CONSUMER CONNECTIONS IN A CONVERGING WORLD OF SCREENS

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CONSUMER CONNECTIONS IN A CONVERGING WORLD OF SCREENS Highlights of Nielsen Research: Meet the New Media Consumer in Singapore, 2014 Sponsored by Videology

TODAY S CONSUMER IS ON A NEW MEDIA JOURNEY Right Time Right Place Right Screen 2

NEW RESEARCH HELPS ADVERTISERS PLOT THE COMPLEX COURSE Nielsen s Singapore Cross-Platform Report Sponsored by Videology 1,000 respondents surveyed Online users aged 16 years and above Demographics quotas ensured sample representation Respondents could reply on any connected device Responses collected April and May 2014 3

KEY THEMES 1 2 3 4 Consumers are more connected than ever before. Consumers crave content, and they want it how and when they want it Source: Nielsen Cross-Platform Series, 2014 Singapore As a result, video consumption in particular is escalating, as the majority of Singaporeans now watch Internetsourced TV content. Consumers are actively shaping their own media experiences, from new device adoption to multi-screening consumption behaviour. 4

1 INCREASING CONNECTIVITY Singaporean households have access to more connected technology than ever before More devices to access content More platforms for media companies to monetize audiences More opportunity for brands to engage consumers 5

INCREASING CONNECTIVITY CONSUMERS IN SINGAPORE SPEND OVER 25 HOURS PER WEEK ONLINE OUTSIDE OF WORK Singaporeans are actively engaged online, spending the equivalent of 3 full work days online each week Average total time spent online each week for personal purposes, via any device 25.2 29.3 27.3 25 24.9 25.1 25.4 23 27.2 27.3 25.7 26.3 24.5 23 22.9 20.1 2014 2011 Total Male Female 16 20 21 29 30 39 40 49 50+ 6

INCREASING CONNECTIVITY TECHNOLOGY HAS SHIFTED Tablet usage has tripled in three years, and 94% of Singaporeans own a smartphone Owned technology among online Singaporeans (Smartphone is personal ownership, all other devices are household ownership) 94 87 85 86 2014 2011 70 77 76 68 72 64 63 74 56 42 41 39 45 23 26 0 0 0 Smartphone Home Internet Connection Laptop/Notebook Wireless LAN Pay TV Tablet Desktop Computer Connected TV Smart TV Connected TV via Separate Device Games Console Connected TV combines Smart TV and TV which connects to the internet via a separate device. 7

INCREASING CONNECTIVITY PHONES & TABLETS HAVE OPENED NEW WINDOWS TO CONNECTIVITY Phones rival laptops in most regularly used devices to access internet Devices used for internet access 84 84 67 67 68 Ever Accessed 29 37 46 26 48 Regularly Accessed Most Often Accessed 28 6 16 4 6 0 10 3 0 10 3 0 2 0 Mobile Phone Laptop/Notebook Desktop Computer Tablet Connected TV Games Console Handheld Media Player PVR/DVR 8

INCREASING CONNECTIVITY MEANWHILE, TRADITIONAL DEVICE USAGE IS DECLINING Compared to 2011, smartphone and tablet usage is growing, while traditional device usage has declined Devices ever used for internet access 84 84 79 93 88 68 2014 48 2011 34 16 17 23 10 10 28 6 16 Smartphone Laptop/Notebook Desktop Computer Tablet Connected TV Games Console Handheld Media Player PVR/DVR 9

2 MORE CONTENT, MORE CONSUMPTION Consumers crave content, and are accessing it in more ways than ever A seemingly endless list of content sources Digital media being consumed throughout the entire day The growth of portable media being used throughout the day 10

MORE CONTENT, MORE CONSUMPTION THERE IS MORE VIDEO CONTENT THAN EVER FOR SINGAPOREANS TO CONSUME Consumers are spending most of their media time consuming rich content (video and audio) Total average hours per week for personal purposes (among activity user base) 9.5 9.1 8.8 7.6 6.4 5.9 5.9 5.8 5.6 5.1 4.9 3.8 3.1 Total Internet TV Illegal (pirated) sources of TV shows or movies downloaded/str eamed from the Internet Broadcast TV Accessing the Internet via mobile phone Watching online videos (excluding TV programs and movies) Listening to the radio Accessing the Internet via a tablet Legal Internet sources of movies and TV programs Playing games on a PC, laptop, mobile device or console TV snippets or entire shows streamed on YouTube Time-shifted TV Accessing news online, on websites or apps Reading a newspaper 11

MORE CONTENT, MORE CONSUMPTION ONLINE MEDIA IS AN EVER-PRESENT PART OF CONSUMERS DAYS Digital media is constantly being consumed in Singapore Online activities across day-parts (as a proportion of total online population) 80 70 60 Online dominates consumption during the day Online Prime Time 50 40 30 Using the Internet Listening to the Radio Reading Print Newspaper Watching Traditional TV 20 10 Before 9am 12pm 2pm 4pm 6pm 8pm 10pm After 10pm 12

MORE CONTENT, MORE CONSUMPTION DIFFERENT DEVICES ARE USED TO CONNECT AT DIFFERENT TIMES OF THE DAY Smartphone content constantly being accessed, while laptop and tablet usage peaks during TV primetime Online access by device across day-parts (as a proportion of total online population) 40 30 Lunch Prime Time 20 Evening Prime Time Mobile Phone Laptop/Notebook Desktop PC Tablet 10 Before 9am 12pm 2pm 4pm 6pm 8pm 10pm After 10pm 13

3 THE ESCALATION OF VIDEO CONTENT Across Singapore, online video consumption is growing steadily Growth seen especially strongly in younger audiences Massive uptick in consumption via mobile devices Online video consumption now higher than TV during most of the day 14

THE ESCALATION OF VIDEO ONLINE VIDEO CONSUMPTION SHOWS STRONG GROWTH IN SINGAPORE Video consumption has steadily risen since 2011, and weekly activity is even higher among young consumers (16 20 year olds: 84%) General online video behaviour streaming and/or downloading (Any online video, not specifically TV and movie content) 83 79 71 66 56 49 2014 2011 Last 12 Months Monthly Weekly 15

THE ESCALATION OF VIDEO AS DIGITAL VIDEO VIEWERSHIP RISES, OTHER MEDIA USAGE IS DECLINING Over the past 3 years, more Singaporeans are moving online for their video Total average hours per week for personal purposes 12 8.8 5.8 4.5 4.9 5.7 9.1 6.8 5.9 8 5 2014 2011 3.1 Broadcast TV Legal Internet Sources of Movies and TV Programs Time-shifted TV Illegal (Pirated) Sources of TV Shows or Movies Downloaded/Streamed from the Internet Listening to the Radio Reading a Newspaper 16

THE ESCALATION OF VIDEO VIDEO CONSUMPTION THROUGH MOBILE DEVICES SHOWS THE GREATEST JUMP The massive growth in consumption is even more noticeable amongst younger consumers in Singapore Accessing online video via mobile phone (among total online population) 68 42 41 44 53 46 51 42 2014 32 33 29 31 30 2011 20 18 10 Total Male Female 16 20 21 29 30 39 40 49 50+ Youngest consumers the biggest adopters of mobile video 17

THE ESCALATION OF VIDEO SINGAPOREANS FAVOR ONLINE VIDEO TO TV IN NON-PRIMETIME HOURS During primetime hours, online video consumption is on par with Traditional TV Video content consumption across the day (week day) (as a proportion of total online population) 60 50 40 30 20 10 Total TV (Traditional + Internet TV) Watching Traditional TV Online Video (Including Internet TV) Online Video (Excluding Internet TV) Internet TV Before 9am 12pm 2pm 4pm 6pm 8pm 10pm After 10pm 18

4 THE NEW MEDIA EXPERIENCE In Singapore, consumers are actively shaping their own media experiences Increasing usage of second screens while watching TV Activities on second screen often tied to content being watched on TV This provides big opportunities for advertisers 19

THE NEW MEDIA EXPERIENCE DUAL-SCREENING IS BECOMING THE NEW NORM 87% of consumers in Singapore now say they consume TV and online media simultaneously; this is especially true amongst a younger audience Simultaneous media consumption TV + online 87 86 88 74 72 96 76 75 89 93 79 78 86 71 72 62 2014 2011 Total Male Female 16 20 21 29 30 39 40 49 50+ 20

THE NEW MEDIA EXPERIENCE SMARTPHONES ARE NOW THE PRIMARY DEVICE FOR DUAL-SCREENING Smartphone and Tablet dual-screening is on the rise Device used for dual screening 81 73 37 51 49 Use Regularly Use Most Often 29 29 24 24 16 12 3 2 0 Mobile Phone Laptop/Notebook Desktop Computer Tablet Computer (e.g. ipad) TV (Internet Enabled) Portable Media Player (i.e. ipod Touch) Games Console 21

THE NEW MEDIA EXPERIENCE SOME CONSUMERS ARE EVEN BEGINNING TO USE THREE SCREENS AT ONCE Three in five consumers in Singapore is a triple-screener, providing even more opportunity for advertisers Frequency of dual screening vs. triple screening (as a proportion of dual screeners) Daily Dual Screening 34 25 22 5 2 11 Almost Every Day Several Times per Week Once per Week Triple Screening 18 16 16 4 2 13 32 Once or Twice per Month Less Often 22

THE NEW MEDIA EXPERIENCE ACTIVITIES AMONGST MULTI-SCREENERS PRESENTS AN OPPORTUNITY TO ADVERTISERS 83% of dual-screeners search, browse, or buy products or services related to the program they are watching Online activity conducted while dual screening (among those who dual screen) TV & Entertainment Content Access content related to TV program Access other entertainment content (unrelated) 82 Up from 72% in 2011 87 Shopping Search/browse/buy products or services-advertised during TV program 78 Up from 72% in 2011 Search/browse/buy products or services-related to TV program 83 Communication Write posts, read messages or communicate online-related to TV program 78 Write posts, read messages or communicate online (unrelated) 86 23

THANK YOU videologygroup.com 24