Insights into Critical Trends that are shaping the Lives of Malaysian Consumers

Steve Murphy, Synovate

Date: December 2008

2008. Synovate Ltd.

5 hot trends
1. DigitALL 2. Screen based generation 3. Social prosumer 4. Perpetual partial attention 5. Mobile

2008. Synovate Ltd.

1. Digitall

Malaysian segments : Media Atlas

Cik Joyah

The Me generation
The Grass Roots

Mrs Bliss

7 11%

8 11%

1 15% 2 12%

The Modern Aspirationals

The Kiasu

6 16% 5 10% 4 11%

3 14%

The Mawis

Golden Oldies

The Me Generation : digital natives !

1 Urban young/ Independent/ modern (15%)
Found in Market Centres Primarily Chinese, Male Young - aged 20-29, Single without children College/ University educated Working Full time or Students Live in terraced link house Rely on the Internet for information and believe in SMS communication Tech-Savvy - own MP3/ Ipod/ PC/ Mobile phone with internet Love new things & variety in life, less family orientated and enjoy single life Always on the go less likely to stay home Media skews: Fun loving like hanging out with friends / Eat out The Star, AXN, Discovery Channel, Wah Lai Toi, Full of activities Cinema/ Discos/ Karaoke/ Pubs Sports channel, MY & Hitz FM Music lovers & concert goers Fast good & lifestyle branded caf goers Interested in romantic comedies, travel & outdoor activities, less interested in news or current events Watch more Astro channels than terrestrial channels Read more English newspapers than magazines

Source : Synovate Media Atlas Malaysia

The Modern Aspirationals : digital natives !

3 Young modern Malay/ cosmopolitan/ varied life (14%)
Aged 15-29, 57% are female & 73% Malay Lower income group RM 1000-1999 Secondary or tertiary educated Students Living in terraced/ link housing with family Their life is not stressful and they believe in the role of family Like looking through ads and rely on SMS / Internet They like variety in life and enjoy a large variety of leisure activities: e.g. eating out, shopping, leisure driving, going to beauty salons and gym/ aerobics High product ownership e.g. desktop PC/DVD & Digital camera & videocam & handphone Interested in International news, arts, business, current affairs, travel.. Bourne out in high newspaper and magazine readership (and like looking through ads) Media skews: Berita Harian & Utusan Malaysia General interest magazines i.e. Remaja, Wanita, Mastika Terrestrial TV & Astro

Source : Synovate Media Atlas Malaysia

Over 2 hours per day spent on the Internet

Time per day spent on:

Reading newspapers/magazines

1hr.25min. 1hr.50min.

Watching TV/ recorded TV programs Listening to radio /recorded music /podcasts Using Internet for work or personal purposes (excl. email)

1hr.33min.
2hr.47min.
Base: Total PAX Digital Life markets Source: Synovate PAX Digital Life 2007, Top-line results, q12 & q13

Synovate 2008

Mega figures
Global digital content: 160 billion Gb
- 30 times more than all human language ever spoken

1.6 billion email addresses, vs 253 million in 1998

60 million visit eBay monthly.

..200 million visit Google and Yahoo 100 million users of MySpace 100 million daily video streams on YouTube 1 billion shared songs daily 200,000 dog owners with websites on dogster.com
2008. Synovate Ltd.

2. Screen Based generation !

Full access to screens: PAX elite adults across AP

99%

93%
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80%
Base: Total PAX Digital Life markets Source: Synovate PAX 2007 (Q1 Q4)

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Online activities appear across age groups

General browsing Online banking Using email Online games Using search engines Listening to radio/music

100 90 80 70 60 50 40 30 20 10 0
15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-64

Age

Source: Synovate Media Atlas Malaysia Q32007 Q22008 Target: People aged 15-64 who have used internet in the past month
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User-generated activities domain of youth

Instant messenger 90 80 70 60 50 40 30 20 10 0 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-64 Downloading Accessing chat rooms

Age

Source: Synovate Media Atlas Malaysia Q32007 Q22008 Target: People aged 15-64 who have used internet in the past month
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Women buy online, men download!

Women
80 25 27 9 11 8 1 9 5 6
General browsing Using email Accessing chat rooms Downloading Using search engines Instant messenger Online games Online banking

Men

%
88

31 29 24 18 14 13 2 4 0 2

Listening to live radio/music

Online purchase

2 Online booking of travel services

Source: Synovate Media Atlas Malaysia Q32007 Q22008 Target: People aged 15-64 who have used internet in the past month
2008. Synovate Ltd.

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Asia's youth is spending an average of 38 minutes a day playing games

Number of minutes on online, TV and portable electronic games per day

56.2 43.2 37.5 31.9

59.4

60.7

Regional

China

Hong Kong

Malaysia

Singapore

Thailand

Base: All respondents aged 8-24 Source: Synovate Young Asians Survey 2007
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3. Social Prosumer

Social networking sites used (past 30 days)

Visit of any social networking site:

70%
33% 25%

20%
20%
Base: Total PAX Digital Life markets Source: Synovate PAX Digital Life 2007, Top-line results, q11a
Synovate 2008

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Social networking significant share gains of Internet traffic

Alexa Global Traffic Rankings
2005 (1) Rank 1 2 3 4 5 6 7 8 9 10 Website yahoo.com msn.com google.com ebay.com amazon.com microsoft.com myspace.com google.co.uk aol.com go.com Rank 2008 (2) Website

1
2 3 4

yahoo.com
youtube.com live.com google.com

5
6

myspace.com
facebook.com

7 8 9
10

msn.com hi5.com wikipedia.org

orkut.com

Traffic rank is based on three months of aggregated historical traffic data from Alexa Toolbar users and is a combined measure of page views/ users (geometric mean of the two quantities averaged over time) (1) Rankings as 12/31/05, excludes Microsoft Passport; (2) Rankings as of 4/14/08 Source: Alexa Global Traffic Rankings, Morgan Stanley Research
2008. Synovate Ltd.

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User generated content

Online activities in the past 30 days:
Watch video clips
Aged below 35

72% 64%

Read customer review

66% 63%

View classified advertising

Keep weblog/ website

63% 62%

47% 41%

Base: Total PAX Digital Life markets Source: Synovate PAX Digital Life 2007, Top-line results, v6 & v7
Synovate 2008

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The Creative Consumer

Network society enables more to get involved
- In marketing and product development: its a two-way street

New technology creates a million entrepreneurs

- A market of billions is available to anyone

The culture of sharing is the new creativity

- People collaborating to create new products, ideas

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Implications for marketers

An open-source approach: were no longer in control Consumer-created products Engaging consumers in shaping the brand Allowing consumers to share revenue NOT buying time creating time!!!

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4. Perpetual Partial Attention

Perpetual partial attention of young adults Internet and TV command higher attention levels
Attention level toward different media (Aged 15-24 in 11 markets)
100% 75% 50% 25% Minimal attention 6 13 26 24 26 31 22 6 3 Internet 13 6 TV 19 16 Newspaper 19 22 Magazine 29
%

100%
18 31 21 31 38 27 19 17 16

Radio

Base: All respondents aged 15-24 Source: Synovate Young Asians Survey 2007
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Almost 10 hours per day are spent with media

Total number of hours of media activities per day

12.2 9.7 10.4

12.9 11.2

12.8

Regional

China

Hong Kong

Malaysia

Singapore

Thailand

Base: All respondents aged 8-24 Source: Synovate Young Asians Survey 2007
2008. Synovate Ltd.

^ Media activities watching TV or DVD/VCD/videos, going online, reading newspapers or magazines and listening to radio
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TV and the internet are the key media

Total number of hours of media activities per day
Internet TV Newspaper Magazine Radio DVD/VCD/Videos

Total time spent

Regional

2.8

4.0

0.7 0.6 0.9 0.8

9.7

Malaysia

3.6

4.5

1.0

0.9

1.4

1.4

12.9

Singapore

4.2

3.9

0.7 0.6 1.0

0.8

11.2

Base: All respondents aged 8-24 Source: Synovate Young Asians Survey 2007
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Youth are spending more time on the internet and listening to music than a year ago
Compared with past 12 months, increased time spent on different type of activities or media (Aged 15-24 in 11 markets) % Watching TV Using Internet Reading Newspaper Reading Magazine Listening to Radio Listening to Music Playing online/video game
22 22 16 15 12 17 20 16 14 21 52 Regional Malaysia 67

16 14 37 35

Play sports
Base: All respondents aged 15-24 Source: Synovate Young Asians Survey 2007
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Youth fit 38 hours of activities into a 24 hour day even more in Malaysia !
Total number of hours of activities per day

42.6 38.3 39.5

43.8 39.1

Regional

China

Hong Kong

Malaysia

Singapore

Base: All respondents aged 8-24 Source: Synovate Young Asians Survey 2007
2008. Synovate Ltd.

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Multi-tasking the norm (Weekdays in Malaysia)

%

200

Multi-tasking

150

100

50

0
0600- 0700- 0800- 0900- 1000- 1100- 1200- 1300- 1400- 1500- 1600- 1700- 1800- 1900- 2000- 2100- 2200- 2300- 0000- 0100- 0200- 0300- 0400- 05000700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 2400 0100 0200 0300 0400 0500 0600

Watching TV Listening to music Extra-curricular activ./classes Playing Shopping Commuting

Reading newspaper Watching video tapes/ VCD/DVD Studying Playing sports Other entertainment Working

Reading magazine On the Internet Eating/drinking Going out with friends Housework/chores Reading books

Listening to radio Attending school/class Offline video/electronic games Talking on the phone Sleeping

Base: Weekdays respondents aged 8-24 Source: Synovate Young Asians Survey 2007
2008. Synovate Ltd.

* Average weekdays diary by hour

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Information overload
Competition for attention Media fragmentation, personalisation

Commercial sensurround
eBay has 2,500,000 products

Tyranny of choice
Focus on search: why Google is the largest media company 10 hours a day exposed to media Time and energy the most precious personal resource

2008. Synovate Ltd.

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Information overload
Competition for attention Media fragmentation, personalisation

THE AGE OF ATTENTION

Commercial sensurround

eBay has 2,500,000 products

PERPETUAL PARTIAL

Tyranny of choice

Focus on search: why Google is the largest media company 10 hours a day exposed to media Time and energy the most precious personal resource

2008. Synovate Ltd.

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5.Mobile

PAX AP: access to mobile devices

93%

8%

15%
Synovate 2008

10%

42%
Base: Total PAX Digital Life markets Source: PAX 2007 (Q1 Q4)

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Internet and mobile phones are the most essential medium. Internet and TV serve as a mechanism for leisure and entertainment
Perceptions toward different media (Aged 15-24 in 11 markets)
Internet 54 TV Mobile phone 55 46 37 29 19 13 2 1 2 I couldn't live without 5 14 7 3 3 12 7 5 6 7 7 3 8 4 8 6 16 26 19 49 Newspaper Magazine Radio
%

Keeps me up to date

Gives me useful information

Base: All respondents aged 15-24 Source: Synovate Young Asians Survey 2007
2008. Synovate Ltd.

Best entertainment Enjoy spending time source/leisure on/with pastime

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Malaysia: Majority of 8 24 year olds have mobile phones

Personal ownership of products Regional
60

Malaysia
64

Singapore %
76

Mobile phone

Computer / Laptop

45

50

58

MP3/iPod

34

17

47

TV game console

17

12

27

Digital Still Camera Portable electronic game

17

13

18

16

34

Base: All respondents aged 8-24 Source: Synovate Young Asians Survey 2007
2008. Synovate Ltd.

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Talkative Asians
Number of hours talking on mobile phone and landline phone per day
Base: Those who engaged in respective activities aged 15-24

Mobile phone Regional China Hong Kong Malaysia Singapore Thailand 0.7 1.1 1.1 1.4 2.2 0.5 1.0 0.5 0.9 0.6

Landline

Total 1.6 1.2 2.0 1.6

0.7 0.6

2.1

2.8

Base: Those who engaged in the respective activities aged 15-24 Source: Synovate Young Asians Survey 2007
2008. Synovate Ltd.

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Mobile phone indispensible : an example of single womens media relationships

High

TV

Mobile

Colleague
Cinema

Soul Mate

The next best thing to a man!

USERSHIP
Radio

Magazines

Casual Partner

Distant Friend

Low/Weak

RAPPORT

Strong

Carat Media Chemistry

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So, to wrap up the question is What relationship would you like to be in with your customers ??

In these changing times when.

All media and communications going digital Screen-based culture rapidly emerging

Need it now mindset for information, news, entertainment

Explosion of information sources displacing big media Multi-tasking the norm De-linkage of platform and content Integrated marketing communications Consumer is now a publisher, producer and broadcaster

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Learn to let go and connect because

Marketing communications in radical transformation The consumer is at the heart of all we do

Relationships with customers interactive and inter-dependent

Creativity and collaboration vital, especially with the consumer Advertising far more performance-based, because it can be Involvement and engagement vital to secure ROI

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Let go and connect because ..

Change will be decisive, rapid and transform the industry Traditional advertisers and media remain unprepared and will be overwhelmed by the digitally-driven changes

You cannot fit tomorrows solutions into yesterdays containers

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Thank you.

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