites in India, July 2010 Total Unique Visitors ('000) 25,000 20,000 20,873 19,871 15,000 10,000 5,000 4,432 3,341 3,267 0 Facebook Orkut Bharat Student Twitter Linkedin Source: BRICdata analysis BRICdata Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 11

12 SOCIAL MEDIA MARKETING OPPORTUNITIES IN THE BFSI SECTOR IN INDONESIA 5 Social Media Marketing Opportunities in Indonesia This chapter provides insights into the current status of social media marketing in the BFSI sector in Indonesia and how this is likely to evolve in the future. Section 5.1 provides an introduction to social media marketing highlighting the business, infrastructure, and consumer drivers. Section 5.2 provides information on the key trends in the social media marketing sector. Section 5.3 provides specific case examples followed by key challenges in section 5.4 and future direction of social media marketing in section Key social networking sites in Indonesia According to the Pew Research Center, emerging markets such as Indonesia have a higher social media penetration as a percentage of internet users compared to developed markets. This trend is primarily observed in countries with low internet penetration rates. Indonesia social network penetration as a percentage of internet users measured XX% compared to XX% in the US in May Figure 22: Social Network Users in Selected Countries (as a Percentage of Internet Users), May 2011 Indonesia 86% Russia 86% India 72% USA 60% Mexico 59% China 56% Source: Pew Research Center BRICdata Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 12

13 SOCIAL MEDIA MARKETING OPPORTUNITIES IN THE BFSI SECTOR IN RUSSIA 6 Social Media Marketing Opportunities in Russia This chapter provides insights into the current status of social media marketing in Russia s BFSI and how this is likely to evolve in the future. Section 6.1 provides an introduction to social media marketing highlighting the business, infrastructure, and consumer drivers. Section 6.2 provides information on the key trends in the social media marketing sector. Section 6.3 provides specific case examples followed by key challenges in section 6.4 and future direction of social media marketing in section Key social networking sites in Russia Social media has become an integral part of everyday life for many internet subscribers in Russia. In 2011, XX.X million internet users or XX% of the online population were members of social networking sites. Russian internet users are known to be one of the heaviest users of social networking sites globally. Figure 27: Snapshot of Social Media in Russia, 2011 Online Population 66.5 million in % or 49.9 million internet users registered on social networking sites in Russia in % In 2010, Russian internet users were ranked#1 globally in terms of time spent online on social networking sites 75% In 2010, Vkontakte.ru was the leading social networking site in Russia with 27.8 million visitors, followed by Odnoklassniki with 16.7 million visitors Over 25% of the internet users conduct research on social media websites before making a purchase Presence on Social Networking Sites Yet to register on Social Networking Sites Source: BRICdata analysis and comscore BRICdata Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 13

14 SOCIAL MEDIA MARKETING OPPORTUNITIES IN THE BFSI SECTOR IN SOUTH AFRICA 7 Social Media Marketing Opportunities in South Africa This chapter provides insights into the current status of social media marketing in South Africa s BFSI sector in and how this is likely to evolve in the future. Section 7.1 provides an introduction to social media marketing highlighting the business, infrastructure, and consumer drivers. Section 7.2 provides information on the key trends in the social media marketing sector. Section 7.3 provides specific case examples followed by key challenges in section 7.4 and future direction of social media marketing in section 7.5. Use of social networks remains limited in South Africa Although the main South African banks have begun to utilize social media marketing, its adoption still remains limited. According to a survey conducted by online research company Columinate, while XX% of internet banking customers login to access internet banking services X X times every week, XX% of these spend less than XX minutes accessing internet banking services. In addition, only XX% of the surveyed respondents stated that they follow their banks on social networks. The survey highlights that the most popular internet banking activities include accessing account statements (XX%), money transfers (XX%), and setting up recurring beneficiary payments (XX%). Figure 33: Majority of South African Social Networking Users Track their Banks on Facebook Facebook 92% Twitter 27% 14% of the surveyed user base stated that they follow their bank on social networks, out of those people, 92% follow on facebook, 27% on LinkedIn 12% Source: Columinate BRICdata Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 14

15 28% 33% 42% 49% 48% 70% 72% 73% 74% 75% 81% 90% 72% 67% 58% 51% 52% 30% 28% 27% 26% 25% 19% 10% SOCIAL MEDIA MARKETING OPPORTUNITIES IN THE BFSI SECTOR IN SOUTH KOREA 8 Social Media Marketing Opportunities in South Korea This chapter provides insights into the current status of social media marketing in South Korea s BFSI sector in and how this is likely to evolve in the future. Section 8.1 provides an introduction to social media marketing highlighting the business, infrastructure, and consumer drivers. Section 8.2 provides information on the key trends in the social media marketing sector. Section 8.3 provides specific case examples followed by key challenges in section 8.4 and future direction of social media marketing in section Key Social Media Marketing Trends in South Korea s BFSI Sector Social networks, blogs, video-sharing sites and social commerce are some of the most popular sites in South Korea making it an attractive platform for marketing and advertisements purposes. Social media is one of the most popular sites accessed through smartphones In South Korea smartphone sales have outnumbered the sale of feature phones. Figure 36: Handset Type Amongst Mobile Users Aged Years (Primary Phone) Feature Phone Users Smartphones Users Source: Nielsen s Smartphone Insights Study BRICdata Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 15

16 SOCIAL MEDIA MARKETING OPPORTUNITIES IN THE BFSI SECTOR IN UAE 9 Social Media Marketing Opportunities in the UAE This chapter provides insights into the current status of social media marketing in the UAE s BFSI sector and how this is likely to evolve in the future. Section 9.1 provides an introduction to social media marketing highlighting the business, infrastructure, and consumer drivers. Section 9.2 provides information on the key trends in the social media marketing sector. Section 9.3 provides specific case examples followed by key challenges in section 9.4 and future direction of social media marketing in section Key social networking sites in the UAE Facebook had a penetration rate of XX% in UAE as of December 2010 as stated by Arab Social Media Report. Figure 40: The UAE Leads Facebook Penetration Rates in the Arab Region, (%), December UAE Israel Bahrain Qatar Lebanon Kuwait Source: Arab Social Media BRICdata Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 16

17 APPENDIX 10 Appendix 10.1 What is this Report About? This report provides in-depth analysis of social media marketing strategies adopted by companies in the BFSI sector in multiple countries. The report provides a detailed understanding of how social media platform is being used by financial services companies to identify new markets, launch products, gather customer feedback and monitor brand performance. The report provides insights into market trends, drivers, opportunities and challenges. It also provides insights into future social media marketing strategies adopted by banks and other financial services companies to strengthen market position Definitions The key market categories featured in the report are defined below: Table 15: BRICdata Social Media Marketing Definitions Market Social media Social media marketing Source: BRICdata analysis Definition Social media in this report refers to online communities and networking sites enabling forums for sharing and discussing information. The primary focus of this reports research has been key social networking sites such as Facebook, YouTube, Twitter, and Orkut. Social media marketing refers to all the steps involved in marketing product idea generation, promotion, and consumer feedback executed through online communities, social networks and blogs. BRICdata Our areas of expertise BRICdata operates a dedicated, multilingual team of in-house industry analysts with significant experience of global and country-level research. BRICdata also maintains data and research partnerships with other research companies, industry experts and trade associations, along with a network of independent industry consultants and former industry participants contributing research and reports to bring additional insight and expertise in more specialist areas. BRICdata s research offering spans the following industry areas: Construction BRICdata publishes reports covering the entire construction value chain: construction materials, equipment, construction services, architectural services and interior design. It also covers the main value sectors of construction activity: commercial, infrastructure, industrial, institutional and residential. This comprehensive view of the market enables BRICdata to detail key growth sectors and countries and identify the most attractive industry opportunities. Consumer goods Covering a broad range of areas across the consumer goods market, from interior products to fast-moving consumer goods (FMCG), ingredients, and packaging, BRICdata offers a comprehensive insight into key consumer sectors across fast-growing markets, identifying key trends, future innovations and growth opportunities. Comprehensive data sets including unique primary survey-driven research creates accurate market forecasts and understanding of the factors driving consumption behavior. Financial services Providing detailed insights into insurance and banking markets, BRICdata s financial services reports identify key market opportunities, emerging technologies and channel strategies. The reports provide unique data combined with local examples of best practice and expert insights into the market. Retail BRICdata maintains a comprehensive database of forecasts of retail spending, along with a series of unique indicators enabling a forward view of retailers prospects in emerging markets. The reports identify emerging concepts in retail, including the nascent online and mobile retail sectors in the BRIC countries and other emerging markets. Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 17

18 APPENDIX Technology BRICdata tracks key trends and innovations, emerging technologies and markets, and the key operators in both emerging markets and technologies. Covering a range of emerging and disruptive technologies including telecoms, social media, online and mobile retailing, and telemedicine, BRICdata examines strategies for success, the state of the competitive landscape and the inherent threats and opportunities in the emerging technological economy Methodology All BRICdata reports are rigorously sourced and created according to a comprehensive, two-stage methodology. This includes internal audit and primary research. A) Internal audit Review of in-house databases to gather existing data: o Historic market databases and reports o Company database o projects database B) Primary research Review of the latest company strategy and asset management trends 1) Research A. Sources Collection of the latest market-specific data from a wide variety of industry sources: o Government statistics o Industry associations o Company filings o Broker reports o International organizations B. Expert opinion Collation of opinion taken from leading industry experts Analysis of third-party opinion and forecasts: o Broker reports o Industry associations o Official government sources C. Data consolidation and verification Consolidation of data and opinion to create historical datasets Creation of models to benchmark data across sectors and geographies 2) Research Analysis Market forecasts Feed of forecast data into market models: o Macroeconomic indicators o Industry-specific drivers Analysis of Market Databases to identify trends by sector: o Latest trends o Key drivers of the market 3) Report Writing Analysis of market data Discussion of company and industry trends and issues Integration of survey results Annual review of trends Standardization of market definitions using recognized industry classifications Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 18

19 APPENDIX 4) Quality Control A. Templates Detailed process manuals Standardized report templates and accompanying style guides Complex forecasting tool used to ensure forecast methodologies are consistently applied QC checklists B. QC process Peer review Senior-level QC Random spot checks on data integrity Benchmark checks across databases Market data cross-checked for consistency with accumulated data from company filings 10.4 Disclaimer All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, BRICdata. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that BRICdata delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy BRICdata is not always in a position to guarantee. BRICdata can, therefore, accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect. Social Media Marketing Strategies Adopted by Financial Services Industry in Emerging Economies Page 19