Social Media and Networking

May 2011

Issues in the Market How should businesses extend their marketing efforts in social media and social networks? How important is social networking on the go? Will social commerce outshine e-commerce? Will Facebook continue to dominate the social networking landscape? 2 © 2011 Mintel Group Limited. . Confidential to Mintel. All rights reserved.

Non-internet users do not express a desire for social networking. Falling hardware and mobile internet costs will expand the use of social networking on the go. . but the growing benefits of social networks (such as job search and shopping discounts) will attract non-users especially if privacy concerns are addressed. 3 © 2011 Mintel Group Limited.Internal Market Environment Rising broadband penetration. All rights reserved. especially the older and poorer consumers. further integrating social networking into everyday lives. with the help of government funded campaigns. Confidential to Mintel. is making online social networking accessible to more people.

An older population will be more resistant to adopting social networking into their everyday lives. All rights reserved. . 4 © 2011 Mintel Group Limited. Confidential to Mintel. potentially delaying the acceptance of social networking services via mobile devices by current non-users. could dissuade consumers’ purchase or upgrade of hardware and services. Inflation. especially for telecom equipment and services.Broader Market Environment Consumers becoming more priceconscious due to falling GDP and consumer confidence could actually increase the use of social networks and their value-added services such as shopping discounts. but more user-friendly devices and the desire to connect with younger family members could persuade them to try it out.

All rights reserved. Games on social networking platforms disrupt the established casual. June 2008 – March 2011 The ability to send offline. multiplayer gaming platforms. News aggregation services offered by social media companies can be a source of referral for content creators. informal messages via social networks has contributed to lower uses of e-mail and instant messaging services. . but news outlets that have not incorporated social media strategies may get left behind. Confidential to Mintel. Source: comScore/Mintel 5 © 2011 Mintel Group Limited.Competitive Context Percentage of total unique visitors to the internet from home and work in UK. by activities.

Strengths and Weaknesses • • • • • Humanising a brand Engagement lead Wisdom of the crowd Real time gauge of reactions Spreading (select) messages quickly • • • • • Noise Blurring the line between public and private Spam Downtime Social media success ≠ sales 6 © 2011 Mintel Group Limited. Confidential to Mintel. All rights reserved. .

Branches of Social Media Social Media Social Networking Commerce Gaming Communication Information Multimedia General Deals Blogs & Microblogs Wisdom of the Crowd Photography Topic Specific Recommendations Location Based Navigation Video Social media encompasses more than just social networking. ranging from corporate governance to ethical focuses and other initiatives. Location-based services bring opportunities for both businesses and customers alike. but consumers need guidance on how to use them and what benefits are available. All rights reserved. Social media services for sharing documents can be a tool for businesses to communicate their policies. . it includes any services that facilitate content sharing amongst users. Confidential to Mintel. Reviews Music Events Sounds Publishing Q&A Forums 7 © 2011 Mintel Group Limited. especially as new technology develops to make pin-pointing a user’s location more accurate.

000 internet users aged 16+ Facebook is the number one social network in the UK. March 2011 Base: 2. Source: GMI/Mintel One in five internet users have never used social networking services before. do you use each of the following social networking sites?” Social networks used. All rights reserved. more people will become members of multiple networks. with regular usage towering over its nearest competitors including Twitter and Friends Reunited. such as LinkedIn which offers professional networking. Confidential to Mintel. . As online social networks become a larger part of everyday lives. 8 © 2011 Mintel Group Limited. if at all.Users of Social Networks “How often. Social networks that offer valueadded services to their members have a better chance of retaining an active user base. thanks to its own innovations as well as development by thirdparty developers that attract users to stay on the service for longer.

highlighting a marketing opportunity for device makers.597 internet users aged 16+ who use social networking sites Access to social networks via mobile phones will increase. Older consumers may find social media use on mobile devices more palatable if screen size and other features cater for them.Accessing Social Networks “How often. Confidential to Mintel. do you use each of the following devices to access social networking sites?” Devices used to access social networking sites. and companies who use social media for promotion should ensure content is optimised for smaller screens. Source: GMI/Mintel 9 © 2011 Mintel Group Limited. March 2011 Base: 1. Women are more likely to use social networking sites but less likely than men to access them via mobile phone or tablet PCs. All rights reserved. . if at all.

All rights reserved. Source: GMI/Mintel 10 © 2011 Mintel Group Limited. Younger people use social networks to keep up with the latest news. March 2011 Base: 1. Confidential to Mintel. with participation rates the highest amongst consumers aged 35-44. and general research. highlighting how information sharing and consumption is shifting from traditional media websites to social networks. . e-mails. ahead of using the internet for studies. Social media accounts of businesses need to offer additional content and value-added services different from their existing website in order to attract visits from customers. One in four social network users play games on social networks.Why Use Social Networks? “Which of the following do you use social networking sites for?” Reasons for using social networking sites. Social gaming provides a new marketing angle by incorporating brands into a game.597 internet users aged 16+ who use social networking sites Internet users predominantly use social networks to keep in touch with friends but prefer not to use them to find love. Social networking is the most regular activity performed online by youths aged 7-19.

March 2011 Base: 1. and less than one in ten buy products advertised on social networks. including locationbased features and social commerce. All rights reserved. . Source: GMI/Mintel Paid social networking will find an audience if it provides value-added services that cannot be freely or easily found elsewhere. but this may further dissuade the disadvantaged from accessing these valuable services.General Attitudes towards Social Networks “To what extent do you agree or disagree with the following statements?” Attitudes towards social networking sites. Confidential to Mintel. 11 © 2011 Mintel Group Limited. Overcoming concerns over privacy and the sharing of personal data will help increase consumers’ confidence in social networks and participation in their services. Communicating via social networks is becoming the norm.597 internet users aged 16+ who use social networking sites Two in three social networkers pay little attention to adverts on social networking websites. but companies need to ensure they don’t overload users with social media communication that would become social junk mail. especially for those under the age of 35.

prefer to talk to friends in person .597 internet users aged 16+ who use social networking sites use multiple devices to access multiple social networks willing to switch to another social network to keep in touch with friends like the idea of using location based services Source: GMI/Mintel 12 © 2011 Mintel Group Limited. March 2011 Base: 1. Confidential to Mintel. All rights reserved.Target Groups Target groups for social networking.