[Research];[Digital marketing market]_1

Myths and RealitiesRe-thinking the Way We Market

October 2008

Vu Minh TriGeneral DirectorGeneral DirectorYahoo! Southeast Asia, Vietnam

No part of this presentation can be quoted or distributed within the express permission of Yahoo! Southeast AsiaCopyright © Yahoo! Southeast Asia Pte Ltd. All rights reserved.

Myth 1:

The Internet is still a new medium in Vietnam

130+ million Internet usersi S th t A i b 2012in Southeast Asia by 2012

113122

131

Internet Users (Millions)

8292

101

2007 2008 2009 2010 2011 20128 9

Source: IDC “Asia/Pac New Media Market Model (2008)”

1 in every 3 Vietnameseill b li i t 4will be online in next 4 years

2326 27

Internet Users (Millions)

16

1921

23

2007 2008 2009 2010 2011 20128 9

Source: IDC “Asia/Pac New Media Market Model (2008)”

A comparative viewHeavy internet user markets with Home as main point of access- higher incidence of

35

40

t k

Moderate internet user markets with Internet

- higher incidence ofonline transactions

Malaysia

Brazil20

25

30

ours

Spe

ntt p

er W

eek

anne

ls)

markets with Internet Outlets and Home/Work as key points of access Light internet user

markets where Internet Outlets serve as the main point of accessBrazil Vietnam

Mexico PhilippinesIndonesia10

15

20

Aver

age

Ho

On

Inte

rnet

(All

Cha

p

India

Indonesia

0

5

30 40 50 60 70 80 90

A O

30 40 50 60 70 80 90

Size of Bubble indicates size of internet user population as of 2007 (source: IDC 2007)

% Accessing from Internet Cafés/ Outlets

Source: Yahoo! “Tribes 2.0 (2008)”

Vietnam usershave been online as long as the

VIETNAM

42%

INDIA

as long as the Malaysians

3% 4%10% 12%

29%

7% 10%

27%20%

14%

23%

< 6mths

6-12mths

1-2years

2-3years

3-5years

> 5years

< 6mths

6-12mths

1-2years

2-3years

3-5years

> 5years

IndiaMexico Vietnam

M l iPhilippines

Brazil

Indonesia Malaysia

INDONESIA MALAYSIA51%

16%20%

25%

33%

14% 15% 14%

3% 5%

< 6mths

6-12mths

1-2years

2-3years

3-5years

> 5years

1%5%

< 6mths

6-12mths

1-2years

2-3years

3-5years

> 5yearsSource: Yahoo! “Tribes 2.0 (2008)”

Clear trend of more Vietnamesei th I t t l laccessing the Internet regularly…

Media Reach (%)

9386

93

82

9082

2005

2006

Media Reach (%)

2007

2631 2727 29

2533 31

25

12 11 11

Watch TV Print Access Internet Radio Watch Video Visit CinemaWatch TV(Yesterday)

PrintReadership

Access Internet(Past Week)

Radio(Yesterday)

Watch Video(Yesterday)

Visit Cinema(Past 3 Months)

Source: TNS Media Vietnam “Media Habit Survey (2007)”

... and progressively spendingti limore time online

Average Daily Time Spent (Minutes)

7120052006200

Average Daily Time Spent (Minutes)

56

2007

34 3328

3834

16

2 2

1514

5

14

7

15 - 24 years 25 - 34 years 35 - 44 years 45+ years Total

Source: TNS Media Vietnam “Media Habit Survey (2007)”

Myth 2:

Only the Vietnamese youthare using the Internet

The 15-24 year olds are farh i f th I t theavier consumers of the Internetmedium than other traditional media

TV Print Radio Internet

Affinity Index

196

103 99 97 10596

110 106 9885 8591

110

79

116 118

96

54 53

Average: 100

54 53

24

15 - 24 years 25 - 34 years 35 - 44 years 45 - 55 years 55+ years

Source: TNS Media Vietnam “Media Habit Survey (2007)”

Beyond the Youth:Old Vi t l tti li

INDIAINDIAPHILIPPINESPHILIPPINESINDONESIAINDONESIA MEXICOMEXICO

Older Vietnamese are also getting online…

48%

27%

16

35%

21% 22%

19

19%

30%

18%

2032%

22

14%8%

2% 0% 0%

13-16 17-20 21-24 25-34 35-44 45-49 50+

11%8%

2% 2%

13-16 17-20 21-24 25-34 35-44 45-49 50+

19% 18% 16% 14%

3% 1%

13-16 17-20 21-24 25-34 35-44 45-49 50+

14%9%

16%13%

8% 8%

13-16 17-20 21-24 25-34 35-44 45-49 50+

VIETNAMVIETNAMBRAZILBRAZILMALAYSIAMALAYSIA

42%22 3425

14%

24%

3%9%

6%

42%

2%

22

17%13%

8%13% 16% 17% 17%

34

24%18%

7%

16%

25%

4% 6%

25

13-14 15-17 18-19 20-24 25-29 30-40 40+ 13-16 17-20 21-24 25-34 35-44 45-49 50+13-16 17-20 21-24 25-34 35-44 45-49 50+

Source: Yahoo! “Tribes 2.0 (2008)”

Beyond the Youth:th Ed t dthe Educated…

219TV Print Radio Internet

Affinity Index

94 98 102 103

59

91110

118105 105 102

86

115

Average: 10059

13

33

Primary or lower Lower Secondary Upper Secondary College or higher

Source: TNS Media Vietnam “Media Habit Survey (2007)”

Beyond the Youth:th Affl tthe Affluent…

151 TV Print Radio Internet

Affinity Index

102 100 96

112101

113122

Average: 100

6979 79

g

20

SEC A/B SEC C SEC D/E/F

Source: TNS Media Vietnam “Media Habit Survey (2007)”

Beyond the Youth:th U b itthe Urbanites…

143TV Print Radio Internet

Affinity Index

101 103 98

111

98109

122

94Average: 100

7779

53

g

Urban Semi-Urban Rural

Source: TNS Media Vietnam “Media Habit Survey (2007)”

Myth 3:

Email is the most popularonline activity

Instant Messaging reigns in Vietnam

Country% WHO HAVE USED / VISITED AT LEAST ONCE IN PAST MONTH

Instant Messaging reigns in Vietnam

yInternet Portal Email Instant

Messaging Search Social Networking

MobileInternet

Indonesia 90% 65% 36% 58% 56% 6%

India 43% 87% 50% 62% 27% 5%

Philippines 60% 75% 60% 63% 55% 12%

Mexico 59% 78% 56% 80% 18% 5%

Vietnam 72% 66% 77% 70% 33% 7%

Brazil 76% 83% 63% 67% 64% 9%

Malaysia 66% 75% 58% 68% 38% 11%

# 1# 2 / # 3

Source: Yahoo! “Tribes 2.0 (2008)”

Vietnam has a high concentrationf li dof online news readers…

MONTHLY INTERNET ACTIVITIESMONTHLY INTERNET ACTIVITIES% of Internet Users who have read news online

Used instant messengers 77%Read news online 76%Visited internet portals 72%

76Vietnam

in the past month

Used a search engine 70%Used email 66%Played games online 53%Watched video clips online 47%

50

72Indonesia

Brazil Watched video clips online 47%Accessed music files online 42%Sent internet SMS 39%Visited chat rooms 36% 39

42Malaysia

MexicoRead blogs or other SN profile pages 30%Used a webcam 30%Down- /uploaded on video sites 24%

34

39Mexico

Philippines

Source: Yahoo! “Tribes 2.0 (2008)”

Down- /uploaded digital photos 19%Used internet telephone services 19%

32India

Myth 4:

All Vietnamese internet users do the same things online

At first glance…

Internet CaféUser ActivitiesInternet Café

User ActivitiesExample

68

73Chat / Instant Messaging

Play online games

User ActivitiesUser Activities

61

62Email

Reading News

27

55

60Download / Upload music

Online info search

Visit Chat Rooms

14

26

Visit Chat Rooms

Download / Upload video

Write blog / online journal

13Read friends’ or other blogs

Source: Yahoo! “Project iCafe (Aug 2007)”

Mining deeper…Female users are more engaged in ‘social’ activities, such as instant messagingand blogging

Male users aremore likely tobe online gamers

Internet CaféUser ActivitiesInternet Café

User ActivitiesMaleMale FemaleFemale

and blogging.gamers

Example

68

73Chat / Instant Messaging

Play online games

User ActivitiesUser Activities

74

69

56

81

61

62Email

Reading News 62

59

58

67

27

55

60Download / Upload music

Online info search

Visit Chat Rooms 27

54

58

28

55

65

14

26

Visit Chat Rooms

Download / Upload video

Write blog / online journal 10

27

21

24

13Read friends’ or other blogs 10 20

Source: Yahoo! “Project iCafe (Aug 2007)”

Another example

Teenagers(13 20 years)

Teenagers(13 20 years)

Married WomenMarried Women Young Adults(25-34 years)Young Adults(25-34 years)

Affinity Index

Example

139

138

Play online games

Read blogs / SN pages

(13-20 years)(13-20 years)

54

60

88

94

(25-34 years)(25-34 years)

124

121

ead b ogs / S pages

Watch video clips online

Visit chat rooms

66

89

94

115

110

91

Use a webcam

Visit community groups

63

79

99

121

84

69

Read news online

Click on an online bannerUse internet telephone

104

129

110

118

51Use internet telephone

services 122 127

Source: Yahoo! “Tribes 2.0 (2008)”

Average: 100 Average: 100 Average: 100

Social Networking is a key differentiator for these ‘socialisers’

Dominant Internet User Segments

SOCIALSSocial Networking is a key differentiator for these socialisers .

Likely to be heavier users of Social Networking sites,Instant Messengers and Email

EMBRACERSOnline Transactions is a key differentiator for these ‘all-rounders’.

Core web motivation is to ‘transact’ – likely driven by convenience & productivity. Likely to be heavier users of Search, Email, Internet Portals and Mobile Internet.

FUN EXPLORERS

Online Gaming is a key differentiator for the these ‘fun seekers’.Core motivation for using the internet is for ‘fun & entertainment’.

Likely light to moderate users of Email, Instant Messengers,Search and Social Networking sitesSearch and Social Networking sites.

UTILITARIANSF ’.Functional internet users who primarily use the internet to ‘communicate & connect’.

Likely to be moderate users of Email. yLight users of Instant Messengers, Search and Social Networking sites.

Li ht i t t h i il th i t t t ‘ h’CASUAL BROWSERS

Light internet users who primarily use the internet to ‘research’.Likely to visit internet portals for news or be moderate users of Search.

Source: Yahoo! “Tribes 2.0 (2008)”

Not all users are created equalNot all users are created equal- some are more valuable than others

SEGMENT TOTAL THE FUN EXPLORER

THESOCIAL

THEUTILITARIAN

THEEMBRACER

THE CASUAL

BROWSER

Average Time Spent (Annualised hours) 744 754 861 472 1004 495(Annualised hours)

Will spend more time(In the next 12 months) 29% 22% 35% 22% 32% 32%

Advocacy/Influence(F t Sh + F t M k ) 32% 25% 40% 20% 52% 15%(Future Shapers + Future Makers)

Propensity to click (Online ads) 17% 9% 22% 13% 27% 14%

VALUE INDEX 100 85 131 54 163 49VALUE INDEX 100 85 131 54 163 49

Th E b d S i l th hi h t l t i Vi tThe Embracers and Socials are the highest value segments in Vietnam.

Myth 5:

Success = ‘Share of Voice’

Sh f V i i KiShare of Voice is King

A brand's advertising weight expressed as a t f d fi d t t l k t k tpercentage of a defined total market or market

segment in a given time period.

The weight is usually defined in terms of expenditure, ratings, pages, etc.p , g , p g ,

- Wikipedia

Source: http://en.wikipedia.org/wiki/Share_of_Voice; last accessed 8 Aug 2008

Sh f Lif i QShare of Life is Queen

A brand's level of relevant exposure throughout th ’ d il jthe consumer’s daily journey.

Shift focus from outspending to outsmartingShift focus from outspending to outsmarting –driving the brand across all media touchpoints at the right place and the right time. g p g

- MeMe

Day in the Life of a ‘Social’

B k d

Nguyen Thi Yen

Segment: SocialGender: FemaleAge: 22 years old

Background

Age: 22 years oldMarital Status: SingleOccupation: University StudentMonthly Household Income: USD360Frequency of Internet Access:Frequency of Internet Access: Several times / dayTenure: more than 5 yearsComputer: 1 computer shared with others The Internet Access: DSL (Home)The Internet Access: DSL (Home)No. of hours spent per week: 17 hrs / weekLocation of Internet Access: Internet Café, Home and School

Source: Yahoo! “Tribes 2.0 (2008)”

My Typical Day

6 am: I wake up early in the morning to get ready for school. I normally leave home at 6:30 am.

7 am – 8 am: I arrive at school and study at my desk. I review what I have learned previouslylearned previously.

9 am – 12 am: I take my morning classes. I sometimes use the internet at school to look for information.

12 pm – 1 pm: I normally go home to have lunch.

1 pm – 2 pm: After lunch, I rest at home or enjoy light entertainment (e.g. watching TV or using the internet) before I go back to school.

2 pm – 5 pm: I take afternoon classes. I leave school at 5:30 pm to go home and have some free time before dinner.

5 pm – 6 pm: Sometimes, I go to the internet cafes with my friends after school. Otherwise, I arrive home and rest a little bit, or quickly log onto the internet to check email, check my blog, and chat with friends if they are also online.

6 pm – 7 pm: I have dinner with my family.

7 pm – 8 pm: After dinner, my family get together for a chat or we watch TV shows together.

8 pm – 11 pm: I do my school assignment and also spend time online. During the evening, most of my friends are online, so it’s the best time to chatthe evening, most of my friends are online, so it s the best time to chat online or update blogs.

11 pm: I finish my chatting and go to sleep.

St ti P i tStarting Points

• Unlike traditional media, the online medium is more fragmented.

• Important to identify key ‘ports of call’ or ‘starting points’- essentially the first site or application your consumer actively accesses when on the internet.

• Focus on serving your brand on core starting points ofFocus on serving your brand on core starting points of your consumers.

Not all Internet propertiesf l lare of equal relevance

“It’s fun to read “It’s fun to read gossips about gossips about

celebrities. I can celebrities. I can easily spend timeeasily spend time

“I need IM to chat “I need IM to chat with my friends, with my friends,

d il id il i“Without search “Without search

easily spend time easily spend time online just reading online just reading

those news.” those news.”

Entertainment

IM

and email is a and email is a mustmust--have at have at

work.”work.”engine, I won’t be engine, I won’t be

able to get all able to get all those valuable those valuable information for information for

school.”school.”

ME Email

Social Networking

Search Engine ““I can learn a lot ““I can learn a lot

from reading other from reading other people’s blogs… It is people’s blogs… It is

l ll l

Internet Portal

Social Networking

Online

also my personal also my personal space where I can space where I can

express all my express all my feelings and feelings and thoughts.”thoughts.”

Mobile Internet

Transaction

Source: Yahoo! “Tribes 2.0 (2008)”

Internet Pathways

Pathways Sites Visited

Starting Point

Transit Site Base Site(s) Activities

1 Y!M Y!M Application Y!M - Log onto Y!M to see who’s online- Minimize and leave Y!M on during the entire session

2 Yahoo! Mail Yahoo.com Y!M

- Check to see if there’s any email from a friend - Read and reply emails to friends - Check Yahoo! 360 notifications to see who updated

blogsblogs

3 Yahoo! 360 Y!M

4 Tuoitre Y!M / Yahoo! 360 / Tuoitre - Read news

5 Bamboo (or Y!M / Yahoo! 360 / D l d i f MP3 l li i5 Bamboo (or YouTube)

Y!M / Yahoo! 360 / Tuoitre - Download music for MP3 player or listen to music

6 Yahoo! 360 Y!M / Yahoo! 360 / Tuoitre

7 School HP Y!M / Yahoo! 360 / Tuoitre

- Check school results- Read course materials

8 Y!M Y!M / Yahoo! 360 / Tuoitre - Chat with friends

9 Yahoo! 360 Y!M / Yahoo! 360 / Tuoitre - Read postings

Y!M / Yahoo! 360 /10 Tuoitre Y!M / Yahoo! 360 / Tuoitre - Click on buzz topics to read articles

11 Google.com Y!M / Yahoo! 360 / Tuoitre

- Look for information for school related work - Search for images to upload on Yahoo 360 profile

Source: Yahoo! “Tribes 2.0 (2008)”

SUMMARY

Myths RealitiesThe Internet is still a new medium in Vietnam

• The online industry in Vietnam has been growing rapidly in the last 3 years.

1

• 7 in every 10 Vietnamese internet users have been online for over 3 yearsonline for over 3 years.(compare Malaysia)

1 i 3 Vi t• 1 in every 3 Vietnamesewill be online by 2012

Do not under-estimate the net-savviness of your consumers

Myths RealitiesOnly the Vietnameseyouth are using the Internet

• The Educated

• The Affluent

2

• The Urbanites

• Now, even the Older...

Think beyond the Youth. Your consumers may already be online.

Myths RealitiesEmail is the mostpopular online activity

• Instant Messagingis most popular3

• Internet Portals, Search,Email etc

• Vietnam has one of the world’s highest concentration of online

dnews readers

Integrate relevant properties to ensure a seamless online experience

MythsMyths RealitiesAll Vietnamese internet usersdo the same things online

• Clear differences in how different users engage with the Internet

4

• Male vs Female

• Teenagers vs Young Adults

• Socials vs UtilitariansSocials vs Utilitarians

Understand the Internet media habits of your consumers.One size doesn’t fit all.

MythsMyths Realities

Success = ‘Share of Voice’ • Success = ‘Share of Voice’ +‘Share of Life’

5

• Focus on Relevance(vs Outspending)

• Understand the daily journeys of your targetj y y gand the differentengagement touchpoints

Identify the engagement touchpoints of your consumer. Think ‘Starting Points’ when marketing online.

THANK YOU