Digital Philippines 2011
                                                                                                               Yahoo!-Nielsen Net Index Highlights
                                                                                                                               Manila, Philippines



No part of this document may be quoted, reproduced, stored in a retrieval system, or transmitted in any form or by any means –
electronic, mechanical, photocopying, recording, or otherwise – without the written permission of Yahoo! Southeast Asia Pte. Ltd. and The Nielsen
Company (Philippines), Inc..
Yahoo!- Nielsen Net Index 2011
        At Yahoo! and Nielsen, we believe that fact-based
             Insights should drive decision-making!

•   In 2009, Yahoo!-Nielsen Net Index 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


•   In 2011, the study continues to evolve, to reflect the changing digital
    landscape…whilst maintaining key longitudinal measures
Research Design
•   Methodology         Personal face-to-face interviews using two-part structured
                        questionnaire (linked with Nielsen Media Index)

•   Area Coverage       National Urban Philippines
                        (22 major cities including Metro Manila)

•   Respondents         Males and Females aged 10+ yrs old across all socio-economic
                        classes who have used the internet in the past month

•   Sample Size         1,500

•   Sampling Approach   Multi-stage Probability Sampling

•   Fieldwork Period    Q1 2011
The Changing Landscape
2009-2011
Internet usage has remained largely stable, though we
see some pockets of growth


                                                                                                                      2009           2010         2011
Past Month Reach (%)




                           42 43
                      36                                                                                                        37                 37 36
                                                                                             34                            33                33
   30 31 30                               29 30 26                     30               30                            29
                                                              26 24               26                   27
                                                                                                            23
                                                                                                                 17




     Total         Metro Manila             Luzon              Visayas                 Cebu           Mindanao         Davao                Mega Manila




     Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines
     Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
Despite this stability, overall engagement is on the rise.
Social networking now dominates…

  Select Monthly Online Activities (%)                                                       2009   2010   2011

  Visiting Social Networking sites                                                           51*    53     82
  Search                                                                                     58     76     80
  Instant messaging                                                                          63     68     69
  Internet Portal                                                                            54     73     67
  Visiting public chat rooms                                                                 54     67     65
  Email                                                                                      63     65     64
  Played games online                                                                        53     45     54
  Listen to songs in music websites                                                           -      -     45
  Downloaded or uploaded music files online                                                  25     37     37
  Shared/posted something online that you created                                            15     24     36




    Activities showing significant increase at 95% confidence levels between 2009 and 2011
  * Note. The 2009 figure for social networking includes community groups /forums
  Base: Past month Internet users aged 10+ across National Urban Philippines
  Source: Yahoo!-Nielsen Net Index 2010, 2011
Evident from the increased time being spent online,
across mediums and locations



                                                          Place of Access (Weekly Avg. Time Spent)

                                                                                                                    Internet
                                                         Home                  School                   Work
                                                                                                                     cafes

 2009                                                      4.8                     3.4                       7.7      4.5


 2011                                                     10.4                     5.2                       11.5     5.5




  Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines
  Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
Internet usage highest amongst upscale under 30s…

Past Month Reach (%)



Total                                               Age                                        Gender                                SEC



                                                                                                                        2009         2010      2011




                                                                                                                        65 66
                                                                                                                   60
                        52 55 53                                                                                                     54 53
                                                                                                                                49
                                   44 42 43

30 31 30                                                                                     31 33 29 29 29 30
                                                    25                                                                                       25 26 24
                                               19        21
                                                              13 14 11
                                                                          3 4 3


 Total                   10-19       20-29       30-39         40-49     50 and up             Male      Female    SEC ABC      SEC C2       SEC DE




        Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines
        Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
…fuelled by their appetite for entertainment content
Content Preferences on Internet Portals (%)

                                                            Total (T3B %)                   10-19 (Index)       20-29 (Index)
 International music                                              68                            114                  91
 Local music                                                      65                            104                  94
 Interesting videos or photos                                     59                            118                 101
 Games                                                            56                            108                  94
 Technology and gadgets                                           55                            102                 103
 World news                                                       49                             99                 103
 National/ Local news                                             48                            104                  99
 Entertainment news                                               45                            116                  99
 Lifestyle                                                        45                             95                 118
 Sports                                                           45                            104                  93
 Movies, TV or Drama reviews/guides                               42                            106                  97
 Business news                                                    38                             90                  84
 City guides                                                      35                            100                 101
 Travel                                                           33                             95                 103
 Finance                                                          30                             89                  76
 Traffic updates                                                  29                            104                  99



 Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines who
 Have visited Internet Portals
 Source: Yahoo!-Nielsen net Index 2009, 2010 and 2011
The shift from shared to private access continues …


                                                                                                                                 2009         2010       2011
      Place of access (%)

                                                                                                                      SEC ABC1


71 69                                                                                                                 7
            66                                                                                                                   6 7
                                                                                                                  5




                                        35
                                  31                                                                            National Mega Manila
                           27


                                                         7                           7      5                          6   4                    5    4
                                                               4      2                           3              2                        0

Internet cafes                  Home                         School                      Work                   Friend's house          Cellphone/ PDA


     Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines
     Source: Yahoo!-Nielsen net Index 2009, 2010 and 2011
Mobile usage needs further tariff rationalisation to gain
traction
        Home Internet Offerings        Mobile Phone Internet Offerings
Filipino Netizens impression of the
changing digital ecosystem?

• Evolution of Social Networking

• Online Transactions (deal aggregation/
  e-commerce)
Social Networking –
Cant stop this thing we started!
Not just an activity but a starting point for the online
  experience for many

  Internet Usage Pathway (%)




                      39
                                             30


                                                                      13                      11
                                                                                                                      5
                                                                                                                                    1

           Social Networking                 Search                 Email             Online News             Instant Messenger   Games




Question: Please think about the following online services and tell me the order in which you first ever used each.

Base: Past month Internet users aged 10+ across National Urban Philippines
Source: Yahoo!-Nielsen Net Index-2011
A dominant platform to connect and communicate…
   though mail/messenger remain relevant

    Past month online activities (%)


               Social Networking                                         Email                Messenger



                                     82                                                          68       69
                                                              63           65     64     63


             51          53




              2009       2010       2011                        2009       2010   2011   2009    2010     2011




Base: Past month Internet users aged 10+ across National Urban Philippines
# Note. The 2009 figure for social networking includes community groups /forums
Source: Yahoo!-Nielsen Net Index 2010-2011
Updating profile is mainly done through PC, Mobile
updates reflect Mobile usage (low)

   Mode for updating Social networking profile (%)




                                                                                                          Mobile
                                                                                                          Phone
                                                                                                         Browser
               Through PC                                                                                     3%
                                                                                           Mobile
                  96%                                                                    Phone SMS
                                                                                               4%




Question: How do you usually view/ update your Social Networking sites?

Base: Past month Internet users aged 10+ across National Urban Philippines who have visited social networking in Past 3 months
Source: Yahoo!-Nielsen Net Index 2011
Social networks start with ‘close contacts/relations’…
  but quickly move to less familiar circles…

    Connections on Social Networking sites (%)

                                   Regular friends                                                                                     96


                                 Family members                                                          59


  Friends with whom you had lost contact                                                     38


    People from outside your city/country                                            32


                          Referrals from friends                          15


  People you met once or twice in person                             11


People you only know in the virtual world                     3


                                        Co-workers           3



Question: Who are the people you interact with regularly on these Social Networking sites?

Base: Past month Internet users aged 10+ across National Urban Philippines who have visited social networking sites in Past 3 months
Source: Yahoo!-Nielsen Net Index 2011
…thus the effort to limit what users share with the
  larger/extended group on social networking sites

    Steps taken to manage digital profile (%)

                                       Keep Strict Privacy Settings                                                                         66


                      Limit My Personal Info. Available Online                                                                         57


   Avoid Allowing People Access My Blog/Social Net. Site                                                                      45


           Limit The Type/Number Of Photos/Video Shared                                                           33


  Remove The 'Tag' On Photos/Video Uploaded By Others                                              17


       Limit/Prevent Others From Posting onMy Blog/SNS                                            16


                  Avoid Allowing People Access My Blog/SNS                                   13


                            Always Check Info About Me Online                                13


                       Deleted A Blog/Social Networking Page                          4


                              Cancelled Another Online Account                    2

Question: Who are the people you interact with regularly on these Social Networking sites?

Base: Past month Internet users aged 10+ across National Urban Philippines who have visited Social Networking Sites in Past 3 months
Source: Yahoo!-Nielsen Net Index 2011
And the emergence of ‘selective socialization’


                                                                  Opinions on Social Networking (%)


    I've found more people like me who share my interests                                                              74



           Allows me to be more social than I am in person                                                            72



     I can really reveal parts of my life/personality, I would
                                                                                                                  69
                      normally not disclose


    I feel less awkward when I communicate on these sites
                                                                                                                 67
                        than in person



             I feel more in tune to what is going on socially                                                67



                       I really try to find just sincere people                                             63



           I've become choosy about whom I socialize with                                              59


Question: Please tell me to what extent do you agree with each of the following opinions about social networking?

Base: Past month Internet users aged 10+ across National Urban Philippines who have visited SNS in Past 3 months
Source: Yahoo!-Nielsen Net Index 2011
Softening of growth of Social networking is becoming
 well documented

Facebook Sees Big Traffic Drops in
                                     Facebook sees a Decline in Young
US and Canada as It Nears 700
Million Users Worldwide              Users
                                     softpedia, June 12th, 2011
Inside Facebook, June 12th, 2011



                                     ALONE TOGETHER
Social Networks In Decline           Why We Expect More From Technology and
                                     Less From Each Other
Smart Insights, April 12th, 2011     By Sherry Turkle
So what’s next…




     …fragmentation across multiple
      platforms OR cataloging on a
             single platform?
Social Networking - Summary

• Social networking is suited to one-to-many … mail and messenger
  remain relevant for personal one-to-one conversations


• The rapid growth of social networks in Philippines, will result in
  increased awareness for the need to build “walls” within existing
  networks


• These “walls” will be built to control information exchanges and
  ensure conversations remain rich and engaging (one-to-few)
E-Commerce
Online Deal Aggregation –
A Mixed Bag
The backdrop to e-commerce in Philippines

                       Presence of         High reliance on     IT and Banking
Traditional trade
                     counterfeits and       inter-personal       infrastructure
     legacy
                       knock-offs            relationships         “evolving”



       Lack of
‘accreditation and
 guarantees'…by
                       Buyers need to        Buyers feel the       Low levels of
  default modern
                      ensure quality by     comfort, dealing    confidence/trust in
   trade actually
                     physical inspection   with known vendors   transacting online
    encourages
     destination
      shopping




                            There is an inherent
                            reluctance to “trade”
                            through the Internet
Online transacting remains in it’s infancy


                                           Online Transactions (%)
                                                                                                      SEC ABC


                                                                                                             4
                                                                                                  3



                                                                                               Mega Manila
                                              3
                                                              1




                                                  2010     2011




   Question: Have you purchased products online in the past 12 months… payment could be online or offline?

   Base: Past month Internet users aged 10+ across National Urban Philippines
   Source: Yahoo!-Nielsen Net Index 2011
Payments largely made offline, given current trust and
comfort levels with e-payment
                                      Payment methods (%)


                Cash (face to face)                          53



                       Credit card                      36



            Transfer via ATM/Bank              10



                  Internet Banking             9



     Deposited cash at bank branch         4



    Online accounts such as Paypal     1



                           Cheque      1



                        Debit card     1
Group buying sites like Groupon have created
significant buzz recently…


Hailed by Forbes as the "fastest-
                                        Over the past three years, an entirely
growing company in
                                        new industry known as group-buying
history", Groupon turned over
                                        has suddenly emerged, and is growing
US$760 million last year, and expects
                                        at a phenomenal rate.
that to hit the billions this year.
                                        nzherald.com
Forbes
Group Buying: Description

     These sites negotiate discounts on popular
goods, services and cultural events, which is offered
to thousands of subscribers in a free daily email. The
deals are activated only when a minimum number of
                 people agree to buy.
Current levels of comprehension limit overall interest …
 Interest is high among those who understand


                          EASE OF COMPREHENSION                                                             LEVEL OF INTEREST

                                                                                           Extremely
                                                                                           interested
                                                                                               5%


                           Neither                                                                                           Not at all
                            15%                 Understand                                                                  interested
                                                   32%                                                                         25%




                                                                                                  Quite                             Slightly
                          Not at all                                                           interested                         interested
                         understand                                                               43%                                  9%
                            53%                                                                                     Somewhat
                                                                                                                    interested
                                                                                                                       18%


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 Internet users aged 10+ across National Urban Philippines
Source: Yahoo!-Nielsen Net Index-2011
Deal Aggregation - Summary

• Pure-play ecommerce offerings are still in nascent stage, given
  the constraints around product authenticity and infrastructure


• Online buyers and sellers currently find each other online, but
  typically “transact offline”


• For deal aggregation sites to be successful, a mind-shift needs
  to occur… there is a need to educate on the concept of deal
  aggregation, against a backdrop of reluctance to “pay” online
Key Takeaways
1. Internet growth driven by the young and upscale audience


2. Home internet access continues to grow, with engagement levels
   increasing with growth in private access


3. Philippines enormous appetite for social networking could
   accelerate the emergence of “selective socialisation”


4. Deal aggregation holds significant potential, but comfort in e-
   payment platforms and trust levels will dictate the rate of growth!

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Digital Philippines 2011 Yahoo - Nielsen Net Index Highlights

  • 1. Digital Philippines 2011 Yahoo!-Nielsen Net Index Highlights Manila, Philippines No part of this document may be quoted, reproduced, stored in a retrieval system, or transmitted in any form or by any means – electronic, mechanical, photocopying, recording, or otherwise – without the written permission of Yahoo! Southeast Asia Pte. Ltd. and The Nielsen Company (Philippines), Inc..
  • 2. Yahoo!- Nielsen Net Index 2011 At Yahoo! and Nielsen, we believe that fact-based Insights should drive decision-making! • In 2009, Yahoo!-Nielsen Net Index 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 • In 2011, the study continues to evolve, to reflect the changing digital landscape…whilst maintaining key longitudinal measures
  • 3. Research Design • Methodology Personal face-to-face interviews using two-part structured questionnaire (linked with Nielsen Media Index) • Area Coverage National Urban Philippines (22 major cities including Metro Manila) • Respondents Males and Females aged 10+ yrs old across all socio-economic classes who have used the internet in the past month • Sample Size 1,500 • Sampling Approach Multi-stage Probability Sampling • Fieldwork Period Q1 2011
  • 5. Internet usage has remained largely stable, though we see some pockets of growth 2009 2010 2011 Past Month Reach (%) 42 43 36 37 37 36 34 33 33 30 31 30 29 30 26 30 30 29 26 24 26 27 23 17 Total Metro Manila Luzon Visayas Cebu Mindanao Davao Mega Manila Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
  • 6. Despite this stability, overall engagement is on the rise. Social networking now dominates… Select Monthly Online Activities (%) 2009 2010 2011 Visiting Social Networking sites 51* 53 82 Search 58 76 80 Instant messaging 63 68 69 Internet Portal 54 73 67 Visiting public chat rooms 54 67 65 Email 63 65 64 Played games online 53 45 54 Listen to songs in music websites - - 45 Downloaded or uploaded music files online 25 37 37 Shared/posted something online that you created 15 24 36 Activities showing significant increase at 95% confidence levels between 2009 and 2011 * Note. The 2009 figure for social networking includes community groups /forums Base: Past month Internet users aged 10+ across National Urban Philippines Source: Yahoo!-Nielsen Net Index 2010, 2011
  • 7. Evident from the increased time being spent online, across mediums and locations Place of Access (Weekly Avg. Time Spent) Internet Home School Work cafes 2009 4.8 3.4 7.7 4.5 2011 10.4 5.2 11.5 5.5 Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
  • 8. Internet usage highest amongst upscale under 30s… Past Month Reach (%) Total Age Gender SEC 2009 2010 2011 65 66 60 52 55 53 54 53 49 44 42 43 30 31 30 31 33 29 29 29 30 25 25 26 24 19 21 13 14 11 3 4 3 Total 10-19 20-29 30-39 40-49 50 and up Male Female SEC ABC SEC C2 SEC DE Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines Source: Nielsen media Index 2009 Q1, 2010 Q1, 2011 Q1
  • 9. …fuelled by their appetite for entertainment content Content Preferences on Internet Portals (%) Total (T3B %) 10-19 (Index) 20-29 (Index) International music 68 114 91 Local music 65 104 94 Interesting videos or photos 59 118 101 Games 56 108 94 Technology and gadgets 55 102 103 World news 49 99 103 National/ Local news 48 104 99 Entertainment news 45 116 99 Lifestyle 45 95 118 Sports 45 104 93 Movies, TV or Drama reviews/guides 42 106 97 Business news 38 90 84 City guides 35 100 101 Travel 33 95 103 Finance 30 89 76 Traffic updates 29 104 99 Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines who Have visited Internet Portals Source: Yahoo!-Nielsen net Index 2009, 2010 and 2011
  • 10. The shift from shared to private access continues … 2009 2010 2011 Place of access (%) SEC ABC1 71 69 7 66 6 7 5 35 31 National Mega Manila 27 7 7 5 6 4 5 4 4 2 3 2 0 Internet cafes Home School Work Friend's house Cellphone/ PDA Base: Past Month Internet Users aged 10+ across all socio-economic classes in National Urban Philippines Source: Yahoo!-Nielsen net Index 2009, 2010 and 2011
  • 11. Mobile usage needs further tariff rationalisation to gain traction Home Internet Offerings Mobile Phone Internet Offerings
  • 12. Filipino Netizens impression of the changing digital ecosystem? • Evolution of Social Networking • Online Transactions (deal aggregation/ e-commerce)
  • 13. Social Networking – Cant stop this thing we started!
  • 14. Not just an activity but a starting point for the online experience for many Internet Usage Pathway (%) 39 30 13 11 5 1 Social Networking Search Email Online News Instant Messenger Games Question: Please think about the following online services and tell me the order in which you first ever used each. Base: Past month Internet users aged 10+ across National Urban Philippines Source: Yahoo!-Nielsen Net Index-2011
  • 15. A dominant platform to connect and communicate… though mail/messenger remain relevant Past month online activities (%) Social Networking Email Messenger 82 68 69 63 65 64 63 51 53 2009 2010 2011 2009 2010 2011 2009 2010 2011 Base: Past month Internet users aged 10+ across National Urban Philippines # Note. The 2009 figure for social networking includes community groups /forums Source: Yahoo!-Nielsen Net Index 2010-2011
  • 16. Updating profile is mainly done through PC, Mobile updates reflect Mobile usage (low) Mode for updating Social networking profile (%) Mobile Phone Browser Through PC 3% Mobile 96% Phone SMS 4% Question: How do you usually view/ update your Social Networking sites? Base: Past month Internet users aged 10+ across National Urban Philippines who have visited social networking in Past 3 months Source: Yahoo!-Nielsen Net Index 2011
  • 17. Social networks start with ‘close contacts/relations’… but quickly move to less familiar circles… Connections on Social Networking sites (%) Regular friends 96 Family members 59 Friends with whom you had lost contact 38 People from outside your city/country 32 Referrals from friends 15 People you met once or twice in person 11 People you only know in the virtual world 3 Co-workers 3 Question: Who are the people you interact with regularly on these Social Networking sites? Base: Past month Internet users aged 10+ across National Urban Philippines who have visited social networking sites in Past 3 months Source: Yahoo!-Nielsen Net Index 2011
  • 18. …thus the effort to limit what users share with the larger/extended group on social networking sites Steps taken to manage digital profile (%) Keep Strict Privacy Settings 66 Limit My Personal Info. Available Online 57 Avoid Allowing People Access My Blog/Social Net. Site 45 Limit The Type/Number Of Photos/Video Shared 33 Remove The 'Tag' On Photos/Video Uploaded By Others 17 Limit/Prevent Others From Posting onMy Blog/SNS 16 Avoid Allowing People Access My Blog/SNS 13 Always Check Info About Me Online 13 Deleted A Blog/Social Networking Page 4 Cancelled Another Online Account 2 Question: Who are the people you interact with regularly on these Social Networking sites? Base: Past month Internet users aged 10+ across National Urban Philippines who have visited Social Networking Sites in Past 3 months Source: Yahoo!-Nielsen Net Index 2011
  • 19. And the emergence of ‘selective socialization’ Opinions on Social Networking (%) I've found more people like me who share my interests 74 Allows me to be more social than I am in person 72 I can really reveal parts of my life/personality, I would 69 normally not disclose I feel less awkward when I communicate on these sites 67 than in person I feel more in tune to what is going on socially 67 I really try to find just sincere people 63 I've become choosy about whom I socialize with 59 Question: Please tell me to what extent do you agree with each of the following opinions about social networking? Base: Past month Internet users aged 10+ across National Urban Philippines who have visited SNS in Past 3 months Source: Yahoo!-Nielsen Net Index 2011
  • 20. Softening of growth of Social networking is becoming well documented Facebook Sees Big Traffic Drops in Facebook sees a Decline in Young US and Canada as It Nears 700 Million Users Worldwide Users softpedia, June 12th, 2011 Inside Facebook, June 12th, 2011 ALONE TOGETHER Social Networks In Decline Why We Expect More From Technology and Less From Each Other Smart Insights, April 12th, 2011 By Sherry Turkle
  • 21. So what’s next… …fragmentation across multiple platforms OR cataloging on a single platform?
  • 22. Social Networking - Summary • Social networking is suited to one-to-many … mail and messenger remain relevant for personal one-to-one conversations • The rapid growth of social networks in Philippines, will result in increased awareness for the need to build “walls” within existing networks • These “walls” will be built to control information exchanges and ensure conversations remain rich and engaging (one-to-few)
  • 24. The backdrop to e-commerce in Philippines Presence of High reliance on IT and Banking Traditional trade counterfeits and inter-personal infrastructure legacy knock-offs relationships “evolving” Lack of ‘accreditation and guarantees'…by Buyers need to Buyers feel the Low levels of default modern ensure quality by comfort, dealing confidence/trust in trade actually physical inspection with known vendors transacting online encourages destination shopping There is an inherent reluctance to “trade” through the Internet
  • 25. Online transacting remains in it’s infancy Online Transactions (%) SEC ABC 4 3 Mega Manila 3 1 2010 2011 Question: Have you purchased products online in the past 12 months… payment could be online or offline? Base: Past month Internet users aged 10+ across National Urban Philippines Source: Yahoo!-Nielsen Net Index 2011
  • 26. Payments largely made offline, given current trust and comfort levels with e-payment Payment methods (%) Cash (face to face) 53 Credit card 36 Transfer via ATM/Bank 10 Internet Banking 9 Deposited cash at bank branch 4 Online accounts such as Paypal 1 Cheque 1 Debit card 1
  • 27. Group buying sites like Groupon have created significant buzz recently… Hailed by Forbes as the "fastest- Over the past three years, an entirely growing company in new industry known as group-buying history", Groupon turned over has suddenly emerged, and is growing US$760 million last year, and expects at a phenomenal rate. that to hit the billions this year. nzherald.com Forbes
  • 28. Group Buying: Description These sites negotiate discounts on popular goods, services and cultural events, which is offered to thousands of subscribers in a free daily email. The deals are activated only when a minimum number of people agree to buy.
  • 29. Current levels of comprehension limit overall interest … Interest is high among those who understand EASE OF COMPREHENSION LEVEL OF INTEREST Extremely interested 5% Neither Not at all 15% Understand interested 32% 25% Quite Slightly Not at all interested interested understand 43% 9% 53% Somewhat interested 18% 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 Internet users aged 10+ across National Urban Philippines Source: Yahoo!-Nielsen Net Index-2011
  • 30. Deal Aggregation - Summary • Pure-play ecommerce offerings are still in nascent stage, given the constraints around product authenticity and infrastructure • Online buyers and sellers currently find each other online, but typically “transact offline” • For deal aggregation sites to be successful, a mind-shift needs to occur… there is a need to educate on the concept of deal aggregation, against a backdrop of reluctance to “pay” online
  • 31. Key Takeaways 1. Internet growth driven by the young and upscale audience 2. Home internet access continues to grow, with engagement levels increasing with growth in private access 3. Philippines enormous appetite for social networking could accelerate the emergence of “selective socialisation” 4. Deal aggregation holds significant potential, but comfort in e- payment platforms and trust levels will dictate the rate of growth!