Integrated Media A shift to Digital

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Agenda

� A shift in advertising consumption

� Vietnam vs. the rest of the digital world

� Digital brand alignment / route to purchase

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� Digital brand alignment / route to purchase

� Activating different consumer groups

� Executive summary

A Shift in AdvertisingA Shift in Advertising

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Internet2.2%

Magazines6.9%

Newspapaers 11.8%

Advertising spend breakdown - 2010

MEDIA TYPE2009USD

2010USD

ChangeGrowth

%

Total Industry %

TV 458,000,000 551,008,000 20% 78%

RADIO 2,117,000 1,830,000 -14% 0.26%

NEWSPAPERS 83,251,000 81,145,000 -2% 11.5%

MAGAZINES 49,224,000 48,382,421 -2% 6.9%

INTERNET 15,500,000 22,000,000 41% 3.1%

3.1%6.9%11.5%

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TV78.7%

Radio0.3%

TV Radio Newspapaers Magazines Internet

Ad spend grew by 15% driven by TV & Internet advertising. All other

mediums were in decline

Source: TNS - Kantar Media 2010

TOTAL $608,095,000 $704,366,000 15.8% %

78%

.26%

Vietnam Media Reach – past week

Past Week Reach (%)

60

80

100

TV

Posters/Billboards

Newspaper

Magazine

5

Base: Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)

Source: TNS Media Habits Survey

0

20

40

Total 15-19 20-24 25-29 30-34 35-39 40+ years

Radio

Cinema

Internet

Vn Youth are heavy surfers and will become the mainstay of internet advertising in the future

Watching TV

Listening to Radio

Surfing the Internet

Reading Newspapers

Reading Magazines

Day in the Life of an Internet User

TV

InternetNewspapers

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2:01-3:00

AM3:01

-4:00

AM4:01

-5:00

AM5:01

-6:00

AM6:01

-7:00

AM7:01

-8:00

AM8:01

-9:00

AM9:01

-10:0

0AM10:0

1-11:00AM

11:01-12

:00PM12:0

1-1:00PM

1:01-2:00

PM2:01

-3:00PM

3:01-4:00

PM4:01

-5:00PM

5:01-6:00

PM6:01

-7:00PM

7:01-8:00

PM8:01

-9:00PM

9:01-1

0:00PM

10:01-11

:00PM11:0

1-12:00AM

12:01-1:

00AM1:01

-2:00

AM

Base: Past month internet users aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)Source: Yahoo!-TNS Net Index 2008

Newspapers

Internet can help fill the gap between traditional media and provide a truly integrated marketing campaign

295

253233 2006 2007 2008

Time Spent Per Day (Mins)

Media Exposure Trends

7

46

922 22

45

1024 30

46

821

43

TV Newspaper Magazine Radio Internet

Base: Males and Females aged 15+ across all 4 major cities (Ho Chi Minh City, Hanoi, Da Nang and Can Tho)Source: TNS Media Habits Survey)

Time spend watching TV has decreased by 1 hour per day since 2006, while Internet is the only medium growing (21 minut es / day)

66

53

71

46

2009 2010

Where we surf

8

9

2024

1216 15

25

11

Home Internet Café Mobile phone Friends place Work Schoo l

Source: TNS Media Habits survey, 2010

Vietnamese are surfing the net more at home than at internet café’s, tripling of time spent on the net?

1 What is the state of play in the digital landscape?

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Picture

landscape?

i. The size and structure of the digital medium

ii. The hierarchy of digital activities

Understand the role of digital as media channel

Identify the most digitally engaged markets

The size and structure of the digital mediumWhat you can learn

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Understand the drivers of digital behaviour

Map the structure of digital access points and relative usage

Picture

% online users highly engaged

Country % Country % Country % Country %

1.Egypt 56% 13.Italy 47% 25.USA 43% 37.Netherlands 33%

2.S Arabia 56% 14.Poland 46% 26.Tanzania 42% 38.Philippines 32%

3.China 54% 15.Thailand 46% 27.S Korea 42% 39.Norway 30%

4.Malaysia 53% 16.Argentina 45% 28.Portugal 40% 40.Sweden 27%

5.Turkey 52% 17.Vietnam 45% 29.Mexico 40% 41.Luxemburg 27%

Transformational nature of Digital leads to higher engagement in the emerging world which offers an opportunity for bran ds

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6.S Africa 51% 18.Uganda 44% 30.Greece 38% 42.Finland 26%

7.Kenya 51% 19.Israel 44% 31.Canada 37% 43.Estonia 26%

8.Morocco 51% 20.Hong Kong 44% 32.Spain 37% 44.Denmark 25%

9.UAE 50% 21.UK 43% 33.Austria 36% 45.Indonesia 24%

10.Brazil 48% 22.Nigeria 43% 34.Belgium 36% 46.Japan 20%

11.France 48% 23.India 43% 35.Germany 36%

12.Singapore 47% 24.Russia 43% 36.Australia 35%

Digital Engagement – See methodology packBases: All respondents 48804

% online users accessing internet in last four weeks

Global

Vietnam

Home access is readily available with 8 out of 10 d igital consumers haveing accessed from home in the last four weeks

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S4: Access pointsBases: All respondents 48804 / 602

% using at least once a day –Vietnam (Global)

(54)

(32)

% using Digital at least once a day – Vietnam

Digital is an important medium but telvision is sti l by far the most frequently accessed medium amongst Vietnamese digit al consumers.

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(61)

(14)

(36)

S5: How often access / I10: Usage of offline media Bases: All respondents 48804 / 602 / 363 / 239 / 75 / 191 / 275 / 43 / 18

* Low base

*

*

Social networking is the most engaging activity

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I1: Frequency of online activities / Digital engagement index –see methodology packBases: All respondents 602

Attitudes to brand interaction within activities

The Vietnamese digital consumer is extremely open t o brand interaction online across nearly all activities

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% open to brands

% who find brands intrusive

42 41 62 27 41 81 66 66 65 66 35

7 -2 16 12 -1 31 37 16 23 15 2Global

Net difference between openness to brand and intrusiveness

Vietnam

I4: Intrusiveness of brand contactBases: All respondents who ever do activity 230 / 419 / 298 / 90 / 92 / 42 / 69 / 181 / 148 / 162 / 75

* Low base

Research Finding Business Implication

There are other activities beyond social networks and email that

Vietnamese digital consumers spend more time on

Ensure campaign also engage people on site within these activities to

maximise opportunities

Usage and engagement levels are very high

Along with TV, Digital should be a key pilar of any marketing strategy

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more time onmaximise opportunities

Vietnamese digital consumers are extremely open to brand interactions

across most activities

Be brave and bold to get attention, consumers are open to brand

messaging

Mobile use is on the increase particualry amongst younger age

groups

Target younger groups with mobille campaigns particualrly with a multi-

media element

How do we maximise opportunities with the digital consumer?

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i. Brand alignment with the path to purchase and alignment to social media

Picture

What you can learn

Understand effective combinations of online vs. offline touchpoints, and brand vs. user generated content

Map purchase paths across regions and categories

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Assess the impact of social media on digital strategies

Identify the most effective tactics to employ in building social media

strategies

Picture

Online touchpoints

of consumers browse online DAILY for products

or services to buy

of consumers NEVERbrowse online for products

Vietnam

(18)

(16)

(12)

(18)

(11)

2%

51%

Half of all Vietnamese digital consumers browse for products or services on a daily basis, double the global average figure. Online touch points are also critical on the path to purchase

% used touchpoint for researching – Vietnam (Global)

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Offline touchpoints

browse online for products or services to buy

24%of consumers browse online

DAILY for products or services to buy

13%of consumers NEVER

browse online for products or services to buy

Global

(11)

(11)

(6)

(11)

(17)

(12)

I1: Frequency of online activities / OS3: Research sourcesBases: All respondents 48804 / 602

% using social networking

Nearly half of digital consumers check their social network account every single day. Under 25‘s even more so.

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Vietnam 16-20 21-24 25-34 35-44 45-60Male FemaleGlobal

I1.01: Usage frequency of SNBases: All respondents 48804 / 602 / 363 / 239 / 75 / 191 / 275 / 43 / 18

* Low base

**

Connections on social networks

Whilst Vietanemse digital consumers have less socia l network friends they do have above average numbers of brand friends

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Vietnam 16-20 21-24 25-34 35-44 45-60FemaleMaleGlobal

Nett difference between openness to brand and intrusiveness

N10: Brands connec. to SN / N11: Friends connec. to SNBases: All respondents / Social networkers

* Low base

**

% doing social media activity daily

Multi- media and apps are a key part of social netwo rking activity

Over 50% reach

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I5: Social media activitiesBases: All respondents 602

Half of all Digital consumers browse for products or services online every

day

Finding

Alocate spend accordingly and ensure their are plenty of brand digital touch point opportunities

Implication

Many product categories are purchased online with online, review sites and manufacturer websties are

widely used

Ensure brand home site is engaging and other touch points

drive consumers to the site to push conversition

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widely used conversition

Social netwroking is set to grow overt the next 2-3 years, especially

amongst the under 25‘s

Encourage string brand fan pages with lots of multi-media content aimed at younger consumers

Half of all young males actively talk about brands

Target this sub-group to spread brand messages. Make sure brand fan pages are full of information and

offers

How do we maximise opportunities with the digital consumer?

i. Brand alignment to

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Picturei. Brand alignment to

consumer groupsii. Understanding and

activating individual consumer groups

Understand where you can find them

Understand distinct groups of consumers, their needs and digital

behaviours

What you can learn

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Understand when they are doing it

Understand what they are doing

Identify how you can communicate with them

Picture

INFLUENCERSThe internet is an integral part of my life . I’m young and a big mobile internet user and generally access everywhere, all of the time. I’m a blogger, and a passionate social networker. I’m also a big online shopper, even via my mobile. I want to make sure as many people as possible hear my online voice.

KNOWLEDGE-SEEKERSI use the internet to gain knowledge, information a nd to educate myself about the world. I’m not a big user of social networks but I do want to hear from like-minded people especially to help me make purchase

COMMUNICATIORSI just love talking and expressing myself , whether that’s face to face, on a fixed line, mobile or on social networking sites, instant messaging or just emailing people. I really want to express myself in the online world in the way that I can’t in the offline one. I tend to be a smart phone user and I’m connecting online from my mobile, at home, at work or at college.

Digital lifestyles

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NETWORKERSThe internet is important for me to establish and m aintain relationships . I have a busy life whether it’s my profession or managing the home. I use things like social networking to keep in touch with people I wouldn’t have time to otherwise. I’m a big home internet home user and I’m very open to talking to brands and looking for promotions. That said I’m not really the kind of person to voice my opinions online.

ASRPIRERSI’m looking to create a personal space online . I’m very new to the Internet and I’m accessing via mobile and internet cafes but mostly from home. I’m not doing a great deal at the moment online but I’m desperate to do more of everything, especially from a mobile device.

I’m not a big user of social networks but I do want to hear from like-minded people especially to help me make purchase decisions. I’m very interested in the latest thing.

FUNCTIONALSThe internet is a functional tool , I don’t want to express myself online. I like emailing, checking the news, sport & weather but also online shopping. I’m really not interested in running my social life online and I am worried about data privacy and security. I am older and have been using the internet for a long time.

Digital Lifestyles – see methodology pack

On the digital consumer engagement map, the relatio nship between behaviour and attitude towards Digital is not linea r

HIGH

HIGHCONSUMPTION

LOW

Internet is commoditisedMakes my life more efficient

Internet is pivotalIs the centre of my life

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HIGHINVOLVEMENT

LOWINVOLVEMENT

LOWCONSUMPTIONInternet is irrelevant

Not a big part of my lifeInternet is aspirational

Helps me achieve my goals

Digital Lifestyles – see methodology packBase: All respondents 48804

% incidence

Communicators and Influencers are the largest segments in the Vietnamese market. There are also significant numbe rs of Knowledge seekers and Networkers

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Vietnam 16-20 21-24 25-34 35-44 45-60FemaleMaleGlobal

Digital Lifestyles – see methodology packBases: All respondents 48804 / 602 / 363 / 239 / 75 / 191 / 275 / 43 / 18

* Low base

**

% bought online only

Influencers are a key group to listen to and to inf luence on the online path to purchase. Many influencers are only purchasing certain product categories online

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Digital Lifestyles – see methodology packBases: All respondents 159 / 276 / 95

Almost half of digital consumers in Vietnam are Communicators

Finding

Taregt this large group appropriately and focus on their love of talking

Implication

One quarter are Influencers who are extrenely active in talking about

brands

Engage with these consumer to generate ‚buzz‘ around your brand

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brands

Many influencers puchase many categories online only

Optimising Digital POS is critical

Executive Summary

Section Content

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Picture

Digital strategies

Digital is a widely used medium, focus investment accordingly

Explore connecting with consumers in the activities of Knowledge and Education & Multi-media

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PictureExploit consumers’ openness to brands

Invest in online pos and digital touch points

Target key ‘Influencers‘ to spread brand ‘buzz’ in an engaged market

Digital is the 2 nd most frequently accessed medium (tied with Newspapers) most after television

Home access is widespread with 83% having accessed the internet at home in the last four weeks. This is on a par with the global average.

Consumers in Vietnam are highly engaged and spend 16.1 hours a week online(just slightly less than the global average of 17.6). This figures shoots up to 19.6

Digital is a widely used medium, focus investment a ccordingly

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(just slightly less than the global average of 17.6). This figures shoots up to 19.6 hours for the under 20’s.

In many markets Social Networking and email account for most activity and hours spent online. Vietnam appears to be a very sophisticated market with consumers engaged in many more activities at significant levels.

In particular Knowledge and Education and Multimedia account for the most time online. Many people also access news sites on daily basis.

Knowledge & Education and Multimedia are the two activities set to grow the

Explore connecting with consumers in the activities of Knowledge and Education and Multi-Media

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Knowledge & Education and Multimedia are the two activities set to grow the most over the next 2-3 years. It will be key to build relationships with consumers around these activities to harness that growth in usage in the future.

Digital consumers in Vietnam are amongst the most open to brands out of any markets in the study. This is true across all activities.

For example 60% of Vietnamese digital consumers are open to bra nd interactions whilst are on social networking sites. The global average is actually only 18%. China (48%) and Brazil (43%) are the only markets that come close to being as open.

Exploit consumers’ openness to brands

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Nearly all activities (bar the functional Organising and Personal Admin) are very open spaces for marketers to advance their brands with digital consumers

Digital consumers in Vietnam are purchasing online as well as doing a lot of their research for products and services online. In fact half of all consumers browse for products or services on a daily basis.

In certain categories many people ONLY purchase online (e.g. Travel 18%, Cosmetics 13% and Clothes 12%) so it is key to optimise digital POS’s as well as ensuring that digital brand touchpoints are driv ing consumers to the right manufacturer websites .

Invest in online pos and digital touchpoints

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manufacturer websites .

CGM is a key touch point in Vietnam within certain product categories. For example half of all digital consumers use users Rev iews when researching Automotive and Personal Finance products/services

Sample Profile: Vietnam

Methodology: CAWI interviews conducted in June and July 2010

N = 602

Gender I Age I Region I Occupation I Income I

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*I = Interviews

Male 363 16-20 75 HCMC 360 Employed 389 High 322

Female 239 21-24 191 Hanoi 181 Home Duties 6 Medium 136

25-34 275 Da Nang 39 Student 174 Low 81

35-44 43 Can Tho 22 Retired / Unemployed

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45-60 18

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Further details: www.discoverdigitallife.com

Further details: ralf.matthaes@tnsglobal.com

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