Contents

2. Contents • Executive summary • What is Wave? • The continuing story of Wave • Social movements • Will data privacy slow social? • The Business Of Social • Connecting with social experiences • The impact: Summary • What does this mean for your business? • About this report

3. Real Actionable Insight A SOCIAL MOVEMENT THE POWER OF SOCIAL CONNECTING WITH SOCIAL EXPERIENCES

4. Executive Summary • The story so far in social networking has been one of incredible growth. But Wave 6 shows that in the future the biggest impact of social media will come from the increasing amount of time people are spending on them. Social networks are now legitimate rivals to all forms of media and will continue to have a huge effect on behaviour and media consumption. • Consumers are continuing to move away from increasingly soloed brand websites, viewing them as specialist or one dimensional experiences compared to those offered by social media. Brands will need to reach out to consumers in the social spaces if they are to connect online. • Even those data privacy concerns are rising, attachment to social networks is stronger than ever. With over 40% of people saying they are worried about missing out if they don’t visit their social network. As a result users are fully prepared to share their data in return for the benefits that social platforms bring. • Social experiences deliver very clear value to brands. Understanding the social experiences the consumer wants AND which of these experiences deliver the brand’s marketing objectives is the key to unlocking this value. This is an important part of making social media a legitimate platform for brand development. • Despite the reluctance of many companies to discuss problems, particularly in social media, our research has shown that actually responding to a customer’s issues is one of the most powerful social experiences a brand can deliver. In the future social CRM should be a fundamental part of any brand’s communication strategy. • The consumer has many devices through which they can interact with a brand digitally but not all of these devices are a suitable environment for every experience. Tablets and smartphones, for example, have very different strengths. Marrying the right experience to the right device is key to creating a compelling social strategy.

5. What is Wave? • Wave is a social media study. • Wave has retained the same methodology from Wave 1 to Wave 6, enabling comparison across Waves. • All research is conducted by the EMEA Research team in collaboration with the UM network of agencies. • We have surveyed 41,738 16-54 Active Internet Users in 62 countries. • In Serbia we have covered active internet population from 16-54 y.o. , with 500 people within the representative sample, covering 2,013,000 ( 28% of total population ) • Our partner in this research in Serbia is the research company Mediana, who was responsible for the field work and quality of sample Why the Active Internet User? • Active Internet Users are those that use the internet every day or every other day. • Social media is driven by Active Internet Users. • They drive adoption of platforms and tools and they will determine which tools and platforms become dominant.

6. BUSINESS 62 countries 42,000 respondents SOCIAL September 2011: QQ IM – over 700M active users December 2011: Over 845M active users 54 countries 37,600 respondents June 2011: Launch June 2011: Over 200M tweets a day MOTIVATIONAL April 2011: Valued at >$36Bn March 2011: 100M members December 2010: 100M users just 2.5 months after launch October 2010: “The Social Network” film released August 2010: Groupon is the fastest growing company of all time 38 countries 23,200 respondents July 2010: 100M check-ins April 2010: iPad released February 2010: Facebook mobile – 100M users INFLUENTIAL August 2009: Xiaonei becomes RenRen Now more than 3.6Bn images on Flickr 29 countries 17,000 respondents June 2009: Launch VISUAL March 2009: Launch September 2008: First Android phone launch October 2008: Launch TEXTUAL August 2008: Over 100M users 21 countries 10,000 respondents April 2008: Facebook overtakes MySpace in popularity 15 countries 7,500 respondents March 2007: Launch January 2007: Launch October 2006: Launch September 2006: Launch July 2008: Launch February 2006: Launch August 2005: Launch April 2005: First video uploaded to YouTube March 2005: Launch January 2005: Launch December 2004: Launch February 2004: Launch January 2004: Launch September 2003: Launch August 2003: Launch June 2003: Launch May 2003: Launch January 2003: Launch March 2002: Launch January 2001: Launch October 1999: Launch The Story of Wave

7. Wave 5 Algeria Argentina Australia Austria Bahrain Belgium Brazil Canada Chile China Colombia Czech Republic Denmark Ecuador Egypt Estonia France Germany Hong Kong Hungary India Italy Ireland (ROI) Japan Korea KSA Kuwait Latvia Lebanon Lithuania Malaysia Mexico Netherlands Norway Oman Philippines Poland Portugal Qatar Romania Russia Serbia Singapore Slovakia South Africa Spain Sweden Taiwan Thailand Tunisia Turkey UAE UK Ukraine US Wave 6 Algeria Argentina Australia Austria Bahrain Belgium Brazil Canada Chile China Colombia Croatia Czech Republic Denmark Ecuador Egypt Estonia France Finland Germany Greece Hong Kong Hungary India Italy Ireland (ROI) Japan KSA Kuwait Latvia Lebanon Lithuania Macedonia Malaysia Mexico Netherlands Norway Oman Philippines Poland Portugal Puerto Rico Qatar Romania Russia Serbia Singapore Slovakia South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Tunisia Turkey UAE UK Ukraine US Vietnam Wave 1 Australia China France Germany Italy India Japan Korea Mexico Philippines Russia Spain UK US Wave 2 Australia Brazil China France Germany Greece India Italy Japan Korea Malaysia Mexico Pakistan Philippines Russia Singapore Spain Taiwan Thailand UK US Wave 3 Australia Austria Brazil Canada China Czech Republic Denmark France Germany Greece Hong Kong Hungary India Italy Japan Korea Mexico Netherlands Pakistan Philippines Poland Romania Russia Spain Switzerland Taiwan Turkey UK US Wave 4 Australia Austria Belgium Brazil Canada China Colombia Czech Republic Denmark Ecuador Finland France Germany Hong Kong Hungary India Italy Japan Korea Latvia Lithuania Malaysia Mexico Netherlands Norway Peru Philippines Poland Portugal Romania Russia Singapore South Africa Spain Sweden Turkey UK US The expanding Wave universe 62 countries 41,738 respondents

8. Welcome to Wave 6 – The Business of Social • Social media remains at the top of the agenda for many brands. However, it is clear that as a medium for marketers it’s still very much in its infancy. Popular measures of success, such as “Likes”, posts or Tweets, are no more than proxies for other more meaningful brand objectives. In fact, by definition, setting these goals suggests you may have already confined yourself to creating a one-dimensional social experience. • Perhaps this is one reason why so many social media strategies look the same, using familiar platforms in familiar ways to achieve similar goals. With Wave 6 we intend to address this challenge. Wave 5 – The Socialisation Of Brands told us that people want vastly differing social relationships with brands. Wave 6 – The Business Of Socialtells us what these social relationships can deliver for brands. Do they make people want to spend more time with the brand, do they make them feel valued as customers, or do they encourage people to recommend the brand to others? • Our research has revealed a deeply complex environment where different social experiences meet different marketing objectives. An experience that drives brand advocacy in one category simply creates awareness in another. An experience that encourages brand participation for one person does very little for someone else. Knowing the value of an experience means we can build a social media strategy designed to meet a marketing objective, rather than starting with how to exploit an existing social platform. • We believe this knowledge is vital if we are to make social media a legitimate platform for the development of brands.

9. SOCIAL MOVEMENTS

10. Growth in social networking has slowed Global Wave 6 Wave 5 45.1% 51.4% 61.4% 65.2% Wave 4 Wave 3 Wave: 3 4 5 6

11. Growth in social networking has slowed USA China Russia UK 33.1% 48.3% 58.1% 64.5% 47.4% 51.4% 68.4% 68.9% 64.8% 66.1% 79.8% 77.1% 53.4% 55.5% 58.6% 62.9% Some countries. like Brazil, India, Russia,see decline in how many people manage social media profiles Brazil India Italy Germany 63.6% 53.9% 74.5% 74.3% 51.4% 62.8% 72.5% 67.1% 24.0% 34.4% 53.9% 61.2% 27.2% 36.6% 37.8% 53.1% QUESTION: “Thinking about the internet, which of the following have you done in the last 6 months? - Manage a profile on an existing social network (eg: facebook.com)” Spain France 29.9% 46.2% 55.5% 59.6% 26.3% 43.4% 53.2% 53.5% Wave: 3 4 5 6

12. Serbian active internet users manage their profile slightly less vs. WAVE5Macedonia and Croatia are more involved in social media than Serbia Global Serbia MK CRO 45.1% 51.4% 61.4% 65.2% 77.4% 71% 87.4% 84.2% Wave 6 Wave 5 Wave 6 Wave 6 Wave 5 Wave 4 Wave 6 Wave 3 Wave: 3 4 5 6 QUESTION: “Thinking about the internet, which of the following have you done in the last 6 months? - Manage a profile on an existing social network (eg: facebook.com)”

13. But as profile creation begins to plateau, active management still grows QUESTION: “Thinking about the internet, which of the following have you ever done?” Global average 88% 81% 77% 75% 49% Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave 6

14. Watching video clips on line is the most popular activity in Serbia QUESTION: “Thinking about the internet, which of the following have you ever done?” 91% 76% 71% 46% 19% Serbia Wave 5 Wave 6

15. People are spending more time than ever on social networksWith the youngest audiences we can see that social networking is as prevalent as traditional media consumption 10 Television 9 6 Radio 7 Global average 4 Magazines 6 5 Newspapers Everyone 6 13 Internet 16-24 year olds 13 7 Email QUESTION: “Approximately how much time did you spend consuming the following media in the last 7 days?” - Hours per week 7 7 Social networks 9 6 Microblogging sites 7 7 Mobile phone 8 10 5 Blogs 6 Video sites 6 7

16. In Serbia active internet users spend more hours on internet than TV and on mobile phones equally the same as TV Television 6 Radio 5 Magazines 2 QUESTION: “Approximately how much time did you spend consuming the following media in the last 7 days?” - Hours per week Newspapers 3 Internet 8 Email 4 Serbia Social networks 5 Microblogging sites 1 Mobile phone 6 Blogs 1 Video sites 4

17. For the first time we are seeing a decrease in some social platforms QUESTION: “Thinking about the internet, which of the following have you ever done?” Read blogs/weblobgs Start my own blog/weblogs Visit a photo sharing website Use instant messenger Visit a message board/forum Started a topic on a message board/forum

18. Blogging: Declining or stabilising in many markets USA China Russia UK 45.6% 50.2% 46.7% 44.9% 74.9% 75.7% 79.6% 81.4% 59.3% 54.6% 63.4% 52.4% 50.7% 41.3% 40.8% 45.5% QUESTION: “Thinking about using the internet, which of the following have you used in the last 6 months?” - Read blogs / weblogs Global Serbia MK CRO 55.3% 60.6% 64.5% 63.2% 76.6% 49.7% 64% 56.5% Brazil India Italy Germany 74.5% 70.9% 72.4% 67.9% 62.2% 63.1% 63.3% 55.6% 61.9% 51.0% 51.5% 51.7% 35.2% 36.3% 29.6% 39.3% Wave 5 Wave 6 Wave 4 Wave 3 Wave 6 Wave 5 Wave 6 Wave 6 Spain France 63.6% 55.9% 60.3% 55.8% 45.6% 50.2% 46.7% 43.9% Wave: 3 4 5 6

19. Microblogging is still rising but is yet to be fully understood globallySerbia is slightly abandoning microblogging USA China Russia UK QUESTION: “Thinking about using the internet, which of the following have you used in the past 6 months? – Used a microblogging service (e.g. Twitter, Jaiku)” 8.5% 18.8% 22.1% 26.3% 53.1% 71.5% 14.2% 19.9% 25.8% 6.4% 19.3% 62.9% Serbia MK CRO India 24.4% 45.5% 42.9% 23.2% 19.1% 34% 15% Global Brazil Italy Germany 9.4% 11.1% 17.7% 6.2% 7.7% 15.9% 13.4% 43.9% 47.6% 14.9% 33.2% 42.9% Wave: Wave 6 4 5 6 Wave 5 Wave 6 Wave 5 Wave 4 Wave 6 Wave 6 Spain France 11.5% 19.1% 24.8% 4.1% 8.8% 12.2%

20. Are we abandoning the brand website? QUESTION: “Thinking about using the internet, have you visitedan official company/brand website in the past 6 months?” 13% decrease in 4 years on a global level Significant decrease in Serbia vs Wave5

21. To get the most from social platforms we need to know what they do best Global average QUESTION: “Which of these online applications does a good job when you want to...” Forums Photo/Video sites Microblogs Blogs

22. In Serbia usage of microblogs and photo/video sharing sites is significantly lower. Key applications are blogs and forums QUESTION: “Which of these online applications does a good job when you want to...” Forums Photo/Video sites Microblogs Blogs

23. The brand website has specific strengths Global average QUESTION: “Which of these online applications does a good job when you want to...” Official brand websites Forums Photo/Video sites Microblogs Blogs

24. In Serbia brand websites have more strengths vs. some other applications QUESTION: “Which of these online applications does a good job when you want to...” Official brand websites Forums Photo/Video sites Microblogs Blogs

25. The social network dominates all Global average Official brand websites QUESTION: “Which of these online applications does a good job when you want to...” Forums Photo/Video sites Microblogs Blogs Social networks

26. In Serbia the domination of social networks vs. other formats is drastic QUESTION: “Which of these online applications does a good job when you want to...” Official brand websites Forums Photo/Video sites Microblogs Blogs Social networks

27. The power of the social network differs across the world SELF-IMPROVEMENT FUN “Hang Out” or waste time Romania Argentina Denmark Slovakia Japan Norway Australia Learn something new Sweden UK Express yourself China Finland Hong Kong Ireland Greece Manage my life better Stay in touch with friends Have fun/be entertained Share knowledge Ukraine Spain Netherlands Italy Taiwan Latvia Belgium USA South Africa Vietnam Canada Poland Estonia Portugal Meet new people France Make contacts for work Singapore Serbia Turkey Keep up to date Earn respect Share new experiences Change opinions Macedonia Chile Switzerland Thailand South Korea Feel like you belong CONNECTION Explore the world around me UAE Lithuania Croatia Germany ENABLEMENT Philippines Malaysia Mexico Seek other people’s opinions Lebanon India Czech Republic Colombia Austria Kuwait Make money Tunisia Egypt Ecuador Puerto Rico Bahrain Qatar Russia Be creative KSA Hungary Algeria Brazil Oman Promote yourself QUESTION: “Which of these online applications [Social networks e.g. facebook.com] does a good job when you want to…?” - By country

28. And it explains much of the cultural context SELF-IMPROVEMENT FUN Learn something new “Hang Out” or waste time China UK USA Change opinions Feel like you belong KSA Kuwait UAE Serbia Lebanon Egypt Russia Bahrain Macedonia Tunisia CONNECTION ENABLEMENT Croatia Algeria QUESTION: “Which of these online applications [Social networks e.g. facebook.com] does a good job when you want to…?” - By country

29. WILL PRIVACY SLOW SOCIAL?

30. People are concerned about the amount of personal data online 79% 65% 60% 60% -6.8% FYRM Global Serbia Croatia I am concerned about the amount of personal data online

31. People are concerned but also too attached 61.1% 46.2% 50% 42.2% -6.8% FYRM Global Croatia Serbia Social networks are integral to my social life

32. And people are still sharing personal data Global average QUESTION:“What have you done with your social networking profile?, amongst those who have used a social network in the past 6 months” 64% 62% 59% 59% 52% 49% 47% 47% 44% 44% 43% 38% 38% 31% 30% 30% 29% 27% 21% 21% 19% 19% Join a Celebrity group Dating Organise events Purchased something Make Contacts for work/ Professional reasons Shared Your location Affiliate with or become fan of a brand Write a blog Upload videos Join an Interest group or cause Removed Someone from my friend list Join a group Display my interests Play games Used a “like” button Used live chat Find new friends Update my status Find old friends Upload photos Update my profile Message friends

33. In Serbia, sharing personal data is not among top activities, our first choice of activities is about staying in touch with our friends QUESTION:“What have you done with your social networking profile?, amongst those who have used a social network in the past 6 months” Write a blog Purchased something Find old friends Find new friends Used a “like” button Join a group Update my status Removed Someone from my friend list Play games Used live chat Join a Celebrity group Join an Interest group or cause Upload videos Dating Make Contacts for work/ Professional reasons Organise events Shared Your location Affiliate with or become fan of a brand Display my interests Update my profile Upload photos Message friends

34. But we are sharing with more people than ever before QUESTION: “Approximately how many people do you stay in contact within your personal life through the following means?” Social networks Instant messenger Forum/Message board My personal blog Phone Email Face to face Text message (SMS) Post/Letter

35. Sharing personal data is an accepted risk QUESTION: “Please indicate how much you agree (definitely or tend to) with the statements [I worry about missing out on something if I don’t visit my social network] vs. [I am concerned about the amount of personal data that goes online]” amongst those who have created a profile on a new social network. Size of bubble represents size of audience Size of bubble represents size of audience Privacy more important

36. THE POWER OF SOCIAL

37. The value of social experiences • A word that is frequently used in social marketing is ‘Engagement’, often when citing the power of social media and the opportunity it brings for marketers. There is nothing wrong with this; it’s a worthy ambition for a brand to try to engage with their consumers. The problem is that engagement is essentially a meaningless term. It could mean anything or everything and is really just used as a proxy for more meaningful brand objectives. With Wave 5 – The Socialisation Of Brands we asked some fundamental questions: do consumers want a social relationship with brands and if they do what kind of relationship do they want? This information has allowed UM to guide clients in the social space by understanding the needs of the consumer first and foremost. • With Wave 6 – The Business Of Social we have taken things a step further. Not just understanding the social experience that consumers want but also, crucially, defining the marketing value that these experiences can deliver to brands. This means we can not only identify the right experiences but also those that best meet our marketing objectives. The results of this research have truly been surprising and allowed us to further understand the incredibly diverse world of social media. Also, in the space of social CRM, the results have some profound things to say about how brands connect with consumers to create the most compelling experiences of all.

38. We think about social experiences first LOW INVOLVEMENT • I want no interaction • Access to news about new developments • Discount vouchers • Access to fun and entertaining content • An opportunity to learn something new • A personal response to my issues/complaints • Access to unique sponsored events or competitions • An opportunity to develop my skills • The ability to communicate and share experiences with others • Tools to help me express my creativity and make something worth sharing • To be part of a brand community • The ability to influence product development HIGH INVOLVEMENT

39. Social needs vary by category…. QUESTION: “Thinking about companies that make HEALTH AND BEAUTY products, which of the following statements describes the kind of interaction you want with these companies?” Health & Beauty

40. How we define the value of social experiences Letting you know about the company AWARENESS Giving you a detailed understanding EDUCATION Making the company more desirable DESIRE Making you feel closer to the company SEEK MORE Encouraging you to try TRIAL Encouraging you to buy TRANSACTION Making you feel valued as a customer COMMITMENT Makes you want to spend more time with the brand INVOLVEMENT Encouraging you to recommend to others RECOMMENDATION

41. And these experiences deliver very different outcomes Health & Beauty QUESTION: “Thinking about the interactions that you have indicated you would like to have with companies that make health and beauty products, which interaction is best…?”

42. The same experiences deliver different outcomes by category QUESTION: “Thinking about the interactions that you have indicated you would like to have with health and beauty companies and with companies that provide services in travel and holidays, which interaction is best…?” The ability to contact health and beauty companies and influence product development The ability to contact travel companies and influence product development

43. This means we can start with an objective “Make me feel closer to the company” Travel & Holidays Fashion Health & Beauty Music Access to the latest offers & discounts on holiday & travel An opportunity to learn more about health and beauty Free money off or discount vouchers Access to news about music, artists & music events QUESTION“Thinkingabout the interactions that you have indicated you would like to have with travel companies, companies that make health and beautyproducts, companies that are involved in the fashion industry and companies & artists that make & distribute music, which interaction is best…?”

44. The most powerful social experience? QUESTION: “Thinking about the interactions that you have indicated you would like to havewith companies in these categories, [A personal response to issues and complaints] is best at…?” Travel Movies Health & Beauty Fashion Luxury Telecoms Computer hardware

45. The Power of Social Experiences • A key element for making the social network platforms accountable tools for marketers is being able to evaluate the value they bring to brands. This effort begins with understanding the intrinsic values of the social media platforms and the power of the experiences they can deliver. Wave 6 – The Business Of Socialhas begun to answer this question and now allows UM and Fastbridge to plan social strategies from the starting point of brand or business objective. We think this is an important step towards using social media in a more focussed and value driven way. • This approach also has implications for social CRM. Social media platforms, such as Twitter, are incredibly powerful tools for customer feedback. Using them in pro-active way to deal with problems very quickly is a proven and powerful driver of loyalty. However, responding quickly isn’t always easy and many marketing teams require input from many other areas of the organisation before dealing with a problem. This suggests that a social media strategy should not just be the sole domain of the marketing department, but rather part of a company wide effort including legal, PR, customer support and others. This requires commitment and investment but our research has shown that those brands that accomplish this will benefit greatly.

46. CONNECTING WITH SOCIAL EXPERIENCES

47. Global data : PC, laptop and mobile devices still the main way to connect QUESTION: “Which devices do you own and which have you used to access the internet in the past 6 months?” - Size of the bubble represents % who own device.

48. People in Serbia now have many ways to connect with the internet Average number of devices owned and used to access the internet Laptop / netbook PC Desktop PC QUESTION: “Which devices do you own and which have you used to access the internet in the last 6 months?” Smartphone (eg: iPhone) Tablet device (eg: iPad) Mobile phone E-book reader (eg: Kindle) Broadband Games console Portable MP3 / video player Portable games console Other Wi - Fi

49. In Serbia PC and mobile devices are the main way to connect QUESTION: “Which devices do you own and which have you used to access the internet in the past 6 months?” - Size of the bubble represents % who own device.

50. In Serbia PC remains the most versatile internet enabled device, although we can start to see the areas where smartphones are being increasingly used QUESTION: “Which activities have you carried out using each device in the past 6 months?” Laptop / notebook PC DesktopPC Smartphone(eg: iPhone) Tablet(eg: iPad) Mobilephone E-book reader(eg: Amazon kindle) Gamesconsole Portablegames console Portable MP3 / video player