James Fergusson presentation at TNS Digital Life event South Africa 25/26 January 2012

1. Understanding the World’s Digital
Life from an African perspective
The role of mobile & digital and the
rise and rise of Social Networking
© TNS 2011

2. Agenda
- The Digital World
- Role of Mobile
- Rise & Rise of Social Networking
- Harnessing Digital to drive Growth
2

3. The Digital World
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4. Device is key; mobile phones offer a gateway to digital
services in sub-Saharan Africa
Share of online
hours/week
PC: home
PC: work/school
PC: Internet café
Global Kenya
PC: elsewhere
Mobile
Tablet
Other device
Nigeria South Africa
Source: S7; Hours spent online weekly Base: All respondents: 73512,1000,1500,1000
Digital Life 4
© TNS 2011

5. Among online users, digital is the primary daily
media channel…
% using at least once a day – Global
68
55
31 29
13
Internet for TV Radio Newspapers Magazines
leisure
5

6. Digital is the dominant media source in all but
the lowest penetration markets
Daily users (%) Internet for leisure TV Radio Newspapers
69
Netherlands 51
36
22
91
South Korea 66
19
25
62
China 40
14
30
51
Ghana 75
65
15
Question: M1; Media Usage Frequency Base: All respondents; 1001, 1010, 2361, 1008
6

7. In sub-Saharan Africa digital is competing with television to be
the dominant media source for daily consumption
Daily users (%) Internet for leisure TV Newspapers Magazines
68
Global 56
29
13
65
Kenya 80
43
15
63
Nigeria 61
23
11
59
South Africa 68
21
6
Source: M1; Media Usage Frequency Base: All respondents; 73512,1000,1500,1000
Digital Life 7
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8. Role of Mobile
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9. Regardless of legacy, mobile reigns supreme
globally – it is the world‟s must have device
Likely to buy
Current ownership
9

10. 0
1
2
3
4
5
6
7
9
8
10
Uganda
Benin
Tanzania
Ghana
Kenya
Senegal
Cameroon
Nigeria
Pakistan
Vietnam
India
Philippines
Indonesia
Morocco
China
Thailand
South Africa
Guatemala & Costa Rica
Brazil
Mexico
Malaysia
Chile
Argentina
Number of technology devices owned
Emerging
Russia
Saudi Arabia
GDP Per capita
New Zealand
Italy
Spain
Korea
Japan
France
Developed
Taiwan
gains increased relevance in emerging markets
UK
Germany
UAE
Sweden
Canada
Without alternative technology device options, mobile
Australia
Netherlands
R
Hong Kong
USA
Singapore
10
Mobile ownership (%)= 0.85
0%
10%
20%
40%
60%
70%
80%
90%
30%
50%
100%

11. But demand for existing and future activities is focused mainly
around the mobile in Sub-Saharan Africa
Preferred devices for activities Prefer PC Prefer Mobile Prefer tablet
Source: Mobile Life
N Emerg
America Europe Dev Asia Lat Am China MENA Asia India SSA
Digital music
Calendar
Navigation
Transfer files
Bluetooth
Games
Video calling
IM
Internet access
Download content
Download apps
Email
Banking
Edit images and
videos
Read eBooks
Browse the Internet
Social networking
Edit documents
Online shopping
Source: Mobile Life 2011
Digital Life
© TNS 2011

12. China paves the way for the emerging market digital
and mobile landscapes…
China has the largest mobile & online population in the
world
Online behaviour differs significantly to Developed
Markets
China‟s Digital Landscape is differs from developed
513 million online markets with many relying solely on cell phones for
internet access
952 million mobile users
China sets the benchmark for other rapid growth markets
Much more than Desktop 355 million mobile 130,000 Cafés
internet users 163 million users

13. Globally mobile internet usage is exploding… already
half the population in China access the Internet via
their mobile
% using mobile Internet
Global 31
China 50
N America 45
Dev Asia 42
Europe 35
MENA 32
Lat Am 25
SSA 18 A quarter (25%) of the South African
Emerg Asia 16 population currently access the
Internet via their mobile
India 6
13

14. There are six key factors contributing to the
explosion of mobile Internet usage
Improved The growth Unlimited Intuitive Increased Lack of
user of “Now” data plans handsets accessibility alternate
interface (low cost) Internet
access
14

15. Mobile drives usage of digital services ever
higher across the world
Hours spent online in average week
(global %)
PC users 18
Mobile users 25
Tablet users 31
Question: S7; Hours spent online weekly Base: PC users, mobile users, tablet users: 70397, 25386, 3511
15

16. Mobile provides continuous access to online
services, especially in the evenings
I feel I am „always connected‟ to the Internet 66%
PC
Mobile
In bed Early Commuting Late Midday Early Late Early Late In bed During the
when I morning morning afternoon afternoon evening evening before I go night
wake up to sleep
Question: H2, H4; Occasion use; Mobility attitudes Base:PC/mobile/tablet users; 605,686
16

17. With strong mobile reliance Africa is a key example of
where low-cost smartphones will be eagerly adopted
17

18. Rise & Rise of Social Networking
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19. The world has become smaller…

20. Across devices, digital users are performing a huge variety of
activities online; globally more time is spent Social Networking
Social networking & connecting
Share of hrs in an
Communication
average week Email
online
Multi-media & entertainment
(global)
Online gaming
Total/week Personal interest Entertainment
18hrs Shopping
Pre-purchase & browsing
Information
Knowledge & education
News, sport & weather Management
Question: S7; Time spent online Base: All respondents; 73152 For a full definition of the Digital Life activities,
please consult the appendix
20

21. Whilst African Internet users spend less time online each week
than the global norm, their routines are angled heavily towards
social
Share of hrs in an
Social media
average week 4.8 and networking 5.6
online Connecting and sharing Total/week
Total/week with others online,
(global) 11hrs
18hrs whether using a social
2.9 network like Twitter, or
something like Twitter 2.1
Global Kenya
Multi-media
and
entertainment
7.6 Watching video, 7.3
listening to music or
Total/week radio streaming or Total/week
16hrs watching on-demand TV 13hrs
programmes...
2.1
1.6
Nigeria South Africa
Source: B2; Hours spent on Digital Activities Base: All respondents: 73512,1000,1500,1000
21
Digital Life
© TNS 2011

22. Social networkers primary access is via their mobiles, but
multi-media services are yet to develop in these channels to
the same extent
Social PC Mobile
Daily users
Multimedia Daily users
Global
47 18
33 10
Kenya
32 53
11 16
Nigeria
23 56
5 10
South Africa
29 43
5 8
Source: B2; Hours spent on Digital Activities Base: Device users
22
Digital Life
© TNS 2011

23. Social networking access via the mobile has exploded
and the growth is exponential…
% accessing social networking services via their mobile phone
Global 12 19
N America 18 32
MENA 13 29
China 16 26
Dev Asia 18 25
Europe 13 21
Lat Am 7 20
SSA 14 19
Emerg Asia 5 12 2011
2010
India 2 3
Mobile Life 2011: B1: Service usage
Base: All mobile users

24. Social networks becoming primary way of communicating
online, however brands are not yet capitalising on the potential
conversations
Size of Size of current
potential audience brand audience
84
40
Global % of people who Global % who friend
are part of social brands on social
networks networks
Question: B1, I1, I5; Online Activities, No. brand Friends, Comment writers Base: All Respondents, Social Network Users, All Respondents:73512, 61508,
73512
24

25. This story is particularly strong in South Africa, where
there is relatively little brand interaction online
Size of Size of current
potential audience brand audience
81
8
% of people who are % who friend brands on
part of social networks social networks
Question: B1, I1, I5; Online Activities, No. brand Friends, Comment writers Base: All Respondents, Social Network Users, All Respondents:73512, 61508,
73512
25

26. “SOCIAL MEDIA IS LIKE A PUPPY – Everyone wants to
start a community. What they forget is the 24/7/365
reality TV show. You have to provide the content,
engage the community and focus on what’s important
rather than just let it fall.”

27. What used to be comparatively simple
Digital Life 27
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28. Is now more complex
Digital Life 28
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29. Tanzania
Ghana
India
Uganda
Kenya
Pakistan
South Africa
Indonesia
Egypt
Thailand
Nigeria
Philippines
Peru
Vietnam
Mexico
Ukraine
Romania
China
Brazil
Colombia
Morocco
Russia
Saudi Arabia
Turkey
Argentina
Greece
Portugal
Italy
Chile
Poland
Malaysia
Hungary
Spain
Ireland
Czech Republic
Internet Penetration
Hong Kong
digital takes share of influence from TV
UAE
France
Taiwan
Israel
Slovakia
Austria
© TNS 2011
Digital Life Estonia
Singapore
Belgium
US
Australia
Japan
Canada
Germany
% describing TV as an important source of information at any stage in the Consumer Journey
Switzerland
Source: P1a-P3; Touchpoint usage throughout Consumer Journey Base: Purchasers answering Section P; Varies by market (all >453)
South Korea
UK
New Zealand
As infrastructures develops and offer alternative sources,
Luxembourg
Finland
Denmark
Netherlands
Sweden
29
Norway

30. Online users are mutli-taskers; mobile devices are blurring the
divide between online and offline
Offline activities done whilst also online
(Global % of device users)
PC Mobile
Global Kenya Nigeria South Africa
Find out more about 53 33 28 35
a product (just seen
advertised offline) 29 19 31 18
33 7 12 21
Watching TV
36 36 43 57
28 18 23 30
Listening to radio
26 43 44 53
Source: H3; Internet multi-tasking Base : Device users
Digital Life 30
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31. Harnessing Digital to Drive Growth
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32. What role can digital play for brands?
Creating Brand Saliency
Fostering Brand Engagement
and Management
Influencing the
Path to Purchase
Acting as a Game
Changer
32
Digital Life
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33. Implications ...
1. Digital is the primary media channel throughout the world and is growing – as
the mobile experience improves, digital is increasingly becoming mobile
2. In emerging markets demand for comprehensive mobile offerings and advanced
features is high due to limited infrastructure and low device ownership levels. In
developed markets it is driven by greater consumer utility
3. Limited smartphone penetration in emerging markets prevents ease of mobile
internet access and restricts content uptake, however the introduction of low-
cost smartphones will change the landscape dramatically – having brand content
available will be key
4. Harness the social explosion – social networking and social media have the
ability to anchor digital strategies and provide a continual gateway to reach
consumers
5. Consumers are looking for experiences that match their needs and behaviours
in the „now‟ society we live in – content that focuses on convenience and
entertainment will hold strong potential to succeed
33

34. “If you haven't
found it yet,
keep looking.
Don't settle”
Steve Jobs
34
Digital Life
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