DigitaI PhiIippines 2011

no parL of Lhls documenL mav be quoLed reproduced sLored ln a reLrleval svsLem or LransmlLLed ln anv form or bv anv means elecLronlc mechanlcal
phoLocopvlna recordlna or oLherwlse wlLhouL Lhe wrlLLen permlsslon of ?ahoo! SouLheasL Asla Le LLd and 1he nlelsen Companv (hlllpplnes) lnc
ahoo!N|e|sen Net Index n|gh||ghts
,anlla hlllpplnes
ahoo!- NieIsen Net Index 2011
n 2009, Yahoo!-Nielsen Net ndex study was launched to gather an baseline
understanding of the Filipino internet user
Building on this foundation, the study was repeated in 2010 to track shifts in
user behaviour and evolving preferences
n 2011, the study continues to evolve, to reflect the changing digital
landscape.whilst maintaining key longitudinal measures
At ahoo! and N|e|sen we be||eve that factbased
Ins|ghts shou|d dr|ve dec|s|onmak|ng!
Methodo|ogy ersonal faceLoface lnLervlews uslna LwoparL sLrucLured
quesLlonnalre (llnked wlLh nlelsen ,edla lndex)
Area Coverage naLlonal urban hlllpplnes
(22 ma[or clLles lncludlna ,eLro ,anlla)
kespondents ,ales and lemales aaed 10+ vrs old across all socloeconomlc
classes who have used Lhe lnLerneL ln Lhe pasL monLh
5amp|e 5|ze 1300
5amp||ng Approach ,ulLlsLaae robablllLv Sampllna
I|e|dwork er|od ;1 2011
#esearch Design
1he Chonn|nn Lond:cooe
2OO9-2OII
0

29
2
2 27
29

1
42
0
24
0
2

7
0
4
2
0
4
17
7

1ota| Metro Man||a Luzon V|sayas Cebu M|ndanao Davao Mega Man||a
2009 2010 2011
Past Month #each (%) Past Month #each (%)
Internet usage has rema|ned |arge|y stab|e though we
see some pockets of growth
ase asL ,onLh lnLerneL users aaed 10+ across all socloeconomlc classes ln naLlonal urban hlllpplnes
Source nlelsen medla lndex 2009 ;1 2010 ;1 2011 ;1
5e|ect Month|y Cn||ne Act|v|t|es () 2009 2010 2011
IlslLlna Soclal neLworklna slLes 31* 33 82
Search 38 76 80
lnsLanL messaalna 63 68 69
lnLerneL orLal 34 73 67
IlslLlna publlc chaL rooms 34 67 63
Lmall 63 63 64
laved aames onllne 33 43 34
LlsLen Lo sonas ln muslc webslLes 43
uownloaded or uploaded muslc flles onllne 23 37 37
Shared/posLed someLhlna onllne LhaL vou creaLed 13 24 36
* noLe 1he 2009 flaure for soclal neLworklna lncludes communlLv aroups /forums
ase asL monLh lnLerneL users aaed 10+ across naLlonal urban hlllpplnes
Source ?ahoo!nlelsen neL lndex 2010 2011
AcLlvlLles showlna slanlflcanL lncrease aL 93 confldence levels beLween 2009 and 2011
Desp|te th|s stab|||ty overa|| engagement |s on the r|se
5oc|a| network|ng now dom|nates
PIace of Access
Home SchooI Work
Internet
cafes
2009 4.8 .4 7.7 4.5
2011 10.4 5.2 11.5 5.5
Lv|dent from the |ncreased t|me be|ng spent on||ne
across med|ums and |ocat|ons
ase asL ,onLh lnLerneL users aaed 10+ across all socloeconomlc classes ln naLlonal urban hlllpplnes
Source nlelsen medla lndex 2009 ;1 2010 ;1 2011 ;1
0
52
44
19
1

1
29
0
49
25
1
55
42
25
14
4

29
5
54
2
0
5
4
21
11

29 0

5
24
1ota| 1019 2029 3039 4049 50 and up Ma|e Iema|e 5LC A8C 5LC C2 5LC DL
2009 2010 2011
1ota| 1ota|
Age Age Gender Gender
5LC 5LC
ast Month keach () ast Month keach ()
Internet usage h|ghest amongst upsca|e under 30s
ase asL ,onLh lnLerneL users aaed 10+ across all socloeconomlc classes ln naLlonal urban hlllpplnes
Source nlelsen medla lndex 2009 ;1 2010 ;1 2011 ;1
fue||ed by the|r appet|te for enterta|nment content
ontent Preferences on Internet PortaIs (%) ontent Preferences on Internet PortaIs (%)
ase asL ,onLh lnLerneL users aaed 10+ across all socloeconomlc classes ln naLlonal urban hlllpplnes who
Pave vlslLed lnLerneL orLals
Source ?ahoo!nlelsen neL lndex 2009 2010 and 2011
1ota| (13 ) 1019 (lndex) 2029 (lndex)
lnLernaLlonal muslc 68 114 91
Local muslc 63 104 94
lnLeresLlna vldeos or phoLos 39 118 101
Cames 36 108 94
1echnoloav and aadaeLs 33 102 103
World news 49 99 103
naLlonal/ Local news 48 104 99
LnLerLalnmenL news 43 116 99
LlfesLvle 43 93 118
SporLs 43 104 93
,ovles 1I or urama revlews/auldes 42 106 97
uslness news 38 90 84
ClLv auldes 33 100 101
1ravel 33 93 103
llnance 30 89 76
1rafflc updaLes 29 104 99
1
2

2
0
69
31
4
5
6
5
66
35
2
3
4 4
Internet cafes nome 5choo| Work Ir|ends house Ce||phone/ DA
2009 2010 2011
PIace of access (%) PIace of access (%)
1he sh|ft from shared to pr|vate access cont|nues
ase asL ,onLh lnLerneL users aaed 10+ across all socloeconomlc classes ln naLlonal urban hlllpplnes
Source ?ahoo!nlelsen neL lndex 2009 2010 and 2011
Home Internet Offerings Home Internet Offerings MobiIe Phone Internet Offerings MobiIe Phone Internet Offerings
Mob||e usage needs further tar|ff rat|ona||sat|on to ga|n
tract|on
|||o|no Net|zen: |more::|on of the
chonn|nn d|n|to| eco:u:tem!
uo|ut|on of 5oc|o| Networh|nn
On||ne 1ron:oct|on: (deo| onnrenot|onl
e-commerce)
5oc|o| Networh|nn -
Cont :too th|: th|nn we :torted|
Not [ust an act|v|ty but a start|ng po|nt for the on||ne
exper|ence for many
$ocial Networking
$earch Email
Online News nstant Messenger
Games
39
30
11
13
5
1
Internet Usage athway () Internet Usage athway ()
Question: Please think about the following online services and tell me the order in which you first ever used each.
Base: Past month nternet users aged 10+ across National Urban Philippines
$ource: Yahoo!-Nielsen Net ndex-2011
ase asL monLh lnLerneL users aaed 10+ across naLlonal urban hlllpplnes
# noLe 1he 2009 flaure for soclal neLworklna lncludes communlLv aroups /forums
Source ?ahoo!nlelsen neL lndex 20102011
A dom|nant p|atform to connect and commun|cate
though ma||/messenger rema|n re|evant
3
5

2009 2010 2011
51
53
82
2009 2010 2011
Past month onIine activities (%) Past month onIine activities (%)
EmaiI EmaiI
3
8
9
2009 2010 2011
Messenger Messenger SociaI Networking SociaI Networking
Updat|ng prof||e |s ma|n|y done through C Mob||e
updates ref|ect Mob||e usage (|ow)
MobiIe MobiIe
Phone Phone
Browser Browser
MobiIe MobiIe
Phone Phone
Browser Browser
MobiIe MobiIe
Phone SMS Phone SMS
MobiIe MobiIe
Phone SMS Phone SMS
MobiIe MobiIe
Phone Phone
Browser Browser
MobiIe MobiIe
Phone SMS Phone SMS
Through P Through P
9 9
Mode for updating SociaI networking profiIe (%) Mode for updating SociaI networking profiIe (%)
4%
%
Question: How do you usually view/ update your $ocial Networking sites?
Base: Past month nternet users aged 10+ across National Urban Philippines who have visited social networking in Past 3 months
$ource: Yahoo!-Nielsen Net ndex 2011
9
59
8
2
15
11

kegu|ar fr|ends
Iam||y members
Ir|ends w|th whom you had |ost contact
eop|e from outs|de your c|ty/country
keferra|s from fr|ends
eop|e you met once or tw|ce |n person
eop|e you on|y know |n the v|rtua| wor|d
Coworkers
5oc|a| networks start w|th 'c|ose contacts/re|at|ons'
but qu|ck|y move to |ess fam|||ar c|rc|es
Connect|ons on 5oc|a| Network|ng s|tes () Connect|ons on 5oc|a| Network|ng s|tes ()
Question: Who are the people you interact with regularly on these $ocial Networking sites?
Base: Past month nternet users aged 10+ across National Urban Philippines who have visited social networking sites in Past 3 months
$ource: Yahoo!-Nielsen Net ndex 2011

57
45

17
1
1
1
4
2
eep 5tr|ct r|vacy 5ett|ngs
L|m|t My ersona| Info Ava||ab|e Cn||ne
Avo|d A||ow|ng eop|e Access My 8|og/5oc|a| Net 5|te
L|m|t 1he 1ype/Number Cf hotos/V|deo 5hared
kemove 1he 1ag Cn hotos/V|deo Up|oaded 8y Cthers
L|m|t/revent Cthers Irom ost|ng onMy 8|og/5N5
Avo|d A||ow|ng eop|e Access My 8|og/5N5
A|ways Check Info About Me Cn||ne
De|eted A 8|og/5oc|a| Network|ng age
Cance||ed Another Cn||ne Account
thus the effort to ||m|t what users share w|th the
|arger/extended group on soc|a| network|ng s|tes
5teps taken to manage d|g|ta| prof||e () 5teps taken to manage d|g|ta| prof||e ()
Question: Who are the people you interact with regularly on these $ocial Networking sites?
Base: Past month nternet users aged 10+ across National Urban Philippines who have visited $ocial Networking $ites in Past 3 months
$ource: Yahoo!-Nielsen Net ndex 2011
74
72
9
7
7

59
Ive found more peop|e ||ke me who share my |nterests
A||ows me to be more soc|a| than I am |n person
I can rea||y revea| parts of my ||fe/persona||ty I wou|d
norma||y not d|sc|ose
I fee| |ess awkward when I commun|cate on these s|tes
than |n person
I fee| more |n tune to what |s go|ng on soc|a||y
I rea||y try to f|nd [ust s|ncere peop|e
Ive become choosy about whom I soc|a||ze w|th
And the emergence of 'se|ect|ve soc|a||zat|on'
Cp|n|ons on 5oc|a| Network|ng () Cp|n|ons on 5oc|a| Network|ng ()
Question: Please tell me to what extent do you agree with each of the following opinions about social networking?
Base: Past month nternet users aged 10+ across National Urban Philippines who have visited $N$ in Past 3 months
$ource: Yahoo!-Nielsen Net ndex 2011
Iacebook 5ees 8|g 1raff|c Drops |n
U5 and Canada as It Nears 00
M||||on Users Wor|dw|de
Ins|de Iacebook Iune 12th 2011
Iacebook 5ees 8|g 1raff|c Drops |n
U5 and Canada as It Nears 00
M||||on Users Wor|dw|de
Ins|de Iacebook Iune 12th 2011
Iacebook sees a Dec||ne |n oung
Users
softped|a Iune 12th 2011
Iacebook sees a Dec||ne |n oung
Users
softped|a Iune 12th 2011
5oc|a| Networks In Dec||ne
5mart Ins|ghts Apr|| 12th 2011
5oc|a| Networks In Dec||ne
5mart Ins|ghts Apr|| 12th 2011
ALCNL 1CGL1nLk
Why We Lxpect More Irom 1echno|ogy and
Less Irom Lach Cther
8y 5herry 1urk|e
ALCNL 1CGL1nLk
Why We Lxpect More Irom 1echno|ogy and
Less Irom Lach Cther
8y 5herry 1urk|e
5often|ng of growth of 5oc|a| network|ng |s becom|ng
we|| documented
5o what's next
fragmentat|on across mu|t|p|e
p|atforms Ck cata|og|ng on a
s|ng|e p|atform?
fragmentat|on across mu|t|p|e
p|atforms Ck cata|og|ng on a
s|ng|e p|atform?
5oc|a| Network|ng 5ummary
Soclal neLworklna ls sulLed Lo oneLomanv mall and messenaer
remaln relevanL for personal oneLoone conversaLlons
1he rapld arowLh of soclal neLworks ln hlllpplnes wlll resulL ln
lncreased awareness for Lhe need Lo bulld wolls wlLhln exlsLlna
neLworks
1hese wolls wlll be bullL Lo conLrol lnformaLlon exchanaes and
ensure conversaLlons remaln rlch and enaaalna (oneLofew)
-Commerce
On||ne Deo| Annrenot|on -
A M|xed on
1he backdrop to ecommerce |n h|||pp|nes
%here is an inherent
reluctance to 97,/0
through the nternet
Lack of
'accreditation and
guarantees'.by
default modern
trade actually
encourages
destination
shopping
Presence of
counterfeits and
knock-offs
High reIiance on
inter-personaI
reIationships
IT and Banking
infrastructure
'evolving"
TraditionaI trade
Iegacy
Buyers need to
ensure quality by
physical inspection
Buyers feel the
comfort, dealing
with known vendors
Low levels of
confidence/trust in
transacting online
3
1
2010 2011
Cn||ne 1ransact|ons () Cn||ne 1ransact|ons ()
Question: Have you purchased products online in the past 12 months. payment could be online or offline?
Base: Past month nternet users aged 10+ across National Urban Philippines
$ource: Yahoo!-Nielsen Net ndex 2011
Cn||ne transact|ng rema|ns |n |t's |nfancy
5

10
9
4
1
1
1
Cash (face to face)
Cred|t card
1ransfer v|a A1M/8ank
Internet 8ank|ng
Depos|ted cash at bank branch
Cn||ne accounts such as aypa|
Cheque
Deb|t card
ayment methods () ayment methods ()
ayments |arge|y made off||ne g|ven current trust and
comfort |eve|s w|th epayment
Group buy|ng s|tes ||ke Groupon have created
s|gn|f|cant buzz recent|y
na||ed by Iorbes as the fastest
grow|ng company |n h|story
Groupon turned over U5$60 m||||on
|ast year and expects that to h|t the
b||||ons th|s year
Iorbes
na||ed by Iorbes as the fastest
grow|ng company |n h|story
Groupon turned over U5$60 m||||on
|ast year and expects that to h|t the
b||||ons th|s year
Iorbes
Cver the past three years an ent|re|y
new |ndustry known as groupbuy|ng
has sudden|y emerged and |s grow|ng
at a phenomena| rate
nzhera|dcom
Cver the past three years an ent|re|y
new |ndustry known as groupbuy|ng
has sudden|y emerged and |s grow|ng
at a phenomena| rate
nzhera|dcom
Group 8uy|ng Descr|pt|on
1hese slLes neaoLlaLe dlscounLs on popular aoods
servlces and culLural evenLs whlch ls offered Lo
Lhousands of subscrlbers ln a free dallv emall 1he
deals are acLlvaLed onlv when a mlnlmum number of
people aaree Lo buv
Group 8uy|ng Descr|pt|on
1hese slLes neaoLlaLe dlscounLs on popular aoods
servlces and culLural evenLs whlch ls offered Lo
Lhousands of subscrlbers ln a free dallv emall 1he
deals are acLlvaLed onlv when a mlnlmum number of
people aaree Lo buv
LA5L CI CCMkLnLN5ICN LA5L CI CCMkLnLN5ICN LLVLL CI IN1LkL51 LLVLL CI IN1LkL51
Current |eve|s of comprehens|on ||m|t overa|| |nterest
Interest |s h|gh among those who understand
Question 1: After hearing the explanation of Deal Aggregation concept, to what extent do you understand it?
Question 2: After having a look at the explanation of Deal Aggregation concept, how interested are you in this overall concept?
Base: Past month nternet users aged 10+ across National Urban Philippines
$ource: Yahoo!-Nielsen Net ndex-2011
Understand
32
Not at a||
understand
53
Ne|ther
15
Not at a||
|nterested
25
5||ght|y
|nterested
9
5omewhat
|nterested
18
Cu|te
|nterested
43
Lxtreme|y
|nterested
5
Dea| Aggregat|on 5ummary
ureplav ecommerce offerlnas are sLlll ln nascenL sLaae alven
Lhe consLralnLs around producL auLhenLlclLv and lnfrasLrucLure
Cnllne buvers and sellers currenLlv flnd each oLher onllne buL
Lvplcallv ttoosoct offlloe
lor deal aaareaaLlon slLes Lo be successful a mlndshlfL needs
Lo occur Lhere ls a need Lo educaLe on Lhe concepL of deal
aaareaaLlon aaalnsL a backdrop of relucLance Lo pov onllne
ey 1akeaways
1 lnLerneL arowLh drlven bv Lhe vouna and upscale audlence
2 Pome lnLerneL access conLlnues Lo arow wlLh enaaaemenL levels
lncreaslna wlLh arowLh ln prlvaLe access
3 hlllpplnes enormous appeLlLe for soclal neLworklna could
acceleraLe Lhe emeraence of selectlve soclollsotloo
4 ueal aaareaaLlon holds slanlflcanL poLenLlal buL comforL ln e
pavmenL plaLforms and LrusL levels wlll dlcLaLe Lhe raLe of arowLh!