1. 1 © TNS 2011 Shifting Paradigms: Insights for a changing world

2. 2 © TNS 2011 Exponential growth in internet penetration 16,000,000 1,971,000,000 >1,000,000,000 Source: Internetworldstats

3. 3 © TNS 2011 Becoming a dominant form of media wherever penetration allows Source: M1; Media Usage Frequency Internet for leisure TV Radio Newspapers Daily users (%)

4. 4 © TNS 2011 % describing TV as an important source of information at any stage in the consumer journey Taking share of influence from traditional sources Russia Internet Penetration Source: P1a-P3; Touchpoint usage throughout Consumer Journey

5. 5 © TNS 2011 And only outpaced by the even faster growth of mobile 738,193,138 5,370,467,196 2,206,796,646 Source: Internetworldstats, ITU World Telecommunication / ICT Indicators Database

6. 6 © TNS 2011 And only outpaced by the even faster growth of mobile No. mobiles 2000 738,193,138 No. mobiles 2010 5,370,467,196 No. mobiles 2005 2,206,796,646 Source: Internetworldstats, ITU World Telecommunication / ICT Indicators Database

7. 7 © TNS 2011 Putting it in context Number of mobile phones in Russia: 238,000,000 Number of people in Russia: 138,739,892

8. 8 © TNS 2011 In bed when I wake up During the night Early morning Commuting Late morning Midday Early afternoon Early evening Late afternoon In bed before I go to sleep Late evening Mobile provides a constant connection 70% of mobile and tablet users feel they are “always connected to the Internet” Access by day part and device (all consumers) PC Mobile Tablet Source: H2, H4; Occasion use; Mobility attitudes

9. 9 © TNS 2011 Fuelling the growth in social % using social media daily within total population (16-65) Russia Source: Internetworldstats, B1, I1; Frequency of digital activities, Links to brands on social networks Internet Penetration

10. 10 © TNS 2011

11. 11 © TNS 2011 What is Digital Life?

12. 12 © TNS 2011 The most comprehensive view of consumer attitudes and behaviour online

13. 13 © TNS 2011 Digital presents four clear opportunities for brands to access different consumer behaviours Reach 1,938,059,098 people online in the 60 markets we covered Engage 1,627,969,642 people on social networks with 767,471,403 building relationships with brands Activate 846,931,826 write about brands whilst 1,391,526,432 read and are influenced by these comments Convert 1,577,580,106 people use Digital to research products and services they go on to purchase

14. 14 © TNS 2011 Delivering a need to summarise the opportunity across these four areas into a single indicator score - the Digital Growth Index Reach Frequency, behaviours, motivations Engage Strengthen brand connection Activate Amplify positive buzz Convert Influence decision-making The Digital Growth Index A single KPI

15. 15 © TNS 2011 The Digital Growth Index A precise view by geography and category Russia China Malaysia India Pakistan Thailand South Korea Singapore Netherlands UAE USA Indonesia Czech Republic Low Growth Index High Growth Index Low Internet Penetration High Internet Penetration Source: Digital Growth Index; Internetworldstats

16. 16 © TNS 2011 Internet Penetration Global 30% Russia 43% Go online daily Are brand fans on SN Write about brands online Research brands online The size and nature of the opportunity will differ by audience, category, or market % of Internet users that: Source: M1, I2, I5, E9; Users, Consumers, Advocates, Customers

17. 17 Global Webcast © TNS 2011 Global Webcast © TNS 2011 17 Making friends with Russian social users – creating Digital Waste?

18. 18 “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.”

19. 19 © TNS 2011 Digital lives comprise many activities Share of hours in an average week online 23 hours /week 0.7 0.8 Communication Social networking & connecting Email Entertainment Multi-media & entertainment Online gaming Personal interest Shopping Information Pre-purchase & browsing Knowledge & education News, sport & weather Management Personal admin Planning & organising 0.8 Source: S7; Time spent online

20. 20 © TNS 2011 % agree Meeting many needs The Internet helps me to… 61 52 51 49 34 55 42 Global Have fun Better express my feelings Explore my personality Improve my self-confidence Pass on news / events to others Connect closely to others Keep in touch with others Expand my network Russia Source: A1, A2; Attitudes to internet

21. 21 © TNS 2011 Upload photos Upload videos Write a blog Microblog Leading to an explosion in consumer content generation Every week I... 32 29 26 30 Global % agree Russia Source: B12, activities done online

22. 22 © TNS 2011 Which they share with wide networks …with massive potential reach for opinions and ideas... Russia Global Total number of friends on SN Friends interact with regularly 186 48% 54% 161 Source: B7, I1; number of online friends, online brand friends

23. 23 © TNS 2011 And this environment doesn’t always welcome brands Consumers don’t want to be bothered by brands... Total number of brand friends % who do not want to be bothered by companies or organisations in social networks 6 5653 2 Source: B7, B18; number of online friends, attitudes to social networks Russia Global

24. 24 © TNS 2011 Consumer opinion on social networks Expert review or opinion on a website Brands must learn to join, rather than start a conversation. As markets reach digital maturity, consumers are increasingly influenced by each other, rather than brands. Social media offers vast potential audiences, but brands must understand that these spaces belong to the consumer and their presence needs to be proportionate and relevant. Tracking comments and understanding the motivations behind each conversation is a first step before taking part. Brands need to earn influence by investing in social media outreach to participate effectively in these conversations. Influential sources of information in Consumer Journey (global %) Source: P1a-P3; Touchpoint usage throughout Consumer Journey Base: Buyers in last 12 months answering section P; 70441 Rising levels of online consumer conversation are competing with brands, who are struggling to be heard This point links the presentation more effectively

25. 25 Global Webcast © TNS 2011 25

26. 26 © TNS 2011 And, consumers are getting louder 40,000 times louder than in 2007 Tweets per day as of June 2011: 200,000,000 Tweets per day in 2009: 2,500,000 Tweets per day in 2007: 5,000

27. 27 © TNS 2011 Brand content is firmly in the hands of the masses And there is an audience for it... Source: Internetworldstats, I5; Number of online comment readers, Number of comment writers % of total market population reading about brands online % of total market population writing about brands online Internet Penetration

28. 28 © TNS 2011 Brand content is firmly in the hands of the masses And there is an audience for it... Source: Internetworldstats, I5; Number of online comment readers, Number of comment writers % of total market population reading about brands online % of total market population writing about brands online Russia Internet Penetration

29. 29 © TNS 2011 Messages are not in the control of brands Even a stranger on the other side of the world is trusted more… “What other people say about brands can be trusted more than what the brand says themselves” Disagree “I trust the comments my friends write about brands” “I trust the comments people I don’t know write about brands” Agree Source: I11, attitudes towards comments

30. 30 © TNS 2011 Affinity comes at a price Apps represent a specific opportunity for connection... Promotion/ special offer Access content To use specific apps or games provided by the brand 61 45 43 Global Specific market To show that a brand is important to me 44 Source: I3, reasons to befriend / follow brands

31. 31 © TNS 2011 “I’ve termed it ‘Open-source Creativeware’ to encapsulate the idea that much like open source software, we’re looking to create a blueprint or DNA of a creative campaign and then invite others to take it and adapt it and build it and grow it.” Hugh Chambers, Chief Commercial Officer British Olympic Association

32. 32 Global Webcast © TNS 2011 3. Paths to purchase: Integration across the marketing and business cycle Global Webcast © TNS 2011 32

33. 33 © TNS 2011 % describing TV as an important source of information at any stage in the consumer journey Taking share of influence from traditional sources Source: P1a-P3; Touchpoint usage throughout Consumer Journey Internet Penetration

34. 34 © TNS 2011 % describing TV as an important source of information at any stage in the consumer journey Taking share of influence from traditional sources Internet Penetration Russia Source: P1a-P3; Touchpoint usage throughout Consumer Journey

35. 35 © TNS 2011 It’s not a straight substitution of one for another The many are replacing the few

36. 36 © TNS 2011 Mobile Cosmetics Credit Cards Personal Hygiene Organic conversation varies across categories and participatory campaigns fuel conversation... Low Levels of Category WoM High Levels of Category WoM Lightly Researched Highly Researched Source: I5, E9; Number of online comment writers, Product research platform

37. 37 © TNS 2011 Creating differing opportunities for brands That must be bought, owned or earned... Low Levels of Category WoM High Levels of Category WoM Lightly Researched Highly Researched BOUGHT Buy media or produce a campaign that is engaging in its own right EARNED Earn media and invest in offline communication OWNED Ensure information-hungry consumers are kept up-to- date with information EARNED & OWNED Engage customers through multiple channels and touchpoints Source: I5, E9; Number of online comment writers, Product research platform

38. 38 © TNS 2011 Unpacking the path to purchase How do we decide what to buy Number of touchpoints used to research all categories – Russia 6.8 6.2 7.7 1. Become aware2. Choose a product3. Decide where to buy Source: P1a-c; Touchpoint usage throughout Consumer Journey

39. 39 © TNS 2011 Consumers are also empowered post-purchase Brands can play an expanded role Number of touchpoints used to research all categories – Russia 6.8 6.2 7.7 1. Become aware2. Choose a product 5.5 5.9 5. Keep in touch3. Decide where to buy4. Customer service Source: P1a-P3; Touchpoint usage throughout Consumer Journey

40. 40 © TNS 2011 Expert reviews (credit cards) TV ads (credit cards) Meeting expectations means delivering consistently on and offline… Touchpoint is important to me to… 1. Become aware2. Choose a product5. Keep in touch3. Decide where to buy4. Customer service 21 20 24 23 51 45 30 38 32 51 Source: P1a-P3; Touchpoint usage throughout Consumer Journey (credit cards)

41. 41 © TNS 2011 Manufacturer’s website (credit cards) Sales person in-store (credit cards) And across bought and earned sources in-line with their overall role and level of importance Touchpoint is important to me to… 1. Become aware2. Choose a product5. Keep in touch3. Decide where to buy4. Customer service 2722 23 40 35 31 43 29 42 Source: P1a-P3; Touchpoint usage throughout Consumer Journey (credit cards)

42. 42 Global Webcast © TNS 2011 Wrap up 42

43. 43 © TNS 2011 Marketing in a Digital Age Content is the currency of community, shaped and consumed by the masses Understand attitudes and motivations Within the “new noise”, quality, rather than share, of voice counts Brand as subject matter is alive and well, but brand voices lack trust Add value by facilitating content Add value by providing services to consumers beyond the core product Touchpoints along the path to purchase are varied and fragmented Build connections earlier in the customer journey to minimise the impact of negative buzz Online has reduced the dominance of TV; value is delivered when these touchpoints complement rather than compete

44. 44 © TNS 2011 “Digital is a business enabler, not just a marketing enabler” Larry Bruck, Senior Vice President Global Media & Marketing Operations Kellogg Company

45. 45 © TNS 2011