EIAA European Media Consumption Study II Pan-European Results October 04

1. EIAA European Media Consumption Study II Pan-European Results October 04

2. EIAA Media Consumption Study II • Annual survey of media consumption patterns across Europe based on consumer attitudinal data • Objective: • Measure how consumers allocate their time across media options: TV, Radio, Newspapers, Magazines and the Internet • Methodology: • Random telephone interviews • Nationally representative sample • 1000 respondents per country: UK, FR, DE, ES and IT • 500 respondents per country: Belgium, the Netherlands • 333 respondents per country: Denmark, Sweden, and Norway • Fieldwork completed September to October 2004

3. Penetration by Media Type TV remains the media of choice for most consumers with 96% of those studied watching something during a typical week Penetration by Media Type Percent Of Respondents Base: All respondents (7112) In a typical 5 day week, do you watch TV, read a newspaper or surf the internet? (note Magazines and Radio was during a typical 7 day week)

4. Internet Penetration Almost half (48%) of all Europeans are now using the Internet. Internet penetration ranges from 74% (Sweden) to 34% (Spain) Online Penetration Percent Of Respondents Base: All respondents (335) (337) (337) (333) (1006) (1010) (7112) (1002) (502) (1084) (1084) In a typical 5 day week, that is Monday to Friday, do you use the Internet? This can include Email, instant messenger or other online activities? And during a typical weekend?

5. Penetration Growth Among those that are not already online, 20% plan to gain access within the next year All of Norway plans to be online within 2 years Propensity to Gain Internet Access Percent Of Non Users Within 2 Years Within Year Within 6 months Base: Non internet users (88) (94) (182) (155) (481) (498) (3669) (550) (276) (686) (659) You stated that you currently do not use the internet, do you think you are likely to use it…?

6. Internet Usage Days Among those online, 40% claim daily usage Internet Usage Days Percent Of Internet Users Base: Internet users Usage Days per Week (3440) You stated you have internet access, during a typical 7 day week how many days do you go online?

7. Daily Usage by Country Daily usage is highest in Belgium at 57% of the online population, followed by Denmark and France Daily Usage of Internet Percent Of Internet Users Base: Internet users (226) (178) (452) (320) (247) (3440) (509) (342) (525) (243) (398) You stated you have internet access, how many days per week do you go online?

8. Daily Usage by Country The percent of daily usage has grown (relative to last year) in UK, FR, DE, and ES 2004 2003 Daily Usage of Internet Percent Of Internet Users na na na na na Base: Internet users (226) (178) (452) (320) (247) (3440) (509) (342) (525) (243) (398) Approximately how many days per week do you use the Internet?

9. Hours Spent Surfing the Web Half of those studied use the Internet less than 5 hours per week. However, one in ten are online more than 26 hours a week Time Spent Online Percent Of Internet Users Base: Internet users Hours spent online during typical week (3440) In a typical 7 day week, approximately how many hours do you spend in total using the Internet?

10. Allocations by Media Type Print (magazines and newspapers) have the lowest ‘involvement’ levels with 60% or more of readers spending less than 5 hours per week reading Time Spent per Week More than 25 hours Per week 16 to 25 hours Percent Of Sample By Media 6 to 15 hours Less than 5 hours Base: Users of each medium (3440) (6840) (5646) (3870) (5511) In a typical 7 day week, approximately how many hours do you spend in total using the Internet, TV, Radio, etc?

11. Time Spent by Media Type The average internet user spends more than 10 hours online per week Average Hours Spent by Media Type Average Hours By Media Type Base: Users of each medium (5646) (6840) (3440) (5511) (3870) In a typical 7 day week, approximately how many hours do you spend…?

12. Average Allocation by Media Of all the time Europeans spend consuming media (reading newspapers and magazines, watching TV, listening to radio or surfing the Web) 20% of is allocated to the Internet Base: Users of each medium

13. Cost of Increased Internet Usage One third of Europeans are watching less TV as a result of increased Internet usage One in four talk on the phone less, read fewer magazines and newspapers ‘Cost’ of Internet Usage by Activity Base: Internet users (3440) Q20:Which of the following do you do less often as a result of using the Internet?

14. Strengths of the Internet The internet’s strength is that it gets you what you want quickly and when you need it, with 80% agreeing with that statement One in four could not live without it. Base: Users of all media (1397) Q: Which of these media do you think…?

15. TV Internet Internet Strengths vs. TV 6 in 10 people believe TV can influence opinions versus 2 in 10 for the Internet TV and Internet are tie as source for news and information Base: Users of all media (1397) Q: Which of these media do you think…?

16. Web site or web pages visited % Email News Local information Banking and finance Travel Music Shopping Sports Instant messenger Jobs Music download sites Cars Films Games Auction Mobile phones Chat room Comedy Dating Email remains the most popular/important application with 88% using it. 61% visit news sites and almost half look to organise their finances online Base: Internet users (3440) Q16. Which of the following types of website or web pages, if any, do you visit regularly?

17. Offline Activities Moving Online Approximately 2 in 5 internet users now book tickets online around a third chat to friends via the internet % Book tickets Read newspapers Chat to your friends Shop Listen to music Read magazines Share music Buy music Base: Internet users (3440) Q21. Which of these things did you previously do elsewhere but now do on the web?

18. Browsing Buying Browsing versus Buying Travel tickets and holiday are the most heavily researched activities/commodities online, two thirds of those researching into tickets online proceed to purchase 2004 % Conversion (%) Travel tickets Holidays Theatre/cinema tickets Books Electrical goods Cars Properties - renting/purchasing Buying music Mobile phones Music downloads Clothes Insurance Home furnishings Financial products Computer games Furniture Car accessories Food/grocery shopping Car hire (64) (45) (71) (65) (50) (21) (17) (66) (27) (41) (69) (36) (29) (32) (48) (32) (38) (45) (44) Base: Internet Users (3440) Have you ever researched into…using the internet? Have you ever bought…using the internet?

19. Pan Europe Conclusions • Almost half (48%) of all Europeans (15 and over) are now using the Internet • Penetration is higher in the Nordic countries and lower in Southern Europe • Among those that are not online today 20% plan to gain access within year • All of Norway plans to be online within 2 years • TV remains the most widely used medium controlling a third of all media consumed • Virtually everyone surveyed (96%) watches something during the typical week • While online penetration growth has slowed, more people are spending more time online • 2 of 5 people surveyed are online daily, one in 10 spending 26 hours (or more) online • During the typical week, the average person allocates 20% of their total media time to online activities – equal to print (newspapers + magazines at 11% and 8% respectively) • One third (35%) of those surveyed state they are watching less TV because of the web and 25% could not live without it • Email remains the most common online activity (88%) but activities like banking (45%) and downloading music (26%) are growing in importance • The Internet is preferred to other media because it is “faster”, “offers more choice”, and is “more convenient”

20. Pan Europe Recommendations • Advertisers and their agencies need to find and follow their audiences. What this research indicates is that people are spending an increasing amount of their media time online. The average person in Europe spends one out of every five media hours online. Marketers who are not online are missing out. • Consumers devote 20% of their media activity to the internet and yet online advertising makes up only 3% of advertising spend on average. Some advertisers are spending more online, such as BMW who devote 15% of their advertising budget to online. The vast majority, however, are not doing enough online. • We are seeing a slow down in the growth rates for online penetration across Europe which is consistent with other studies available. What is important, is that those who are online are spending a lot more time using the Internet. Over 40% are online every single day. • The increase in online media consumption is primarily due to the increasing adoption of broadband and the richer experience of people using the internet.