1) The document discusses how social media usage is growing, especially among younger users, and how it is currently used to connect with friends and family as well as make purchases based on recommendations. 2) It examines users' preferences for accessing social media through computers at home rather than other devices and locations. Many remain skeptical about more integrated social media experiences. 3) The conclusion is that most believe social media will become more integrated into peoples' lives in the future and profoundly impact how people interact both personally and professionally.

1. NEW YORK • WASHINGTON • DENVER • SEATTLE • LOS ANGELES • SAN FRANCISCO • AUSTIN• LONDON • HONG KONG • BEIJING • DUBAI
A MORE SOCIAL FUTURE:
HOW THE GROWTH OF SOCIAL
MEDIA WILL IMPACT CONSUMER
ELECTRONICS
JANUARY 2010
©PENN, SCHO EN & BERLAND ASSO CIAT ES, LLC.

2. A MORE SOCIAL FUTURE
WHO USES SOCIAL MEDIA AND WHO DOESN’T
•
• Social media is becoming ubiquitous, though usage is still driven by younger users
• Those who have not yet created a profile say they don’t feel the need to broadcast their lives
WHAT SOCIAL MEDIA IS USED FOR NOW – AND WHAT IT WILL BE IN
THE FUTURE
• Social media today is about making friends and about staying in touch with family
• It’s also about purchasing: 31% of social media users have made purchases based on social
media recommendations received from friends or family
WHERE PEOPLE WANT TO ACCESS SOCIAL MEDIA – AND WHERE
THEY’D RATHER NOT
• Users prefer to access their networks through their computers, mostly at home
• Consumers as a whole remain skeptical about engaging with social media networks on
devices beyond a computer.
THE BOTTOM LINE
• 6 in 10 believe social media will become more integrated into our lives, meaning big
changes are on the way.
1
Penn Schoen Berland conducted 1012 Internet interviews among the US general population aged 18
and over from December 18-19, 2009. Overall the margin of error is +/-3.1%, or larger for subgroups.
1
2
3
4

3. WHO USES SOCIAL MEDIA
AND WHO DOESN’T

4. WHO USES SOCIAL MEDIA NETWORKS
3
Have you ever created an account for a social media network
(Examples include Facebook, MySpace, LinkedIn, Twitter)?
57
78
92
74
43
22
8
26
50+
35-49
18-34
All
Yes No
Nearly three in four respondents report having created an account with a social
media network, including 92% of 18-34 year olds.

5. WHO USES SOCIAL MEDIA NETWORKS?
4
Social media users describe themselves as less private people than do non-users;
they also like being in groups and enjoy interacting online more.
SMN User SMN Non-User
Are you usually…
Very social 47 42
Rather quiet and reserved 53 58
Are you generally…
A private person 59 65
An open person 41 35
Are you generally…
Very shy person 41 42
Very outgoing person 59 58
Do you prefer…
Interacting in person 67 84
Interacting online 33 16
Do you prefer…
Being alone 61 74
Being in a large group of people 39 26
In a large group, do you more often…
Introduce others 43 40
Get introduced 57 60

6. WHY PEOPLE DON’T USE SOCIAL MEDIA
5
Why have you not created an account? Open End response, Asked among non-SMN users
4
5
9
11
12
14
14
14
22
24
27
33
60
Other
Security concerns/Not safe
I don’t feel people my age are welcome
None of my friends/family use it
It's too trendy
It does not seem reliable
I don’t think the content is compelling
I don’t understand how to use social media networks
I don’t understand the point of social media networks
I don’t have enough time to devote to it
I don’t believe it is a genuine way of relating to others
It's a waste of time
I don’t feel the need to broadcast my life
60% of those who have not dipped their toes into the water say it’s because they
don’t feel the need to broadcast their lives.

7. WHAT SOCIAL MEDIA IS USED FOR NOW
– AND WHAT IT WILL BE IN THE FUTURE
©PENN, SCHO EN & BERLAND ASSO CIAT ES, LLC.
6

8. SOCIAL NETWORKS’ PRIMARY USES
7
What do you primarily use social media networks for? Asked among SMN users
Respondents say they primarily turn to online networks to communicate with
friends and family members.
• Women are more interested than men in using social media to communicate with others and keep up with
events in their lives, while men are more interested in keeping up with news events, finding interesting
articles and doing research.
68
61
50
20
15 14
66
54
46
26
18 17
71 68
54
15 13 11
0
10
20
30
40
50
60
70
80
Communicate with
friends
Communicate with
family members
Keep up with
events in my
friends' lives
Keep up with news
events
To find interesting
articles and items
on the Internet
filtered through
people I trust
To do research
All Male Female

9. SOCIAL MEDIA: A FAMILY AFFAIR
8
Which of the following people are you connected with on social media networks? Multiple responses
permitted, asked among SMN users
Surprisingly, many more users report being connected to family members on
social media networks as compared to friends.
8
8
12
16
23
25
32
45
51
59
79
Job recruiters
Bosses
Teachers/professors
Romantic interests
Colleagues from current job
Partner/spouse
Colleagues from a previous job
Friends met online
Classmates
Friends met offline
Family

10. SOCIAL MEDIA’S IMPACT ON FRIENDSHIPS
9
Social media networks have established themselves as venues for the formation of friendships,
and users generally believe that they will continue to serve this purpose in the future.
• In contrast, only 7% of users report having lost friends as a result of participation in social
media
Asked among SMN users
Yes
61
No
37
Have you made new friends through social media networks?
Yes
56
DK
16
No
29
Do you plan on making new friends in the future through social
media networks?
Yes
7
No
91
Have you lost friends because of social media networks?
Yes
21
DK
14
No
65
Do you think you could potentially lose friends in the future
because of social media networks?

11. SOCIAL MEDIA’S IMPACT ON JOB HUNTING
10
While only 6% of users have already found a job through social media networks, 47% believe it
is possible in the future.
• 16% of social media users believe these networks could lead to a job loss at some point in
the future.
Asked among SMN users
Yes
6
No
94
Have you ever found a job through social media networks?
Yes
47
DK
21
No
33
Do you think you could potentially find a job in the future
through social media networks?
Yes
16
DK
9
No
75
Do you think you could potentially lose your job in the future
because of social media networks?

12. SOCIAL MEDIA’S IMPACT ON DATING
11
Only 14% of social media users have gone out on a date with someone they’ve met on one of
their networks – but 29% say that its possible in the future.
Asked among SMN users
Yes
14
No
86
Have you ever gone out on a date with someone you met on a
social networking website?
Yes
29
DK
12
No
59
Do you think you could potentially go out on a date with
someone you met on a social networking website?

13. SOCIAL MEDIA’S IMPACT ON PURCHASE DECISIONS
12
Have you ever made any purchases based on recommendations you have received
through friends or family on a social media network? Asked among SMN users
31% of social media users have made purchases based on recommendations
they’ve received from friends or family through social media.
• Including 43% of 18-34 year olds.
31
65
43
51
34
61
12
87
0
10
20
30
40
50
60
70
80
90
100
Yes No
All 18-34 35-49 50+

14. SOCIAL MEDIA’S IMPACT ON PURCHASE DECISIONS
13
In general, do you think recommendations received from a social media network are
better, worse or the same than more traditional means of recommendations?
68% of all respondents believe that recommendations received from a social media
network are the same or better than recommendations from traditional methods.
• 33% of 18-34 year olds think that such recommendations are better than
traditional ones.
18
50
13
33
47
9
17
55
13
6
47
15
0
10
20
30
40
50
60
Better The same Worse
All 18-34 35-49 50+

15. WHERE PEOPLE WANT TO
ACCESS SOCIAL MEDIA –
AND WHERE THEY’D
RATHER NOT
©PENN, SCHO EN & BERLAND ASSO CIAT ES, LLC.
14

16. 96
18
14 11
7 6 5 5
95
26 27
21
16
11 10 9
96
19
8 6 3 5
1 3
96
5 5 3 1 2 2 1
0
10
20
30
40
50
60
70
80
90
100
Home Work At a friend's
house
Library Internet Café In a car At a restaurant On public
transportation
All 18-34 35-49 50+
SOCIAL MEDIA IS MOSTLY ACCESSED FROM HOME
©PENN, SCHO EN & BERLAND ASSO CIAT ES, LLC.
15
In what locations do you primarily access social media networks? Asked among SMN users
Users overwhelmingly prefer to access the services at home.
• Younger users report higher incidences of use in other venues than do members
of other age cohorts.

17. PREFERRED SOCIAL MEDIA DEVICES:
NOW AND IN THE FUTURE
16
Do you use these to access social
media networks? Asked Among
SMN users who own each specific
product; Showing Access
Social media users currently prefer to access their networks through computers.
• Though networks have made concerted efforts to create applications that allow access through
Smartphones, 36% of users who own these devices do not use them to access social media.
• Just 1 in 3 think it’s likely that they’d use a social media capability if it existed on their television.
88
85
69
64
57
26
22
19
19
Desktop Computer
Laptop Computer
Netbook Computer
Smartphone
MID (Mobile Internet Device)
Mobile Phone
Blu-Ray Player
Video Game Console
Portable Game System
69
64
46
45
44
33
31
29
28
Desktop Computer
Laptop Computer
Netbook Computer
Smartphone
Mobile Phone
Television
MID
MP3 Player
Video Game Console
If the following device had the capability to
access social media networks in the future,
how likely would you be to use that
capability on this device? Showing Likely

18. 55
18
18
16
6
4
5
I would rather access social media networks
from a computer
Waste of time
I am not comfortable being connected to social
media networks at all times
Not happy with the user interface of social
media network applications for Smartphones
Unreliable network
Cost / Additional fees to use
Others
SMARTPHONE OWNERS PREFER ACCESSING
SOCIAL MEDIA THROUGH COMPUTERS
17Asked among those who own a Smartphone, are SMN users but do not access SMN on their Smartphone
83% of social media users who own Smartphones say that given the choice, they
would prefer to access their networks through a computer.
• Notably for social media companies, 16% say it’s because they are unhappy with the mobile user
interfaces.
Smartphone Computer16 83
If you could choose to access social media networks through a
Smartphone or Computer, which would you prefer?
Asked among SMN users and Smartphone owners
Why do you not access social media networks on your Smartphone?

19. SOCIAL MEDIA INTEGRATION
INTO OPERATING SYSTEMS
18
Consumers are also skeptical about social media integration into their operating
systems, though nearly 1 in 5 of social media network users have integrated one
or more of their social media accounts into their customizable web page such as
iGoogle or My Yahoo.
Yes
27
DK
14
No
60
Would you be interested in having a social media network
integrated into your operating system?
38 58
Do you use a customizable web page from a major web
company? (Examples include iGoogle or My Yahoo)?
17 81
Have you integrated any of your social media network
accounts into your customizable web page (Examples include
iGoogle or My Yahoo)? Asked among SMN users

20. SOCIAL MEDIA IN A VIDEO GAME?
19
Yes
24
No
76
Do you play videogames on a console online over the Internet?
Yes
28
No
70
Was the online experience a key part of your decision to purchase a
videogame console? Among those who own a video game console
24% of consumers play videogames on a console over the Internet.
• 28% of video game console owners say that the online experience was a key part of their
purchase decision.
• 28% of gamers who use consoles to play online have linked their gamer identity to a social
media network.
Yes
28
No
68
Do you link your gamer identity to any social media networks? Among SMN
users and those who play video game consoles online over the Internet

21. MYSPACE IS THE PLACE FOR MUSIC
20
35% of SMN users have listened to music through one of the networks – a rate
driven by MySpace, besting Facebook as well as more music-focused competitors
such as Last.fm and new arrival Lala, whose clips are now being served in Google
searches.
71
51
16
7 4 5
MySpace Facebook Last.fm Lala YouTube Others
Which social networking media website do you listen to music on? Multiple responses permitted; Among SMN
users who have integrated music websites into their social media networks
Do you listen to music through a social media network? Among SMN users
Yes
35
No
63
Have you integrated any music websites into your social media networks? Among SMN users
Yes
17
No
81

22. MUSIC INDUSTRY WON’T
FIND ANSWERS IN SOCIAL MEDIA
21
One third of social media users say that they are interested in listening to their
music through their networks.
• But the ailing music industry will not find a lifeline in social media, as 55% of users say that
such integration will cause their purchase interest to decline.
Would you be interested in being able to listen to your music
through a social media network?
Yes
33
DK
11
No
57
30
30
15
25
45
55
More Interested
Less Interested
Somewhat Much
Would you be more or less interested in purchasing music if you
could link it to social media networks? Asked among SMN users

23. A QUICK CAVEAT:
SOCIAL MEDIA USERS VALUE PRIVACY
22
Please read the statements below about social media networks in general. Please indicate how much
you agree or disagree with them. Asked among SMN users, showing total agree
Although the majority say they use services to interact with others, privacy is still important to
social media network users.
• 92% report there are certain things that they do not share on social media networks.
• Only 34% say that they spend the majority of their time on such networks posting items about their own life.
27
34
37
52
59
62
63
63
65
73
92
I am willing to voice anything about my personal life on social
media networks
I spend most of my time on social media networks posting
things about my own life
If I had the availability I would always be on social media
networks
I use social media networks to learn about different products
I use social media networks to voice my opinions
I enjoy sharing reviews on social media networks
I prefer social media networks to communicate one on one
I prefer social media networks that are specific to certain
interests
I prefer to use social media to communicate with a large
network of people
I like to read about other people's lives
There are certain things that I do not share on social media
networks

24. BOTTOM LINE:
SOCIAL MEDIA’S IMPORTANCE WILL GROW
23Which of the following is closer to your view?
Social media networks are not a fad – respondents believe these sites will play an important
role in the future.
• 6 in 10 believe that social media networks will become more integrated into our lives
• 3 in 4 of those 18-34 feel this way.
29
68
44
61
74
53
63
58
43
17
32
20
17
24
23
24
SMN Non-User
SMN User
50+
35-49
18-34
Female
Male
All
In the future, social media networks will become more integrated into our lives
In the future, we will have become tired of the intrusion of social media networks into our lives

25. SUMMARY
Social media’s continued growth will profoundly affect
the personal and work lives of American consumers.
24
1
2
3
4
Social media recommendations will exert an increasing
influence over Americans’ purchase decisions.
Computers will remain the dominant device for
accessing social media, and home the dominant venue.
Mobile use will become increasingly popular as
Smartphone ownership rises and applications improve.
5 Even as social media becomes a first-order form of
interaction, privacy will remain paramount.

26. NEW YORK • WASHINGTON • DENVER • SEATTLE • LOS ANGELES • SAN FRANCISCO • AUSTIN• LONDON • HONG KONG • BEIJING • DUBAI
THANK YOU!
BETH LESTER
VICE PRESIDENT
BLESTER@PS-B.COM
202.375.1836