indonesia consumers’ trend : telecommunication, technology...
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Confidential & Proprietary • Copyright © 2008 The Nielsen Company
Indonesia Consumers’ Trend : Telecommunication, Technology,
Information & Media
For: KADIN (Indonesian Chamber of Commerce)
28 April 2010
Irawati Pratignyo
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Analytic Consulting Page 2
More drive from Consumers for Convenience to get Connected
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Mobile Phone PenetrationHalf of Population (in 9 cities) have been penetrated by mobile (cellular) phones.
49
21 22 2325
27 2830 31 32
3437
4043
47 48
06Q1 06Q3 07Q1 07Q3 08Q1 08Q3 09Q1 09Q3
Source: Nielsen Media Index Q3 2009
All people aged 10+, 9 cities (43,873,000), in %
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Indonesia: Cell Phone trend usage
Communication
Entertainment
Image generator
Social network
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Smart Phone will surpass Regular Features
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What is your pin ID?
constantly connected conveniently through online
communitiesIndonesia has > 500,000 connected Blackberry users
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Internet usage increase in most Asian markets, including Indonesia
Source : Nielsen Media Research 2008-2009
%
17
0
20
40
60
80
100
2005 2006 2007 2008 2009
Sin Tai Msia HK Thai Phil Indo
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Indonesian Internet habit rockets!
• 2008 : 300K user
• 2009 : 16.1 Million User (3rd in the world)
• 6.84% growth of user in past week (9th in the world)
• 47% of online population accessing facebook
Friendster
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9April 28, 2010
Consumers are the New Authorities
Then
“Turns out the contaminated wheat gluten that
has sickened and killed so many cats and dogs
recently has ended up in quite a few brand
names. I finally found a complete list of the
affected brands here. I feed my cats --- dry food,
and fortunately the dry food was not on the list.
The --- wet is, though. Don't assume that your
brand is safe. Check the list!”
- stynes.blogspot.com, 04/05/07
Now
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Analytic Consulting Page 10
More Convergence & Consolidations
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ListenWatch Read
ONLINE: Browse, Surf, Interact, on PC & Mobile
TV Print Radio
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Print readers has been falling gradually since 2005.
24
17
9
16
11
06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09 Q3 09 Q4
NEWSPAPER MAGAZINE TABLOID
Source : Nielsen Media Index W1 2006 – W4 2009
All people 10+, 9 cities, in %, pop 43,873,000
%
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Internet Users among newspaper readers are increasing
18 19
22
25
29
34
2004 2005 2006 2007 2008 2009
All people 10+, 9 cities, Read Newspaper , Use Internet in the last 12 Months, in %Source: Nielsen Media Index Wave 3, 2004 - 2009
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Radio listening trend declines ….
34
42
06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09 Q3 09 Q4
RADIO
Source : Nielsen Media Index W1 2006 – W4 2009
All people 10+, 9 cities, in %, pop 43,873,000
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But listening OnLine Increase …..Radio listeners are increasing their internet use and listening to music more via internet
15
19
22
2007 2008 2009
Age 10+, All 9 Major Cities, People listen to radio yesterday & use internet in past 12 months, in %People who listen radio yesterday and hobby listen to music, internet function listen to music, in ‘000 Source: Nielsen Media Index Wave 3, 2007 - 2009
565
811
1084
2007 2008 2009
Radio listeners - used internet in the past 12 months Radio listeners - hobbies listen to musicinternet function: listen to music
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TV viewing is constant
95
93
06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09 Q3 09 Q4
Source : Nielsen Media Index W1 2006 – W4 2009
All people 10+, 9 cities, in %, with TV in home (pop 43,873,000)
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TV still also captures most of the audience attention, is Asia
Source : Nielsen Media Research & Panorama 2008-2009,
78
96
84
97 95 96 94
Singapore Taiwan Malaysia Hong Kong Thailand Philippines Indonesia
%
% Penetration
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48
86
36
60
3134
8.9
Singapore Taiwan Malaysia Hong Kong Thailand Philippines Indonesia
0.1%
1.4%
8.9%
2006 2007 2008
Indonesia Pay TV (Cable Satellite) Growth 7-8 X
% Penetration Source : Nielsen Media Research 2008-2009,
Indonesia:
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239205 223
323
260 262312 316 310
349 329
738
326
283326
676
446416
311
403
W/E
04/01/2009
W/E
08/02/2009
W/E
15/03/2009
W/E
19/04/2009
W/E
24/05/2009
W/E
28/06/2009
W/E
02/08/2009
W/E
06/09/2009
W/E
11/10/2009
W/E
15/11/2009
W/E
20/12/2009
Home Theater
Home Theater sales is increasing ….Home Theater as an escape and alternative for cheaper “entertainment/indulgence”.
Sales in billion Rp | Home Theater I Total Key AccountsLebaran
2009
Source: Nielsen ScanTrack Service
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LCD TV Price has been dropping each yearHome Entertainment has becoming more and more affordable for self indulgence
LCD TV
2009 Price
+/- Rp. 5,000,000
LCD TV
2008 Price
+/- Rp. 8,000,000
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Indonesian Consumers are exposed to “Three Screens”
Penetration in %, 10 Cities TV Population (46,719,473 individuals) and 9 Cities Internet (7,575,000 individuals) and
Cell phone Population (20,868,000 individuals)
Source: TV Establishment Survey 2009 and Media Index
FTA TV
95%
Cellphone
49%
Internet
17%
Pay TV
8.9%
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Indonesia: Time spent on the screens
Base: 10 Cities TAM Source: TV Audience Measurement & Three Screens Report
TV Avg Time/Day
2008
TV Avg Time/Day
2009
Internet Cellphone
3:02 3:05
2:19
0:52
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Indonesian TV viewers also use cell phone as short context communication medium
1-<30 min.
22%
30-<60 min.
16%
60-120 min.
21%
>120 min.
5%
<1 min.
36%
Based on 15+ mobile phone users in TV population, 10 Cities in Indonesia (Universe: 22,689,000 individuals)
Source: Three Screens Report 2009
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Page 24
Viewers use the “best screen available”
+ +153:47*
hrs
3:37^
hrs3:22**
hrs
Usage is independent of time
Usage is independent of location
Monthly Time Spent Viewing Video in Hours: Minutes Per User 2+, Q4 2009
Source: The Nielsen Company Q4 2009; * TV in the home includes live viewing plus playback within 7 days. ** Internet includes home and work who used internet to watch online video. ^ Mobile video audience consist of 13 or older mobile phone users who access video through any means.
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Page 25
Younger demos’ screen usage is more dispersedAge G
roup
Source: CRE Study, 2009
65+
55–64
45–54
35–44
25–34
18–24
0% 20% 40% 60% 80% 100%
41.2%
50.1%
44.9%
58.5%
67.7%
84.4%
3.4 6.7 5.1
3.1 6.9 2.7
3.4 5.3
3.43.6
1.72.7
1.42.3
13.2 4.0 2.9 12.1 5.7
10.9 8.80.6
9.8 3.7
14.4 9.1 2.8 12.0 4.8
8.0 9.0 2.6 9.1 3.1
8.2 7.4 7.0 2.4
3.92.23.1
1stScreen Live TV
Playback via DVR
DVD or VCR
Console Game 2ndScreen
Web
Software
Computer video
Share of Average Daily Minutes of Screen Media
IM
Mobile talk
Mobile other
Mobile video
Mobile text
Mobile web
3rdScreen
Environmental/Other video
In-Cinema movie
4thScreen
GPS navigation %
Total Screen Time (h:mm)
8:18
8:32
9:34
8:33
8:31
8:30
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Analytic Consulting Page 26
More Content with Context challenges
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Content Explosions
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Content with Context created by the Consumers
Consumers and Marketers are now able to interact through these type of web-community
The following are examples of currently live web-community
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29April 28, 2010
© 2007 Nielsen BuzzMetrics, a Nielsen Company business affiliate
iPhone Sentiment (1/1/07 – 6/15/07)
Negative
15%
Neutral
35%
Positive
21%Mixed
29%
Sentiment behind the consumers’ buzz ?
� Positive drivers:
� Cool features (visual voicemail, touch screen, music library, internet browsing, etc.)
� General excitement
� Ease-of-use
� Switching providers in order to get the iPhone
� Negative drivers:
� High price point
� Availability with only one service provider
� Concern about Cingular’s coverage and service
� No keyboard
� Battery life
� No 3G functionality
“I am with Nextel, I have the top of the line phone through them, and it doesn't do HALF the crap that this iPhone does and it still cost me over $300 when I bought it. I am switching to Cingular/AT&T as soon as this phone comes out.”
HowardForums, 1/15/2007
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Global Trends?
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Key Take Outs
•Consumers will be driving the growth of Telecommunication, IT & Media Industry. They would like to be more and more Connectedat their Convenience.– Online– Mobile– Social Networking
•Convergence will bring opportunities to transform classic media into the new platform: Online and on Mobile.
•Content will be crucial; particularly when it is followed by the right Context to reach the audience/consumers
•Consolidation is a trend for Industry’s efficiencies, but growth can accelerate even more, when supported with sufficient infrastructure.
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