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SOCIAL MEDIA IS COMING OF AGESocial media and social networking are no longer in their infancy. Since the emergence of the first socialmedia networks some two decades ago, social media has continued to evolve and offer consumersaround the world new and meaningful ways to engage with the people, events, and brands that matterto them. Now years later, social media is still growing rapidly and has become an integral part of ourdaily lives. Today, social networking is truly a global phenomenon.How is social media impacting marketing?SOCIAL WORD-OF-MOUTHWhat’s driving the continued growth of social media?Social media enables consumers to generate and tap into the opinions of an exponentially largeruniverse. While word-of-mouth has always been important, its scope was previously limited to thepeople you knew and interacted with on a daily basis. Social media has removed that limitation andgiven new power to consumers.MOBILEHYPER-INFORMED CONSUMERSMore people are using smartphones and tablets to access social media. The personal computer is stillat the center of the social networking experience, but consumers are increasingly looking to otherdevices to connect on social media. Time spent on mobile apps and the mobile web account for 63percent of the year-over-year growth in overall time spent using social media. Forty-six percent ofsocial media users say they use their smartphone to access social media; 16 percent say they connectto social media using a tablet. With more connectivity, consumers have more freedom to use socialmedia wherever and whenever they want.PROLIFERATIONNew social media sites continue to emerge and catch on. The number of social media networksconsumers can choose from has exploded, and too many sites to count are adding social features orintegration. While Facebook and Twitter continue to be among the most popular social networks,Pinterest emerged as one of the breakout stars in social media for 2012, boasting the largestyear-over-year increase in both unique audience and time spent of any social network across PC,mobile web, and apps.How is consumer usage of social media evolving?THE GLOBAL LIVING ROOMSocial TV is on the rise. The skyrocketing adoption and use of social media among consumers istransforming TV-watching into a more immediate and shared experience. As of June 2012, more than33 percent of Twitter users had actively tweeted about TV-related content. Some 44 percent of U.S.tablet owners and 38 percent of U.S. smartphone owners use their devices daily to access social mediawhile watching television. In the Latin America region, more than 50 percent of consumers say theyinteract with social media while watching TV; in the Middle East / Africa region, more than 60 percentdo. From global events like the Summer Olympics, to regional events like the Presidential debates inthe U.S., consumers around the world used social media to engage with everyone from close friends tocomplete strangers, revolutionizing the television viewing experience.Social media is transforming the way that consumers across the globe make purchase decisions.Consumers around the world are using social media to learn about other consumers’ experiences, findmore information about brands, products and services, and to find deals and purchase incentives.OPPORTUNITY FOR ENGAGEMENTConsumer attitudes toward advertising on social media are still evolving. Though roughly one-thirdof social media users find ads on social networking sites more annoying than other types of Internetadvertisements, research suggest that there are opportunities for marketers to engage with consumersvia social media. More than a quarter of social media users say they are more likely to pay attention toan ad shared by one of their social connections. Additionally, more than a quarter of consumers are okwith seeing ads on social networking sites tailored to them based on their profile information.Nielsen and NM Incite’s 2012 Social Media Report provides some insight into what is driving ourcollective, global obsession with social media. In the following pages, you’ll get a more detailedsnapshot of what is helping to power the continued growth of social networking around the world,how consumers’ social media behavior is evolving, and how these changes impact the way brands andconsumers engage through social networks.-Deirdre BannonSocial Media Practice LeadSOCIAL CARESocial Care is transforming customer service. Social media has emerged as an important channelfor customer service, with nearly half of U.S. consumers reaching out directly to brands and serviceproviders to voice their satisfaction or complaints, or simply to ask questions. In fact, one in three socialmedia users say they prefer to use social media rather than the phone for customer service issues.12

More and more people are connectingto the Internet—and for longeramounts of timeTOTAL MINUTES SPENTON MOBILE AND PCWhether through a computer or mobile phone, consumers continue to spend increasingamounts of time on the Internet. Time spent on PCs and smartphones was up 21 percent fromJuly 2011 to July 2012. App time more than doubled during this period as more smartphoneowners entered the market and the number of available apps multiplied.Overall Unique U.S. AudienceJULY 2011JULY 2012Total Minutes, U.S.JULY 2011 JULY 2012MOBILEAPPS58.8 B129.4 B120%MOBILEWEB82%52,435,000 95,176,000MOBILE WEB22%85%55,001,000 101,802,000MOBILE APPS23.0 B28.1 BPC348.6 B362.7 B4%430.4 BTOTAL520.1 B21%213,253,000 204,721,0004%People continue to spend moretime on social networks than anyother category of sites—20% oftheir time spent on PCs and30% of their mobile time.PC3 Nielsen 201217% Nielsen 2012of consumers’ PC time is spent onFacebook, the most popularweb brand in the U.S.4

81.1M85.8MSOCIAL NETWORKINGTIME SPENTON SOCIAL MEDIAIS ALL tesDistributionof SocialMediaTimeSpent561%5%59.5BYOY CHANGESocial Networking Time per Person in HH:MMPCMOBILE WEB & APP6:13MALE6:448:37FEMALEAGES 18-24MOBILEAPPSMOBILEWEBJULY 2011 JULY 201234%23.2BJULY 2012JULY 201188.4B4.4BWhen it comes to accessing social content,it's all about mobile—particularly apps. Appusage now accounts for more than a third ofsocial networking time across PCs andmobile devices. Compared to last year,consumers increased their social app time by76 percent, spending more than seven timesmore minutes on apps than the mobile web.While the social media audience via PCdeclined a slight five percent from a yearago, time spent increased 24 percent overthe same period, suggestinging that usersare more deeply engaged.5%Unique U.S. Audience forSocial Networking163.6M 171.8M Nielsen 20129:43AGES 25-349:04AGES 35-448:12AGES 45-548:34AGES 55-64AGES 65 WHITEAFRICAN-AMERICANHISPANICASIAN Nielsen 77:478:207:197:4911:136:426

A LOOK AT THE TOP SOCIAL NETWORKSUnique U.S. Audience (in millions)The list of most-visited social networking sites is pretty much the same whether people aregoing online through a PC browser, through their mobile web browser or using an app. Mobileusage once again proves to be a key component of social as each of the top networks via mobileweb saw significantly greater growth compared to its PC audience over the last year.UNIQUE PC VISITORS, U.S.(in millions)FACEBOOKBLOGGERTWITTER1 5 2 2 2 65 8 5 1 83 7 0 3 3Facebook7 8 3 8 888%Twitter2 2 6 2 0134%foursquare1 0 3 8 8118%Google 9 7 1 886%Pinterest4 9 4 61,698%MOBILE WEB 13%LINKEDIN2 8 1 1 30%AUDIENCE (000) 1,047%GOOGLE 2 6 2 0 1 80%*TUMBLR2 5 6 3 4 55%MYSPACE1 9 6 8 0-13%WIKIA1 2 5 9 4 20%Top 5 U.S. Social Networking AppsRanked on Total MinutesTotal MinutesYOY % Y CHANGEFacebook7 4 2 7 485%Twitter4 2 3 6 6140%Top 5 U.S. Social Networking Sites via Mobile WebRanked on Total MinutesBlogger1 9 9 7 9100%Total MinutesYOY % ChangePinterest1 4 3 1 64,225%Facebook4.1B9%Wordpress1 1 9 9 596%Twitter486.2M139%Linkedin9 6 7 1114%Blogger170.0M89%Tumblr8 5 1 2162%Tumblr164.6M78%Wikia5 3 2 5n/aReddit138.0M342%Reddit4 2 7 5153%Myspace3 5 0 157%Top 5 U.S. Social Networking Sites via PCRanked on Total Minutes2011PinterestMobile Web*Google is July 2012 v. Sept 2011, the first month the site became public7YOY CHANGE-3% 10%2 7 2 2 3AUDIENCE (000)-4%3 0 9 4 5PINTERESTMOBILE APPYOY CHANGEWORDPRESSTOTALMINUTES SPENT Nielsen 2012 Nielsen 20122012PinterestMobile WebTotal MinutesYOY % interest1.3BN/ABlogger816.1M-17%8

A SPOTLIGHT ON PINTERESTWHO IS USING PINTEREST?Pinterest has experienced exponential growth since bursting on the scene last year. Althoughthat growth has leveled over the last few months, Pinterest had the largest year-over-yearincrease in audience and time spent of any social network, across PC, mobile web and apps.U.S. Audience CompositionUnique U.S. 0%FEMALE84%72%4,946,0005,000,0000JUL 11AUG 11SEP 11OCT 11NOV 11DEC 11JAN 12FEB 12MAR 12APR 12MAY 12JUN 12JUL 12MOBILEAPPSAGES 18-2414%2012 Total Minutes Spent1,255,225,00031%AGES 35-4924%AGES 50-64AGES 65 7%HISPANIC8%720,973,000AFRICAN-AMERICANASIAN Nielsen 2012 Nielsen ,00022%24%AGES 25-34916%22%79%5%7%74%10%7%10

HOW, WHERE AND WHY WE CONNECTWHY WE CONNECTWhile the computer is still the primary device used to access social media, the last year sawsignificant increases in usage, most notably through tablets and Internet-enabled TVs.It may be fun to follow celebrities, but actually knowing someone still matters when decidingto connect on social networks.63% 60% 65%2011 201297% SIC 2%3%E-READER5% 7% 4%6% 8% 4%Person’s numberof connectionsWant to increaseconnection countPerson’sphysicalattractivenessAcccess tobusinessnetworksQuality ofprofile photo6% 7% 4%TOTALMENAlways acceptall requestsAMUSED CONTENTJEALOUSINDIFFERENT ANGRYWASTED TIME OVERWHELMED SADSUORGEEAMore than half of people aged 25-34 usesocial networking in the office, morethan any other age group. Nielsen 2012WOMENGENERAL FEELINGS AFTER PARTICIPATINGIN SOCIAL NETWORKINGEXCITED11%9% 14 4%Mutualfriends8% 10% 6%INFORMEDAGES 25-3451%TMI? Nearly a third (32%) ofpeople aged 18-24 use socialnetworking in the bathroom.Interested inkeeping up13% 16% 10%CONNECTEDWHERE WE CONNECTAGES 18-24Know personin real lifeENGERGIZED16%50% 52% 48%HAPPYHOW WE CONNECT42% 41% 44%XIAN Nielsen 201276%positive24%neutral21%negative12

SIMULTANEOUS SMARTPHONE ANDTABLET USAGE WHILE WATCHING TVHaving a mobile device on-hand while watching TV has become an integral part of consumerroutines—41 percent of tablet owners and 38 percent of smartphone owners use their devicedaily while in front of their TV screen. Not surprisingly, social networking is a top activity onboth devices, but people aren’t just chatting with their social connections, they’re alsoshopping and looking up relevant program and product info.TWITTER DRIVES SOCIAL TVTwitter has emerged as a key driver of social TV interaction. During June 2012,a third of active Twitter users tweeted about TV-related content, an increase of27 percent from the beginning of the year.% of Active Twitter Users Tweeting about TV, U.S.33%Simultaneous TV/Mobile Device Usage, U.S.28%26%22%45%30%27%29%Shopping38%44%Visited a socialnetworking site duringthe program23%35%Looked up informationrelated to the TV programbeing watchedJANUARY15%26%Looked up productinformation for anadvertisement seen on TV1312%FEBRUARYMARCHSPOILER ALERT24%Nearly a quarter of people aged18-34 use social media tocomment on what theylike/dislike about a storylinewhile watching TVLooked up coupons ordeals related to anadvertisement seen on TV Nielsen 2012 Nielsen 2012APRILMAYJUNETALKING TVAdults aged 35-44 arethe most likely todiscuss televisionprogramming with theirsocial connections14

SOCIAL CARESocial care, i.e. customer service via social media, has become an immediate imperative forglobal brands. Customers choose when and where they voice their questions, issues andcomplaints, blurring the line between marketing and customer service. Brands shouldconsider this evolution and ensure they are ready to react on all channels.ON AVERAGE,47% OF SOCIAL MEDIA USERSENGAGE IN SOCIAL CARESOCIAL CARE VSCUSTOMER SERVICE BY PHONETOTAL30%P 18-2437%P 25-3435%P 35-4431%P 45-5426%P 55-6424%P 65 17%One in three social media usersprefer social care to contacting acompany by phoneCHANNELS USED TO ACCESS SOCIAL CAREConsumers turn to a wide variety of social media platforms for social care. Social media usersare most likely to comment on or ask a question about a company’s product or service onFacebook, both on the company’s page (29%) and on their personal page (28%).29%Facebook Company’s Page28%Facebook User’s Personal Page15%Official Company Blog14%Twitter Personal Handle (no @ mention of company)9% Daily13%Twitter Company’s Handle (tweet from user’s personal handleincluding an @mention of company)21% Weekly12%YouTube Company’s Channel11%YouTube User’s Personal Channel11%Non-company BlogFREQUENCY OF SOCIAL CARE USEAMONG USERS70% Monthly15 Nielsen 2012 Nielsen 201216

ADVERTISING ON SOCIAL MEDIATOTALBrands and advertisers looking to share their message on social might consider this: While a thirdof people find ads on social networks to be annoying, more than a quarter of people are morelikely to pay attention to an ad posted by a friend.AGREEMENT WITH STATEMENTSABOUT ADVERTISING33%26%Agree that ads on socialnetworking sites aremore annoying thanother online adsAre more likely to payattention to an ad that hasbeen posted by one of theirsocial network acquaintances26%17%Are okay with ads thatare ID'd based on theirprofile informationFeel more connected tobrands seen on socialnetworking websitesHISPANICWHAM AFRIER CAICA NNITE15% 21% 13% 18% 26%SHARED ADS26% 32% 24% 29% 41%LIKED ADS14% 22% 12% 18% 31%PURCHASEDPRODUCTSThis audience is by far the most likely to share, like orpurchase a product after seeing an ad on social networksTALHISPANICWHITEAM AFRIER CAICA NNASIAN10% 16% 8% 14% 19%SOCIAL LIKES8% 12% 7% 10% 18%are the most common action taken after seeing a social adand can be a great way to raise a brand’s visibility.18% 19% 16% 18% 28% Nielsen 2012 Nielsen 2012ACTIONS TAKENAFTER SEEINGSOCIAL ADSIANU.S. ASIAN CONSUMERS ARETHE MOST ENGAGEDWITH SOCIAL ADSTO17ASWhite consumers are theleast likely to take actionafter seeing ads onsocial networksMADE A PURCHASEAFTER SEEINGSOCIAL ADSMade a purchase over the Internet fora product that was advertisedMade a purchase at a store fora product that was advertisedPurchased or obtained a coupon(i.e. through a daily deal site, retailer, etc)18

THE CONSUMER DECISION JOURNEYFREQUENCY OF SOCIAL ACTIVITIESPercent of social media users participating at least once a monthThe days when companies could tightly control brand messaging and progress consumersalong a linear purchase funnel have long ended. Social media has fundamentally changed theconsumer decision journey. Consumer decisions and behaviors are increasingly driven by theopinions, tastes and preferences of an exponentially larger, global pool of friends, peersand influencers.70%Hear others' experiences65% 53%Compliment brandsLearn more mplaints aboutbrands/services47%Sharemoney incentives19 Nielsen 2012 Nielsen 201220

THE GLOBAL SOCIAL CONSUMERA recent Nielsen survey of more than 28,000 globalconsumers with Internet access explored social media’sglobal reach and impact. From how consumersconnect and interact with social media to social’sinfluence on what people buy, there arenoticeable differences across regions, whichare highlighted in the following specialsection focusing on the globalsocial . EAST/AFRICA4%LATIN AMERICA5%ASIA-PACIFIC9HOW DO YOU ACCESS SOCIALNETWORKING UROPEM. EAST/AFRICALATIN AMERICA32%EUROPE3LATIN AMERICA%%MOBILE PHONE59%ASIA-PACIFICEUROPE33%48M. EAST/AFRICALATIN AMERICA2133%%HANDHELDMUSIC PLAYERTABLETASIA-PACIFIC28%EUROPE8%10%6%M. EAST/AFRICALATIN AMERICAM. EAST/AFRICA5% Nielsen 2012 Nielsen 2012ASIA-PACIFIC2%2%EUROPE2%LATIN AMERICAM. EAST/AFRICA22

ARE YOU INTERACTINGWITH SOCIAL MEDIAWHILE WATCHING TV?THE GLOBAL CONSUMERDECISION JOURNEY63%MIDDLE EAST/AFRICA52%LATINAMERICAThe role of social media in the consumerdecision journey extends beyond NorthAmerica, and indeed is even morepronounced in other regions.47%ASIA-PACIFICSocial media’s influence on purchaseintent is strong across all regions, butstrongest among online consumers in theAsia-Pacific, Latin America and MiddleEast / Africa markets. Thirty percent ofonline consumers in the Middle East /Africa region and 29 percent in Asia-Pacificuse social media on a daily basis to learnmore about brands/products/services,with one-third of respondents in bothregions connecting on a weekly basis.38%EUROPEYES23NO Nielsen 2012followed closely by: Travel/Leisure (60%),Appliances (58%), Food/Beverages (58%),Clothing/Fashion (58%) and Restaurants(57%). These categories were also themost discussed products/services viasocial networking.Social media represents a hugeopportunity for brands to gain positivefavor with consumers. With growingdisposable income in emerging markets,savvy marketers can harness the growingadoption and influence of social media toimpact business.Across all regions, social media hasthe potential to influence consumers’entertainment and home electronicspurchase decisions. These categories are Nielsen 201224


SOURCESABOUT NIELSEN3-10 Nielsen NetView (July 2012), Nielsen Smartphone Analytics (July 2012)11-12 Nielsen U.S. Social Media Survey 201213 Nielsen Mobile Connected Devices Report (Q2 2012)Incite’s Social Guide (Twitter Drives Social TV),14 NMNielsen U.S. Social Media Survey 201215-1617-18 Nielsen U.S. Social Media Survey 201220 Nielsen U.S. Social Media Survey 201221-26 Nielsen Global Survey of Social Media Usage (Q1 2012)NM Incite State of Social Customer Service Report 2012,Nielsen U.S. Social Media Survey 2012Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurementcompany with leading market positions in marketing and consumer information,television and other media measurement, online intelligence, mobilemeasurement, trade shows and related properties. Nielsen has a presence inapproximately 100 countries, with headquarters in New York, USA and Diemen,the Netherlands. For more information, visit NM INCITENM Incite, a joint venture between Nielsen and McKinsey, provides social mediasoftware, research and advisory solutions to global Fortune 1000 marketerslooking to build strong, differentiated and emotionally-engaging brands. Asone of the largest global leaders in applying social media to solve marketingproblems, NM Incite operates in over 30 markets, including the United States,Canada, United Kingdom, Germany, China, India Japan and Australia.For more information, visit 2012 The Nielsen Company. All rights reserved. Nielsen and theNielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks,L.L.C. Other product and service names are trademarks or registered trademarksof their respective companies. 12/5420.ABOUT NIELSEN’S U.S. SOCIAL MEDIA SURVEY 2012: The Nielsen U.S. Social Media Survey 2012 is based on a representative sampleof 1,998 adult (18 ) social media users who were recruited from the Nielsen Online Panel to take an online survey. “Social mediauser” is defined as participating, talking, and networking online through various platforms to share information and resources. Thisincludes Internet forums, blogs, Facebook, Twitter, video sharing, consumer rating and other social networking websites. The surveyfielded from July 19 to August 8, 2012.ABOUT NIELSEN’S GLOBAL SURVEY OF SOCIAL MEDIA USAGE: The Nielsen Global Survey of Social Media Usage was conductedbetween March 23 and April 12, 2011 and polled more than 28,000 consumers in 51 countries throughout Asia Pacific, Europe, LatinAmerica, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on theirInternet users, and is weighted to be representative of Internet consumers and has a maximum margin of error of 0.6%. This Nielsensurvey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses aminimum reporting standard of 60 percent Internet penetration or 10M online population for survey inclusion.2728

THE SOCIAL MEDIA REPORT STATE OF THE MEDIA: 2012. 1 2 SOCIAL MEDIA IS COMING OF AGE Social media and social networking are no longer in their infancy. Since the emergence of the Þrst social media networks some two deca

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