[universal Mccanns] When Did We Start Trusting Strangers

When did we start trusting strangers? UM EMEA September 2008

September 2008 29 countries 17,000 internet users

Influence Revolution When did we start trusting strangers

PRE MEDIA AGE

MASS MEDIA AGE

SOCIAL MEDIA AGE

Consumers dictate

Professional media dictate

Church, state, monarchy dictate the agenda

Volume of Recommendation

The ways to share influence have exploded When did we start trusting strangers

PRE MEDIA AGE

MASS MEDIA AGE

Talk face to face Phone call Talk face to face

Talk to shop worker

Talk to shop worker

Consult a professional Readers letters Phone in; TV / Radio

SOCIAL MEDIA AGE

Talk face to face

Personal blog

Comments on blogs

Phone call

Social network page

Comments on websites

Talk to shop worker

Widgets

Viral emails

Consult a professional

Video sharing site

Auction websites

Readers Letters

Photo sharing site

Wish lists

Phone in; TV / Radio

Chat rooms

Ratings on retail sites

SMS

Message boards

Reviews on retail sites

Email

Social Bookmarking

Price comparison sites

Instant Messenger

Chat room

Social shopping sites

Consumer influence channels

We now influence to the world without thinking

When did we start trusting strangers

This is why your brand is already part of their conversation When did we start trusting strangers

We measured the impact When did we start trusting strangers

Online self completion surveys Scripted and hosted on Intuition, Universal McCann’s proprietary research system, powered by Confirmit Representative to the 16-54 active internet universe (use every day / every other day) Key audience to understand adoption Make up the vast majority of social media users Panellists recruited by global panel partners Completed in Q1 2008

Creating unique global insight When did we start trusting strangers

29 markets

17,000 respondents

Australia Austria Brazil Canada China Czech Republic France Denmark Germany Greece Hong Kong Hungary India Italy Japan Mexico Netherlands Pakistan Philippines Poland Romania Russia Singapore South Korea Switzerland Spain Taiwan Turkey UK USA

Result: a new landscape of influence When did we start trusting strangers

Rise of social media Digital friends Proliferation of influence channels

Continual rise of social media: Content creation is mainstream New influence landscape: the rise of social media 90% 80% Read blogs / weblogs 70% Start my own blog/ weblog 60% % Ever Done

Leave a comment on a blog site 50%

Upload my photos to a photo sharing site

40%

Upload a video clip to a video sharing site

30%

Watch video clips online

20%

Create a profile on a social network

10% 0% Wave 1 Sep 06

Wave 2 June 07

Wave 3 March 08

Social Media adoption over time (waves 1 – 3) Global Average. Source: Universal McCann Social Media Tracker Power to the People

Driving the growth of the web New influence landscape: the rise of social media Volume of content published online each year

876,000% Increase!

1 EXABYTES

1999

Source: Internet Innovation Alliance

8760 EXABYTES

2008

Publishing billions of thoughts New influence landscape: the rise of social media

YOUTUBE

FLICKR

6.6M PHOTOS UPLOADED EVERY DAY

WIKIPEDIA

TRIP ADVISOR

14 HOURS OF VIDEO UPLOADED EVERY MINUTE

11.2M ARTICLES

15M REVIEWS

Much of this content is opinion New influence landscape: the rise of social media Upload photos

“What do you do with your social network profile?” Social Network Users, Global Average.

Favourite / currently listened to m usic Write a blog

Install applications

Upload videos

Prom ote a band 0%

10%

20%

30%

40%

50%

60%

% added to your social netw ork page

Recom m ended w ebsites

“When writing a blog, which of the following do you post?” Blog writers only, Global Average.

Opinions on products and

Stories from other blogs

Widgets (e.g applications that 0%

10%

20% 30% 40% % posted to your blog

50%

60%

Social media: creating digital connections New influence landscape: digital friends Agree with the statement “Blogging is important to socialise with friends”

Philippines Mexico India brazil China France Spain UK US

India 0

10

20

30

40

50

60

70

80

brazil

% Agree

China South Korea Italy Germany Spain France

Agree with the statement “I use social networks to meet new people”

US UK 0

10

20

30

40 % Agree

50

60

70

80

Digitising our friend networks New influence landscape: digital friends

“Approximately how many people do you stay in contact with in your personal life through the follow means?”,

Across the world New influence landscape: digital friends Face to face Em ail

US

Social Netw ork (e.g Facebook.com )

China

UK

Instant Messenger (e.g Window s Live Messenger) Phone Text Message (SMS) My personal blog

0

20

40

0

A v e r a ge n u mber o f c on n ec t i o n s ma i n ta i n ed

20

0

40

20

Post/Letter

40

A v e r a ge n umbe r o f c on ne c ti o ns ma i n t a i ne d

A v e r a ge numbe r o f c o nne c ti o ns ma i nt ai ne d

“Approximately how many people do you stay in contact with in your personal life through the follow means?”,

Brazil

India

0

20

40

A v e r a ge n u mbe r of c o n ne c ti o ns ma i nt a i n e d

Japan

0

20

40

A v e r a ge nu mbe r o f c on n e c t i o n s ma i n ta i ne d

Key Internet markets

0

20

40

A v e r a ge n umbe r of c o nn e c t i on s ma i n t a i n e d

Our fundamental interactions are becoming virtual

New influence landscape: digital friends My personal blog]

Social Network (e.g Facebook.com)] Instant Messenger (e.g Windows Live Messenger)] Post/Letter

Children

Partner

Email

Text Message (SMS) Phone

0

10

20

30

40

50

0

60

10 20 30 % Stay in contact

% Stay in contact

40

Face to face

“How do you keep in contact with the following people”

Current work colleagues

Friends

0

10

20

30

40

% Stay in contact

50

60

70

0

20

40

60

% Stay in contact

80

100

We now share massive volume of opinion in a digital format New influence landscape: influence channels “Thinking about how you can share an opinion on a product, brand or service via the Internet. On average how often do you do the following? Global Monthly Average

Tell som eone about a product/service by m essenger Tell som eone about a product/service by em ail Com m ent on a product/service review on a blog/ w eblog Write a review of a seller on an auction site Recom m end a product/ service on blog/ w eblog Write review of product/service on ecom m erce/retail site Com m ent on product/ service review on ecom m erce/retail site Post opinion on social netw ork personal profile Write a review of a product/service on yr blog/w eblog Create product w ish/ favs list on ecom m erce/retail site Post a video clip featuring a product/service 0

5

10

15

20

25

30

Monthly Reach

35

40

45

50

We are motivated to share by experience New influence landscape: influence channels

“The following are a list of reasons and motivations for you to talk about a product, brand or service. Please can you consider how important they are in motivating you to talk to others? Where 5 = very motivating and 1 = Not at all motivating.” GlobalAverage

Good personal experience Som eone you trust having a good personal experience The brand is high quality A friend's recom m endation Bad personal experience A free sam ple you receive Your friends like the product or service Som eone you trust having a bad personal experience The product or service is discounted The brand is popular An advertisem ent you find interesting & inspiring A prom otion you see in a store A recom m endation in the m edia (TVnew spapersm ags Radio) A recom m endation you receive in a store The brand is fashionable The brand is unknow n am ongst social group Seen used by a celebrity/w ell know n figure 0

0.5

1

1.5

2

2.5

Average Score 1 - 5

3

3.5

4

4.5

We look for other consumers to form our opinions

New influence landscape: influence channels

“Thinking about the process of looking for opinions on a product, brand or services online. On average how often do you do the following when looking for information on products, brands and services?” Global Average

Search for a specific product/ service on a search engine Read an em ail from a friend/colleague Search for product recom m endations on a search engine Visit official com pany/brand w ebsite Instant Messenger conversation w ith a friend/colleague Bookm ark products & services interested in Visit an Internet auction site Read review s by consum ers on retail sites e.g Am azon.com Read com m ents on a personal profile on a sn e.g Facebook.com Read official review s on retail/ price com parison w ebsites Read review s w ritten on new s w ebsites e.g bbc.co.uk Read a personal blog/w eblog by som eone you know Read review s by consum ers on retail sites e.g Am azon.com and Visit online Chat room s/m essage boards Read a blog/w eblog by som eone you do not know Read peoples w ish/ favs lists on retail w ebsites Read a blog/w eblogs- m anaged by a brand/ private com pany 0

10

20

30

40

50

% Monthly Reach

60

70

80

90

Now we trust strangers….. New influence landscape: influence channels

“Thinking about where you find information for products, brands and services that you buy. Please can you rate them in terms of how trust worthy the information provided typically is? Where 10 = Very trustworthy and 1 = Not at all trustworthy” Global Average Celebrity recommendation Personal recommendations fromfriends/ family/ Emails fromcompanies 7 Personal recommendations from professionals Cinema Advertising Emails from a friend/ colleague

6

Instant M essenger conversation with a friend/ colleague

5

Consumers reviews on retail sites e.g amazon.com

4

Reviews on retail/ price comparison webs e.g priceline.com

3

Sponsorship of events or sporting events Recommendation on radio programmes Radio advertising

Sponsored listings on a search engine

2 Blogs/Weblogs- personal blog written by people you know

User reviews on an online auction site (e.g ebay.com)

M agazine article

Newspaper article

Reviews written on news websites e.g guardian.co.uk Search engine (e.g live.com) Company/brand Website

1 0

Newspaper advertising

M agazine advertising

Television Adverts

Online Chat rooms/ message boards Outdoor advertising (e.g Posters ads on public transport) Blogs/Weblogs-blog written by people you do not know Peoples wish/fav lists on retail websites e.g amazon.com

Shelf information and product displays in store Recommendation in a television programme Blogs/Weblogs- professional blog e.g engadget.com Comments/viewpoints on social network sites e.g facebook.com Readers letters page in a newspaper

Education increases trust in strangers New influence landscape: influence channels Trust by age, Global average

Trust by gender, Global average Blogs/Weblogs-blog written by people you do not know 6 5

Consumers revie ws on retail sites e.g amazon.com

Peoples wish/fav lists on retail we bsites e.g amazon.com

4 3 2 1 0

Blogs/Weblogs- personal blog written by people you know

Comments/v ie wpoints on social network sites e .g facebook.com

User revie ws on an online auction site (e.g e bay.com)

Blogs/Weblogs- professional blog e .g engadget.com

Male

Trust by final education level, Global average Blogs/Weblogs-blog written by people you do not know 6 5

Consumers reviews on retail sites e.g amazon.com

Peoples wish/fav lists on retail websites e.g amazon.com

4 3 2 1 0

Blogs/Weblogs- personal blog written by people you know

Comments/viewpoints on social network sites e.g facebook.com

User reviews on an online auction site (e.g ebay.com)

Post Graduate Secondary

Blogs/Weblogs- professional blog e.g engadget.com

University Primary School

College

Female

But culture the biggest factor New influence landscape: influence channels Trust by country, Global average Blogs/Weblogs-blog w ritten by people you do not know

7 6 5

Consum ers review s on retail sites e.g am azon.com

Peoples w ish/fav lists on retail w ebsites e.g am azon.com

4 3 2 1 0

Blogs/Weblogs- personal blog w ritten by people you know

Com m ents/view points on social netw ork sites e.g facebook.com

User review s on an online auction site (e.g ebay.com )

brazil

China

Blogs/Weblogs- professional blog e.g engadget.com

Japan

South Korea

UK

US

The new influence landscape - summary New influence landscape: Summary THE RISE OF SOCIAL MEDIA • Has turned hundreds of millions of us into content creators and placed billions of opinions online • The world’s collective thinking is now online and published, a first in history • A total revolution in the way consumers share influence and opinion DIGITAL FRIENDS • Digital channels have moved more of our social interactions into the virtual space and into text and the written word • The web has expanded our networks to include people we don’t know and people we used to know and in a pre web age we would have lost contact with • Digital channels encourage more frequent interaction and make it easier to share influence e.g through sending links, videos or pictures. PROLIFERATION OF INFLUENCE CHANNELS • The continual rise of social media and the growth of mechanisms for user input have created an incredible wealth of outlets to share opinions and thoughts • There is a new form of casual influence – It is now incredibly easy to share opinion, from voting buttons, to wish lists to comments. • We now trust a strangers recommendation as much as or closest friend • We trust recommendations in social media channels more than paid-for communications

Impact When did we start trusting strangers

• • •

Influence economy – products and services The democratisation of influence The new super influencers

All categories are impacted Impact: Influence economy “Thinking about the following types of products, brands or services. Can you please indicate whether you have reviewed them online, either a positive, average or negative opinion” Global Average Film s Music Hom e Technology e.g TV's/PC Portable technology e.g MP3 Mobile phone service Books Com puter Softw are Travel- i.e flights/trains Holidays/ Destinations Gam es Consoles/Gam ing Cars/ Autom obiles Fashion (clothing/shoes) Hom e appliances e.g Fridges/freezers Financial products Groceries (food) Personal Healthcare Cosm etics Groceries Non alcoholic beverages Alcoholic drinks Utilities e.g gas Property/ Real Estate 0

10

20

30 40 % Ever review ed online

50

60

70

But big variation by country Impact: Influence economy Thinking about the following types of products, brands or services. Can you please indicate whether you have reviewed them online, either a positive, average or negative opinion” Films Category. France South Korea Hong Kong brazil

Hungary

100

Romania

90

Japan

80 70

Philippines

Netherlands

60

India

UK

50 40

Pakistan

Denmark

30 20

China

Canada

10 0

Taiwan

Greece

Malaysia

Turkey

Germany

Russia

Austria

Czech Mexico

Switzerland Poland

US Italy

Australia Spain

Totals

Searching for information varies from contribution

Impact: Influence economy

“Thinking about the following types of products, brands or services. Can you please indicate whether you have researched them online, before purchasing” Global Average Holidays/ Destinations Hom e Technology e.g TV's/PC Travel-i.e flights/ trains Portable technology e.g MP3 players/ Mobile Phones Mobile phone service Com puter Softw are Film s Music Books Cars/Autom obiles Hom e appliances e.g Fridges/freezers Gam es Consoles/ Gam ing Fashion (clothing/ shoes) Financial products (e.g credit cards/ banking/insurance) Property/Real Estate Cosm etics Personal Healthcare (e.g m edicines contact lenses etc) Groceries (food) Utilities e.g gas electricity etc Groceries (non food e.g cleaning products) Alcoholic drinks Non alcoholic beverages 0

10

20

30 40 % Researched online

50

60

70

Online turning us into influencers Impact: democratisation of influence “Thinking about the following type of products, brands and services, which of the following statements apply? I often inform others on what to buy / I sometimes inform others on what to buy / I sometimes ask others what products to buy /I would always ask others about what products to buy ” Global Average

RECEIVORS ALWAYS ASK SOMETIMES ASK SOMETIMES INFORM OFTEN INFORM

INFLUENCERS

Groceries (food) Non alcoholic beverages Music Film s Books Mobile phone service Groceries (non food e.g cleaning products) Hom e Technology e.g TV’s/PC

Fashion (clothing/ shoes) Portable technology e.g MP3 players/ Mobile Phones[Alw ays ask Holidays/ Destinations Alcoholic drinks Hom e appliances e.g Fridges/ freezers Travel Personal Healthcare (e.g m edicines contact lenses etc)[Alw ays ask Com puter Softw are Utilities e.g gas electricity etc[Alw ays ask others] Gam es Consoles/ Gam ing Cosm etics Cars/ Autom obiles Financial products (e.g credit cards/ banking/ insurance)[Alw ays Property/Real Estate[Often inform others] -80

-60

-40

-20

0

20

40

60

80

Now we all influence in a huge number of categories Impact: democratisation of influence 20+ 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

SOURCE INFLUENCE

-15

-10

-5

0

5

10

Some rise above the mass: Super influencers Strongly influence in 15+ product categories Rise above the mass of influence Spreading influence regardless of topic

Impact: Super Influencers

25-34, educated, embrace life Impact: Super Influencers Lifestyle statements indexed against all respondents

Super Influencer demographics indexed against all respondents Index against all adults 50

70

90

110

130

Indexed against all adults 150

170

190

Male Female 16 - 24 25 - 34 35 - 44 45 - 54 Student Office Junior Office (Mid manager) Office (Senior manager) Non office Housewife Unemployed Other Primary School Some Secondary School Full Secondary School Education College University Post Graduate

THE NEW INFLUENCERS

Content creators Super Influencer social media usage indexed against all respondents Upload video clip to video sharing website (e.g youtube.com) Subscribe to an RSS feed Start my own blog/ weblog Download a Podcast (pre recorded radio/audio show) Leave a comment on a blog site Upload my photos to a photo sharing website (e.g flickr.com) Make a phone call using your computer Create a profile on a new social network (e.g facebook.com) Visit a photo sharing website (e.g flickr.com) Share a video clip with a friend (email/Instant messenger) Manage profile on existing social network (e.g facebook.com) Read blogs/weblogs Visit a friends social network page (e.g facebook.com) Listen to live radio/audio online Use Instant Messenger (e.g Windows Live Messenger) Watch video clips online (e.g youtube.com) 100

120

140

160

180

200

220

Open to commercial messaging Impact: Super Influencers Super Influencer motivations to recommend indexed against all respondents Bad personal experience[5] Seen used by a celebrity/w ell know n figure[5]

130

Good personal experience[5]

125

The brand is fashionable[5]

Som eone you trust having a bad personal experience[5]

120

115 110

The brand is unknow n am ongst social group[5]

Som eone you trust having a good personal experience[5]

105

100 95

90

A recom m endation on the Internet[5]

The brand is high quality[5]

85 80

A recom m endation in the m edia (TVnew spapersm ags Radio)[5]

A friend's recom m endation[5]

An advertisem ent you find interesting & inspiring[5]

The product or service is discounted[5]

A recom m endation you receive in a store[5]

Your friends like the product or service[5]

The brand is popular[5]

A free sam ple you receive[5]

A prom otion you see in a store[5]

New Influencers

A

U us S tr al ia

U Po K la n R om d an i F a Sw ra n c itz er e la nd Ta iw G a er n m an y So Cz e ut h ch K or ea Sp ai n Ja pa n It a ly C hi n Tu a rk e G y r e Ph e ili ce pp in Pa es ki st a M n ex ic o In di a br az il

N

en et ma he rk rla n H ds un g H on ar y g K on g A us tr C ia an ad R a us si a

D

% share of active internet users

Emerging markets lead the super influencers Impact: Super Influencers

Super Influencers by country, share of active users

30

25

20

15

10

5

0

Super Influencers are changing the world through social media Impact: Super Influencers

Bloggers credited with getting obama the nomination. Obama embraced them by being massively involved in social media, from twitter to blogger to slide share

Politics

Corporate Transparency

Super influencers have targeted some big corporations giving them a dose of ultra transparency. Wal-Mart is one of the main targets; there is Wal-Mart watch website, Wal-Mart groups on Flickr, hundreds of local blogs fighting the development of Wal-Marts in their back yard and social networks aimed at organising boycotts.

Issue Campaigning

Reviews

Wael Abbas used Youtube and blogs to hi-light human rights issues to the world.

You would be hard pushed to find a category where consumer reviews have had more of an impact than restaurant reviews. Blogs from food lovers or even waiters now compete with the professionals with making or breaking restaurants. In tandem review services such as London Eating or Yelp are now essential when choosing where to go.

Impact - summary Impact: Summary INFLUENCE ECONOMY – PRODUCTS AND SERVICES • Overall participation rates for contributing opinions, thoughts and content on products and brands is extremely high • This means all brands have to react to the influence economy – becoming more open, more transparent and more active in social and conversational media. • Different product categories have significantly different exposure to the power of the influencer landscape • Even low interest, expert categories such as finance, real estate and insurance have high participation rates. • Music, films and technology are the categories most talked about online • Holidays and travel are the most sought after for information • Asia and emerging internet markets are leading the way in contributing opinion to the influencer economy THE DEMOCRATISATION OF INFLUENCE • We are more likely to be influencers than receivers in the age of social media • Consumers the world over now claim influence in a huge number of categories • The key categories for broad influence are the same as the key categories for online recommendation with the exception of groceries and food THE NEW SUPER INFLUENCERS: CREATORS • Are the most the active in social media • They are much more likely to create and share rich content • As the channels they contribute to continue to rise in importance so does their impact in the universe of influence • This is the new creative class; the bloggers, the video up loaders, the photo sharers

WHAT DOES IT MEAN FOR YOUR BRAND?

A new world of transparency Impact: Summary NEW WORLD OF TRANSPARENCY • There are no secrets in the new world of influence • Brands, products and services are under constant scrutiny and the truth cannot be managed in the way it was when a few gatekeepers controlled the distribution of information • The only path is honesty, openness and transparency. If you make a mistake in the new world of influence – you admit it and make good. • All categories of goods and services are now impacted BE PART OF THE CONVERSATION • The new world of influence needs a more conversational approach; advertising should encourage interaction, input and community • This means having a blog, being in social networks, creating content such as photos, videos etc – generally being part of the conversation. • Advertising has a big role in the future world of influence – it provides the revenue for most of the services that enable and cultivate consumer recommendation EVERYBODY MATTERS • Today everybody should be considered an influencer to some degree – we all influence and receive to some degree • Every target audience should be encouraged to share opinions and influence REACHING OUT TO THE CREATORS • The creators are the new super influencers, the ones that make the most of the tools of social media. Bloggers, video creators, podcasters etc should be considered as one the most powerful voices in the future

Responding to the new world of influence Impact: Summary

Microsoft: Allow a a massive number of their staff to blog freely to the external world.

Nike: Created a Youtube channel for Nike Soccer, sharing all their adverts and content.

J&J: Have a a staff blog. As they rightfully state: “Everyone else is talking about our company, so why can’t we?”

Lenovo: The voice of the summer Olympic games site pulled together many athlete bloggers.

Starbucks: My Starbucks Idea allows customers to tell Starbucks what to do.

Dell: The ideastorm allows consumers to suggest ideas to Dell and their community. Also have blogs, podcasts and Twitter feeds.

Southwest Air: “Nuts about South West” has blogs and content from across all the maior social media applications including Youtube, Facebook and Flickr

H&M: Created a page on Facebook to share new collections, content and create community. It has over 250K fans!

CT: CONTA

H T I M S TOAM SUMER N O C F DO

MEA E S E R FUTU com . w w m ith@u m s . m o t HE

When did we start trusting strangers? Um Global August 2008

September 2008 29 countries 17,000 internet users