leveraging the digital opportunity, developing online measurement
TRANSCRIPT
Confidential & Proprietary
© 2008 The Nielsen Company 1
Leveraging the Digital Opportunity,
Developing Online Measurement Science
in China
August 2009
Confidential & Proprietary
© 2008 The Nielsen Company 2
Nielsen e-Quiz #01
TRUE OR FALSE
Chinese Internet Population is more than total of US and Japan.
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© 2008 The Nielsen Company
Global Active Digital Media Universe
Active Digital Media Universe (millions)
Time Per Person
Web Pages Viewed Per Person (000)
Sessions Per Person
Total Minutes (billions)
Total Page Views (billions)
Australia 12 41:22:41 1.3 41 30 15
Brazil* 25 33:50:13 1.7 28 50 41
China** 298** 11:08:38 0.7 33 199 207
France 34 59:19:09 2.6 57 120 83
Germany* 36 37:48:29 1.8 36 82 63
Italy 21 46:14:59 2.2 39 58 44
Japan 56 59:01:37 2.1 48 197 111
Spain 24 50:37:52 2.2 44 72 51
Switzerland* 4 31:27:47 1.3 33 7 5
UK 35 56:04:48 2.3 46 119 78
US 167 61:11:56 2.4 57 613 386
3
* Source: Nielsen Online NetView, Feb 2009
Home Only
** China Data Source: CR-Nielsen CR-NetRatings, Feb 2009. Browser based reporting
due to significant shared PC Usage (e.g. Internet Café)
CNNIC the 23th Internet Statistics
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The China Internet Market is like no other …
Sources: Nielsen Online, CNNIC
Over 90% users are broadband.
Over 100 million
bloggers
Estimated 30% - 40% of internet
users share access through internet
cafes
Strong regional / local segment
internet users behavior differences
World’s largest online population,
over 300 million. Less than 25%
penetration!
Over 100 million
mobile internet
users.
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© 2008 The Nielsen Company 5
Popular Research Question #01
What is the definition of ‘Internet Population’ ? Is the definition consistent cross the different market?
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Nielsen e-Quiz #02
TRUE OR FALSE
China Internet is So Dynamic and is Hard to be Measured.
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Measuring the Internet in China is a Huge Challenge
• Even keeping track of the universe is a challenge.
– Massive volume of new internet users (almost 100 million Chinese citizens came online
in 2008)
• Large traffic to non-commercial sites makes tag-based “census” approach incomplete.
– Over 100 million bloggers in China, large traffic to non-commercial, non-professional
content
• Unique access patterns make metered panels difficult.
– Significant portion of traffic from internet cafes and other public places
– Significant and growing portion of traffic from mobile devices
• “Online” is much more than web sites.
– Large penetration of IM, gaming, and other unique applications developed in local
market
• Unique government regulatory environment
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But Measurement is An Imperative!
• The Chinese internet population is, by far, the largest in the world (and larger than the entire U.S. population).
• Online advertising in China is growing rapidly, especially as global advertisers increasingly view it as a critical way to reach Chinese consumers.
• Existing global internet players have made large investments to try to win in China.
• Chinese Internet companies like Baidu and Alibabaare increasingly focused on becoming the next wave of global internet players.
• Almost total lack of measurement, results in immature ad market.
– Alexa.com is closest thing to a measurement
currency
– Advertising sold largely on “time slots”
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Popular Research Question #02
Can any methodology value the dragon head and the long tail both?
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Nielsen e-Quiz #03
TRUE OR FALSE
As a main force of Internet population, youth use Internet for entertainment on home and public
PC.
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Country Gender Age Children
% Male Female 2-17 18-34 35-49 50+ Yes No
Australia 50 50 22 24 26 28 49 51
Japan 55 45 20 22 41 17 na na
US 48 52 20 20 27 33 51 49
Switzerland
56 44 16 25 31 28 38 62
UK 50 50 11 31 28 30 40 60
Germany 54 46 13 24 33 30 40 60
Italy 56 44 10 33 34 23 39 61
Spain 55 45 10 39 35 16 37 63
France 50 50 14 29 32 25 48 52
Brazil 51 49 29 35 23 13 56 44
China 54 46 na 60 16 4 na na
The China Internet Market skews much younger than other markets
Source: Nielsen Online NetView Active Universe Composition - August 2008, Home+Work data (* Home only for AU, BR, DE, CH, JP), Including Internet Applications.
China: cnnic 22nd survey report June 2008
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More Than 55% Internet Users Surf on Public PCs
Source: cnnic 22nd survey report June 2008
Home Café Work School Other Public
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0%
20%
40%
60%
80%
100%
TV match % NewsPaper match %
Internet Users' Media Consumption
> 20 hours
15-10 hours
10-15 hours
5-10 hours
2-5 hours
< 1 hour
Internet Becomes One of Main Media for Internet Users
52% of Internet users watch TV less than 5 hours per week
29% of them don’t read newspaper
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© 2008 The Nielsen Company 14
Popular Research Question #03
How to measure the total Internet value in a dynamic growing market and industry?
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© 2008 The Nielsen Company 15
Nielsen e-Quiz #04
TRUE OR FALSE
Local Chinese sites dominate the market.
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Local sites dominate the online landscape in China
NetRatings Jun/08/09-Jun/14/09 Weekly
Unique Browsers in millions
Global Sites
Local Sites
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Website Ranking by Province
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© 2008 The Nielsen Company 18
Popular Research Question #04
Is the traffic volume a right metrics for Internet Measurement?
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© 2008 The Nielsen Company 19
Nielsen e-Quiz #06
TRUE OR FALSE
More 200,000 different advertising formats have been deployed in past
10 years.
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No of Banners Increased from 26,600 in Q1 to 46,300 in Q2 2009
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Ad Creative Trend Comparison
Ad Creative Trend - Total Market
0
3000
6000
9000
12000
15000
18000
Ad Creative Trend - FMCG
0
300
600
900
1200
Ad Creative Trend - Unilever
0
20
40
60
80
100
Ja
n-0
7
Feb
-07
Ma
r-07
Ap
r-07
Ma
y-0
7
Ju
n-0
7
Ju
l-07
Au
g-0
7
Se
p-0
7
Oc
t-07
No
v-0
7
Dec
-07
Ja
n-0
8
Feb
-08
Ma
r-08
Ap
r-08
Ma
y-0
8
Ju
n-0
8
Ju
l-08
Au
g-0
8
Se
p-0
8
Oc
t-08
No
v-0
8
De
c-0
8
Ja
n-0
9
Feb
-09
Ma
r-09
Ap
r-09
Ma
y-0
9
Data Source: Nielsen Online AdRelevance
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© 2008 The Nielsen Company
AdR + Reports More Ad Creative
Video Adv
SNS广告
In Game Adv
SNS Adv
WAP Adv
Application Adv
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© 2008 The Nielsen Company 23
Popular Research Question #06
How to estimate the Ad Value and the Adv Spend online?
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Nielsen e-Quiz #07
TRUE OR FALSE
Online TV Advertising may be more engaging than TV.
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30% of Online Activity Takes Place While Simultaneously Watching TV
• This equates to 10 minutes a day
• Teens most likely to have simultaneous TV/Internet usage (42%)
• But 35-54 have most simultaneous minutes (11minutes)
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TV Advertising impact dramatically better with addition of Online Video advertising
42%
32%
21%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Brand Recall Message Recall
TV
Ad
Pe
rfo
rma
nce
TV + Online Exposed Viewers TV-only Exposed Viewers
.
Source: Nielsen IAG
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© 2008 The Nielsen Company
The Future Of Video Measurement Is Not Simply Counting Eyeballs
Inte
ractio
n
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The Future Of Video Measurement Is Not Simply Measurement
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© 2008 The Nielsen Company 29
Popular Research Question #07
How to measure the engagement of video adv?
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Nielsen e-Quiz #08
TRUE OR FALSE
Kids learn the brand
When they play SNS Games.
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Big growth in social networking, gaming revenue is higher than adv revenue
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Top Social Media Sites in China
Rank Social Network Avg Weekly Unique Browsers – Dec 2008
1 51.com 14.0
2 Xiaonei 9.5
3 Chinaren.com 7.0
4 Kaixin001.com 3.5
5 Myspace.cn 2.0
6 5460.net 1.0
7 Wangyou.com 1.0
8 Ipart.cn 1.0
9 360quan.com 0.9
10 Cyworld.com.cn 0.8
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Highly creative new revenue models emerging
Traditional banner advertising has
struggled to monetize traffic, like in
other markets.
New Social Network games are
proving a great revenue stream.
One of most popular is “virtual farm”
game created by three teenagers –
generating ~$500k/month selling
virtual vegetables and guard dogs.
Product Placement becoming very
popular.
Brands like Pepsi, P&G and auto
makers finding ways to place products
on billboards or even as objects for
sale within the Social Network games.
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© 2008 The Nielsen Company
Is New Creative effective?
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© 2008 The Nielsen Company 35
Popular Research Question #08
How do I know the effectiveness of my online campaign?
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© 2008 The Nielsen Company 36
Nielsen e-Quiz #09
TRUE OR FALSE
Internet is not only about advertising, but also consumer research.
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What’s Your Brand Influence Online?
Word of mouth – what does it mean towards your consumer sentiments.
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Types of Online CGM Collected
Lux Campaign Discussion
Lux Skincare Review
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What’s the Value of BBS Platform?
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MyBuzzmetrics Launch in August 2009
Choose your language
preference
Create more dashboards
Create and arrange
widgets
Your saved reports
Your personal alerts
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© 2008 The Nielsen Company 41
Popular Research Question #09
Is WOM research online a quantitative or qualitative or both?
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Nielsen Offer #00
SUMMARY
PASSION
+
ACTION
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Thanks
谢谢!