Sensis® Social Media Report Sensis® Social Media Report What Australian people and businesses are doing with social media May 2011 Developed in association with 1 Sensis® Social Media Report Table of contents Table of content FOREWORD 3 ExEcutivE SummaRy 4 mEthODOlOgy 7 SEctiOn 1: thE gEnERal public anD SOcial mEDia 8 Internet access 9 Social networking site usage 10 Social networking site usage by age and gender 10 Social networking site usage by location 11 Reasons for not using social media 11 Reasons for not using social media – verbatim comments 12 Social networking sites used 13 Social networking sites used by location 13 Frequency of using social networking sites 14 Time spent of social networking sites 15 Number of friends, contacts or followers 15 Number of friends, contacts or followers by location 16 Number of Twitter accounts followed 16 Devices used to access social media 17 Where are social networking sites used? 17 Reasons for using social networking sites 18 Types of products or services researched on social networking sites 20 Last search occasion 21 Brands or businesses followed on Twitter 22 Social networking groups associated with businesses or brands 22 What do customers want from businesses or brands followed? 23 Advertising on social networking sites 23 Group buying sites usage 24 Frequency of use and time spent on group buying sites 24 Provision of online ratings 25 Use of online reviews or blogs 26 Posting of online reviews or blogs 27 Use and posting of online reviews or blogs by location 28 SEctiOn 2: auStRalian buSinESSES anD SOcial mEDia 29 Use of social media - summary 30 Use of social media by business category (small/medium) 30 Use of social media by location (small/medium) 31 Business investment in social media 32 Percentage of marketing budget allocated to social media 32 Uses of social media 33 Who is responsible for a business’ social media presence? 34 How is traffic driven to a business’ social media presence? 34 Expectations for the next 12 months 35 abOut SEnSiS 36 abOut aimia 36 2 Sensis® Social Media Report Foreword In only a few short years, the rise of social media has created a fundamental shift in consumer behaviour. Today, 62% of Australian internet users use a variety of social media platforms, with many visiting every day and most at least a few times a week. Clearly, social networking meets a core human need for contact, community and comment. For the consumer, social media is the total package – communications, applications, community, entertainment, shopping and advertising all rolled in to one. And for many, it’s easy to use. Yet most small to medium sized businesses, and half of Australia’s large businesses surveyed don’t have a social media presence. Australian businesses need to be alive to the opportunities and challenges of engaging with consumers and customers in this very different environment. Businesses should also be monitoring, responding and looking at proactive strategies to manage the way their business is presented and reviewed online. AIMIA is delighted to partner with Sensis in the development and distribution of the Sensis Social Media Report. As well as providing further insight into the rapid changes in consumer behaviour being wrought by social media platforms, this report gives Australian businesses, small, medium and large, a range of compelling reasons for joining the social media revolution. John butterworth CEO AIMIA 3 Sensis® Social Media Report Executive Summary Get on board the revolution Throughout the decades The Beatles, T-Rex, Transvision Vamp, Arrested Development and various others have sung about ‘revolution’. Gen Y delivered one: social media. As the ultimate form of expression, social media is now an undeniable force in modern-day communication. And it has businesses everywhere scratching their heads wondering how best to use it to engage with consumers. Sensis, in conjunction with the Australian Interactive Media Industry Association, surveyed 803 Australian consumers and 1,944 Australian businesses to get the real story on how social media channels are being used. For the purposes of this report, the term social media refers to: • Social networking websites, specifically Facebook, LinkedIn, Twitter and MySpace • Online blogs and online rating and review mechanisms • Group buying websites including Cudo, Scoopon, Spreets, Jump On It, Living Social, Zoupon, eBay, Catch of the Day, Zazz, Daily Deals, Stardeals and Deals Direct. The surveys discovered that while 62% of online Australians use social media, only 14% of small businesses, 25% of medium-sized businesses and 50% of large businesses have a social media presence. The findings detailed in this report aim to help Australian businesses to make more informed decisions about how to use these channels to engage with consumers. Australians and social media The consumer survey found that 62% of internet users have a presence on social networking sites such as Facebook, Twitter, MySpace or LinkedIn. Facebook dominates the social media space, capturing 97% of social networking users and 60% of all internet users. It is used by more than 90% of social media users from both sexes and by all age groups, with average users spending more than five hours a week on the site. The vast number of people using social media indicates a huge opportunity for brands to connect with people, but marketers should respect how people view their social media interactions. The top reasons people use social media are catching up with friends and family, sharing photos or videos, and coordinating social events. Many consumers take no notice of advertising on social networking sites. While only 12% of social media users said they use social networks for researching products, 36% said that the last time they used social media to research a product or service resulted in a purchase. Notably, 70% of those purchases were online. The types of products and services most commonly researched on social networking sites are clothing/fashion, electrical goods, furniture/things for the home, computers/software and music. 4 Sensis® Social Media Report There is a clear opportunity to build consumer relationships and sales via social media. The most important factor is how that connection is made. Social media users are most interested in what businesses can give them in the form of discounts (57%), giveaways (45%), invitations to events (41%) and product information (41%). Blogs and reviews have a notable influence on buying decisions, with 63% of social media users reading reviews before making a purchase decision. On average, people read six reviews before making a decision. However, only 24% of online users post blogs or reviews, so reaching that 24% of ‘influencers’ is key for marketers. The majority of social media users (64%) don’t follow any brands or businesses on Twitter, suggesting that marketers need to carefully plan their Twitter strategy so it connects with their audience. Some interesting social media usage patterns emerge across the different states. South Australian and Western Australian social media users use it an average of 11 times a week compared to 14.8 times for Tasmanians, who have the highest levels of usage. South Australian social media users have the lowest average number of social networking ‘friends’ with 143 compared to 241 for Victoria and 235 for NSW. Tasmanians are by far the most likely to follow a social networking group associated with a brand or business, with 39% of Tasmanian social media users saying they do so. The next most likely is New South Wales (22%) and Victoria (23%). Tasmanians are also the most likely to post a review or blog (37%), followed by the Northern Territory (28%). The likelihood of respondents reading a review or blog was much more consistent, ranging between 61% and 69% across all states and territories. Group buying is an increasingly compelling option for marketers, with 12% of social media users now accessing group buying sites. Surprisingly, 40-49 year olds are most likely to use them. Usage is relatively low in South Australia, Tasmania and the Territories. Cudo is the most commonly accessed group buying site followed by Scoopon, Spreets and Jump on It. Australian businesses and social media Small, medium and large businesses will maintain or increase their expenditure on a social media presence in the coming year and most expect a return on their investment through increased sales. South Australia has the lowest number of businesses using social media (11%). Queensland and ACT have the highest, at 20%. Large companies have been seeing the benefits of engaging in social media through more direct and open relationships with customers, faster marketplace responses and increased efficiency around marketing, customer service and product development. Small-to-medium sized businesses have been lagging behind, although this seems to be changing. In the past year there’s been more social media ‘experimentation’ and we can expect to see uptake increase in the next six to 12 months as more businesses realise the need to be actively involved in this space where people are spending more and more of their time online. Most businesses investing in social media are unaware of the amount they’ve invested, and don’t measure the return on their investment. Social media usually attracts less than 5% of total marketing budget, with the majority of businesses expected to spend the same or more on social media in the next 12 months. 5 Sensis® Social Media Report The tactics used by businesses to drive traffic to their site are not clearly identified. 49% of large businesses responded ‘other’ when asked how they drive traffic to their social media presence. Across the board, the most common way businesses drive people to their social media presence is through their website. The research indicates businesses are focused on establishing, maintaining and updating their social media presence rather than driving people to it. Social media plays a critical role in marketing and reputation management, one that is being underestimated by many brands and businesses. While social media usage and applications will continue to evolve over the coming months and years, three things are certain: It’s only going to get bigger. No business can afford to ignore it. And, you won’t fool the children of the revolution. 6 Sensis® Social Media Report Methodology This report contains the results of research conducted by Sweeney Research between January and March 2011. Consumer Survey The research consisted of a telephone survey among 803 randomly selected respondents across Australia. Quotas were applied to provide for adequate representations in each age group and both genders. Quotas were also applied on location to ensure coverage across metropolitan and regional areas in each State and Territory. The interview took approximately 10 minutes to administer and fieldwork was conducted in late February/early March 2011. The data was weighted by age and gender within location so that the results are reflective of the actual Australian population. Sample sizes by age and gender are shown below. Sample size - consumer Total Male Female 14 to 19 years of age 100 47 53 20 to 29 years of age 140 73 67 30 to 39 years of age 134 67 67 40 to 49 years of age 135 68 67 50 to 64 years of age 160 80 80 65 plus years of age 134 67 67 total 803 402 401 Business Survey The findings for small businesses (1 to 19 Sample size - business employees) and medium-sized business (20 to Number of employees 199 employees) come from additional questions Sample included in the February 2011 Sensis® Business 1 to employees 670 Index. These findings are based on interviews 3 to 4 employees 314 with some 1,800 SME proprietors from across 5 to 9 employees 292 Australia. Quotas are applied on business size, 10 to 19 employees 205 total small business 1,481 20 to 99 employees 279 100 to 199 employees 33 business type and location to ensure that the sample is reflective of the actual population across Australia. Interviews were conducted in the period 18 January to 11 February 2011. total medium business 312 The findings for large business (200+ employees) 200 to 999 employees 90 are based on a separate survey conducted 1,000+ employees 61 Total medium business 151 among 151 marketing decision-makers in large businesses. Quotas were again applied to ensure grand total an adequate representation across the various regions of Australia. Interviewing for this survey was conducted in early March 2011. Total sample sizes by business size are shown opposite. 7 1,944 Sensis® Social Media Report Section 1 The general public and social media 8 Sensis® Social Media Report Internet Access All but 6% use the Internet and qualified for the survey. Internet usage remains at the 90%+ level across all age groups until we reach 65+ where it drops to just 80%. Frequency of accessing the Internet Base: Q. Proportion who access the Internet All contacts (862) How often, if at all, do you access the Internet – either on a computer or on your mobile phone or other devices such as an iPad or iPod Touch? Queensland has lower than average Internet usage at 88%. Tasmania recorded 100% internet usage. Proportion who access the Internet by location Base: Q. All contacts (862) How often, if at all, do you access the Internet – either on a computer or on your mobile phone or other devices such as an iPad or iPod Touch? 9 Sensis® Social Media Report Social networking site usage Among Internet users, some 62% use social networking sites such as Facebook, Twitter, MySpace or LinkedIn. Roughly a third use every day – with most of the balance using it at least a few times a week. Based on all Internet users, the average frequency of accessing social networking sites is about 12.4 times per month. Among those who actually access sites, the average frequency is 18 times per month – about 4.5 times a week. Frequency of using social networking sites Average = 12.4 times per month Base: Q. All Internet users (803) How often, if at all, do you use social networking sites such as Facebook, Twitter, MySpace or LinkedIn? Social networking site usage by age and gender Females are more likely than males to use social networking sites and are much more likely to be frequent users. There are big variations by age group – with almost all of those aged under 30 (93%) using sites and the majority using everyday. Those aged over 40 are substantially less likely to be users overall. Social networking site usage by age and gender Total Male 20-29 30-39 40-49 50-64 65+ (803) (402) (401) (100) (140) (134) (135) (160) (134) Everyday 30% 25% 36% 70% 52% 39% 14% 15% 5% Most days 10% 9% 11% 15% 20% 9% 11% 5% 3% A few times a week 8% 8% 8% 7% 12% 10% 7% 7% 5% Once a week 5% 6% 5% 1% 6% 6% 5% 5% 8% Less than weekly 9% 10% 7% 0% 4% 9% 22% 5% 10% Never 38% 42% 34% 7% 7% 27% 41% 64% 69% average times per week 12.4 10.6 14.1 24.9 21.4 15.2 7.9 6.5 3.1 Base: Q. Female 14-19 All Internet users How often, if at all, do you use social networking sites such as Facebook, Twitter, MySpace or LinkedIn? 10 Sensis® Social Media Report Social networking site usage by location Usage levels are reasonably consistent across the States and Territories – although those in Tasmania are more likely than average to be frequent users of social media. Social networking site usage by location Total TAS NT ACT METRO NON-METRO (803) (134) (134) (134) (101) (101) (67) (67) (65) (604) (199) Everyday 30% 30% 30% 33% 24% 27% 44% 24% 34% 32% 32% Most days 10% 12% 13% 4% 9% 9% 4% 11% 9% 10% 10% A few times a week 8% 8% 6% 10% 14% 6% 3% 13% 2% 8% 8% Once a week 5% 4% 5% 9% 2% 4% 2% 6% 9% 5% 7% Less than weekly 9% 9% 6% 9% 10% 11% 7% 17% 14% 9% 8% Never 38% 36% 40% 34% 41% 42% 39% 29% 32% 38% 36% average times per week 12.4 12.9 12.5 12.4 11.0 11.1 14.8 11.6 12.9 12.3 12.8 Base: Q. NSW VIC QLD SA WA All Internet users How often, if at all, do you use social networking sites such as Facebook, Twitter, MySpace or LinkedIn? Reasons for not using social media The chart below summarises reasons for not using social networking sites and shows that lack of interest/appeal is the primary reason. At a lower level, some are concerned about the time it would take up, security and lack of computer expertise. Reasons for not using social networking sites Not Interested/never appealed to me Too time consuming/don’t have the time for them Security concerns/lack of privacy/intrusive I don’t believe in them/don’t agree with it I’m not computer savvy/don’t know how to access Prefer face to face/catch up with friends/family I use the phone or text when want to talk to friends Prefer to email when want to communicate with people Don’t like to tell people about myself/my business Base: Q. Non users of social media (313) Why don’t you use social networking sites? 11 Sensis® Social Media Report Reasons for not using social media - verbatim comments “I don’t like what they represent. I get bombarded by people claiming to be my friend and it seems ridiculous” “I am totally uninterested” (Female 50 to 64 years) (Female over 64 years) “I am a teacher. It is banned in schools” “Not allowed to have them” (Male 30 to 39 years) (Male 14 to 17 years) “I have four children under three” “I am in year 12 and I don’t want to get distracted” (Female 30 to 39 years) (Female 14 to 17 years years) “I have issues with the privacy involved” “I don’t need it. I don’t want to be sitting at the computer all day I want to be outside exercising” (Male 18 to 19 years) “I don’t see the need for them. I don’t know how I could benefit from using them.” (Female over 64 years) (Male 40 to 49 years) “Because it is rubbish” (Male 20 to 29 years) “Waste of bloody time. You can just get sucked in and spend all day on it and achieve nothing” “They freak me out a bit. I hear too many stories. And I like my privacy” (Female 40 to 49 years) (Male over 64 years) 12 Sensis® Social Media Report Social networking sites used Facebook dominates as the most used social networking site, being used by 97% of social networking participants or 6 out of 10 Internet users. Facebook is used by more than 90% of social media users from both sexes and all age groups. Linked in and Twitter are both used by just under 1 in 10 social networking site users with MySpace being used by just 4%. Twitter tends to be used more by the younger age groups and LinkedIn by the older segments. MySpace has the strongest following among the 18-39s. Social networking sites used Site Facebook 97% Male Female 14-19 20-29 30-39 40-49 50-64 65+ (224) (266) (92) (130) (94) (78) (58) (38) 95% 99% 98% 98% 93% 99% 97% 99% LinkedIn 9% 11% 8% 1% 3% 12% 14% 17% 14% Twitter 8% 9% 7% 9% 7% 14% 3% 5% 4% Myspace 4% 6% 3% 4% 3% 9% 1% 4% 0% Other 3% 8% 1% 4% 3% 8% 5% 1% 5% Base: Q. Users of social media (490) Which of these social networking sites do you use? Social networking sites used by location Facebook dominates in all states. LinkedIn is slightly more popular in NSW and the ACT. Queensland, Tasmania and the ACT have the highest Twitter usage rates. Sites used by location Non-Metro Total NSW VIC QLD SA WA TAS NT ACT Metro (490) (93) (77) (90) (64) (48) (32) (43) (43) (366) Facebook 97% 98% 97% 95% 93% 98% 98% 99% 98% 98% 95% LinkedIn 9% 14% 8% 5% 6% 6% 3% 1% 15% 12% 2% Twitter 8% 10% 5% 11% 4% 2% 11% 6% 12% 7% 10% Myspace 4% 5% 5% 3% 4% 0% 0% 0% 2% 2% 9% Sites Base: Q. Users of social media (490) Which of these social networking sites do you use? 13 (134) Sensis® Social Media Report Frequency of using social networking sites On average, Facebook users use the site around 16 times a week. Average Twitter usage frequency is 23 times a week, LinkedIn around 8 times a week and MySpace around 3 times a week Frequency of using social networking sites Proportion who use Site Number of times per week Under 1 1 to 2 3 to 5 6 to 10 Average 11 to 19 20+ times per week Facebook 97% 5% 20% 20% 24% 12% 18% 16.2 LinkedIn 9% 17% 31% 21% 14% 3% 14% 7.7 Twitter 8% 9% 15% 13% 28% 8% 28% 23 Myspace 4% 33% 46% 6% 14% 0% 1% 2.6 Base: Q. Users of social media (490) In a typical week, how many times would you use Facebook/LinkedIn/Twitter/MySpace? The charts below look at average usage frequency for Facebook in more detail. Usage frequency peaks at more than 40 times a week for the 14-19 year olds and is higher than average in Victoria and lower in the Northern Territory. Average usage occasions per week - Facebook Total Average usage occasions per week - Facebook 16.2 Male Total 14.0 Female New South Wales 17.8 14-19 19.1 30-39 12.4 13.1 Victoria 36.7 20-29 16.2 19.9 Queensland 19.1 South Australia 13.6 Western Australia 17.6 40-49 7.5 Tasmania 9.6 50-64 7.0 Northen Territory 9.5 65+ 7.3 A.C.T. 14.1 Metro 13.8 Non-metro Base: Q. Users of Facebook (473) In a typical week, how many times would you use Facebook/LinkedIn/Twitter/MySpace? 14 23.8 Sensis® Social Media Report Time spent on social networking sites On average, Facebook users spend around 20 minutes on the site each time they access it. If the average time spent is multiplied by the average number of usage occasions, the typical user would spend more than 5 hours per week on the site. LinkedIn, Twitter and MySpace users tend to spend less time when logged on to these sites, averaging around 12 minutes per visit. Time spent on social networking sites Proportion who use Site Average time spent on each usage occasion Average Up to 2 3 to 5 6 to 10 11 to 15 16 to 30 Over 30 time minutes minutes minutes minutes minutes minutes (mins) Facebook 97% 5% 17% 22% 15% 19% 22% 21.1 LinkedIn 9% 19% 25% 10% 17% 16% 11% 13.1 Twitter 8% 29% 17% 22% 19% 8% 6% 11.4 Myspace 4% 28% 13% 19% 8% 13% 19% 14.8 Base: Q. Users of social media (490) And roughly how long would you spend each time you use Facebook/LinkedIn/Twitter/MySpace? Number of friends, contacts or followers Across all social networking users, the average number of friends, contact or followers falls at 217, with more than 50% claiming to have more than 100 contacts in their network. Females have marginally more contacts than males, but there are big differences across the age group varying from the low of 117 for the 65+ to a high of 353 for the 14-19 year olds. Number of friends, contacts or followers Male Female 14-19 20-29 30-39 40-49 50-64 65+ (224) (266) (92) (130) (94) (78) (58) (38) Up to 20 12% 11% 12% 1% 2% 4% 28% 19% 44% 21 to 50 11% 12% 9% 1% 3% 9% 21% 21% 24% 17% 18% 5% 13% 33% 21% 15% 14% 23% 20% 18% 34% 17% 16% 19% 13% 28% 37% 68% 42% 33% 11% 19% 2% 6% 9% 3% 7% 7% 5% 3% 7% 3% average = 217 209 224 353 257 209 127 155 117 51 to 100 18% 101 to 200 21% Over 200 Don’t Know Base: Q. 33% Users of social media (490) How many different friends, contacts or followers do you have on all your social networking sites? 15 Sensis® Social Media Report Number of friends, contacts or followers by location Analysis by location reveals that those in NSW and Victoria have the largest number of friends, contacts or followers. Average number of friends, followers or contacts by location Total 217 New South Wales 235 Victoria 241 Queensland 215 South Australia 143 Western Australia 178 Tasmania 160 Northen Territory 161 A.C.T. 166 Metro 233 Non-metro Base: Q. 200 Users of social media (490) How many different friends, contacts or followers do you have on all your social networking sites? Number of Twitter accounts followed On average, Twitter users follow 35 accounts. Number of Twitter Accounts Followed Up to 5 16% 6 to 10 18% 11 to 20 14% 21 to 50 20% Over 50 20% Don’t know 13% Average = 35 Base: Q. Users of Twitter (38) Approximately how many Twitter accounts do you follow? 16 Sensis® Social Media Report Devices used to access social media Around 6 in 10 use desktops or laptops to access their social media sites, with 34% using a smart phone and around 1 in 20 using an iPod Touch-type device or a tablet. Among the 14-19 year olds, a high 52% access via smart phone – the equivalent to the proportion accessing sites through a desktop and almost as much as the proportion accessing through a laptop computer. Devices used to access social media Desktop computer 60% Laptop computer 50% Smart Phone 34% Male Female 14-19 20-29 30-39 40-49 50-64 65+ (224) (266) (92) (130) (94) (78) (58) (38) 65% 57% 52% 52% 57% 66% 75% 81% 54% 62% 61% 70% 59% 54% 59% 24% 36% 31% 52% 42% 37% 23% 22% 0% iPod Touch or similar 5% 3% 7% 10% 5% 4% 2% 7% 3% iPad or other tablet 4% 1% 6% 2% 3% 5% 5% 8% 3% 0% 2% 2% 3% 0% 0% 0% 0% Other Base: Q. 1% Users of social media (490) What devices do you use to access social network sites? Where are social networking sites used? Most (97%) access sites at home, most often in the living room or study, and frequently in the bedroom. Around 1 in 5 access them at work and 10% at school or college. Quite a high proportion access sites while they are on the go at restaurants, bars, parties, on public transport, in the car or at sporting events. Locations where sites are used At home At work Where in the home sites are used 97% 22% Lounge / living room 48% Study 47% Restaurants, bars, parties 11% Bedroom At school or college 10% Kitchen On public transport 10% Bathroom 4% In the car 10% Other 5% At sporting events Base: Q. Q. 31% 11% 8% All social media users (490) Base: Users of social media sites at home (474) Where do you use social networking sites – either on your computer or mobile device? Where would you normally use these sites at home? In which rooms of the house? 17 Sensis® Social Media Report Reasons for using social networking sites The most common reason nominated for using social networking sites is ‘catching up with friends or family’. Photo or video sharing is clearly the number two use, while a high proportion also use to coordinate shared activities and find out about entertainment events. Other common usages include game playing and meeting new friends. Reasons for using social networking sites To catch up with friends and family 93% To share photographs or videos 56% To co-ordinate parties or other shared activities 32% To find out about entertainment events such as bands 26% To play games 24% To meet new friends 18% To follow or find out about particular brands or businesses 15% To find people with the same interests that you have 14% To research holiday destinations or travel offers 12% To research other products or services you might want to buy 12% To follow brands or business to access special offers/ promotions 11% To follow celebrities 6% To provide reviews or write blogs about products or services 6% To engage with a Government representative or department 5% Base: Q. Users of social media (490) For what reasons do you use social networking sites? Remember, we are talking about sites such as Facebook or Twitter and not the Internet in general. For which of these reasons do you use these types of sites? In this chart, we compare reasons for use across the genders and age groups. Females tend to nominate almost all of these usage reasons more frequently than males – with the most significant difference being sharing photos or videos, which is nominated by 65% of females and only 45% of males. On average, females nominate 3.6 different reasons for using social networking sites compared with just 2.8 for males. The younger age groups also use them for a larger variety of reasons. For example, we note that the 14-19 year olds are more than twice as likely than average to find out about entertainment. 14-19 year olds also have a much stronger than average tendency to use sites to co-ordinate activities, play games, and meet new friends. Average number of usage reasons Total 3.3 Male 2.8 Female 3.6 14-19 4.3 20-29 3.8 30-39 3.0 40-49 2.8 50-64 2.7 65+ 2.2 18 Sensis® Social Media Report Reasons for using social networking sites Total Male Female 14-19 20-29 30-39 40-49 50-64 65+ (490) (224) (266) (92) (130) (94) (78) (58) (38) To catch up with friends and family 93% 89% 96% 99% 92% 95% 91% 92% 80% To share photographs or videos 56% 45% 65% 54% 66% 45% 52% 64% 54% 32% 27% 36% 53% 58% 28% 6% 11% 5% 26% 23% 29% 56% 37% 16% 15% 10% 5% To play games 24% 20% 27% 37% 30% 26% 18% 11% 6% To meet new friends 18% 15% 20% 31% 21% 16% 10% 9% 18% 15% 13% 17% 20% 15% 17% 14% 14% 1% 14% 13% 14% 20% 9% 14% 18% 11% 14% 12% 10% 13% 13% 11% 5% 16% 15% 17% 12% 8% 15% 17% 9% 9% 12% 17% 9% 11% 7% 13% 13% 11% 9% 12% 12% 2% 6% 4% 6% 12% 6% 6% 2% 0% 3% 6% 8% 5% 4% 7% 9% 7% 4% 3% 5% 2% 7% 4% 3% 6% 9% 2% 3% To co-ordinate parties or other shared activities To find out about entertainment events such as bands, shows or movies To follow or find out about particular brands or businesses in general To find people with the same interests that you have To research holiday destinations or travel offers To research other products or services you might want to buy To follow particular brands or business to access special offers and promotions To follow celebrities To provide reviews or write blogs about products or services you have bought To engage with a Government representative or department Base: Q. Users of social media (490) For what reasons do you use social networking sites? Remember, we are talking about sites such as Facebook or Twitter and not the Internet in general. For which of these reasons do you use these types of sites? 19 Sensis® Social Media Report Types of products or services researched on social networking sites The 12% who use social networking sites for researching products or services were asked which particular items they were looking for. Fashion and electrical goods top the list, followed by things for the home, computing equipment and music. Products or services researched on social networking sites Clothing / fashion 42% Electrical goods 39% Furniture / things for the home 28% Computers / software 21% Music 19% Computer games 9% Software 8% Cars 7% Books 5% Videos 4% Sports / recreation equipment 4% Beauty / cosmetic products 4% Special interest 4% Entertainment / events 4% Other Base: Q. 18% Use social networking sites to research products or services (60) You mentioned that you use social networking sites to research products or services you might want to buy? What types of products or services would you mainly look for? 20 Sensis® Social Media Report Last search occasion The research also looked at the last search occasion and found that clothing, travel and music were the most commonly searched items on social networking sites. 79% of searches were solely conducted on a computer and 6% solely on a mobile device. 8% searched using both of these options. 36% of searches resulted in a purchase, 70% of which were made online. What was looked for? Clothing / fashion 20% Holiday / travel / accommodation 15% Music 13% Entertainment 8% Electrical goods Computers / software 4% Computer games 2% Cars 2% Hardware / tools 2% Food / dining 2% Maternity / children’s products 2% Cosmetics / beauty 2% Other How was the research conducted? Computer 6% 14% What was the outcome? 79% Mobile device 6% Both 8% Neither 8% No purchase 64% Bought online 70% Base: Q. Q. Q. Purchase 36% Bought offline 30% Ever research travel/entertainment/products/services on social networking sites (490) Thinking about the last time you used social networking sites to research something you might want to buy, what type of product or service were you looking for? Did you do that research on a computer or a mobile device? Did that research lead to a purchase? Was that purchase made online? 21 Sensis® Social Media Report Brands or businesses followed on Twitter Among the Twitter users in the sample, 36% follow brands or businesses on Twitter. The most commonly followed categories are food/dining and TV shows. Types of brands/business followed on Twitter None followed 64% Food / dining 11% TV shows 8% Work / profession related 4% Sport / sporting clubs 4% ABC / ABC news 1% Others Base: Q. Q. 22% Use Twitter (38) Do you follow any particular brand or businesses in Twitter? What type of brands or businesses do you like to follow? Social networking groups associated with businesses or brands 1 in 5 social networking site users follow social networking groups associated with businesses or brands. Females are little more likely to do so than males and 14-19 year olds are the most avid followers in this category. Tasmanians are more likely than average to use these networks. Proportion who follow social networking groups associated with businesses or brands 20% Total 15% Male 20% 23% 30-39 65+ Base: Q. 23% Queensland 15% South Australia 14% Western Australia 13% 8% Tasmania 22% 50-64 22% Victoria 30% 14-19 20-29 20% New South Wales 23% Female 40-49 Total Northern Territory 7% 39% 11% A.C.T. 21% Metro 20% Non-metro 20% All social networking users (490) Do you follow any social networking group associated with any particular business or brand? 22 Sensis® Social Media Report What do consumers want from businesses or brands followed? Discounts are the most commonly sought after items required from businesses or brands followed on social networking sites. Giveaways, invitations to events and general product information are also sought by a sizeable proportion of followers. What do consumers want from businesses or brands followed? Discounts 57% Give-aways 45% Invitation to events 41% Product information 41% Coupons 36% Information about the company 32% Feedback forums 32% None of these Base: Q. 30% Users of social media (490) Which of these things would you like to get from businesses or brands you might follow on social media? Advertising on social networking sites While more are likely to agree than disagree that they are happy to see advertising on social networking sites, a clear majority claim to take no notice of ads they see and almost half say they never really notice them. Just under 1 in 3 sometimes click on ads to find out more, but about a quarter say that they are turned off by companies or brands that try to reach them through advertising on social networking sites. Attitudes towards advertising on social networking sites I take no notice of the ads on social networking sites 59% I’m quite happy to see ads on social networking sites 49% I never really notice ads on social networking sites 46% I sometimes click on ads I see on social networking sites to find out more I’m turned off by companies/brands that advertise on social networking sites 26% 29% 25% 12% 29% 6% Agree Base: Q. 12% 26% 42% 65% 24% Neutral 50% Disagree Users of social networking sites (490) How do you feel about businesses or brands advertising on social networking sites. Do you agree or disagree (or have no opinion either way) with the following statements? 23 Sensis® Social Media Report Group buying sites usage 12% of social media users access group buying sites, with the 40-49 year olds most likely to do so. Usage is relatively low in South Australia, Tasmania and the Territories. Cudo is the most commonly accessed site followed by Scoopon, Spreets and Jump on it. Proportion who use sites Total Sites used 12% Male Cudo 10% Female Scoopon 13% 14-19 9% 20-29 13% 30-39 40-49 Spreets 18% Jump on it 17% 13% Zoupon 12% E-Bay 11% 20% 9% 25% Living Social 7% 50-64 43% Catch of The Day 6% 65+ 10% Zazz 4% New South Wales 10% Daily Deals 3% Stardeals 2% Deals Direct 2% Victoria 13% Queensland 16% South Australia 5% Other Western Australia 14% Tasmania Northern Territory A.C.T. Base: 15% Users of group buying sites (49) 3% 1% 0% Metro 13% Non-metro Base: Q. 9% Users of social media (490) Do you use any of the following group buying sites? Frequency of use and time spent on group buying sites Those who access group buying sites do so, on average, about 6 times a week, although over half restrict their visits to less than 3 times a week. On average, those who access group buying sites spend around 30 minutes per visit. Number of times used per week Less than 1 14% 1 to 2 10% 6 to 10 Over 20 Can’t say Base: Q. Q. 21% 3 to 5 minutes 19% 6 to 15 minutes 15% 21% Over 15 minutes 1% 2% 26% Up to 2 minutes 44% 3 to 5 11 to 19 Time spent per usage occasion (mins) Don’t know 13% Average times per week (5.6) Average time spent per occasion (13.4) 15% Use group buying sites (49) In a typical week, how many times would you use a group buying site? And, roughly, how long would you spend each time you use a group buying site? 24 Sensis® Social Media Report Provision of online ratings 27% of Internet users have provided/provide online ratings. On average, those who do provide ratings provided 10 ratings in the previous year. Accommodation, restaurants/bars, movies, stores and mobile apps were most commonly rated. Proportion who ever provide online ratings Total Number of ratings provided last year 27% Male 28% Female 19% Over 10 26% 40-49 27% 6 to 10 24% 30-39 29% 3 to 5 27% 20-29 3% 1 to 2 26% 14-19 21% Average = 10 28% 50-64 31% 65+ Base: None 24% All internet users (803) Base: Read online reviews or blogs (510) Products or services rated Hotels/Motels 21% Restaurants/bars 15% Movies 15% Stores 11% Mobile Apps 10% Electronics 7% E-bay 7% Automotive Telecommunication 5% Online services 5% Computer 5% Bands/music 4% Clothing/fashion 4% Retail items/products 4% Books/literature Base: Q Q. Q. 6% 3% Ever provide online ratings (194) Now some questions on online ratings – where you go on to a company’s website to rate a particular product, service or entertainment by giving it a score out of 10 or a star rating of some kind. Do you ever provide these types of online ratings? For what types of products or services have you provided online ratings? And, in the last year, how many times do you think you would have provided an online rating? 25 Sensis® Social Media Report Use of online reviews or blogs 63% of all Internet users have read/do read online reviews or blogs – with 20-29 year olds and 4049 year olds the most likely to do so. On average, people would expect to read 6 reviews before making a purchase decision. Proportion who ever read online reviews or blogs Total 63% Male 1 to 2 65% 3 to 5 45% 61% 6 to 10 14-19 62% Over 10 5% Don’t know 6% 75% 30-39 72% 50-64 65+ 27% Average = 6 65% 40-49 Q. 16% Female 20-29 Base: Q Number of reviews or blogs expected to read 56% 44% All internet users (803) Base: Read online reviews or blogs (510) Do you ever read online reviews or blogs to find out what other people think about products or services you might be interested in? Approximately how many reviews would you expect to read before you make a decision? 26 Sensis® Social Media Report Posting of online reviews or blogs In contrast to the 63% who read reviews, only 24% ever post reviews or blogs on the Internet. Among those who do provide reviews, the average number provided in the last year was 7. Reviews of hotels/motels, restaurants/bars and computer equipment were most commonly reviewed. Number of reviews provided last year Proportion who ever post online reviews or blogs Total None 24% Male 1 26% Female 14-19 23% 3 to 5 20-29 23% 6 to 10 30-39 21% Base: 19% 14% 13% Average = 7 25% 65+ 25% Over 10 29% 50-64 22% 2 21% 40-49 7% 21% All internet users (803) Base: Ever provide online reviews (187) Products or services reviewed Hotel/motels 25% Restaurants/bars 13% Computer equipment/services 13% Movies 10% Bands/music 10% Electronics 8% Stores 7% White Goods 7% Holiday Destinations 6% Personal grooming products Q. Q. Mobile apps 4% Computer games 4% Automotive 4% Transport 4% Telecommunications/services/pro... 3% Clothing/fashion items/accessories 3% Base: Q 5% Ever provide online reviews (187) Have you ever posted an online review or blog, where you provide your thoughts or opinions on products, services, entertainment and so forth? For what types of products or services have you provided online reviews or blogs? And, in the last year, how many times do you think you would have posted an online review or blog? 27 Sensis® Social Media Report Use and posting of online reviews or blogs by location The proportion who read online reviews varies little by location, although those in Tasmania appear to be more likely to post online reviews. Ever read online review or blog Ever post online review or blog Total 63% Total NSW 63% NSW 21% VIC 23% VIC QLD 63% QLD SA 64% SA Wa Q 69% Wa 26% 21% 27% TAS 67% TAS NT 68% NT 28% 26% ACT 66% ACT Metro 64% Metro Non-metro Base: Q 60% 24% 61% Non-metro 37% 23% 26% All Internet users (803) Do you ever read online reviews or blogs to find out what other people think about products or services you might be interested in? Have you ever posted an online review or blog, where you provide your thoughts or opinions on products, services, entertainment and so forth? 28 Sensis® Social Media Report Section 2 Australian businesses and social media 29 Sensis® Social Media Report Use of social media - summary Some 14% of small businesses, 25% of medium businesses and 50% of large businesses currently claim to have a social media presence. Facebook dominates in all three categories with Twitter also playing an important part, particularly for medium and large businesses. LinkedIn and blogs are also used by a sizeable minority of large businesses. Proportion who have social media presence What does social media presence include? Small (232) Medium (58) Large (76) Facebook page 79% 88% 83% Twitter 26% 44% 68% LinkedIn 12% 6% 29% Blog 9% 12% 25% Two-way forum 7% 7% 12% Rating system 5% 4% 3% MySpace 3% 8% 3% 50% 25% 14% Small Medium Large Base: Q. Q. Total sample (1481) / (312) / (151) Base: Have social media presence Does your business have a social media presence? This might include having a Facebook page, being active on Twitter, MySpace or LinkedIn, having a blog, hosting forums or having a social media based rating system? What does your social media presence include? Use of social media by business category (small/medium) The below chart analyses use of social media by business sector and shows the personal services and accommodation/restaurant sectors to be most active. Proportion who have social media presence Cultural, Recreational and Personal 41% Accommodation, Cafes and Restaurant 33% Transport/Storage 18% Retail Trade 14% Communication Property & Business Services 14% Wholesale Trade 13% Finance and Insurance 10% Manufacturing Building/Construction Health and Community Serices Base: Q. 9% 5% 4% Total sample (1793) Does your business have a social media presence? This might include having a Facebook page, being active on Twitter, MySpace or LinkedIn, having a blog, hosting forums or having a social media based rating system? 30 Sensis® Social Media Report Use of social media by location (small/medium) Social media usage by businesses peaks in Queensland and the ACT. Proportion who have social media presence Total 15% NSW 14% VIC 14% QLD 20% SA 11% Wa 14% TAS 12% NT 15% ACT 20% Metro 15% Non-metro 15% Base: Q. Total sample (1793) Does your business have a social media presence? This might include having a Facebook page, being active on Twitter, MySpace or LinkedIn, having a blog, hosting forums or having a social media based rating system? 31 Sensis® Social Media Report Business investment in social media 65% of small businesses involved with social media have made some financial investment in it. While many are not sure what the investment is, most of those who do answer report an amount of $5,000 or less with an average of $2,050. 81% of medium business social media users have invested in social media although, again, over a fifth are unable to nominate an amount. Most of those who do give an answer report an amount between $1,000 and $50,000 with an average of $6,500. 86% of large business social media users have invested financially, but a very high 47% can’t nominate the amount. The average nominated expenditure falls at close to $80,000. Small Medium Nothing 35% Up to $500 16% $501 to $1,000 $1,001 to $5,000 Nothing Up to $500 9% $501 to $1,000 11% 19% 2% 3% $5,001 to $10,000 $10,001 to $10,000 3% $10,001 to $50,000 Over $5,0000 0% Nothing 22% 21% 14% 12% Don’t know Average Mean = $2,050 9% $5,001 to $20,000 11% $20,001 to $50,000 5% $50,001 to $100,000 5% Over $100,000 8% Over $50,000 0% Don’t know 14% Up to $5,000 9% $1,001 to $5,000 $5,001 to $10,000 Base: Q. Large Don’t know 47% 23% Average Mean = $6,500 Average Mean = $78,750 Have a social media presence (232) / (58) / (76) Approximately, what is your current investment in social media? What do you spend a year? Percentage of marketing budget allocated to social media Social media represents an, as yet, small proportion of the marketing budget – usually 5% or less. On average, small businesses who use social media allocate 8% of their budget to social media, while medium and large businesses allocate around 5%. Small Medium Nothing 82% 1 to 2 percent 3 to 5 percent 6 to 10 percent 27% 14% 6% Large Nothing 27% Nothing 1 to 2 percent 26% 1 to 2 percent 3 to 5 percent 27% 3 to 5 percent 18% 6 to 10 percent 18% 6 to 10 percent 13% 11 to 20 percent 9% 11 to 20 percent 3% 11 to 20 percent 0% Over 20 percent 10% Over 20 percent 3% Over 20 percent Average Mean = 8.3% Base: Q. Average Mean = 5.5% Have a social media presence (Excludes ‘Don’t know) ) (173) / (43) / (56) Approximately what percentage of your marketing budget is allocated to social media? 32 25% 32% 7% Average Mean = 4.7% Sensis® Social Media Report Uses of social media The most common use of social media across all three business categories is to invite online comments, ratings or reviews – on average, about 70% do so. Use for two-way communication with clients or contacts is the second most common usage category ahead of providing incentives via social media. 29% of small, 49% of medium, and 28% of large businesses who engage in social media offer incentives. Most commonly these are discounts, giveaways or coupons. Use social media for two-way communication with clients and contacts 79% Invite online comments, ratings or reviews on social media sites 76% Offer incentives to consumers via social media 70% 63% 64% 49% 51% 29% Small Medium Large Small Medium Large 28% Small Medium Large Types of incentives provided Base: Offer incentives Small (70) Medium (22) Large (21) Discounts 61% 67% 57% Giveaways 30% 44% 81% Coupons 15% 27% 19% Competitions 11% 2% - Service 15% 27% 14% Invitations to events 3% 8% 19% Base: Q. Q. Q. Have a social media presence (232) / (58) / (76) Do you use your social media channels to engage in two-way communication with your customers and contacts? Do you offer incentives to consumers via your social media presence? What sort of incentives do you offer? Do you invite online comments, ratings or reviews on your business or products? 33 Sensis® Social Media Report Who is responsible for a business’ social media presence? In small businesses, the owner or manager is almost invariably responsible for the social media presence. In medium and large businesses, this responsibility sits more often with the marketing department. Small Owner/manager Marketing dept. Medium 82% 10% Large Marketing dept. 52% Owner/manager 36% External firm 4% External firm 6% IT dept. 2% IT dept. 6% Comms dept. 2% Comms dept. 0% Base: Q. Marketing dept. 74% Owner/manager External firm 17% 1% IT dept. 0% Comms dept. 0% Have a social media presence (232) / (58) / (76) Which department has overall responsibility for your social media presence? How is traffic driven to a business’ social media presence? 70% of small business have some form of strategy to drive people to social media sites – most often a link on their website. 80% of medium businesses have a strategy and, again, website links play the most significant part. For large businesses, 83% have a strategy with website links used by around one-half. Means of driving traffic to social media presence Small (232) Medium (58) Large (76) None – no strategy to drive traffic 30% 22% 17% Have links on our website to our social media site 30% 32% 53% Advertise on other websites 15% 21% 21% Word of mouth/networking 11% 7% 0% Advertise our online presence in traditional media 9% 7% 22% Include links in directories 7% 2% 11% Other 9% 13% 49% Base: Q. Have social media presence How do you drive traffic to your social media presence? 34 Sensis® Social Media Report Expectations for the next 12 months There is a clear indication that those who currently have a social media presence are likely to increase their expenditure on this in the year to come, with a net 22% of small, 55% of medium, and 65% of large businesses expecting an increase. Most expect that social media investment will contribute to an increase in sales over the next 12 months – with the average expectation for increase being around 10% for SMEs and 4% for larger businesses Expectations for social media expenditure Small (232) Medium (58) Large (76) Spend more 27% 56% 66% Spend the same 62% 43% 30% Spend less 5% 1% 1% Don’t know 6% 1% 2% Net balance +22% +55% +65% (spend more minus spend less) Base: Q. Have social media presence Thinking about your total planned investment in social media for the next 12 months, are you planning to spend more/spend the same/spend less/don’t know? Do they believe that social media investment will contribute to an increase in sales? Small (232) Medium (58) Large (76) Yes 97% 98% 97% No 9% 14% 8% Average expected increase 8% 10% 5% Base: Q. Have social media presence Do you believe that your social media investment will contribute to an increase in sales in the next 12 months? 35 Sensis® Social Media Report About Sensis Sensis helps Australians find, buy and sell. Our integrated network of local search and digital marketing solutions delivers real, measurable business leads to Australian businesses. Sensis’ multichannel network includes Yellow Pages®, White Pages®, the 1234 and 12456 Call Connect voice services, Whereis® digital mapping solutions, the Sensis Digital Media™ advertising business, and requestfor-quote service, Quotify. This increasingly diverse network spans print, online, voice, mobile, iPhone, iPad, Android, Telstra’s T-Hub and satellite navigation, and information can also be shared from online to mobile and social networking sites. Sensis helps ensure our advertisers are found by more customers than ever by managing their presence across a growing number of advertising platforms including search engines such as Google, Bing and Yahoo! Sensis Pty Ltd 222 Lonsdale Street, Melbourne VIC 3000 Tel: + 61 3 8653 5000 | Twitter: @Sensis_au | www.about.sensis.com.au About AIMIA The Australian Interactive Media Industry Association (AIMIA) is the peak body for the digital industry in Australia. It was founded in 1992. AIMIA’s membership represents the full spectrum of the digital industry. Our members range from Australia’s top digital media powerhouses, including the ABC, Sensis, Yahoo!, Google, Bigpond, Foxtel, Disney, ninemsn and Fairfax Digital, to the country’s best know digital advertising, mobile content and applications, online banking, e-commerce, web development and social media companies. AIMIA exists to: • Deliver services and initiatives that help AIMIA members grow their business and support the growth of the digital industry at large • Develop and grow the markets for AIMIA members’ services and products • Identify and develop export opportunities for AIMIA members • Represent AIMIA members and the digital industry nationally and internationally with government, education, media and the broader business community. AIMIA L2, 295-301 Pitt Street, Sydney NSW 2000 Tel: + 61 2 9248 7900 | Twitter:@amianational | www.aimia.com.au 36
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