Keeping Consumers Connected - UK - September 2008

TABLE OF CONTENTS

• Issues in the Market
• Main issues
• Definition
• Social networking sites
• Search engines
• Abbreviations
• Market in Brief
• Consumer interest in connecting online set to grow
• Competition makes for a fast-changing market
• Understanding your audience is key for long-term success
• Internal Market Environment
• Key points
• Women want to connect online
• Teenagers are also getting more connected
  • Figure 1: Attitudes towards the internet -- 11-18-year-olds, August 2008
• Ease of use helps drive interest in web interaction
• Connecting on the move increasingly important
  • Figure 2: Web-enabled device usage, April and July 2008
• Broader Market Environment
• Key points
• Increasing penetration of PCs boosts connectivity potential
  • Figure 3: Household ownership of PCs, 2002-08
• Broadband penetration broadens the use of the net
  • Figure 4: UK Broadband penetration, 2004-08
• Rising PDI
  • Figure 5: Total PDI, consumer expenditure and savings, 2003-13
• Rising number of one-person households
• Figure 6: UK household sizes, 2003-13
• An ageing population...
  • Figure 7: Trends in the age structure of the UK population, by gender, 2003-13
• ...and one that is expanding
• Competitive Context
• Key points
• Pressure on time and resources favours alternatives to the internet
  • Figure 8: Consumer expenditure on selected leisure goods and activities, 2002-07
• Segmentation within the web is a challenge
• External competition forces online sites to be more integrated
• Figure 9: Types of activity undertaken on the internet in the last three months, April and July 2008
• Can current broadband infrastructures support quality video?
• Technical apathy may encourage older consumers to do other things with their leisure time
  • Figure 10: Attitudes towards the rate of new technology becoming available on the market and the increasing role of technology in consumers' lives, by age, June 2008
• Where is the future for other social communication?
• Market Share
• Key points
• Social networking -- Facebook and Bebo jostle for visitors...
  • Figure 11: Social networking websites, market share (unique visitors), 2007-08
• ...although for those who are mobile, Facebook currently is the clear leader
  • Figure 12: Social networking websites on UK mobile phones, market share (unique visitors), January-March 2008
• Search engines -- Google is dominant
  • Figure 13: Search engines, market share (search properties), 2007 and 2008
• Video catch-up -- BBC iPlayer takes an early lead
• Companies and Products
• Bebo
• MySpace
• Facebook
• LinkedIn
• Google
• Yahoo!
• MSN
• What Social Networking Sites do Consumers Go to and Why?
• Key points
• Interest in social networking is growing...
  • Figure 14: Where consumers go to social network, by site and frequency, March and July 2008
• ...with finding friends and sharing photographs emerging as an important activity when using such sites
  • Figure 15: What consumers get up to on a social network, March and July 2008
• What Do Consumers Like About Their Social Networks?
• Key points
• Popularity and ease of use are key features sought by users
  • Figure 16: What consumers like about social networking in general, July 2008
• Subtle differences exist in benefits offered by social and business networking sites
  • Figure 17: Reasons for using particular networks, by networks, July 2008
• What Would Turn Users Off A Social Network?
• Key points
• Friends migrating to rival sites is main reason to leave
  • Figure 18: Off-putting aspects of social networks, July 2008
• Social and business users of particular sites are influenced by different issues
  • Figure 19: Off-putting aspects of networks, by networks, July 2008
• Google's The Winner, But Exactly Why Is It Used More Than Other Search Engines?
• Key points
• Google dominates the market
  • Figure 20: How often consumers use search engines, by frequency, July 2008
• Google ticks the key boxes for consumers -- ease of use and relevant results
  • Figure 21: Why consumers choose a particular search engine, by brand, July 2008
• What Would Turn Off Google Users?
• Key points
• Google has to keep delivering if it wants to maintain its popularity
• What would put consumers off a search engine?
  • Figure 22: Reasons for leaving a particular search engine, July 2008
• Google users are most likely to switch for something better
  • Figure 23: Reasons for leaving a particular search engine, by search engine, July 2008
• Which Video Catch-up Site Gets The Most Visits?
• Key points
• BBC iPlayer is the most popular site with a PC the main platform for viewing
  • Figure 24: Usage of video catch-up sites, by ever use and frequency, July 2008
• Appendix -- Social Networking Usage
  • Figure 31: All users of leading social networking sites, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 32: Regular users of leading social networking sites, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 33: Occasional users of leading social networking sites, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 34: Never use particular social networking sites, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
• Appendix -- Reasons for Using Social Network Sites
  • Figure 35: Main reasons for using social networks, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 36: Other reasons for using social networks, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 37: Reasons for using social networks, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
• Appendix -- What Consumers Like About Social Networking
  • Figure 38: Most popular things that consumers like about social networks, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 39: Other things consumers like about social networks, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 40: Least popular things consumers like about social networks, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
• Appendix -- Reasons for Leaving a Social Network
  • Figure 41: Most popular reasons consumers would leave a social network, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 42: Other easons consumers would leave a social network, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 43: Least popular reasons consumers would leave a social network, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
• Appendix -- Search Engines Used
  • Figure 44: Any users of search engines, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 45: Search engines used the most, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 46: Search engines used more in the past than now, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 47: Search engines never used, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
• Appendix -- Reasons for Using a Search Engine
  • Figure 48: Most popular reasons for using a search engine, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 49: Other reasons for using a search engine, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 50: Least popular reasons for using a search engine, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
• Appendix -- Video Catch-up Sites
  • Figure 51: Any users of video catch-up sites, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 52: Video catch-up sites -- accessed via PC, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Figure 53: Video catch-up sites -- accessed via TV, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008
  • Keeping Consumers Connected - UK - September 2008Figure 54: Video catch-up sites -- never used, by gender, age, region, working status, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, household size, marital status, daily internet usage, supermarket usage and TV reception, July 2008