The Impact Of The Internet

August 13, 2008

The Impact Of The Internet On Dutch Consumers’ Media Behavior

by Kim Le Quoc and Jaap Favier for Marketing Leadership Professionals

Making Leaders Successful Every Day

For Marketing Leadership Professionals Includes data from Consumer Technographics® August 13, 2008

The Impact Of The Internet On Dutch Consumers’ Media Behavior Reaching Europeans: From Creating Awareness To The Act Of Purchase

This is the sixth document in the “Understanding Consumers’ Media Behavior” series.

by Kim Le Quoc and Jaap Favier with Olesia Klevchuk and Alice Bresciani

EXECUT I V E S U M MA RY Nearly the entire Dutch population used the Internet in 2007, making the Netherlands one of the most advanced European markets. Younger users spent more time surfing the Web than watching television.

Although most consumers still develop brand awareness behind their TV screens, the Net has become a key channel to support awareness and preference building. Marketing leaders active in the Netherlands should investigate how their particular target audiences mix the Web with traditional media and adjust their marketing strategies accordingly.

TABLE O F CO N T E N TS 2 Dutch Consumers Under 35 Spend More Time Surfing The Net Than Watching TV 6 Integrated Marketing: Traditional Media Give Reach; The Net Adds Impact 1) Which Media Does Tim, Our Self-Directed Financial Services Consumer, Use? 2) Which Media Does Reineke, Our Active Cosmetics Customer, Use? 3) Which Media Does Niek, Our Consumer Electronics Fan, Use? RECOMMENDATIONS

12 Match Your Media Strategy With Your Dutch Customers’ Internet Adoption 13 Supplemental Material

N OT E S & R E S O U R C E S Forrester analyzed data from Forrester’s Consumer Technographics® Q4 2004 European Study and European Technographics Benchmark Survey, Q2 2007.

Related Research Documents “Europeans Still Enjoy Their Television” April 25, 2008 “For Young Asians, The Net Dominates Media Use” November 26, 2007 “Left Brain Marketing Planning” May 16, 2005 “Left Brain Marketing” April 6, 2004

© 2008, Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Forrester clients may make one attributed copy or slide of each figure contained herein. Additional reproduction is strictly prohibited. For additional reproduction rights and usage information, go to www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. To purchase reprints of this document, please email resourcecenter@forrester.com.

2

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

DUTCH CONSUMERS UNDER 35 SPEND MORE TIME SURFING THE NET THAN WATCHING TV Marketers struggle with defining the right media mix for their advertising campaigns as more consumers switch to the Net for product and price information. To get a better understanding of how media behavior is changing in the Netherlands, we interviewed 2,011 Dutch consumers in Q2 2007 and found that:

· Nearly all Dutch consumers use the Internet. In 2007, 84% of Dutch consumers used the

Internet for personal or work purposes (see Figure 1-1). That makes the Netherlands one of the most advanced European markets, up there with Scandinavian countries like Sweden.1 In one year, the number of Web users has increased by 16%, exceeding the growth of less mature markets like France or Spain.2 That’s thanks to strong competition between ISPs, low prices, and high broadband speeds — offers of 20 MB connections have become the norm.3

· Television is still Dutch consumers’ favorite media. More Dutch consumers going online

didn’t change traditional media usage (see Figure 1-2). Dutch consumers still spend more time watching television than using any other media. Online users even spent 1 hour more watching their favorite TV shows in 2007 compared with a year ago (see Figure 1-3).

· Online consumers are part of the mainstream. With the vast majority of the Dutch population using the Internet, the average Web user is a mainstream consumer (see Figure 2). He — 52% of Net users are male — is in his forties, tends to earn a slightly higher income than the average Dutch consumer, and is likely to have a middle education.4

· Younger Dutch consumers spend more time on the Net than watching TV. Ninety-seven

percent of 16- to 34-year-olds surf the Web (see Figure 3-1). They spend more time browsing the Internet than watching television. With 16 hours per week on average spent online, compared with 12 hours in front of the TV, they are among the most intensive Net users in Europe (see Figure 3-2). Ninety-two percent of 35- to 44-year-olds are Web users. Only with consumers over 65 years old do we dip under a 70% Net usage.

August 13, 2008

© 2008, Forrester Research, Inc. Reproduction Prohibited

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

Figure 1 Television Is Still Dutch Consumers’ Favorite Media 1-1 Nearly all Dutch consumers use the Internet “Which media do you use?”

EU-5 96% 96%

98% 96%

TV

83% 84%

91% 92%

Newspapers

85% 85%

90% 88%

Radio

86% 82%

Magazines Internet

68%

84%

2007* 2006†

77% 76% 61% 53%

*Base: 2,011 Dutch consumers † Base: 1,320 Dutch consumers (multiple responses accepted) 1-2 Dutch consumers spend as much time on traditional media “How much time do you spend on average per week doing each of the following?”

12.4 11.6

TV Radio Internet

8.4 3.1 2.9

Newspapers Magazines

1.9 1.9

EU-5 11.5 11.8

10.5 10.0

7.4 7.7

10.3

6.7 5.5

2007* 2006

†

2.4 2.5 1.7 1.8

*Base: 1,995 Dutch consumers † Base: 1,296 Dutch consumers

Source: ECTAS Q2 2006 Benchmark Survey and European Technographics® Benchmark Survey, Q2 2007 44502

© 2008, Forrester Research, Inc. Reproduction Prohibited

Source: Forrester Research, Inc.

August 13, 2008

3

4

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

Figure 1 Television Is Still Dutch Consumers’ Favorite Media (Cont.)

1-3 Online Dutch consumers have increased their TV consumption “How much time do you spend on average per week doing each of the following?”

TV

11.2

Internet

10.6

Radio

10.7 10.2

11.8

2.9 2.5

Newspapers

EU-5 11.6 12.2 10.3 8.7 7.9 8.6

2007* 2006†

1.8 1.7

Magazines

12.5

2.3 2.6 1.7 1.9

*Base: 1,680 Dutch online consumers † Base: 892 Dutch online consumers

Source: ECTAS Q2 2006 Benchmark Survey and European Technographics® Benchmark Survey, Q2 2007 Source: Forrester Research, Inc.

44502

Figure 2 Online Consumers Are Part Of The Mainstream Dutch Net consumer 2007 Female 48% 42 Age

Dutch Net Dutch consumer consumer 2006* 2007 48% 51% 38 46

Income

Lower Middle Upper

21% 34% 41%

23% 51% 19%

26% 33% 37%

Education

Lower Middle Higher Broadband

19% 45% 35% 89%

25% 51% 34% 82%

24% 43% 32% 76%

Base: 2,011 Dutch online consumers *Base: 899 Dutch consumers (“Don’t know” answers have been excluded) Source: (ECTAS) Q2 2006 Benchmark Survey and European Technographics® Benchmark Survey, Q2 2007 44502

August 13, 2008

Source: Forrester Research, Inc.

© 2008, Forrester Research, Inc. Reproduction Prohibited

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

Figure 3 Younger Dutch Consumers Spend More Time Browsing The Internet Than Watching TV 3-1 Nearly 100% of Dutch consumers under 35 use the Internet

“Which media do you use?”

TV

100%

Newspapers Radio

80%

Magazines

60%

40%

Internet 16 to 24

25 to 34

35 to 44

45 to 54

55 to 64

65 and older

Base: 2,011 Dutch consumers (multiple responses accepted) 3-2 Dutch consumers under 25 spend more time with Internet than with TV

“On average, how much time do you spend per week using the following media?”

20 15 TV Radio Newspapers

10 5 0

Internet Magazines 16 to 24

25 to 34

35 to 44

45 to 54

55 to 64

65 and older

Base: 1,995 Dutch consumers Source: European Technographics® Benchmark Survey, Q2 2007 44502

© 2008, Forrester Research, Inc. Reproduction Prohibited

Source: Forrester Research, Inc.

August 13, 2008

5

6

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

INTEGRATED MARKETING: TRADITIONAL MEDIA GIVE REACH; THE NET ADDS IMPACT Nearly all Dutch consumers use the Internet, and younger consumers spend more time surfing the Web than watching television. What does it mean for marketers? Forrester believes that advertisers should apply a consumer-centric media strategy that doesn’t focus on which media to buy but on what customers do.5 To get a better understanding of Dutch consumers’ media behavior along their purchase journey, we’ve looked at three scenarios: 1) “Tim” is a self-directed financial services consumer who wants to purchase stocks; 2) “Reineke” is a beauty-conscious woman who’s about to buy her first anti-wrinkle cream; and 3) “Niek” is a consumer electronics fan who is looking to replace his old TV with a new plasma screen.

1) Which Media Does Tim, Our Self-Directed Financial Services Consumer, Use? Tim is a self-directed consumer who likes to research and make financial decisions without the help of an advisor (see Figure 4-1).6 He is likely to earn a higher income and to surf on broadband. This is how advertisers such as Rabobank can reach Tim:

· Use the Internet and television to create awareness. The Internet is Tim’s favorite media (see

Figure 4-2). While other consumers spend as much time with television and the Web, our self-directed customer devotes an average of 14 hours per week to his favorite sites, compared with 12 hours to television. Banks like Postbank that want to get Tim’s attention will prioritize the Internet in their media mix and couple it with television. They should look at what North American insurer State Farm has achieved by putting the online medium at the center stage of its “Now What?” campaign and adding the power of TV to it.7

· Focus on the Web and newspapers to develop preference. Unlike their European counterparts who rely on both the Internet and newspapers for information about personal finance, Dutch consumers tend to turn to the Web first. Advertisers in the finance industry should focus on making it easy for their Dutch consumers to find the information they will look for online, starting with their secure Web sites.8 They should look at organizations like Finnish OP Bank that designed its secure site so that specific banking functionalities blend with product and service content that consumers typically find on the public site.9

· Integrate offline and online channels. Dutch consumers’ retail banking behavior looks nothing

like that of other European banking customers. They are as likely to walk to an offline branch as to pick up the phone or go online to finalize their purchases. Clients like Tim will be slightly more likely to buy on the Internet, while other Dutch consumers will be more likely to visit a branch. Dutch financial players should integrate their branches and their Web sites. They should deploy “high-tech, high-touch” experiences, such as personal finance planning tools, Internet phone calls direct to product advisors, or instant messaging customer services to help online users with complex decisions.10 They will also want to follow the example of ABN Amro, which actively promotes online banking in its branches.11

August 13, 2008

© 2008, Forrester Research, Inc. Reproduction Prohibited

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

Figure 4 Dutch Consumers Like Tim Favor The Internet Over Television 4-1 How to reach Tim, 43-year-old, self-directed financial services consumer* Average Average financial Dutch services Tim consumer customer† 43 43 46 Age Yes 55% 49% Male Tim is likely to be an educated higher earner 47% 45% 37% Upper income who surfs on broadband.

45% 39% 32% Higher education 94% 88% 84% Online 91% 82% 76% Broadband Base: 2,011 Dutch consumers *We define “self-directed financial services customer” as a consumer who likes to make his financial services decisions without the help of an advisor. † We define the “average financial services customer” as a consumer who’s purchased a financial product or service in the past 12 months.

4-2 Which media does Tim use?

Awareness

Familiarity

Consideration Preference

Purchase

Loyalty

“In average, how much time do “Which are the top three media “What was the main way you used to you depend on for information buy your most recent financial you spend per week using the following media?” about financial services products?” services purchase?” (top three) Tim Average financial services consumer 12.5 12.3

TV

14.4 12.3

Internet

10.5 10.9

Radio Newspapers Magazines

3.0 2.9 1.7 1.8

19% 18%

TV

Newspapers Magazines

22% 27%

Online

29% 23%

59% 50%

Internet Radio

In a branch

4% 4% 30% 24% 18% 15%

By phone/post

24% 24%

Base: 805 Dutch financial services consumers Source: European Technographics® Benchmark Survey, Q2 2007 44502

© 2008, Forrester Research, Inc. Reproduction Prohibited

Source: Forrester Research, Inc.

August 13, 2008

7

8

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

2) Which Media Does Reineke, Our Active Cosmetics Customer, Use? Reineke is a 31-year-old, beauty-conscious woman who’s looking for her first anti-wrinkle cream.

She is a broadband user who is likely to earn more than the average Dutch cosmetics buyer (see Figure 5-1). Beauty firms like Oil of Olaz — as Oil of Olay is known in the Netherlands — can promote their anti-wrinkle products range to Reineke by:

· Investing in television and the Net to build awareness. Reineke surfs on her favorite sites for

a weekly average of 11 hours, against 9 hours for the average Dutch cosmetics customer (see Figure 5-2). That makes the Internet her second favorite media, after television and before radio.

To raise awareness with Reineke, brands like L’Oreal Paris should look at what advertisers have done online — for example, Dove’s pro-age campaign, which cleverly mixed the Internet with television to promote ageless beauty.12

· Advertising in magazines, on TV, and on the Net to develop preference. As in other European countries, magazines remain the main source of information for beauty. As Dutch cosmetics clients also tend to use advertising as a way to keep track of what’s hot, it is no surprise that 42% of beauty-conscious women like Reineke will also rely on television to develop preference.13 Thirty-six percent will use the Internet as a complementary source and are likely to share the product information they find with peers. To capture these dynamics, brands like Nivea should invest in word-of-mouth marketing, as Suave did for its “Say yes to beauty” campaign.14

· Keep investing in trade marketing to ensure that Reineke buys their brand. Although

Reineke is a more intensive Net user than her peers, she is still not used to buying her cosmetics products online. Instead, she is very likely to go to her favorite Dutch retailer, like Douglas. As the Dutch online cosmetics market will reach €500 million by 2011, cosmetics brands should follow the steps of advertisers like Procter & Gamble that encourage their costumers to first go on the Net by featuring URLs on all packages and ads.15 Incentives to buy online, like special Web-only promotions, should help conversion rates.

August 13, 2008

© 2008, Forrester Research, Inc. Reproduction Prohibited

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

Figure 5 The Online Channel Is Not Yet A Priority For Dutch Beauty Consumers 5-1 How to reach Reineke, 31-year-old, active cosmetics costumer*

Reineke 31 Average age Yes Female 43% �pper incom e Middle education Online Broadband

60% 98% 88%

Average cosmetics customer* 44 71%

Average Dutch consumer 46 51%

43%

37%

47% 86% 76%

43% 84% 76%

Reineke is likely to be a higher earner and a broadband user.

Base: 2,011 Dutch consumers *We define “active cosmetics costumer” as a consumer who’s purchased cosmetics products in the past month.

5-2 Which media does Reineke use?

Awareness

Familiarity

Consideration Preference

Purchase

Loyalty

“On average, how much time do “Which are the top three media “What was the main way you used to you depend on for information buy your most recent cosmetics you spend per week using the following media?” about cosmetics products?” purchase?” (top three) Reineke Average cosmetics consumer

11.9 12.3

TV

11.2 9.4

Internet

9.3 10.0

Radio Newspapers Magazines

1.5 2.8 1.5 1.8

42% 43%

TV

36% 23%

Internet Radio 2% 2% Newspapers Magazines

90% 88%

In a shop

3% Online 2%

12% 17% 60% By phone/ 50% post/catalog

5% 5%

Base: 374 active Dutch cosmetics consumers Source: European Technographics® Benchmark Survey, Q2 2007 44502

© 2008, Forrester Research, Inc. Reproduction Prohibited

Source: Forrester Research, Inc.

August 13, 2008

9

10

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

3) Which Media Does Niek, Our Consumer Electronics Fan, Use? Niek is a 37-year-old consumer electronics fan who recently bought an electronics product and generally feels comfortable using technology products (see Figure 6-1). How can advertisers like Sony interact with Niek when he’s ready to buy his new plasma TV?

· Appear on the Internet and TV to be on Niek’s mind. Niek is even more of an Internet fan

than Tim, with a weekly average of 16 hours spent browsing the Web (see Figure 6-2). That’s 3 hours more than what he dedicates to watching television and 5 hours more than the time he devotes to listening to the radio. Manufacturers of researched goods like Panasonic that want to increase their brand awareness with consumers like Niek should try to get more out of their online campaigns, by using new ad targeting techniques such as behavioral targeting.16

· Focus on the Internet to make Niek stick with your brand. Seventy percent of customers

like Niek will rely on the Web as their prime source of information for consumer electronics, compared with less than half of other buyers. Brands like Samsung should invest aggressively in natural and paid search to make sure Niek finds his way to their products when searching for the TV set best suited for his budget and technical needs.17 They will also want to provide practical tools like a side-by-side product features and prices comparison engine, as well as online customer services such as click-to-callback or online FAQ communities.18

· Increase cross-channel interactions. To acquire his new plasma TV, Niek is still very likely to

go to one of his favorite retailers. However, 18% of Dutch consumers like Niek have already bought directly on the Internet. By 2011, the eCommerce market for consumer electronics will be one of the most dynamic segments in the Netherlands: Together with leisure travel and clothing, electronics products will generate half of the revenues online.19 Specialized retailers like Jumbo should focus on allowing their customers to choose the channel most relevant to their needs and help them transition from one channel to another.20

August 13, 2008

© 2008, Forrester Research, Inc. Reproduction Prohibited

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

Figure 6 The Internet Is The Main Source Of Product Information For Users Like Niek 6-1 How to reach Niek, 37-year-old, active consumer electronics fan*

Niek

Average consumer electronics customer†

Average Dutch consumer

37 Yes

44 52%

46 49%

44%

40%

Online

44% 98%

44% 89%

Broadband

94%

82%

37% 43% 84% 76%

Age Male Upper income Middle education

Niek is likely to be a higher earner who surfs on broadband.

Base: 2,011 Dutch consumers *We define “consumer electronics fan” as a consumer electronics buyer who feels comfortable using technology products. † We define “average consumer electronics customer” as a consumer who has recently purchased a consumer electronics product.

6-2 Which media does Niek use?

Awareness

Familiarity

“On average, how much time do you spend per week using the following media?”

Consideration Preference

Purchase

Loyalty

“Which are the top three media you depend on for information “What was the main way you used to about consumer electronics buy your most recent electronics products?” purchase?” (top three) Niek Average consumer electronics buyer

13.2 12.5

TV

16.1 11.0

Internet

11.9 10.7

Radio Newspapers Magazines

TV

2.6 3.1 1.6 1.9

Internet

36% 30% 48%

Radio 2% 3%

70% Online

Newspapers

30% 32%

Magazines

33% 30%

70% 75%

In a shop

18% 12%

By phone/ 4% post/catalog 3%

Base: 1,729 active Dutch consumer electronics buyers Source: European Technographics® Benchmark Survey, Q2 2007 44502

© 2008, Forrester Research, Inc. Reproduction Prohibited

Source: Forrester Research, Inc.

August 13, 2008

11

12

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

R E C O M M E N D AT I O N S

MATCH YOUR MEDIA STRATEGY WITH YOUR DUTCH CUSTOMERS’ INTERNET ADOPTION This is what marketers who include the Netherlands in their European media strategy should do:

· Find out how your Dutch clients combine the Net with traditional media. Dutch consumers are among the most sophisticated Internet users in Europe. For most, the Internet has become a major channel to develop awareness and preference. Before setting media budgets, advertisers of all consumer products ranging from cars to soap, should make an in-depth analysis of the media consumption profile along the purchase funnel of their particular target audience. The key is to uncover how their specific clients combine the Internet with television, radio, print, or information they collect in store, rather than looking at these media in isolation.

· Investigate your consumers’ use of social media. In 2007, more than half of online Dutch consumers engaged in social media activities, more specifically in networking, blog publishing, and video sharing.21 Marketers should investigate their consumers’ social media behavior. What these social Dutch consumers do online will differ from one person to another. Use Forrester’s Social Technographics® information to find out what your customers are doing on the Internet and develop a strategy accordingly to achieve your marketing objectives.

· Improve cross-channel interactions with Experience-Based Differentiation. The Net has become a key media in Dutch consumers’ purchase cycles. To increase the chances their brand makes it to their shortlist, advertisers should apply Experienced-Based Differentiation, i.e., “a systematic approach to interacting with customers that consistently builds loyalty.”22 They should enable their customers to choose the channel most suitable to their needs and make it easy to transition from one to another. That involves having an integrated and consistent view of your consumers across all available channels, whether offline or online.

August 13, 2008

© 2008, Forrester Research, Inc. Reproduction Prohibited

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

SUPPLEMENTAL MATERIAL Methodology We drew this data from Forrester’s European Technographics Benchmark Survey, Q2 2007, which surveyed 24,808 consumers aged 16 and above in the eight markets of France, Germany, Italy, the Netherlands, Poland, Spain, Sweden, and the UK. TNS fielded this survey in March, April, and May 2007, and motivated respondents with various incentives.

We also based this report on Forrester’s Consumer Technographics Q4 2004 European Study, which surveyed 18,423 consumers across the UK, France, Germany, Italy, and Spain. Forrester Research fielded this survey between September and October 2004.

ENDNOTES 1

In 2007, 84% of Swedish consumers used the Internet for personal or work purposes. Source: European Technographics® Benchmark Survey, Q2 2007.

2

In 2004, 44% of consumers in France, Spain, and Italy used the Internet for personal or work purposes.

In 2007, that percentage had increased to 54% of Southern European consumers. Source: European Technographics Benchmark Survey, Q2 2007.

3

There is still huge potential for growth in Western European residential broadband adoption, despite a slowdown in the majority of national markets. Forrester sees 44% household penetration at the end of 2007 and forecasts a rise to 71% by the end of 2013. See the December 12, 2007, “Western European Residential Broadband Forecast: 2008 To 2013” report.

4

At the end of 2007, the Netherlands and Scandinavia continue to be broadband leaders; Germany, the UK, France, Austria, Switzerland, Belgium, and Luxembourg follow as middle-of-the-road countries; and laggards Greece, Ireland, Italy, Portugal, and Spain trail. See the December 12, 2007, “Western European Residential Broadband Forecast: 2008 To 2013” report.

5

Current strategies for allocating marketing resources come up short in two respects: 1) They do little to help marketers deliver a high return on their investments, and 2) they fail to account for consumers’ rapidly changing behaviors and media consumption. Left Brain Marketing Planning provides a customer-based, marketer-led, data-driven way to decide which marketing resources — not just media — to invest in. See the May 16, 2005, “Left Brain Marketing Planning” report.

6

Self-directed financial services consumers are the savviest of the four types of financial consumer Forrester identified. They typically take a strong interest in their personal finances, understand financial products well, like to be in control, and believe that they can find good deals by shopping around. See the January 13, 2006, “Segmenting Financial Consumers” report.

7

In August 2006, insurer State Farm launched the unbranded “Now What?” campaign. Television commercials first showed unexpected every day life incidents, such as a car being crushed by a mountain rock or a ring being lost in a kitchen sink, triggering the unfortunate victims to wonder: “Now What?” All TV spots

© 2008, Forrester Research, Inc. Reproduction Prohibited

August 13, 2008

13

14

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

redirected to the Nowwhat.com Web site, where consumers could engage with the brand and discover how State Farm could help. In five months, Nowwhat.com received 1.7 million clicks, and the number of auto policies signed by younger adults, the core target of that campaign, exceeded State Farm objectives.

8

In 2007, 63% of Dutch self-directed consumers looked at their main banks’ Web sites first when searching for information about financial products or services. Thirty-eight percent also went to independent review sites. Source: European Online Financial Services Survey, Q4 2006.

9

Are European banks frustrating or delighting their customers within their secure, online banking Web sites? To find out, we analyzed the Web sites of 11 major European banks using Forrester’s Competitive Site Assessment methodology. See the March 12, 2008, “2008 European Bank Secure Web Site Rankings” report.

10

Dutch banks have successfully pushed customers to self-service channels for simple transactions. But with one of the lowest rates of branch visits in Europe, Dutch banks are losing touch with their customers.

Dutch banks should take advantage of the Netherlands’ high broadband penetration to deploy technologies like chat that help create a personal touch with online customers and thus boost product sales. See the September 9, 2005, “How Dutch Consumers Use Banking Channels” report.

11

Banks need to reach out to mainstream consumers by reassuring them about Internet banking security and demonstrating online functionality in the branch. See the November 1, 2005, “How Spanish Consumers Use Banking Channels” report.

12

After the success of its “Campaign for real beauty,” Dove decided to venture outside of its natural market segment, in the competitive anti-aging products arena. The company launched its “pro-age” campaign in North America and in Europe, celebrating beauty beyond age rather than promoting products meant to fight aging. Television commercials created awareness around the new pro-age products line and referred to the pro-age Web site to spark the debate around beauty and age.

13

Seventy-one percent of online consumers like Reineke consider advertising a good way to learn about new products. Source: European Technographics Online Media, Marketing, And Retail Survey, Q3 2007.

14

Eighty-nine percent of moms in the US admit they have let themselves go. The average mom ranks doing the floors higher than doing her hair. Beauty brand Suave decided to help mothers regain control of their beauty. In addition to advertising on television and in magazines, the brand also used the Internet as a central medium in order to trigger word of mouth. It started an online comedy, “In the motherhood,” that asked for consumers’ participation in order to influence the series plot. The company also re-launched its Web site to engage its clients in a dialogue about how to best get their beauty back.

15

Today, Dutch eCommerce leads the Benelux, with more than €3 billion in online retail sales forecast for this year. In five years, total online sales in the Netherlands will reach €12 billion, which will keep the country as one of the top five eCommerce players in Europe — behind Italy but ahead of Spain. In 2011, more than half of the Dutch adult population will buy holidays, clothes, and electronics via the Internet. See the September 20, 2006, “Dutch eCommerce Forecast: 2006 To 2011” report.

16

Although adjusting ad units can make an ad more noticeable and likewise increase click-throughs, simply tracking click-throughs is an incomplete measure of a display campaign’s value. Plus, advertisers asking only “what online ad formats work?” do not consider all of the different influences that may be affecting how well their ads deliver. See the April 30, 2008, “Getting More Out Of Online Ads” report.

August 13, 2008

© 2008, Forrester Research, Inc. Reproduction Prohibited

The Impact Of The Internet On Dutch Consumers’ Media Behavior For Marketing Leadership Professionals

17

Search marketers today appear to be investing in the medium, and yet most marketers’ search experience is anemic — lacking keyword volume, structure, and sophistication. With keyword costs on the rise and search engine real estate growing scarce, interactive marketers who just dally with search will find themselves overpaying for lackluster results. See the August 20, 2007, “Get Serious With Search Marketing” report.

18

The consumer electronics industry features some of the most recognized brand names in the world, like LG, Panasonic, Philips, Samsung, and Sony. But how good is the brand experience offered by major consumer electronics Web sites? To find out, we graded the sites of five top brands on how well they communicate their Brand Image and deliver value to consumers (Brand Action). See the November 30, 2007, “Best And Worst Of Branding Building Web Sites, 2007: Consumer Electronics” report.

19

Today, Dutch eCommerce leads the Benelux, with more than €3 billion in online retail sales forecast for this year. In five years, total online sales in the Netherlands will reach €12 billion, which will keep the country as one of the top five ecommerce players in Europe — behind Italy but ahead of Spain. In 2011, more than half of the Dutch adult population will buy holidays, clothes, and electronics via the Internet. See the September 20, 2006, “Dutch eCommerce Forecast: 2006 To 2011” report.

20

They will want to integrate their customers’ databases to obtain a consistent view of their clients. A consumer who’s looked for more information about a selection of plasma TVs in store or on the phone should be able to access the information he’s collected with the help of sales agents once he goes online. See the February 16, 2007, “Best And Worst Of Cross-Channel Design, 2007” report.

21

In the Netherlands, 54% of online consumers are active social users, one of the highest participation rates in Europe along with Sweden. See the February 26, 2008, “European Social Technographics® Revealed” report.

22

With more access to information, more sensitivity to price, and less sensitivity to advertising, customers are getting harder to win and keep. Firms need to dramatically raise the bar on the customer experience they provide. How? By adopting what Forrester calls Experience-Based Differentiation (EBD). This enterprisewide effort focuses on three principles: 1) obsess about customer needs; 2) reinforce brands with every interaction; and 3) treat customer experience as a competence, not a function. See the January 2, 2007, “Experience-Based Differentiation” report.

© 2008, Forrester Research, Inc. Reproduction Prohibited

August 13, 2008

15

Making Leaders Successful Every Day Headquarters

Research and Sales Offices

Forrester Research, Inc.

Australia

Israel

400 Technology Square

Brazil

Japan

Cambridge, MA 02139 USA

Canada

Korea

Tel: +1 617.613.6000

Denmark

The Netherlands

Fax: +1 617.613.5000

France

Switzerland

Email: forrester@forrester.com

Germany

United Kingdom

Nasdaq symbol: FORR

Hong Kong

United States

www.forrester.com

India For a complete list of worldwide locations, visit www.forrester.com/about.

For information on hard-copy or electronic reprints, please contact the Client Resource Center at +1 866.367.7378, +1 617.617.5730, or resourcecenter@forrester.com.

We offer quantity discounts and special pricing for academic and nonprofit institutions.

Forrester Research, Inc. (Nasdaq: FORR) is an independent technology and market research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. For more than 24 years, Forrester has been making leaders successful every day through its proprietary research, consulting, events, and peer-to-peer executive programs. For more information, visit www.forrester.com.

44502