CONSUMER CONNECTIONS IN A CONVERGING WORLD OF SCREENS Highlights of Nielsen & Videology Research: Meet the New Media Consumer in Indonesia, 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 Indonesia Cross-Platform Report A collaboration with 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 Indonesians 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 Indonesian 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
WHEN IT COMES TO VOD, PC IS STILL KING Laptops and mobile devices support a broad range of locations for video content consumption, but home-based viewing dominates Device for VOD access Location of viewing VOD Laptop / desktop 91 At home in the living room 66 Mobile phone 39 At home in a room other than the living room At work/school/uni/college etc. 41 59 Tablet 33 Friend/relative's home 20 While commuting/on bus, train, ferry, tram, car 20 TV screen 29 While travelling/on holiday, in hotel, airport, on flight, in car 17 Portable media player / handheld games device 6 In an internet café In a public place (e.g. beach, park) 12 17 6
INCREASING CONNECTIVITY CONSUMERS IN INDONESIA SPEND 23 HOURS PER WEEK ONLINE OUTSIDE OF WORK Indonesians 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 23 23 24 23 26 28 2014 2011 14 16 11 20 12 16 15 17 18 Total Male Female 16-20 21-29 30-39 40-49 50+ Average total time spent online each week for personal purposes, via any device 2014 vs 2011 7
INCREASING CONNECTIVITY TECHNOLOGY HAS SHIFTED Smartphone usage has more than doubled in three years, and tablet ownership has skyrocketed to 47% Owned technology among online Indonesians (Smartphone is personal ownership, all other devices are household ownership) 84 82 2014 71 68 2011 38 29 31 20 54 7 47 44 2 4 41 33 30 26 1 10 0 0 Smartphone Laptop / notebook Desktop computer Home internet connection Pay TV Tablet Wireless LAN Connected TV Games Console Smart TV Connected TV via separate device Connected TV combines Smart TV and TV which connects to the internet via a separate device. 8
INCREASING CONNECTIVITY PHONES & TABLETS HAVE OPENED NEW WINDOWS TO CONNECTIVITY Phones are used to access the internet nearly as much as laptops in Indonesia Devices used for internet access Laptop/Notebook Mobile phone Desktop PC Tablet computer Connected TV Games console Handheld media player PVR/DVR 2 0 2 0 2 0 3 1 7 7 6 6 23 25 28 40 41 53 61 70 72 82 85 Ever accessed Regularly accessed Most often access 9
INCREASING CONNECTIVITY MEANWHILE, TRADITIONAL DEVICE USAGE IS DECLINING Compared to 2011, mobile phone and tablet usage is growing, while traditional device usage has declined Devices ever used for internet access Laptop/Notebook 36 85 Mobile phone 73 82 2014 Desktop PC 72 82 2011 Tablet computer 3 41 Connected TV 3 7 Games console 3 6 Handheld media player 2 6 PVR/DVR 3 1 10
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 11
MORE CONTENT, MORE CONSUMPTION ONLINE MEDIA IS AN EVER-PRESENT PART OF CONSUMERS DAYS Digital media is constantly being consumed in Indonesia Online activities across day-parts (as a proportion of total online population) 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 Early morning Before 9am Morning 9am - before 12pm Lunch time 12pm - before 2pm Early Afternoon 2pm - before 4pm Online dominates consumption during the day Late Afternoon 4pm - before 6pm Early Evening 6pm - before 8pm TV Prime Time Mid Evening 8pm - before 10pm Late Evening 10pm onwards Using the Internet Listening to the Radio Reading Print Newspaper Watching Traditional TV 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 35 30 Online access by device across day-parts (as a proportion of total online population) 25 20 15 Mobile Phone Laptop/Notebook Desktop PC Tablet 10 5 0 Early morning Before 9am Morning 9am - before 12pm Lunch time 12pm - before 2pm Early Afternoon 2pm - before 4pm Late Afternoon 4pm - before 6pm Early Evening 6pm - before 8pm Mid Evening 8pm - before 10pm Late Evening 10pm onwards 13
DUAL SCREENING APPROACHING SATURATION Simultaneous media consumption (TV + Online) 2014 vs 2011 93 93 93 89 94 94 90 92 95 2014 2011 45 40 52 43 46 45 47 52 Total Male Female 16-20 years 21-29 years 30-39 years 40-49 ( 40+, 2011) 50+ 14
DUAL SCREENING IS A POPULAR DAILY ACTIVITY We are witnessing an evolution in media consumption behaviour Nearly nine in 10 Indonesia dual screeners do so at least weekly Frequency of dual screening 2014 vs 2011 (among those who dual screen) 2014 35 28 23 4 3 6 2011 20 19 29 8 5 20 Daily Almost every day Several times per week Once per week Once or twice per month Less often 15
MORE CONTENT, MORE CONSUMPTION THERE IS MORE VIDEO CONTENT THAN EVER FOR THAIS 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) Total Internet TV Broadcast TV Accessing the internet via mobile phone Time-shifted TV Legal internet sources of movies and TV programs Illegal (pirated) sources of TV shows or movies downloaded / streamed from the internet Accessing the internet via a tablet Playing games on a pc, laptop, mobile device or console TV snippets or entire shows streamed on YouTube Accessing news online, on websites or apps Watching online videos (excluding TV programs and movies) Listening to the radio Reading a newspaper 3.3 4.6 7.4 6.9 6.9 6.5 6.2 5.9 8.1 8.1 9.3 10.3 11.2 16
3 THE ESCALATION OF VIDEO CONTENT Across Indonesia, online video consumption is growing steadily Growth seen especially strongly in younger audiences Massive uptick in consumption via mobile devices 17
ACROSS SOUTHEAST ASIA, TV HABITS OF DIGITAL CONSUMERS ARE SHIFTING More than six in 10 Southeast Asian digital consumers obtain TV or movie content from online sources Internet TV penetration 2014 68 61 71 62 76 67 Indonesia Malaysia Philippines Singapore Thailand Vietnam 18
BROADCAST TV REMAINS STRONG BUT VOD IS GROWING Consumers in Indonesia now obtain their video content from a variety of sources traditional and digital How TV and movie content is accessed in 2014 Broadcast TV 81 TV / movie snippets or entire shows streamed on sites like YouTube Legal (non pirated) internet sources or video on demand services 30 33 Illegal (pirated sources) such as BitTorrent, Usenet etc. 14 Time-shifted TV 11 Combined Internet TV 68 19
THE ESCALATION OF VIDEO STRONG GROWTH FOR INDONESIAN DIGITAL VIDEO General online video behaviour streaming and/or downloading (Any online video, not specifically TV and movie content) 95 91 2014 2011 81 64 51 28 L12M Monthly Weekly 20
THE ESCALATION OF VIDEO YOUTUBE AND LOCAL PUBLISHERS SATISFYING INDONESIA'S VIDEO APPETITE Popular sources of online video and genres of digital video consumed YouTube.com detik.com kompass.com okezone.com viva.co.id goal.com 15 23 29 27 41 92 Movies Music shows/music videos Entertainment News/current affairs from Local TV networks Local sport, available on Local TV Overseas sport not easily accessible to local audiences 75 74 84 83 82 92 imdb.com 13 Lifestyle 72 merdeka.com kompasiana.com 13 10 Overseas drama series News/current affairs from overseas TV networks 72 72 republika.co.id 9 Documentaries 70 vube.com 8 Local drama series 70 Childrens programs 33 21
REGULAR VIEWING IS COMMON: OVER ONE THIRD TUNE IN ON A DAILY BASIS Frequency of viewing VOD (among those accessing VOD services) 38 24 29 7 21 Daily About every other day A few times each week About once a week About once every 2 weeks About once a month Less often than once a month 22
THE ESCALATION OF VIDEO AS DIGITAL VIDEO VIEWERSHIP RISES, OTHER MEDIA USAGE IS DECLINING Over the past 3 years, more Indonesians are moving online for their video Total average hours per week for personal purposes Broadcast TV Time-shifted TV 5.1 8.1 10.3 20.3 2014 2011 Legal internet sources of movies and TV programs 8.1 12.6 Illegal (pirated) sources of TV shows or movies downloaded / streamed from the internet Listening to the radio Reading a newspaper 4.8 4.6 3.3 4.0 7.4 8.3 23
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 Indonesia Accessing online video via mobile phone (among total online population) 2014 2011 31 27 27 26 24 27 27 9 9 10 8 10 12 9 8 0 Total Male Female 16-20 21-29 30-39 40-49 50+ 24
4 THE NEW MEDIA EXPERIENCE In Indonesia, 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 25
THE NEW MEDIA EXPERIENCE DUAL-SCREENING IS BECOMING THE NEW NORM 93% of consumers in Indonesia now say they consume TV and online media simultaneously; this is especially true amongst a younger audience Simultaneous media consumption TV + online 93 93 93 89 94 94 90 92 2014 2011 45 40 52 43 46 45 47 Total Male Female 16-20 years 21-29 years 30-39 years 40-49 ( 40+, 2011) 50+ 26
THE NEW MEDIA EXPERIENCE LAPTOPS ARE NOW THE PRIMARY DEVICE FOR DUAL-SCREENING Tablet dual-screening is on the rise Device used for dual screening 70 2014 2011 34 31 18 22 12 8 0 Laptop/Notebook Mobile Phone Desktop PC Tablet computer (e.g. ipad) 27
THE NEW MEDIA EXPERIENCE CONSUMERS ARE TAKING ACTION AFTER SEEING VIDEO ADS 75% of consumers have made a purchase after seeing a video ad on their laptop or computer Using 'search' after seeing a video ad on... Making a purchase after seeing a video ad on... Desktop / laptop 9 30 31 29 1 Desktop / laptop 25 33 26 15 1 Mobile device 24 27 25 18 5 Mobile device 40 22 20 13 5 Never Once 2-3 times in the past 4 or more times in the past I don't access the Internet on this type of device Never Once 2-3 times in the past 4 or more times in the past I don't access the Internet on this type of device 28
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