Social Media Research Silicon Valley Research Insights™ Quarterly Report

1. Social Media ResearchSilicon Valley Research Insights™ Quarterly Report

2. Project Vectors • Silicon Valley Research Group in-house sponsored research to: • Explore usage of social media (facebook) • Gauge reaction to Facebook’s email service plans • 312 respondents completed a short survey • US consumers • Randomly selected online sample • Statistical significance: • +/- 5.5% margin of error at the 95% confidence level • On all respondents: n=312 • +/- 6.9% margin of error at the 95 % confidence level • On Facebook users only: n=198

3. Detailed Observations Social Media/Facebook Usage Propensity to use Facebook Email Sample Demographics

4. Facebook Usage Current and Future

5. Do You Use Facebook? • This sample was designed to receive feedback the reaction to Facebook’s Email System Concept from all US internet users • Roughly 2/3 of all respondents were Facebook users • More than a 1/3 of all respondents were not Facebook users n=312

6. What do you think of Facebook’s future? • Facebook is NOT seen as a “fad” that will fade from use shortly • The majority of users think “it will be around for a long time” • Those that did not use Facebook were less confident in “it would be around for a long time” • But even non Facebook users did NOT think Facebook was a “fad” n=312

7. In 2010, did you use Facebook more or less than in 2009? • Of those that use Facebook, the majority reported using Facebook more in 2010 than in 2009 • Very few reported using the service less than in 2009 • Of those that use Facebook, the majority do not think they will change their usage in 2011 • About a third think they will use Facebook more in 2011 • Very few think they will use Facebook less in 2011 n=198

8. Why do you think you will use Facebook less in 2011? • Of those that thought they would use Facebook less in 2011, concerns that Facebook was “too public” were the top reason for less usage • The second most common reason was “less desire to be on Facebook” • Overall, however, there were very few survey participants who anticipated using Facebook less in 2011 • Only 35 survey respondents n=35

9. Facebook Email System Concept Test

10. Facebook Email System Reveal • Facebook recently announced that it releasing a new email service: The system, to be available to all of the website's users, combines text messaging, instant messaging, emails, and regular messages, and will include privacy settings similar to those of other Facebook services.

11. Do you plan to use these services? • Very few respondents felt that they would use the new Facebook email service, only 13% • Almost half of users felt that they would NOT use the email service • A very large group expressed that they did not know if they would use the service • Almost no non-Facebook users are interested in using the new email systems from Facebook • Facebook users were more willing to consider using the email system n=312

12. Do you plan to use these service in place of your current primary email service? • Facebook’s new email system is NOT seen as replacing users current primary email services by a super majority of respondents • Less than 10% of users think that the new service will replace their current primary email service • A quarter of those that said they will use the new system think they would still keep their current primary email system as well as the new Facebook email system • Demographic cross tabs revealed users most likely to switch their primary email service to Facebook: • Younger users three times as likely • 29% (n=60) of 18-29 year olds • Primary Gmail users twice as likely • 19% (n=48) of Gmail users • Students twice as likely • 18% (n=17) of students n=312

13. Sample Demographics

14. Sample Demographics n=312

15. Sample Demographics n=312

16. Social Media Research Silicon Valley Research Group Inc. Creating Markets. Accelerating Profits.™ www.siliconvalleyrg.com December, 2010