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Women Power Online
Laura Martin, CFA
Senior Equity Analyst
Entertainment & Internet
Needham & Company, LLC

March 19, 2012

LMartin@NeedhamCo.com (917) 373-3066

Women’s Offline Purchasing Power

 Globally, women represent approximately 49.7% of the
total global population and over 70% of consumer dollars
spent worldwide.
Purchasing Power

 US women represent 51% of the population and control or
influence 85% of purchasing decisions. Rising because:
 Household Structure. According to the 2010 U.S. Census, 41% of
mothers reported that they were not married. This number rises to
51% among younger moms, 18-34 years old. 44% of these moms
think that marriage is “obsolete.” When a woman is the head of
household, she controls 100% of the purchasing decisions for her
and her kids.
 Workforce. 59% of US women are in the workforce. If we narrow
the focus to only women with children under 17 years old, 66% of
them work: 74% full time and 26% part time. As the number of
women’s paychecks rise, their spending power grows over time.


The Importance of Women on the Web

Women are Driving the 4 Biggest Usage Trends on the Internet:
 The Rise of Daily Deals
Women Driving Online

 Casual Gaming
 E-Commerce
 Social Networking

Source: Nielsen NetView, June 2009-June 2010.

Online - Where are Women vs Men?
1. e-Commerce (2.2 hours per week vs 1.9 for men)
Consumers Moving Online

2. Social sites (5.0 hours/week on social sites, 4.1 hours on
email)

Hours per Week Online

Source: TNS Digital Life Study, February 2011.


Online Purchasing Behavior, US
1. Women spend more time on the web each month than men
Women Moving Online- US

2. Women spend much more money.
 e-Commerce in the U.S. reached $200 billion in 2011. In the U.S., women
typically represent 58% of total monthly online purchases.
 Nielsen analyzed the 11 largest e-commerce categories in the U.S. and
found that women buy significantly more than their male counterparts in 9 of
the 11 top online e-Commerce categories.

.
Source: Nielsen, 3Q10


Online Purchasing Behavior, Global
1. Globally, ROW is following U.S. e-commerce patterns.
Women Moving Online - ROW

2. comScore’s global study of online purchasing in May of 2011:
 On apparel sites, women globally represented 53% of unique
visitors and they stayed 33% longer than men (10.9 minutes vs.
men’s 8.2 minutes).
 On coupon sites, women globally represented 53% of unique
visitors globally and they stayed 89% longer than men (12.3
minutes vs. men’s average 6.5 minutes).
 On luxury goods and accessories sites, women globally
represented 66% of unique visitors globally and they stayed 62%
longer than men (25.8 minutes vs. men’s average 15.9 minutes).

** Note: Beware of using unique visitors as a guide to spending. Women
often spend 20-100% longer than men on the sites that they like. To
estimate economics, the average length of stay is typically more
important than unique visitors.


Social Networking Globally – Longer Engagement
1. Engagement drives economics more than unique visitors = fans.
2. Women spend 30% more time on social networking sites vs men.
3. Social networking sites reached 76% of all women online globally
in May 2010 vs. 70% of men.
Social Networks

4. Women consumed 57% of social site pages and were 57% of total
minutes spent on social sites globally in May 2010.
5. Women spent 5.5 hours on social networking sites in May 2010,
41% more time than men (at 3.9 hours).
6. Average female posts 10-26/month vs avg male at 7-17 times.

Source: comScore, 2010.

How do Men and Women Use Social Networks?
1. Women use social networks to:
 Make connections and share daily personal updates.
 Learn about real people experiencing similar conflicts.
 Solve real-life problems in their day to day lives.
Social Networks

 Women are most likely to be found on sites & apps such as
Pinterest (80% women), MySpace (64%), Facebook (57%),
Twitter (57%), and Flickr (55%).
2. Men typically visit sites and use social networks to gather
information and increase their status within the hierarchy. Men use
social media:
 To chronicle accomplishements- photos focus on this.
 To gather information and boost their influence.
 As an “Interactive Rolodex.”
 Men are most likely to be found on Hulu, Digg, and LinkedIn.
According to Pew, geo-social apps like Foursquare and Gowalla
garner 2x as many men as women.

Are Women More Social than Men?
British anthropologist Robin Dunbar introduced the notion of Dunbar’s
number in 1992, in which he suggests that the cognitive limits of
the brain limit the number of people with whom a person can
maintain stable social relationships. He postulates that group size
Social Networks

has a direct relationship to neocortex size. The most commonly
used Dunbar number is 150 people.
 Average number of friends on social networks is 120. (FB data)
 The average woman will consistently respond to postings of 10
friends vs 7 for a man.
 The average woman reaches out regularly to 6 people vs the
average man at 4 people.
 Importantly, the more active the online dialog and interactions
become, the smaller and more stable the group size becomes.
Bottom line, the online world appears to mirror the offline world in the
number of connections it fosters (i.e., less than 150) and women
are indeed more social than men.

So What? How Do We Make Money?

Women Spend 70-85% of Total Dollars - What Do
Women Want?
 Time-saving solutions.
 Develop community.
Conclusions

 Love and connection—lasting, romantic
r e l a t i o n s h i p s ; h a p p y, h e a l t h y f a m i l i e s ;
connections with friends, colleagues and
neighbors.
 Time and work-life balance—the ability to “make
it all happen” and make the right trade-offs.
 Control of spending plus guidance on spending
money wisely.


Broader Implications for Women

A Bigger Answer: Women Writ Large
 The Internet functions as a global communications network
that allows women to access other women across
boundaries of geography, wealth, class, time, gender,
Conclusions

culture, and religion. Information flow should be good for
women globally.
 A 2009 BCG study concluded that: “At the most basic level,
online connections are a revolution of, by, and for women.
The Internet offers women education, better ways to nurture
themselves and their families, increased success as
executives and entrepreneurs, higher earnings, and better
ways to manage and leverage their accumulated wealth.”


If you give me your card, I’ll send you my thematic research

1. Martin has a BA from Stanford and an MBA
f r o m H a r v a r d . S h e a l s o h o l d s a C FA
designation.
2. Martin’s first job was in media investment
banking at Drexel Burnham Lambert
3. After the Drexel bankruptcy, she joined Capital
Research & Management, managing $500M of
media equities.
4. In 1994, she joined Credit Suisse First Boston
where she was nationally ranked by
Institutional Investor magazine for 4 years in
the cable & entertainment industries.
5. In 2001, Martin moved to Paris to became EVP
of Financial Strategy & Investor Relations for
Vivendi Universal.
6. In 2003, Martin returned to publishing research
on the largest Media and Internet companies,
distributed through Soleil Securities.
7. In 2009, Martin joined Needham & Company.
8. Martin offers expert witness and consulting
services through www.CapKnowledge.com.


Disclosures


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