f&s cha cha young adult research

8/6/2019 F&S Cha Cha Young Adult Research

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ChaCha Mobile Answers



ChaCha Mobile Answers One of the Leading Ways to Reach

Teens and Young Adults

ChaCha (www.chacha.com) is the leading mobile answers service and the fastest

growing web site in the top 100. Its unique platform gives advertisers the opportunity

to engage millions of teens and young adults online and on their mobile phones. In

less than two years, ChaCha has answered over 400 million questions and reaches

over 15+ million unique users per month who are primarily 13 24 years old.

How ChaCha Works?

ChaCha allows mobile subscribers to ask specific questions - any questions - via text

messaging or voice. Users can call 1-800-2- or text questions to ChaCha

(242-242 on mobile phones and receive answers within minutes. Users can also

visit m.chacha.com, download iPhone app or ask questions via @ChaCha

on Twitter. The query is parsed and passed on to the most appropriate human guide -

decided according to both semantics and syntax of the query - that is logged onto the

ChaCha system.

The guides are responsible for searching for answers from various sources of

information and selecting the best answer which is then sent to the

handset via text message. Information about the source, as well as the guide

performing the search is also provided to the user. Moreover, mobile users can ask

follow up questions in conversational English as original queries and answers are

maintained in powerful database.

patent pending system learns from the acquired results through storing the

best-rated search results and providing the same results for similar searches in the

future. This allows the platform to scale considerably and handle increased volumesof search queries.

Benefits of service are as follows:

Provides answers (and not vast amount of links)

Quick responses

Can be accessed from virtually any text-enabled mobile phone

Free service - users pay only standard messaging charges

Delivery of relevant and targeted advertising in messages

Introduction and Overview

!



!

Introduction and Overview

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USER PROFILE

ChaCha has answered

over 400 million question;

with 15+ million monthly

uniques

49.3% are 18-24

34.7% are 13-17

47.9% female

52.1% male

44.7% do not have aweb-enabled phone

92.0% would recommend

the service to a friend

88.0% consider the

89.0% heard about the

service from a friend

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Performance Metrics

ChaCha has experienced wide consumer acceptance since launching its service in

January 2008. Since its launch, ChaCha has answered more than 400 million

questions via mobile cell phones and the web and now reaches over 15+ million

unique users each month online and via mobile.

Media Consumption Patterns of the Youth Segment

Frost & Sullivan believes that the mobile device has evolved to become one of the

most popular media consumption devices for the youth segment. This segment

relies on their mobile devices for a wide range of communication, information and

entertainment requirements, and the youth segment forms the core of the mobile

mobile data strategies. As such, services such as ChaCha that

generate millions of mobile search queries from the youth segment every month

are ideal to provide insights into things on the of the of the youth segment

and build a virtual - that ties all known information about the end-users.

The figure below shows the average monthly SMS volume by age-group in the U.S.mobile communications market in 2009.



!

Perception Study

The Youthful Mind: What do the Teens and Young Adults Think

about your Brands and your Competitors?

There is an opportunity to better understand user behavior in mobile. ComScore M:

Metrics is used to correctly depict data usage and device type by segment.

Companies like Dynamic Logic and Insight Express can provide metrics on brand

affinity and purchase intent for specific campaigns and categories, but there is no

single source that provides a more granular understanding of what!s happening

during the conversation - what users care about and what they think, particularly as

it relates to specific brands and products. Frost & Sullivan believes that ChaCha is

in a unique position to provide that data to the industry and potential advertisers.

Capturing the intent is always a priority for successful marketers, and

extensive database of questions and associated information about the

subscribers can be mined to provide insights into the popularity, penetration and

perception of different brands among the consumers.

The youth segment continues to be a heavy user of services and

currently generates the maximum number of queries in a given time period. Along

with the search query and answer string, ChaCha also has insights into other

metrics related to the end user- including demographics, location, device type, and

others. An in-depth analysis of data can provide an intelligent and logical

association between all these metrics and can provide actionable insights into the

preferences. For example, traffic patterns can be analyzed to

determine the impact of a particular ad campaign, ascertain the popularity of

different TV shows among the youth segment, and even to determine regional

interest levels for a particular product. The possibilities are endless.



!

Perception Study

The key objective of this whitepaper is to provide insights into what teens and young

adults think about specific brands and how loyal they are to those brands. Since

ChaCha parses millions of questions per day, we have real time access to

awareness and satisfaction levels as well as loyalty indicators that lead to repeat

purchases, referrals and a preference for a vendor. We define this as Brand Affinity.

For purposes of this whitepaper, ChaCha and Frost & Sullivan analyzed millions of

queries from the 3rd Quarter of 2009 from the youth segment and focus on the

following verticals and the key brands within those categories:

Gaming

Consumer Electronics Laptops

Entertainment Movies

Retail Apparel

Jeans

Shoes

Retail Clothing

Food & Beverage Auto

A detailed analysis for the above mentioned queries, including, but not limited to, the

following data points will be provided:

Number of queries generated for the top brands

Demographical analysis for the youth segment generating queries related to

popular brands

Device types

Types of queries asked

Analysis of the questions can also identify key drivers that affect Brand Affinity:

price, performance and relative performance against a competitor. Brand Affinity

metrics and segmentation can allow marketers to target and play media buys on the

basis of consumer availability and openness to a brand message, rather than on

demographics alone, thus reducing unnecessary and ineffective spending.



!

Gaming Industry Brands

GAMING

HIGHLIGHTS

There were over 34,000

questions processed

relating to the top three

game consoles

There were more than

twice as many questions

about XBOX than any

other gaming platform

85.9% of all questions for

gaming were from males

14.1% of all questions for

gaming were fromfemales

83.3% of all questions

came from non-

smartphones

SMARTPHONES:

6.7% Blackberry

4.7% iPhone

3.1% Windows Mobile

2.1% Treo/Palm

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XBOX 360 is the leading gaming brand among the ChaCha audience and Brand

Affinity metrics are very high showing high first purchase and repeat purchase

indicators. Over 33% of the questions are related to game compatibility and whether

or not the XBOX games will work on the XBOX 360, while 42% of the users asked,

much is the XBOX 360 and 22% of the questions were related to the origins

of the game console. For example. the question, invented the XBOX 360

was asked 116 times over the course of two days.

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Consumer Electronics - Laptop Brands

LAPTOP

HIGHLIGHTS

Shopping and consumer

electronics related

questions involving

laptops exceeded 3,000

total questions submitted.

Apple had the majority of

the searches for the

laptops group

In California, 66.2% of all

laptop questions were

related to Apple laptops,

compared to a national

average of 56.2%

TOP LAPTOPS:

1. Apple2. Dell

3. HP

4. Toshiba

5. Acer

6. Lenovo

TOP SEARCH STATES

(total laptop questions):

1. California

2. Indiana

3. Texas

4. Ohio

5. New York

6. Illinois

7. Missouri

8. Utah

9. Arizona

10.Florida

64.1% Male

35.9% Female

While Apple has the majority of searches, Brand Affinity as high as you would

expect. In fact, 34% of the questions demonstrate some uncertainty as to what they

should buy. Sample questions include: Apple laptops better than or

I buy a Dell or an Apple Also, 37% of the questions were price

related, although the majority were phrased like, can I get an Apple laptop

and are the Apple laptops priced so Apple should beware thatteens and young adults are heavily and concerned about the

high prices. Dell and HP should see this as an opportunity to drive additional

awareness. In summary: Awareness of Apple laptops among this demographic are

high, but there is some skepticism as to whether or not they are worth the hype.

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ENTERTAINMENT - MOVIES

Questions about the Harry Potter movies and characters quadrupled the question

total for the next closest movie during the three month time period.

Demographic data varies quite a bit depending on the genre classification of the

movies. For example, dramas are split 50/50 between genders. However, the 18-

24 year old age group made up 65% of the questions indicating that age is the prime

indicator of interest in movies that fall into the drama genre. When using the same

analysis on family movies, we find the opposite that gender indicates interest. Age

groups for family movies are very close at 53/47 percent, whereas gender is more

lopsided with females making up 60% of the questions.

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ENTERTAINMENT

HIGHLIGHTS

There were over 54,000

questions processed by

ChaCha regarding the

top movies during the 3

month time frame

Top 10 movies:

1. Harry Potter 17,4942. The Hangover 4,007

3. Bruno 3,644

4. Public Enemies 2,995

5. District 9 2,919

6. Ice Age 2,908

7. The Proposal 2,866

8. Orphan 2,462

9. G.I. Joe 2,410

10.The Ugly Truth 2,277

The top movie genres:

1. Family 22,587

2. Comedy 6,293

3. Sci-Fi 6,391

4. Horror 5,807

5. Drama 5,225

6. Romance 1,449

7. Musical 689

Top 5 movies for males:

1. Harry Potter 7,095

2. The Hangover 1,867

3. Bruno 1,777

4. District 9 1,733

5. Public Enemies 1,453

Top 5 movies for females:

1. Harry Potter 10,399

2. The Hangover 2,140

3. The Proposal 1,962

4. Bruno 1,867

5. Ice Age 1,782

While comedies and sci-fi

are successful to young

males, family and

romance movies are

widely watched by young

females.



!

Apparel Brands Jean Brands

JEAN HIGHLIGHTS

Unlike many of the other

industries, apparel

specifically jean brand

questions come from

predominantly females

83% Female

17% Male

True Religion brand

jeans made up an

overwhelming majority of

the questions

55% Ages 13-17

62% Ages 18-24

Numbers for True

Religion brand jeans

show that while they are

still the most popular

jeans brand, they aremore appealing to the

older (18-24) age group

Lucky Brand jeans were

relatively similar in both

age groups

7 for All Mankind had a

6% drop in share for the

older (18-24) age group

Citizens of Humanity and

Chip & Pepper make up

approximately 7% of the

questions for both age

groups

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When it comes to jeans, girls are asking all the questions. Unlike questions in many

other industries, apparel questions, specifically jean questions, come predominately

from females, at 83%. True Religion jeans are the leading brand among 18-24 year

olds but the brand 7 for All Mankind appears to be gaining traction with 13-17 year

olds. Most of the teens and young adults want to buy or own True Religion jeans,

but many

afford them or think they are too expensive. In fact, 62%

knowwhere to shop for them about half of those specifically asked if they could get them

at Wal-Mart or Costco. It appears that while awareness is high, Brand Affinity may

be low because the jeans are priced out of their range and unattainable.

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Apparel Brands - Shoes

SHOE HIGHLIGHTS

Over 3,400 total

questions were asked

regarding the top four

brands of shoes

Nike had quadruple the

questions asked about itsbrand from the mobile

search

Age Group 13-17:Nike 77%

Adidas 17%

Reebok 4%

New Balance 2%

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Nike, the company, is extremely interesting to this demographic, and ChaCha users

want to know as much as possible. Some of the most popular questions are,

invented and does Nike From a product perspective, the

majority of the questions are about the Nike SB or Skateboarding line. They want

to know, is the coolest Nike and much are Raygun Nike

and

can I get a Nike SB

Brand awareness is extremely high, andaffinity is strong. Price does not appear to be an issue, although the

factor of a particular type of shoe, even within the Skateboarding line is paramount.

In addition, many of the questions regarding shoes came from the lifestyle and

fashion categories where questions were asked regarding the shoes and dress of

professional athletes, sports teams and celebrities.

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Age Group 18-24:Nike 78%

Adidas 16%

Reebok 4%

New Balance 2%

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only change being Nike

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Apparel Brands Retail Clothing

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RETAIL CLOTHING

LINE HIGHLIGHTS

Hollister had the highestnumber of questions

1,336, making up 36.0%

of all questions relating to

retail clothing lines

The other retail clothing

lines were as follows:

Juicy Couture 208

Diesel 111

Billabong 108

Dickies 97

64

Hurleys 62

Baby Phat 51

Aeropostle 50

Rocawear 32

Roxy 30

Heelys 12

Emily the Strange 10

Ecko Unlimited 7

Mossimo 3

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Unlike shoes, young girls (under 18) ask most of the retail; clothing questions.

Hollister had the highest number of questions, although the majority of the girls

asked questions like, is

It appears that many of the young girls have heard of the retailer, but they

sure who they are or what they sell. On the other hand, affinity and product

awareness is much higher for Abercrombie and Fitch and Urban Outfitters. About

65% of the girls and boys ask where they can find a store and how much specific

products cost. About 20% are asking the meaning behind the logo, the company and

the founders. About 10% want to know why products cost what they do.

Juicy Couture received fewer questions than the top three retailers, but most were

related to specific products. Sample questions include, much is Juicy Couture

is the cheapest jewelry at Juicy and you wear Juicy

This young audience appears to be very familiar with the brand and what

they offer. Price is a concern, but not as much as other brands on the list.

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RETAIL CLOTHING

LINE HIGHLIGHTS

Abercrombie & Fitch had

the second highest total

with 1,039 or 28.0%, and

Urban Outfitters was thirdwith 484 or 13.1%

Females made up the

majority of the users

2,165/58.4%, while

males accounted for

1,517/40.9%

Billabong, Dickies, and

Diesel brands, however

were primarily dominated

by questions from male

users

Most of the questions

came from users 14 - 19

With the exception of Diesel brand, it appears that 14 and 16 year old girls are

asking most of questions about retail clothing. Young high school age students are

very interested in keeping up with trends and tracking new products. They also are

intensely interested in what others think about the products and the retailers. Sample

questions were, you wear Juicy do you think is better, Juicy

Couture or wears Diesel perfume for men



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SODA HIGHLIGHTS

ChaCha processed over

6,800 questions involving

the top 5 soda brands.

Coca Cola (Coke) took

the top spot amongst

soda brands with 3,048

total questions

The questions regarding

sodas were relatively

balance between

genders when compared

to the other searchcategories analyzed

58.6% Male

41.4% Female

Coke, Dr. Pepper, and

Pepsi were all close to

57% ages 18-24,

whereas Sprite and 7UP

were around 65% in the

same age group. Thisshows that the older age

group has a larger

interest in the Sprite and

7UP (clear) sodas as

opposed to the darker

sodas of Coke, Dr.

Pepper, and Pepsi

In the soda category, many of the questions are comparative between brands and

products. They want to know what is better for them, and what the differences are

between the products. It is also interesting to note that older users are more

interested in the lighter sodas (7-up and Sprite), while younger users are more

interested in the darker sodas (Coke, Pepsi, and Dr. Pepper). Older users are also

less likely to ask for advice on what to drink or not to drink. Their brand preferences

are set. Instead, they are more interested in the origins of the brands and trivia

surrounding the brands.

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AUTOMOTIVE

HIGHLIGHTS

ChaCha processed over

125,000 questions

relating to the automotive

industry in Q3 2009.

AUTOMOTIVE

INDUSTRY: 59.9% Male

21.8% Female

18.3% Unknown

Nearly 16,000 questions

involving one of the

automotive brands of

Ford, Chevy, Toyota, or

GMC

FORD:

60.6% Ages 18-24

39.4% Ages 13-17

77% Male 23% Female

CHEVY:

63.5% Ages 18-24

36.5% Ages 13-17

78% Male

22% Female

TOYOTA:

62.3% Ages 18-24

37.7% Ages 13-17

70% Male

30% Female

Average is 7% higher than competing brands

for females

GMC:

62.7% Ages 18-24 37.3% Ages 13-17

77% Male

23% Female

Automotive Industry Brands

Ford is leading in the hearts and minds of teens and young adults. They not only ask

more questions about the company, but they ask questions about where to buy

specific models and how much they are. The Mustang has the highest awareness

and affinity among both girls and boys between the ages of 13-24. interesting to

see that car preferences are being made long before a teenager is able to drive.

Questions include: is the horsepower of a Ford Mustang a Ford

Mustang a muscle car and is a better car, a Ford Mustang or a Chevy

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HIGHLIGHTS

Ford was the top

searched automotive

brand. However, within

the Ford brand, individual

models and

demographics for each

can also be gathered.

FORD:

60.6% Ages 18-24

39.4% Ages 13-17

77% Male

23% Female

MUSTANG:

Made up 56% of

questions relating to

Ford automobiles

58.3% Ages 18-24 41.7% Ages 13-17

82.5% Male

17.5% Female

F-150, Ranger, Focus,

and Taurus made up 7%

of the questions each

Other models combined

made up 16% of the

questions submitted

regarding Ford models

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Conclusion

Limitless Data Filtering Capabilities

ChaCha continues to process approximately 180 million queries per quarter in

categories ranging from entertainment, society, and politics to sports, science, and

travel. Each of those questions provides information into age, gender, location (both

state and metropolitan area), device type, dates, and question text. Any and all of

the combinations of data can be searched, compared, and analyzed specific to

topics, brands, categories, etc. to provide a keen insight into the mobile search

market. With the large number of questions and the array of search properties, the

data filtering and reporting capabilities provided through database is

virtually limitless.

Mobile Devices and the Ever-Changing Marketplace

Mobile devices are poised to dominate media consumption amongst the youth

market in the coming years thanks to smartphones, notebooks, netbooks, and

increasing bandwidth being made available to consumers everywhere because the

continued evolution of 3rd and 4th generation wireless networks. This has become

more evident in recent months with several major acquisitions in the space,

including purchase of Quattro and acquisition of AdMob. This

consolidation will likely continue in an industry where ChaCha is poised to be a

major influence.

As the environment continues to evolve, enterprises will look to increase and

maintain brand awareness through these mobile channels. Access to mobile search

data provides a dynamic way to continually monitor and analyze brand awareness

and market presence. The continued data collection and analysis of the mobile

search market will likely become a key product for marketing departments in firms

looking to be a key participant in the youth marketplace.

ChaCha Database as a Research Tool

The intention of this whitepaper is to demonstrate the capability of vast

database of questions and answers as a powerful research tool that marketers can

leverage to get a near real-time pulse on the thoughts and desires of teens and

young adults. The examples reviewed in this paper only scratch the surface of

true data mining potential. For a more in-depth analysis or a deeper

explanation on another specific business or industry, please contact ChaCha.

[email protected]

f&s cha cha young adult research

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